Submitted By occurmeetjia

Words 1343

Pages 6

Words 1343

Pages 6

Question 1. Determine the break-even volume for the two production options(bath and line)

Suppose the break-even volume should be x units

total cost for batch flow production equals 475,000+ 75x

total cost for line flow production equals 900,000+60x

if 475,000+75x = 900,000+60x , we will have x= 28,334 units.

if more than 28,334 units are produced, the cost of batch flow production will be higher than that of line flow production, and the line production should be used; otherwise, when the volume is lower than 28,334 units, the batch flow production should be used.

Question 2. Determine the net income for each of the six demand and production options

2a. Draw an appropriate decision tree.

Please refer to the lower half of the decision-tree hardcopy handout. Thanks

2b. To maximize the expected value, what is the production decision .

There are three production levels:

A. 15,000 units

B. 30,000 units

C. 40,000 units

From Question 1 we know that the break-even volume is 28,334 units. Therefore, for option A, batch flow production is adopted; while for option B and C, line production method is adopted.

And there are two sales forecast scenarios for Avalanche Racer:

a) 35,000 units with probability of 0.6

b) 25,000 units with probability of 0.4.

Other factors include the selling price of Avalanche Racer is $125, and if and only if demand exceeds production, an outside vendor Snowcap is capable of producing for a cost of $ 75 per unit. Unsold units could be sold at $50 per unit.

Considering the net income of the six scenarios:

1) 35,000 units in demand and 15,000 units in supply, which means that 15,000 units will be produced by batch production and extra 20,000 units will be produced by outside vendor Snowcap.

Net Income = Total Income - Total Cost…...

... - examples: assigning numbers, consistency checks, substitutions, deletions, weighting, dummy variables, scale transformations, scale standardization 10.Statistical analysis - Perform various descriptive and inferential techniques (see below) on the raw data. Make inferences from the sample to the whole population. Test the results for statistical significance. 11.Interpret and integrate findings - What do the results mean? What conclusions can be drawn? How do these findings relate to similar research? 12.Write the research report - Report usually has headings such as: 1) executive summary; 2) objectives; 3) methodology; 4) main findings; 5) detailed charts and diagrams. Present the report to the client in a 10 minute presentation. Be prepared for questions. The design step may involve a pilot study to in order to discover any hidden issues. The codification and analysis steps are typically performed by computer, using statistical software. The data collection steps, can in some instances be automated, but often require significant manpower to undertake. Interpretation is a skill mastered only by experience. [edit] Statistical analysis The data acquired for quantitative marketing research can be analysed by almost any of the range of techniques of statistical analysis, which can be broadly divided into descriptive statistics and statistical inference. An important set of techniques is that related to statistical surveys. In any instance, an appropriate......

Words: 1002 - Pages: 5

...Quantitative Business Analysis, Mathematics part, Autumn 2012 Exercise set 1. The due date for this warm-up exercise set is Monday 17.9. at 9:45 (before the ﬁrst exercise group). Please submit your exercise answers to the course box on the 2nd ﬂoor of the Chydenia building. Problem 1. (a) Consider the graph of f (x) = x2 and the line tangent to f (x) at (a, f (a)). The equation of the 1 2 tangent line is y = − 5 x − 25 . Find a, f (a), and the slope of the parabola f (x) at (a, f (a)). 6 (b) Consider the graph of y = x3 . Find the point(s) on the graph where the slope is equal to 11 . (c) The demand function for a commodity with price P is given by the formula D(P ) = a − bP . Find dD(P )/dP . (d) The cost of producing x units of a commodity is given by the formula C(x) = p + qx2 . Find C (x), the marginal cost. Problem 2. (a) Determine the limit limx→0 (3 + 2x2 ). (b) Determine the limit limx→2 (2x2 + 5)3 2 (c) Determine the limit limx→1 x +7x−8 (tip: modify the numerator using similar approach as in the x−1 lecture example) (d) Let f (x) = 4x2 . Show that f (5 + h) − f (5) = 40h + 4h2 . Hence, f (5 + h) − f (5) = 40 + 4h h Using this result, ﬁnd f (5). Problem 3. Use diﬀerentiation rules (not the formal deﬁnition) to do the following: (a) Diﬀerentiate y = √ 3 − 6x2 + 49x − 54 2x 2 (b) Diﬀerentiate y = x − x 2 (c) Diﬀerentiate y = (x + 3x − 5)3 (d) Find the equation of the tangent line to the graph of f (x) = x/(x2 + 2) at x0 = 3. Tip: Given a point on a line and the slope,......

