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A car stereo company is planning to introduce a new product into the market. It faces stiff competition from two other organization with similar products. The company’s marketing manager has asked the production manager to perform a break-even analysis using three different price points. The marketing manager will use the results to set a price for the new product. Which type of method is a break-even analysis? More Correct
Over the last three months, a small rural hospital has seen a sudden increase in the number of patients coming to the emergency room for non-emergency treatment. The hospital administrator wants to know why there is a sudden increase in demand and is considering three options to find out. Classify each method available to the administrator as qualitative or quantitative. Answer options may be used more than once or not at all. Select your answers from the pull-down list. More Correct
A local music store that hosts live music has been a very popular hangout for years. However, the owner is concerned that the increasing popularity of new methods of music delivery will soon make the business obsolete. The owner is considering building a small recording studio in the basement of the store. The nearest professional studio is 50 miles away, so a new studio may appeal to local musicians and increase foot traffic. The owner has all the costs of building the studio and also estimated how much revenue might increase due to the new studio (from studio rental fees, increased food and drink sales if more people come to the live music shows, etc.). The owner will use this information to determine net present value for the studio.
Which method of analysis should this owner use to make a determination? More Mistake
How should quantitative analysis improve subsequent decision making for a firm that wants to determine whether its revenue has been increasing or decreasing for the past 10 years? More Mistake
An employee working for the Highway Safety Department in Albany, New York has the job to predict the automobile accidents in Albany for the next year. The employee currently has monthly data on the following variables for the city of Albany: the number of automobiles registered, the sales of alcoholic beverages, and the rainfall in inches. How can this employee realistically predict the accidents in Albany for next year? More Correct
A marketing manager for a corporation that markets a broad range of food brands needs to plan a monthly marketing, advertising, and sales promotion budget for next year and is looking at monthly sales. One brand shows dramatic fluctuations in sales over the past three years. How should this manager use quantitative analysis to make budgeting decisions for this brand? More Quantitative Analysis Calculations and Data Interpretation - 20% of assessment EXEMPLARY Descriptive Statistics and Probabilities Review Correct
What is the probability of being in the youngest or oldest age categories and having a preference for positive hair styling ads? More Correct
A restaurant review blogger uses a product to collect
- the number of page views, date, and time of page views;
- the number of followers who are alerted by email each time the blogger posts a new restaurant review;
- the number of impressions (appearances onscreen) each visual advertisement earns each day or week;
- the number of times a visual ad is clicked and the user is taken to an outside website;
- the number of times a link is clicked and the user is taken to an outside website; and
- various audience characteristics such as use of a mobile or regular computer, the ZIP code (location) of the access device, and time of day the engagement occurred per user.
After 26 weeks of data collection, the blogger believes there is supporting evidence to charge fees for ad and link placement, which until now has been offered free to a dozen restaurants. Results are reflected in the graph below: What does the above graph indicate about new followers? More Mistake
A professor selected a recent sample of five students’ Introduction to Management midterm grades to perform an analysis. The grades selected were as follows: 70 85 98 70 82 What is the median of this data set? Less
What is the predicted value of Y? More Correct
What is the value of the following expression? 72 /3^4 More Using Graphs to Display and Interpret Data Review Correct
The histogram below represents the approximate weight in kilograms of bags scanned at the check-in counter for a flight on Thanksgiving Day. How many bags were scanned? More Correct
The histogram below represents the approximate number of packages processed by weight in pounds for a certain zip code at a local mail-sorting facility.
How many packages weighed between 34 and 50 lb inclusive? More Correct
A successful Mexican seafood restaurant in Texas has a single owner and a single location. The owner is debating the next step for the business. The owner thinks that opening only a couple of new locations in the area could help maintain the customers’ perception of a unique local restaurant, which has been part of its success. On the other hand, franchising the restaurant could drive rapid economic growth and therefore develop an image as a regional restaurant. It is also possible that a combination of new local locations and franchising could bring better financial and public relations results. This option has the highest associated cost, whereas opening only a couple of new locations or franchising would cost less. In any case, the owner believes the worst-case scenario is to have moderate demand and the best- case scenario is to have high demand. Which major decision is this owner facing? Less YOUR ANSWER CORRECT ANSWER How to estimate future demand How to expand the business How to avoid the worst-case scenario How to find new locations Mistake
A scouting troop has been invited to sell ice cream sandwiches as a fundraiser at the city park July 4th fireworks celebration. The sandwiches will cost one dollar each and will be sold for two dollars each. There are no other costs because the city park has agreed to provide use of facilities and freezers. The scouts will have to dispose of, eat, or give away any ice cream sandwiches that are left over after the event. The following “Payout Table” provides values for the events and alternatives of the ice cream venture.
