Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Question
Chapter 17, Problem 17.6IP
To determine
The effects of type I and II errors on hiring of workers.
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BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and BPO estimated how much it would cost to digitize each form.
Form Type
Mix of Forms
Form Cost
A
0.2
$0.80
B
0.2
$0.40
C
0.2
$0.40
D
0.2
$1.60
E
0.2
$0.80
The expected cost of digitizing a form is $__________-
.
Suppose the client and BPO agree to a deal, whereby the client pays BPO to digitize forms. The price of each form processed is equal to the expected cost of the form that you calculated in the previous part of the problem.
Suppose that after the agreement, the client sends an equal mix of forms of types D and E only.
The expected digitization cost per form of the forms sent by the client is $___________
. This leads to an expected loss of $__________ per form for BPO. (Hint: Do not round your answers. Enter the loss as a positive number.)
The average monthly balance in Derek's bank account is $750. Derek spends the same amount of money each day during the month and at the end of the month his account balance is $0. Derek's monthly starting balance is
Group of answer choices
$750.
$1500.
$1,000.
$16.67.
Task 1:
Should other (non-HR) departments be allowed to help with the recruitment
of candidates? Why or why not? Discuss three pros and cons.
Chapter 17 Solutions
Managerial Economics: A Problem Solving Approach
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