A Specialized Inventory Problem in Banks: Optimizing Retail Sweeps

Deposits held at Federal Reserve Banks are an essential input to the business activity of most depository institutions in the United States. Managing these deposits is an important and complex inventory problem for two reasons. First, Federal Reserve regulations require that depository institutions hold certain amounts of such deposits at the Federal Reserve Banks to satisfy statutory reserve requirements against customers' transaction accounts (demand deposits and other checkable deposits). Second, some inventory of such deposits is essential for banks to operate one of their core lines of business: furnishing payment services to households and firms. Because the Federal Reserve does not pay interest on such deposits used to satisfy statutory reserve requirements, banks seek to minimize their inventory of such deposits. In 1994, the banking industry introduced a new inventory management tool for such deposits, the retail deposit sweep program, which avoids the statutory requirement by reclassifying transaction deposits as savings deposits. This is an interesting inventory problem for fungible items, where the conversion process is reversible. We examine two methods for operating such sweeps programs within the limits of Federal Reserve regulations, and we develop a stochastic dynamic programming model to implement one such method, the threshold method.     

Race–gender Differences in Risk and Protective Factors among Youth in Residential Group Homes

Analysis reported here examined youth in residential group home placements in order to better understand how sexual behaviors, drug use, and environmental experiences differ by race and gender subgroups. Data were collected from 336 youth aged 14–21 residing in one of 41 group homes in Maryland. Chi square and logistic regression analyses were done to determine differences on study variables among the race-gender groupings. Results demonstrate not only significant health concerns overall but notable differences were also found between race-gender subgroups. Findings suggest that found race-gender subgroup differences might be informative for tailoring programming for youth of residential group home settings.     

On the construction of a class of efficient row-column designs

In this paper a method for the construction of a class of row-column designs with good statistical properties and high efficiency is presented. The class of designs produced is shown to exhibit balance, orthogonality and adjusted orthogonality. The efficiencies of these designs are investigated in detail, and they are shown to be very high, and possibly maximal in some cases.     

THE DIFFUSION OF MEDICAL TECHNOLOGY: SOCIAL NETWORK ANALYSIS AND POLICY RESEARCH

The purpose of this article is to demonstrate how social network analysis can be used to provide information for policy decisions pertaining to physicians' adoption and utilization of new medical technology. Interviews and hospital records were used to obtain data on refenals, consultations, discussions, and on-call coverage; utilization of a computer-based hospital information system; and personal and practice characteristics from 24 physicians who belong to a private group practice. The results of a block-model analysis suggest that the physician's relative position in the network is an important determinant of his/her participation in the diffusion process. A number of policy implications related to the introduction of new medical technology into practice settings are discussed.     

Religious Belief Transformation: A Study of This Worldly Religion*

The controversy over contemporary this worldly religious beliefs’social effects is reviewed. Critics of cultic religious degenerations and eroding moral consensus disagree with cultural relativists on the central themes of today's this worldly religions, their relation to more classical other worldly religious themes, and the appropriate group for evaluating this worldly religions’effects. These general issues are addressed through a content analytic study of the Transcendental Meditation Movement's belief system. Over a twenty-year span, other worldly Hindu themes were displaced by familiar this worldly religious themes, including this worldly benefits, practical utilitarianism, instrumentalized techniques, scientific authority, and God's accessibility for humanity's purposes. Religious belief transformation advanced as an integrated process interacting with movement organizational developments. Still, it is argued that criticisms of contemporary this worldly religions as causes of classical other worldly religious decline are spurious and obscure the integrative potential of minority religious beliefs.     

Moments of the sampled autocovariances and autocorrelations for a Gaussian white-noise process

Cumulants, moments about zero, and central moments are obtained for the mean-corrected serial covariances and serial correlations for series realizations of length n from a white-noise Gaussian process. All first and second moments (and some third, fourth, and higher moments) are given explicitly for the serial covariances; and the corresponding moments for the serial correlations are derived either explicitly or implicitly.     

A Cross‐National Investigation of the Relationship Between Infant Walking and Language Development

The acquisition of walking has recently been linked with infant language development (Walle & Campos, 2014). If this relation reflects the consequence of an epigenetic event, then it should be present regardless of when the infant typically begins to walk, the infant's culture, and the infant's native language. This study sought to replicate the previously reported link between walking and language development in American infants and investigate whether this relation exists cross‐nationally in typically developing Chinese infants exposed to Mandarin. Urban Chinese infants not only provide a distinct linguistic and cultural population in which to study this relation but also typically begin walking approximately 6 weeks later than American infants. Our results demonstrated that (1) walking infants in both the American and Chinese samples had greater receptive and productive vocabularies than same‐aged crawling infants, (2) differences between crawling and walking infants were proportionally similar in each sample, and (3) the walking‐language relation was present for both noun and non‐noun vocabularies. These findings provide further support of a relation between infant walking onset and language development, independent of age. Avenues for future research of the processes involved in this relation, as well as additional populations of interest to investigate, are discussed.     

An Interview with Franny Lee from SIPX

In this installment of Serial Conversations, Franny Lee, vice president of business development and cofounder of SIPX, is interviewed by Eric Hanson about the company's digital course material service for academic institutions and the evolving digital content marketplace.     

Exact calculation of power and sample size in bioequivalence studies using two one‐sided tests

The number of subjects in a pharmacokinetic two‐period two‐treatment crossover bioequivalence study is typically small, most often less than 60. The most common approach to testing for bioequivalence is the two one‐sided tests procedure. No explicit mathematical formula for the power function in the context of the two one‐sided tests procedure exists in the statistical literature, although the exact power based on Owen's special case of bivariate noncentral t‐distribution has been tabulated and graphed. Several approximations have previously been published for the probability of rejection in the two one‐sided tests procedure for crossover bioequivalence studies. These approximations and associated sample size formulas are reviewed in this article and compared for various parameter combinations with exact power formulas derived here, which are computed analytically as univariate integrals and which have been validated by Monte Carlo simulations. The exact formulas for power and sample size are shown to improve markedly in realistic parameter settings over the previous approximations. Copyright © 2014 John Wiley & Sons, Ltd.