Decision models are mathematical symbols representing levels of activity. TRUE/ FALSE 11. Which of the following could be a linear programming objective function? A) Z = 1A + 2BC + 3D B) Z = 1A + 2B + 3C + 4D C) Z = 1A + 2B / C + 3D D) Z = 1A + 2B2 + 3D E) all of the above 12. Decision variables A) measure the objective function B) measure how much or how many items to produce, purchase, hire, etc.
Taking the option to abandon into account, what is the project’s NPV? (d) What is the value of the option to abandon? Solution: (a) Using an initial cash flow of -2.1 million followed by 10 cash flows of 420,000 each and a discount rate of 16%, calculate NPV. You should get NPV = -$70,044.46. (b) Since the opportunity cost of continuing the project is 1.4 million and the project has 9 years left, use your calculator with n=9, R=16%, PV=−1.4 million and FV=0.
They were given a 10% discount by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine estimates that the machinery will have a useful life of 10 years and a residual value of $20,000. If Stine uses straight-line depreciation, annual depreciation will be • $3,760. • $4,072.
d. the syllogism. Question 3 If "or" is used in its non-exclusive sense, which of the five following syllogisms is invalid? a. Either P or Q. Not P. Therefore, Q. b.
In order to be a Bernoulli process, an experiment must have the following characteristics: 1. Each trial has only two possible outcomes. 2. The probability is the same from one trial to the next. 3.
They were given a 10% discount by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine estimates that the machinery will have a useful life of 10 years and a residual value of $20,000. If Stine uses straight-line depreciation, annual depreciation will be • $3,760. • $4,072.
The effective burden rate/DL is 20% (according to exhibit 5), while the machine hour burden rate is $80.10 (also according to exhibit 5). Therefore, the costs of this system become: Product DL $ OH (DL $) DL$ x 20% OH $ OH (Machine Hours) Total Costs ICA $917 $183 $1480 18.5 $2591.42 ICB $2051 $410 $3200 40.0 $5685.71 Capacitor $1094 $219 $600 7.5 $2676 Amplifier $525 $105 $400 5.0 $1284 Diode $519 $104 $960 12.0 $1269 c. The system proposed by the consultant Product Direct Labor $ OH (DL$) OH (M/C Hours)
Based on multiple simulations, the result is somewhere around every 4 weeks given the deviations. Lost Revenue Due to Breakdowns The revenue lost due to breakdowns was calculated through the median cost of $500 per breakdown, which is the median cost of the range of loss from 2,000 copies to 8,000 copies, multiplied by the repair time.
Analysis of Variance Example A manager wishes to determine whether the mean times required to complete a certain task differ for the three levels of employee training. He randomly selected 10 employees with each of the three levels of training (Beginner, Intermediate and Advanced). Do the data provide sufficient evidence to indicate that the mean times required to complete a certain task differ for at least two of the three levels of training? The data is summarized in the table. Level of Training | n | | s2 | Advanced | 10 | 24.2 | 21.54 | Intermediate | 10 | 27.1 | 18.64 | Beginner | 10 | 30.2 | 17.76 | Ha: The mean times required to complete a certain task differ for at least two of the three levels of training.
Using the following calculation, we find: z= x- μ σ -1.96 = 10,000 – 20,000 σ σ=5102 Standard deviation σ = 5,102 μ = 20,000 mean 2. Stock outs were calculated by the four management numbers. Equation is: z = (x – μ)/ σ 15,000: Z = (15,000-20,000)/5102 z = -0.98 Then, reference the cumulative probabilities for standard deviation table in the beginning of the book to identify what -0.98 represents, which is .1635. Since stock outs are any quantity greater than what management suggested, they need to be subtracted from 1. 1 - .1635 = .8365 which = 83.65% Same logic/steps for the rest of the values: 18,000 24,000 28,000 Z = (18,000-20,000)/5102 z=(24,000-20,000)/5102 z=(28,000-20,000)/5102 z = -.39 z=.78 z= 1.57 1 - .3483 = .6517 1 - .7823 = .2177 1 –.9418 = .0582 which = 65.17% which = 21.77% which = 5.82% 3.