Words: 420 - Pages: 2

...Adventist International Institute of Advanced Studies AIIAS BUAD635 Quantitative Analysis for Decision-Making Study Guide To accompany the prescribed text: Quantitative Analysis for Management by Render, Stair and Hanna, 11th edition, Prentice Hall, 2012 Unit # 1: Overview and Introduction to Quantitative Analysis Prescribed Text: Quantitative Analysis for Management by Render, Stair and Hanna, 11th edition, Prentice Hall, 2012 – Chapter 1 Objectives of unit 1: After completing this unit, students should be able to: 1. Describe the quantitative analysis approach for management 2. Demonstrate an understanding by applications of quantitative analysis in real world situations 3. Demonstrate the use of modeling in quantitative analysis 4. Use computers and spreadsheet models to perform quantitative analysis 5. Understand the limitations of quantitative analysis 6. Demonstrate/perform break-even analysis. Scope of coverage: Concepts Development 1. Overview of quantitative analysis 2. Defining quantitative analysis 3. The approach to quantitative analysis 4. A quantitative analysis model 5. Using spreadsheet for quantitative analysis 6. Limitation of quantitative analysis Introduction Quantitative analysis for decision-making is the application of a scientific approach to solve management problems. The purpose is to...

Words: 19689 - Pages: 79

...Quantitative Literacy 1. y = account balance x = no. of months Savings Plan A: y = 20x + 400 Savings Plan B: y = 10x + 600 2. When will the two savings plans yield identical balances? What is this balance? 20x + 400 = 10x + 600 -400 -400 y = 20x + 400 y = 10x + 600 20x = 10x + 200 y = (20)20 + 400 y = (10)20 + 600 -10x -10x y = 400 + 400 y = 200 + 600 10x = 200 y = 800 (dollars) y + 800 (dollars) x = 20 (months) Savings Plan A and Savings Plan B will yield the same balance of $800 at 20 months. 3. Savings Plan A: y = 20x + 400 x-intercept = (-20, 0) y-intercept = (0, 400) 0 = 20x + 400 y = (20)0 + 400 -20x = 400 y = 400 x = -20 Savings Plan B: y = 10x + 600 x-intercept = (-60, 0) y-intercept = (0, 600) 0 = 10x + 600 y = (10)0 + 600 -10x = 600 y = 600 x = -60 (3a). refer to graph above to determine which plan shows a greater balance @ 14mos and which plan shows a greater balance @ 23mos 1. If saving ceased at 14mos, Savings Plan B shows a greater balance at $740. (Savings Plan A balance @ 14 mos = $680) 2. If saving ceased @ 23mos, Savings Plan A shows a greater balance @ $860. (Savings Plan B balance @ 23mos = $830) 4.Quadrant I is the relevant quadrant for this problem/comparison. The y-axis provides a clear visual representation of the opening balance for each Savings Plan. The x-axis provides clear representation of months, while the graphed lines......

Words: 284 - Pages: 2

...PROJECT: How Are Calories Affected by Fat, Proteins and Carbohydrates Prepared for: Dr. Ahmed Baijou Date: 05/05/2011 Course: Advanced Quantitative Methods Multiple Regression Model Analysis Spring 2011 Table of Contents Proposal 3 Introduction 4 Literature Review 5 Data Analysis 7 Descriptive Analysis 7 Model Building 7 Application of the Multiple Regression Analysis 12 Conclusion and Recommendations 17 References 18 Appendix 19 Proposal Nowadays, people tend to be more concerned about their health but especially their shape; thus they are more interested in and willing to pay more for products that have low levels of calories and which are appropriate for diet programs. We are supposing that we are working for a food company that wants to launch a new weight loss product designed for people who are interested in getting in shape. The purpose of this study is to determine how calories are affected by Proteins, Carbohydrates and Fat; and to provide the company with the necessary information it needs to know how to get the desired level of calories by manipulating the different variables. In order to conduct the study, we will be using a multiple regression model. This model will consist of one dependent variable: Calories; three independent variables: Fat, Carbohydrates, and Proteins; and one dummy variable which is the nature of the product. That is: Liquid or Solid...

