Busn 603 Multiple Choice Questions Set Part 2-8

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Final Exam
BUSN 603 Multiple Choice Questions Set Part 2-8
Jane wants to set up a photo shop. The cost to rent is $150 per week. The variable cost of making one photo is $20 and she can sell it for $50. 1. Jane has to sell ______ photos per week to break even 2. If Jane sells 10 units ,her profits would be ______ dollars
Paul wants to choose one of the two investments opportunities over three possible scenarios. Investment 1 will yield a return of $10000 in scenario1, $2000 in scenario 2 and a negative return of $5000 in scenario 3. Investment 2 will yield a return of $6000 in scenario 1,$4000 in scenario 2 and zero in scenario 3. The probability 1 is 0.2,for scenario 2 is 0.3 and for scenario 3 is 0.5
1/If you were to choose the investment that maximizes Paul's Expected Money Value(EMV),then you should choose______ 1. Investment 1
b.Investment 2
c.Indifferent
2/If Paul is uncertain about the return for investment 1,then this return has to be ____dollars in order to make Paul indifferent between these two investments(i.e two investments would have the same EMV).
Sam has a cleaning service. To better allocate his resources, he would like to forecast his weekly order based on the order number he received in the past 13 weeks as shown in the following table.
WEEK DEMAND week 1 11 week 2 14 week 3 16 week 4 10 week 5 15 week 6 17 week 7 11 week 8 14 week 9 17 week 10 12 wekk 11 14 week 12 16 week 13…...

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