Question 1 2 out of 2 points Fixed cost is the difference between total cost and total variable cost. Answer Selected Answer: True Correct Answer: True Question 2 2 out of 2 points Parameters are known, constant values that are usually coefficients of variables in equations. Answer Selected Answer: True Correct Answer: True Question 3 2 out of 2 points In general, an increase in price increases the break even point if all costs are held constant. Answer Selected Answer: False Correct Answer: False Question 4 2 out of 2 points Probabilistic techniques assume that no uncertainty exists in model parameters. Answer Selected Answer: False Correct Answer: False Question 5 0 out of 2 points If events A and B are independent, then P(A|B) = P(B|A).
Case Analysis Amber Inn MKT 601 Jessica June 13, 2013 I. Case Summary The Amber Inn & Suites, Inc., founded in 1979, is a 250 property hotel chain located in the western and Rocky Mountain States. The company is approaching their 3d consecutive year of unprofitable operations. Amber Inn & Suites, Inc. has projected revenue of $442.6 million with a net loss of $15.7 million. The company traditionally focused on outbound sales and marketing initiatives competing on the basis of amenities, prices and services.
2.0 points) The more often it is compounded the better. So daily is the best. The greater the number of compounding periods, the better it is for your bottom line. Albert Einstein once said “The most powerful force in the universe is compound interest." With that in mind, the more frequently an investment compounds, the more money
For example, overnight volatility would remain constant in one group, with others changing in the problems of that group. Explain the mechanics of 1-2 preloaded strategies in detail. Strategy 2: Spread = .08 Depth = 10 All Full No Inv MgmtThe pricing strategy would be that the bid price is set at 0.04 less than the other dealers midpoint while the ask price is set at 0.04 more than the other dealers midpoint. The bid depth and ask depth both are set at 20. Strategy 3: If Spr<=.06, Better .01, Spr=.04 Match Depth All Full No Inv MgmtThe pricing strategy would be If the other dealer is to set his spread less than or equal to 6 cents, then it will take the other dealers bid price and 0.01 to it.
With increase in the number of test the reliability of a test increases. The Spearman-Brown Formula strengths is that it can specify how reliable a test is based on the test being increased or reduced. It also works in inverse telling a researcher how many points needed to append in order to achieve a defined reliability constant. The weakness of the Spearman-Brown formula is that it is only effectual with consistent test items that are include travail and duration. That is, only items that are the same.
THE ALGEBRA OF BREAK-EVEN ANALYSIS Let QBE denote the break-even output level. By definition TR (at QBE) = TC (at QBE) or TR (at QBE) = TFC + TVC (at QBE) The break-even condition (1) holds true for any cost and demand functions. Hence, in general, when costs and demand are complex, the analysis of this condition might not be any simpler than the analysis of profit maximization. Yet, what is widely known in business as break-even analysis is indeed much easier than profit analysis, although it also starts with the above identity, because it makes a very important assumption: that price and average variable cost do not change with output level. Thus, if we assume that price and AVC are constant, (1) can be rewritten as follows P.QBE = TFC + AVC.QBE which yields: (1) Q BE = TFC P − AVC (2) K The difference “P !
| | | | | | | | TRUE | | | | | | | | | All the unique risk of stocks in a diversified portfolio have been diversified away | | | | | | | | | | | | | | | | | | | | | c. If a stock's expected rate of return plots below the security market line, it is underprices. | FALSE | | | | | | | | | It is overpriced. The expected return is less which means that return is over a higher price | | | | | | | | | | | d. A diversified portfolio with a beta of 2 is twice as volatile as the market portfolio. | | TRUE | | | | | | |
As the project is twice as risky as the firm’s normal operations, it beta will be equal to 2 x 0.75 = 1.5: [pic] We will now use this required rate of return to calculate the NPV of the project: [pic] As the project has a positive NPV, it should be accepted. Question Five Consider an investment
Question 3 Which price increase is needed to offset the profit impact of the increased raw material costs (assuming that volumes are constant)? Which price decrease will result from instituting price-flex (assume a best case and a worst case)? Answer 3 The selling price would increase by offsetting the raw material cost which is given in the “Appendix A” which shows that increase in the price by 6.5% would result in the positive side and a reductioncompany from reduction in the price. Understanding all this is done with respect to the case material. The volume is a constant which is assumed at 80% in the analysis of the price.
A bulb has a power of 60W. If it is accidentally left on over night (10 hours), how much money is wasted? C. Energy Efficiency 1. A fridge uses 120 Joules of energy every hour, it produces 80 Joules of energy. Calculate its efficiency.