Exam 18: Appendix: Quantitative Module

A queuing theory analysis for the Department of Motor Vehicles determines that customers typically wait for 8 minutes and that the agency should strive never to exceed more than 5 customers in a single line.What is the maximum amount of time that customers should be expected to wait?

Liquidity is a measure of an organization's ability to access cash to meet its debt obligations.

This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company.A minimax Bigg manager choosing S3 would have a greatest possible regret of 2. CA1 CA2 CA3 S1 5 5 3 S2 9 6 1 S3 10 2 5

Return on investment measures the ratio of total profits to total assets.

A manager does a break-even analysis and finds that his value for BE, the break-even point, has decreased over time.Which of the following could be responsible for this event?

The break-even point is computed by the formula BE = TFC/(P - VC)].

This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company.The maximum regrets for this table are S1 = 5, S2 = 9, S3 = 12. CA1 CA2 CA3 S1 5 5 3 S2 9 6 1 S3 10 12 5

Which of the following would cause a well-run company to become highly leveraged?

This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2, S3, and S4 for Sam's Pizza and competitive strategies CA1, CA2, and CA3 for Pam's Pizza.If Sam chooses S4, how is he feeling about the business climate? CA1 CA2 CA3 S1 13 14 7 S2 7 17 12 S3 31 29 4 S4 20 12 21

A pessimistic manager will typically follow a minimin choice.

A manager is worried that if he chooses the wrong investment strategy, his company could lose out on a great deal of money.Which strategy should he follow?

In a short essay, explain the type of strategy that a pessimistic manager would take for his company.

This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake.If Al chooses S3, what kind of strategy is he using? CA1 CA2 CA3 S1 3 15 9 S2 12 10 12 S3 8 9 17 S4 13 16 3

Decision trees show the profit outcomes for the plans for two doughnut stores in a strong and a weak economy for the future.Which store is expected to have the greater expected profit?

The decision tree shows the profit outcomes for a toy store in a strong and a weak economy for next year.If the economy turns out to be weak, how much profit is the store likely to lose out?

Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below.What is the maximum number of Droid units that the factory can make? Monthly Product

A current ratio of 1.5 to 1 for an organization suggests that the organization will not be able to meet its short-term debt obligations.

This payoff matrix gives potential dollar gain values in millions for strategies S1, S2, S3, and S4 for the Bent Fork National Bank and competitive strategies CA1, CA2, and CA3 for the Straight Spoon Bank.If Bent Fork is pessimistic, which strategy will it choose? CA1 CA2 CA3 S1 3 24 17 S2 15 16 14 S3 8 19 10 S4 20 2 11

A payoff matrix features strategies S1, S2, S3, and S4 and competitive strategies CA1, CA2, and CA3.In a short essay, explain how maximum regret can be calculated for an S1 strategy.