Question 1

This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company.From Bigg's point of view, the S1 maximum regret for CA2 is 8.
CA1 CA2 CA3
S1 8 5 12
S2 9 14 3
S3 16 13 20

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would a manager choose who wants to minimize her maximum regret?

Accepted Answer

A) the smallest maximum regret value 
B) the smallest minimum regret value 
C) the smallest difference maximum regret value and the minimum regret value 
D) the greatest difference maximum regret value and the minimum regret value

Question 3

In a short essay, explain what the value of P in queuing theory provides for a manager.

Accepted Answer

The answer of In a short essay, explain what the...

Question 4

In a decision tree, each possible outcome ________.

Accepted Answer

A) gets assigned a probability value between 0 and 1.0 
B) gets assigned a probability value of 50 percent 
C) gets assigned a probability value between 0 and 50 percent 
D) gets assigned a probability value between 0.5 and 1.0

Question 5

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

Accepted Answer

A) 375 iPhone units and 625 Droid units 
B) 500 iPhone units and 500 Droid units 
C) 1000 iPhone units and 1000 Droid units 
D) 625 iPhone units and 375 Droid units

Question 6

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

Accepted Answer

A) 625 
B) 1000 
C) 5000 
D) 800

Question 7

In a short essay, explain how the break-even point (BE)changes with variables TFC (total fixed costs), P (unit price), and VC (variable cost per unit).

Accepted Answer

The answer of In a short essay, explain how the...

Question 8

A company is worried about meeting its interest expenses, so it should pay close attention to its times interest earned.

Accepted Answer

A) True 
 B)False

Question 9

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?

Accepted Answer

A) that customers will wait an average of 12.5 minutes 
B) that the chances that a customer will need to wait for more than 5 people in line are 1 in 8 
C) that customers will wait an average of 0.125 minutes 
D) that the chances that a customer will need to wait for more than 5 people in line are 1 in 12.5

Question 10

In the economic order quantity (EOQ)model, one of the costs that gets considered for analysis is the carrying costs of tying up money with inventory.

Accepted Answer

A) True 
 B)False

Question 11

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 would choose S2 because it has the smallest maximum regret of 1.
CA1 CA2 CA3
S1 5 5 3
S2 9 6 1
S3 10 2 5

Accepted Answer

A) True 
 B)False

Question 12

For break-even analysis, which of the following is a fixed cost for a doughnut shop?

Accepted Answer

A) costs for purchasing flour and sugar 
B) energy costs for ovens and heating 
C) interest payments on loans 
D) advertising costs

Question 13

With choice S1, a manager sees gains of $10 million and $6 million.With choice S2, a manager sees gains of $12 million and $8 million.Only a pessimistic manager would choose S1.

Accepted Answer

A) True 
 B)False

Question 14

A company has a current ratio of of 0.85 to 1.What should a manager in the company worry about?

Accepted Answer

A) The company has too many assets and is not using them efficiently. 
B) The company has too much inventory. 
C) The company may start to have trouble paying salaries. 
D) The company is paying salaries that are too high.

Question 15

Production data for Streaks is shown.Using linear programming, if running shoes are represented by R and soccer shoes by S, 5R + 3S < 750 is the correct constraint equation for design.
Monthly Product

Accepted Answer

A) True 
 B)False

Question 16

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 pessimistic, in which location should she build?

Accepted Answer

A) She should build Store 2, because it has a greater minimum profit. 
B) She should build Store 2, because it has a greater maximum profit. 
C) She should build Store 1, because it has a greater maximum profit. 
D) She should build Store 1, because it has a greater minimum profit.

Question 17

Which of the following best defines regret in a payoff matrix?

Accepted Answer

A) Regret refers to the difference of the sum of the values in a chosen strategy and the sum of the best strategy. 
B) Regret refers to the difference of the sum of the values in a chosen strategy and the sum of the worst strategy. 
C) Regret refers to the sum total of the sum of the values in a chosen strategy and the sum of the best strategy. 
D) Regret refers to the extra amount of money that could have been made had the person chosen a different strategy.

Question 18

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? CA1 CA2 CA3
S1 3 15 9
S2 12 10 12
S3 8 9 17
S4 13 16 3

Accepted Answer

A) S4 
B) S3 
C) S2 
D) S1

Question 19

How does a fixed-point reordering system work?

Accepted Answer

A) When inventory level reaches 50 percent of maximum, the system orders new inventory. 
B) When inventory level reaches 33 percent of maximum, the system orders new inventory. 
C) At some preestablished inventory level, the system automatically orders new inventory. 
D) At some random inventory level, the system automatically orders new inventory.

Question 20

The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy.The shop is likely to make $105,000, the sum of both projections.

Accepted Answer

A) True 
 B)False

Exam 18: Appendix: Quantitative Module

This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company.From Bigg's point of view, the S1 maximum regret for CA2 is 8. CA1 CA2 CA3 S1 8 5 12 S2 9 14 3 S3 16 13 20

Which of the following would a manager choose who wants to minimize her maximum regret?

In a short essay, explain what the value of P in queuing theory provides for a manager.

In a decision tree, each possible outcome ________.

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

In a short essay, explain how the break-even point (BE)changes with variables TFC (total fixed costs), P (unit price), and VC (variable cost per unit).

A company is worried about meeting its interest expenses, so it should pay close attention to its times interest earned.

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?

In the economic order quantity (EOQ)model, one of the costs that gets considered for analysis is the carrying costs of tying up money with inventory.

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 would choose S2 because it has the smallest maximum regret of 1. CA1 CA2 CA3 S1 5 5 3 S2 9 6 1 S3 10 2 5

For break-even analysis, which of the following is a fixed cost for a doughnut shop?

With choice S1, a manager sees gains of $10 million and $6 million.With choice S2, a manager sees gains of $12 million and $8 million.Only a pessimistic manager would choose S1.

A company has a current ratio of of 0.85 to 1.What should a manager in the company worry about?

Production data for Streaks is shown.Using linear programming, if running shoes are represented by R and soccer shoes by S, 5R + 3S < 750 is the correct constraint equation for design. Monthly Product

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 pessimistic, in which location should she build?

Which of the following best defines regret in a payoff matrix?

How does a fixed-point reordering system work?

The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy.The shop is likely to make $105,000, the sum of both projections.