Words: 1997 - Pages: 8

...Avalanche Survival Roberto Mendoza-Diaz ITT Technical Institute Mr. Horne Abstract This paper examines the techniques, equipment needed, and experiences of others in how to survive an avalanche. By examining this situation people can get self-awareness when trekking the back country in search of entertainment and adventure. In recent years the increment of people participating in winter events like snowboarding or skiing has created more and more accidents in which many people have lost their lives. In accordance with American Avalanche Association there have been 27 fatalities between December 2013 and May 2014 (American Avalanche Association, 2014). Also in accordance with this organization after 35 minutes, a buried victim has an only 27 percent chance of survival (American Avalanche Association, 2014). By reading this paper one will learn how to become aware on how to survive an avalanche and how to help other victims of avalanches. Another important aspect of survival is to remember when a situation like surviving an avalanche happens is to keep the faith. Avalanche Survival Is it possible to survive an avalanche? Avalanche survival depends on several factors: knowledge and/or experience, the right gear and luck. Self-rescue techniques and avalanche survival courses are other good options to keep in mind. About a year ago a woman survived being buried alive in an avalanche at the Alta ski area east of Salt Lake City. The woman survived because she deployed...

Words: 1158 - Pages: 5

...Statement 1 Proverbs 25:2 says,"It is the glory of God to conseal things, but the glory of kings is to search things out. " Qualitative research focuses on deeper issues and asked the questions of how, when and why people do things. Quantitative research behaves in a quantified since and assigns numerical values to responses and measure statics. With this said Proverbs, the bible verse, supports that research methods can be Godly. I interpret that verse as meaning that it is important to know and confirm in your mind that you know something, but it is better to research the topic in a biblical since rather thas a secular or worldly since. the glory of kings is researching and becomeing stronger on a topic. Pshycologists often study peoples behavior in how and why they do things. These psycologists can us Qualitative research to learn how to tell why people do the things they do. Statement 2 Romans 12:2 says,"Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God's will is--his good, pleasing and perfect will. In Quantitative research people study others behavior based on statics and numbers. Research methods can be ungodly because like the verse discribed, we are not suppost to conform to the patterns on this worl we live in. With quantitative reseach it is easy to follow the crowd and look at the statoics of what everyone else is going. The staticas give the answers to Peoples...

Words: 1179 - Pages: 5

...Quantitative Methods II ©2006 Prentice Hall Lecture 12 14-12-2014 Chapter 13 Linear Correlation and Regression ©2006 Prentice Hall Intended Learning Outcomes (ILOs) • By the end of this lecture, the student should be able to: Understand and explain the terms dependent and independent variable Calculate and interpret the correlation coefficient , the coefficient of determination, and the standard error of estimate Calculate the least squares regression line Construct and interpret confidence and prediction intervals for the dependent variable ©2006 Prentice Hall • In this chapter, we will develop numerical measures to express the relationship between two variables. Is the relationship strong or weak, is it direct or inverse? In addition, we will develop an equation to express the relationship between variables. Then, we will estimate one variable on the basis of another. • - Examples: Is there a relationship between the number of hours that student studies for an exam and the score earned? - Is there a relationship between years of employee experience and the quantity of production? - Is there a relationship between the product price and the purchasing amount of that product? - Is there a relationship between the amount of money spend per month on advertising and the monthly sales? - Is there a relationship between age and blood pressure ? Can we estimate, based on the amount of money spent on advertising in January...

