
Concept explainers
Ethical Dilemma
We live in a society obsessed with test scores and maximum performance. Think of the SAT, ACT, GRE, GMAT, and LSAT. Though they take only a few hours, they are supposed to give schools and companies a snapshot of a student’s abiding talents.
But these tests are often spectacularly bad at
LSAT scores beat virtually no correlation to career success as measured by income, life satisfaction, or public service.
What does the r2 mean in this context? Is it ethical for colleges to base admissions and financial aid decisions on scores alone? What role do these tests take at your own school?

Case summary:
In the recent days, society is mostly obsessed with the test scores. However, these test would often enormously bad at forecasting the performance of the students. It is less effective in predicting the achievement of the student after graduation.
To determine: Whether it is ethical for colleges to base admissions based on scores alone
Explanation of Solution
Whether it is ethical for colleges to base admissions and financial aid decisions based on scores alone:
According to Person X, depending on the test scores alone is one the weak decisions that the colleges can make. Even though, they have alternatives, the alternatives are nonstandard and limited. GPA and class ranks cannot be used, as it is not uniform throughout the nation. However, it can be considered.
The quantifiable and equitable alternatives should be used to consider for the base admission and for financial aid decisions.
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Chapter 4 Solutions
Principles Of Operations Management
- Prepare a graph of the monthly forecasts and average forecast demand for Chicago Paint Corp., a manufacturer of specialized paint for artists. Compute the demand per day for each month (round your responses to one decimal place). Month B Production Days Demand Forecast Demand per Day January 21 950 February 19 1,150 March 21 1,150 April 20 1,250 May 23 1,200 June 22 1,000' July 20 1,350 August 21 1,250 September 21 1,050 October 21 1,050 November 21 December 225 950 19 850arrow_forwardThe president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: 2,300 January 1,500 May February 1,700 June 2,100 March April 1,700 1,700 July August 1,900 1,500 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). Ending E Period…arrow_forwardMention four early warning indicators that a business may be at risk.arrow_forward
- 1. Define risk management and explain its importance in a small business. 2. Describe three types of risks commonly faced by entrepreneurs. 3. Explain the purpose of a risk register. 4. List and briefly describe four risk response strategies. (5 marks) (6 marks) (4 marks) (8 marks) 5. Explain how social media can pose a risk to small businesses. (5 marks) 6. Identify and describe any four hazard-based risks. (8 marks) 7. Mention four early warning indicators that a business may be at risk. (4 marks)arrow_forwardState whether each of the following statements is TRUE or FALSE. 1. Risk management involves identifying, analysing, and mitigating risks. 2. Hazard risks include interest rate fluctuations. 3. Entrepreneurs should avoid all forms of risks. 4. SWOT analysis is a tool for risk identification. 5. Scenario building helps visualise risk responses. 6. Risk appetite defines how much risk an organisation is willing to accept. 7. Diversification is a risk reduction strategy. 8. A risk management framework must align with business goals. 9. Political risk is only relevant in unstable countries. 10. All risks can be eliminated through insurance.arrow_forward9. A hazard-based risk includes A. Political instability B. Ergonomic issues C. Market demand D. Taxation changesarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
