9. Business Administration. Each university has strong and weak points and the demand forMBA graduates is uncertain. The availability of jobs, student loans, and financial support willhave a significant impact on Yuxuan's ultimate decision. UPM and UM have comparativelyhigh tuition, which would necessitate Yuxuan take out student loans resulting in possiblysubstantial student loan debt. In a tight market, degrees with that cachet might spell thedifference between a hefty paycheck and a piddling unemployment check. USM and UKM holdthe advantage of comparatively low tuition but a more regional appeal in a tight job market.Yuxuan gathers his advisory council of Kip and Pedro to assist with the decision. Together theyforecast three possible scenarios for the job market and institutional success and predictannual cash flows associated with an MBA from each institution. All cash flows in the tableare in thousands of dollars.SchoolScenario 1Scenario 2Scenario 3UPM9520-10UKM556060UM901080USM655060a. Kip tends to be extremely optimistic. Which decision making criterion would henaturally select and what conclusion would he recommend to Yuxuan? Why?b. Pedro is extremely pessimistic. Which decision making criterion would he naturallyselect and what conclusion would he recommend to Yuxuan? Why?c. Anis bursts into the meeting and announces that there's another way to consider theissue. Since Yuxuan will have to live with his choice for the rest of his life, he mightconsider selecting the alternative that will cause him the least pain in hindsight whenhe compares his outcome with what he might have gained. Using Minimax Regretcriterion, what is the best school for this criterion, and why?d. Yuxuan's Uncle Rico believes that the scenarios are not necessarily equally likely, andsuggests that the likelihood of occurrence of Scenario 2 is 0.4 and the likelihood ofoccurrence of Scenarios 1 and 3 are both 0.3. What is the best decision using expectedvalue?

School Scenario 1 Scenario 2 Scenario 3 UPM 95 20 -10 UKM 55 60 60 UM 90 10 80 USM 65 50 60…

Answered: 9. Business Administration. Each…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Frijo-Lane Food Products own farms in the Southwest and Midwest, where it grows and harvest potatoes. It then ships these potatoes to three processing plants in Atlanta, Baton Rouge, and Chicago, where different varieties of products, including chips, are produced. Recently, the company has experienced a growth in its product demand, so it wants to buy one or more new farms to produce more potato products. The company is considering six new farms with the following annual fixed costs and projected harvest: Farm Fixed Annual Costs ($1,000s) Projected Annual Harvest (thousands of tons) 1 $405 11.2 2 390 10.5 3 450 12.8 4 368 9.3 5 520 10.8 6 465 9.6 The company currently has the following additional available production capacity (tons) at its three plants, which it wants to utilize: Plant Available Capacity (thousands of tons) A 12 B 10 C 14 The shipping costs ($) per ton from the farms…
1. IfXis $5,000, R-15% and BV is $50,000, what is AE? -5000-(15%*50000) -2500 2. IfXis $25,000, R-18% and BV is $125,000, what is AE? -25000-(18 % 125000) 2500 3. Assume the firm in requirement 2 can increase x to $30,000 by instituting some cost-cutting measures. What is the new AE? -30000-(18 % 125000) 7500 4. Assume the firm in requirement 2 can divest $25,000 of unproductive capital with X falling by only $2,000. What is the new AE? -25000-2000-(18% *(125000-25000)) 5000 5. Assume the firm in requirement 2 can add a new division at a cost of $40,000, which will increase X by $7,600 per year. Would adding the new division increase AE? -25000+7600-(18% *( 125000+40000)) 2900 FALSE Assume the firm in requirement 1 can add a new division at a cost of $25,000, which will increase X by $3,500 per year. Would adding the new division increase AE? 5000+3500-(15%*50000+25000) -2750 FALSE
1. Redback Industries is a relatively small but successful and fast-growing maker of peripheral devices for cell phones including battery chargers, enhanced antennas, SIM cards, and custom carrying cases. Costco is considering purchasing Redback in order to sell the devices as private label offerings. However, Costco has set an offer price of $ 600M that depends on whether Redback’s current Annual Net Income is higher and significantly different from its 14-year average of $ 104.5M per year; Redback has indicated it is willing to sell itself to Costco at the $600M price. Use the following information to determine at the 95 % Level Of Confidence whether Costco will proceed with the purchase at the planned price of $ 600M or will lower its offering price if Redback’s current Annual Net Income is not greater than $ 104.5M per year. Redback Industries Normalized Yearly Annual Net Income over the last 14 years is $ 104.5M Redback Industries is currently reporting Yearly Annual Net…
5. An equity investment manager is given the task of beating the S&P 500 index. Hence the risk should be measured in terms of (a) Loss relative to the bond benchmark (b) Loss relative to the initial investment (c) Loss relative to the S&P 500 index (d) Loss relative to the expected portfolio value 6. Consider a portfolio with 80% invested in asset X and 20% invested in asset Y. The volatilities of asset X and Y are 0.2 and 0.3, respectively. The correlation coefficient between the two assets is 50%. What is the portfolio volatility? (a) 19.70% (b) 43.51% (c) 12.99% (d) 18.33% 7. Consider the information from Question 6; however, suppose that the correlation coefficient de- creases significantly. What happens to the portfolio volatility? (a) Stays the same (b) Decreases (c) Increases (d) Cannot determined due to insufficient information
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the accompanying table. \table[[Project, Boom (50%), Recession (50%) A $20 - $10 be - $10, $20 C $30 $30 D $50 - $50 Options A900 B225 Czero D1600
How can I explain these graphs in a presentation?
You are the VP, Advertising for “Yo’ Mama” brand, a fashion label that caters to the young, trendy crowd with an urban, hip-hop image. While your customer base has traditionally been largely African-American, you have recognized a tremendous influx of Hispanic consumers into your market. You are preparing for next week’s annual budget meetings and you have decided to recommend an Hispanic-focused advertising campaign if the average monthly per store sales to Hispanic customers are at least the same as the average monthly per store sales to African-American customers in a sample of typical stores (sales data given below). Using an alpha of .05 and the 5-step hypothesis testing process, what will you recommend? Hint: Think about how many data points you actually have.
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17. A manager of an inventory system believes that inventory models are important decision-making aids. The manager has experience with the EOQ policy, but has never considered a backorder model because of the assumption that backorders were "bad" and should be avoided. However, with upper management's continued pressure for cost reduction, you have been asked to analyze the economics of a backorder policy for some products that can possibly be backordered. For a specific product with D = 800 units per year, C. = $150, C₁ = $3, and C₁ = $20, what is the difference in total annual cost between the EOQ model and the planned shortage or backorder model? If the manager adds constraints that no more than 25% of the units can be backordered and that no customer will have to wait more than 15 days for an order, should the backorder inventory policy be adopted? Assume 250 working days per year.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the accompanying table. \table[[Project, Boom (50% ), Recession (50%)], [A, $20, -$10 You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the accompanying table. Project A Boom (50%) $ 20 -$10 Recession (50%) -$ 10 $ 20 B C $30 -$30 D $ 50 -$ 50 If a manager adopted both projects A and B simultaneously, the expected value of this joint project would be Multiple Choice 10.

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