Words: 1149 - Pages: 5

...Avalanche Corporation Bayesian Analysis Case Question 1. Determine the break-even volume for the two production options(bath and line) Suppose the break-even volume should be x units total cost for batch flow production equals 475,000+ 75x total cost for line flow production equals 900,000+60x if 475,000+75x = 900,000+60x , we will have x= 28,334 units. if more than 28,334 units are produced, the cost of batch flow production will be higher than that of line flow production, and the line production should be used; otherwise, when the volume is lower than 28,334 units, the batch flow production should be used. Question 2. Determine the net income for each of the six demand and production options 2a. Draw an appropriate decision tree. Please refer to the lower half of the decision-tree hardcopy handout. Thanks 2b. To maximize the expected value, what is the production decision . There are three production levels: A. 15,000 units B. 30,000 units C. 40,000 units From Question 1 we know that the break-even volume is 28,334 units. Therefore, for option A, batch flow production is adopted; while for option B and C, line production method is adopted. And there are two sales forecast scenarios for Avalanche Racer: a) 35,000 units with probability of 0.6 b) 25,000 units with probability of 0.4. Other factors include the selling price of Avalanche Racer is $125, and if and only if demand exceeds production, an outside...

Words: 1343 - Pages: 6

...College Number(Bottom Left of College Card) | 100828304 | Year: | 1 | Course Code | MN1105 | Course Tutor: | Dr Ashok Jashapara | Assignment No.: | 1 | Degree Title: | MN1105 Quantitative Methods | Question No. & Title: | “Critique of Quantitative Methods Journal Paper” | “Critique of Quantitative Methods Journal Paper” Why Are Some Subsidiaries of Multinationals the Source of Novel Practices while Others Are Not? National, Corporate and Functional Influences. This paper aims to establish the analysis of a unique international data set in four host countries like Canada. Ireland, Spain and UK. The study examines the argument that various, rather than single, proof are required to understand the factors promoting or retarding the diffusion of human resource practices within multinational companies. Multinational companies are progressively powerful and effective in Europe and worldwide. They are the main factor of the world and regional economies. MNCs are familiar with the sharing of organizational practices to foreign subsidiaries with the rest of the company. Organizational practices can be shown as important resources and abilities to produce and develop through the firm. “The key part of MNC’s is the diffusion of human resource practices to develop at the international level at the diverse capabilities and knowledge that they possess at subsidiary level.” The article examines the diffusion of HR practices from the...

Words: 2478 - Pages: 10

...Combining Qualitative and Quantitative Methods In Environmental Accounting Research Evangeline Elijido-Ten Faculty of Business and Enterprise, Swinburne University of Technology Address for correspondence: Faculty of Business and Enterprise Swinburne University of Technology John Street, Hawthorn Victoria, Australia 3122 Phone: +61 3 9214 4471 Fax: +61 3 9819 2117 E-mail: eelijidoten@swin.edu.au 1 Combining Qualitative and Quantitative Methods In Environmental Accounting Research Abstract Purpose: To explore how the combination of quantitative and qualitative methods can enhance a study on the environmental reporting decisions made by Malaysian companies using the emergent stakeholder theory. Methodology/approach: The paper provides an illustration of how the descriptive, exploratory and explanatory type of research is entrenched with the objectives of the research and how the combination of quantitative (statistical regression and weighting/mean ranking) and qualitative (archival analysis, qualitative interviews) methods may enhance accounting research not only from results that corroborate. Findings: The three-fold objective of this study, corresponding to its three phases, illustrates that combining qualitative and quantitative methods involves considerations at each phase of the investigation. The research design shows that when the researcher work with different types of data within the same project, the way data is used varies...

Words: 4323 - Pages: 18

...Individual Work-2-Week-10 Ricky Norberg Quantitative Methods - 1 Everest University Online Date - 03/19/2016 Instructor: Robert Miner 1 1. Over a three week (21-day) scheduling period, each unit will be scheduled for seven days. Normal staffing requires 186 firefighters to be on duty every day. Thus, each unit needs to provide staffing for 7*186=1302 firefighter days. During a three week period, each firefighter provides 6 days of service. Therefore, Base no of firefighters needed by each unit=1302/6 = 217 Base no of firefighters needed by each unit=217. 2. Using the normal distribution, Z value corresponding to probability of 0.3548= - 0.3722 Optimal no of additional firefighters based on given distribution: Q*= μ+Ζσ μ=20 σ=5 Ζ=0.3772 Thus, Q*=20-0.3772(5) =18.14 Using minimum cost criteria, 18 firefighters should be added in each unit in order to cover daily absences. 3. On a given day, what is the probability that Kelley-day firefighters will be called in to work overtime? Optimal probability that demand will exceed Q*: P (Demand>Q*) =1-((Cu/ (Cu +Co)) P (Demand>Q*) =1-0.3548 = 0.6542 the probability that Kelley-day firefighters will be called in to work overtime=0.6542 4. Based on the three-unit organization, how many firefighters should be...