What is the missing value for C, which has an expected value of an inventory of 1,300? More Mistake
A company offers tax preparation services through a chain of 30 small offices in Kansas. Susan, the VP of marketing, has proposed adding an online app to target college students who want to start a business while they are still in school. According to Susan’s data, there has been a 200% increase in new small businesses licensed to owners aged 18 to 22 years. The company has a small information technology (IT) department that has neither the time nor the expertise to build such an app. Therefore, three alternatives are being considered:
- Outsource the work to an app development company to build the app
- Sign up as a client of a company that already offers this type of app
- Expand the IT department by hiring a programmer to develop the app
Which option provides the best payout for Dawn’s business? More Mistake
A high school club has hosted an annual holiday craft fair for the last 10 years to raise money for the club. The craft fair has always been held in the high school gymnasium, but the gym is getting crowded as more crafters and shoppers attend the event each year. The club is considering four possible locations for this year’s fair. The table below shows the four alternatives, the probability for each type of weather during the event, and the estimated profits for each location and each type of weather. The cost for each location has already been factored into the table.
Alternative Rainy Sunny Overcast
Stay in high school gymnasium $3,500 $5,000 $4,
Use gym and covered walkway outside gym $3,200 $5,800 $3,
Move to football field – open air event $-100 $6,200 $2,
Move to football field – use pavilions $-500 $6,000 $3,
Probability 0.10 0.60 0.
If the expected value of each alternative is calculated, which scenario should the high school club invest in? More Decision Trees Suggested Study Review Mistake
An owner has operated a pet supply store in the same location for more than 20 years. The business has grown each year, and now it must be decided whether to move to a new location across town or renovate the existing store. The owner has just learned that the largest competitor, located across town, has gone out of business. The owner is certain that sales will increase regardless of whether the business is moved or renovated but also realizes that many of the competitor’s customers may now be willing to drive to the
existing location. The following is a decision tree demonstrating the combined potential sales and probabilities for the two outcomes. What is the expected value for expected outcome A (move to new store)? More Mistake
Business is booming at Charlie’s bakery. Almost every type of bread sells out daily, and the ovens are at 100% capacity. If Charlie wants to grow his business, he needs more oven capacity to bake more bread. However, he is concerned that if he invests in more capacity, demand may be lower than expected. How would a decision tree help Charlie in this situation? More Mistake
An employee has been asked to decide which machine to choose from four possibilities. The purchase and installation cost for each machine is identical. The decision tree below describes the conditions and expected values.
A firm that manufactures reusable heating and cooling system filters needs a new supplier for two of the major filtering components. Five potential suppliers have been assessed using scores between 1 and 5, as shown in the following table (the higher score indicates better expected performance):
On-Time Delivery Cost Capacity Total Score
Supplier 1 5 4 3 12
Supplier 2 4 3 3 10
Supplier 3 5 2 5 12
Supplier 4 3 3 5 11
Supplier 5 4 4 3 11
Which decision model step does the table represent? More Correct
A textile company is a manufacturer of fireproof uniforms in Mexico. The company is planning on opening operations in the United States and Canada, which requires a capacity expansion of 100%. The company has three alternatives: build a large plant, build a small plant, or subcontract. There are two possible states of nature: a favorable market and a moderate market. If the future market is favorable, the payoffs are $13, $5, and $ million for building a large plant, building a small plant, and subcontracting, respectively. Similarly, for a future moderate market, the payoffs are $2, $8, and $3 million for building a large plant, building a small plant, and subcontracting, respectively. The company has estimated the probability of a favorable market as 0.40. The textile company needs to make a decision about either building a plant or subcontracting. What is the relationship between uncertainty and the decision-making process in this scenario? More Network Analysis - 20% of assessment EXEMPLARY
Critical Path and Crash Costs Review Mistake
Bob is opening a new location for his popular sandwich shop. The PERT chart for this project is provided below: What is the duration of the critical path for this project? More Correct
The PERT chart for a project is shown below:
Now that activity F has been cancelled, what is the critical path for this project? More Correct
The PERT chart below shows activities and durations for a project.
What is the critical path for this project? More Correct
