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MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)
8th Edition
ISBN: 9781337274876
Author: Cliff Ragsdale
Publisher: Cengage Learning US
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The National Revenue Authority (NRA), is charged with the collection of tax revenues for the National Treasury. Each year they are given a target to achieve. However, from past experience the Authority has realized the actual collections achieved is dependent on the performance of the economy. This has gotten the Commissioner worried to such an extent that he has summoned a meeting of all the Unit Directors to consider how well to incorporate this uncertainty into the Authority’s decision making and planning. Being the Director of Planning, you have been tasked with the guidance of the whole team.
Required:
a) Advise on the procedure generally followed in the decision making process.
b) Explain clearly the key activities involved in the risk assessment process.
c) Comment on the relationship between decision making and risk analysis.
d) Briefly explain the characteristics of the main decision types and which one would be more at play in this situation.
A careful analysis of the cost of operating an automobile was conducted by accounting manager Dia Bandaly. The following model was
developed:
y = 3,600+ 0.16x,
where y is the annual cost and x is the miles driven.
a) If the car is driven 15,000 miles this year, the forecasted cost of operating this automobile = $
b) If the car is driven 26,000 miles this year, the forecasted cost of operating this automobile = $
(enter your response as a whole number).
(enter your response as a whole number).
As a demand planner at Grootegeluk Mine, you want to determine the monthly sales forecast of coal (in tonnes). Table 1, below, depicts the volume of coal sold by the mine for each of the 12 months of 2022.Table 1: Volume of coal sold monthly during 2022
Year
Monthly volume (tonne
s)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2022
21
23
34
37
40
51
54
50
48
36
39
42
1. Using the three-month weighted moving average method, calculate the monthly forecasts for April 2022 to January 2023 by assigning weights of 0.1, 0.3, and 0.6 (the oldest data to the most recent data, respectively) (Round off forecast values to one decimal place).
2. Calculate the mean absolute deviation (MAD) of the forecasts for April 2022 to December 2022 (Round off the answer to two decimal place).
3.
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