Words: 344 - Pages: 2

...Avalanches: Sudden downhill movement of snow. Most avalanches occur spontaneously during storms under increased load due to snowfall. The second largest cause of natural avalanches is metamorphic changes in the snowpack such as melting due to solar radiation. Other natural causes include rain, earthquakes, rock fall and icefall. Artificial triggers of avalanches include skiers, snowmobiles, and controlled explosive work. Slab avalanches Form frequently in snow that has been deposited, or redeposited by wind. Look like a block (slab) of snow cut out from its surroundings by fractures. Features include: crown fracture at the top of the start zone, flank fractures on the sides of the start zones, and a fracture at the bottom called the staunchwall. The crown and flank fractures are vertical walls in the snow delineating the snow that was entrained in the avalanche from the snow that remained on the slope. Vary in thickness from a few centimetres to three metres. 90% of fatalities in backcountry users are slab avalanches Powder snow/dry snow avalanches Form turbulent suspension currents known as powder snow avalanches or mixed avalanches. Consist of a powder cloud, which overlies a dense avalanche. Usually occur with fresh dry powder. Speeds of 300+ km/h, and masses of 10,000,000 tonnes; their flows can travel long distances along flat valley bottoms and even uphill for short distances. Wet snow avalanches Low velocity suspension of snow and water The low...

Words: 916 - Pages: 4

...Jet Copies Case Problem Alex B. Wilson Professor Henry Grimm Quantitative Methods-MAT 540 February 12, 2012 Strayer University-Allentown Campus Jet Copies Case Problem 1 If you assume that the number of days needed to repair a copier is random, you can generate a random number using the Excel RAND function which I denoted r2 between 0 and 1. If 0 < r2 < 0.2 then it takes 1 day 0.2 < r2 < 0.65 then it takes 2 days 0.65 < r2 < 0.90 then it takes 3 days 0.9 < r2 < 1 then it takes 4 days 2 The probability distribution of the random variable varies between the times of 0 to 6 weeks, with the probability increasing as time goes on. This can be approximated by the function f(x) = x/18 for 0 < x < 6 Therefore, the distribution function is f(x) = x-square divided by 36 for 0 < x < 6 If we set this equal to another random number r1 that is between 0 and 1 then R1 = x-square divided by 36 which results to x = 6√ r1 3 Since the number of copies sold per day is a uniform probability distribution between 2000 to 8000 copies, I made r3 a random number between 2000 to 8000. To get the amount of business lost on a particular day, I take r3 X (repair time), and the lost revenue is then equal to 0.1 X r3 X repair time, since they charge $0.10 per copy. 4 After running the simulation, I got the following results: Repair Distribution P(x) | Cumulative | Repair time | 0.2 | 0.000 | 1.000 | 0.45...

Words: 1131 - Pages: 5

...A review of Quantitative easing Student’s Name: Institutional Affiliation: Quantitative Easing: Is it effective? Quantitative easing is an untypical monetary policy adopted by central banks to stimulate the economy and ease liquidity if other methods are ineffective. A steady and low rate of inflation is crucial for a stable and thriving economy. Without a steady rate of inflation, the economy becomes unpredictable, discouraging long-term ventures. Central banks use interest rates to control inflation (Gagnon et al, 2010). They set interest rates at which financial institutions can borrow from them. These rates trickle down to consumers in the end, thus affecting inflation. When inflation declines below a safe level for the economy, say 2 %, this is referred to as deflation. When deflation occurs to the point where there is hardly any inflation, the government may intervene by introducing money directly into the economy to achieve a desired level of inflation. This is what is referred to as quantitative easing (Rothbard, 1999). The central bank does this by buying financial assets from both banks and the private sector, and thus introducing new money into the economy. This paper investigates the efficacy of quantitative easing and its effects to the economy. Typically, central banks stimulate economies by purchasing government bonds to lower short-term interest (Krugman, 2003). However, when the central bank has lowered interest to the point that it is at zero...

Words: 2848 - Pages: 12