Exam 6: A Quantitative Module

The decision tree shows the profit outcomes for a toy store in a strong and a weak economy for next year. What is the expected value of the store's profit in a strong economy?

How does a fixed-point reordering system work?

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. Suppose the plant decides to make the maximum number of iPhone components possible and reach the rest of its capacity by making Droid phones. How many of each type of phone will it make? Monthly Product

Jeff, a manager at the Flux Soap Store, lowered the reorder point for Butterscotch-Lemon soap from 33 percent of maximum to 20 percent of maximum. What is Jeff likely to observe?

When is the acid test an especially important test for a company's liquidity?

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

In a short essay, explain the type of strategy that an optimistic manager would take for her 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 wants to minimize his maximum regret, which strategy should he choose?

An organization with a high leverage ratio has usually been overly cautious and conservative in its borrowing.

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. An analysis comes up with a value for P of 0.125. What does this P value mean?

A queuing theory analysis for bank teller windows comes up with a value of 0.10 for P, indicating that customers are likely to wait about 10 minutes for each transaction.

Which of the following identifies the goal of managers who use the economic order quantity (EOQ) model?

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?

With choice S1, a manager sees gains of $10 million and $6 million. With choice S2, a manager sees gains of $12 million and $3 million. The manager chooses S2, so she must be optimistic.

Decision trees show the profit outcomes for the plans for two doughnut stores in two different locations in a strong and a weak economy for the future. If the investor interested in building a store is optimistic, in which location should she build?

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?

Regret is computed by subtracting the value of a possible strategy from the greatest value in the entire matrix.

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 S3, how is he feeling about the business climate?

A new upgrade for a product is expected to increase demand by a factor of 4. If all other factors remain equal, how is EOQ likely to change?

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 iPhone units that the factory can make? Monthly Product