Operations Management and Statistical Analysis: Practical Applications in Business Decision-Making
Discusses operations management and statistical analysis for business decisions.
David Miller
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Operations Management and Statistical Analysis: Practical Applications in
Business Decision-Making
Jane wants to setup a photo shop. The cost to rent an office is $150 per week. The variable cost
of making one photo is $20 and she can sell it for $50.
5.0 Points
Jane has to sell 5 photos per week to break even. (Please only enter an
integer and include no units.)
If Jane sells 10 units, her profits would be 150 dollars. (Please only enter an integer and
include no units.)
Mark for Review What's This?
Paul wants to choose one of the two investment opportunities over three possible scenarios.
Investment 1 will yield a return of $10,000 in Scenario 1, $2,000 in Scenario 2, and a negative
return of -$5,000 in Scenario 3. Investment 2 will yield a return of $6,000 in Scenario 1, $4,000
in Scenario 2, and zero in Scenario 3. The probability for Scenario 1 is 0.2, for Scenario 2 is 0.3,
and for Scenario 3 is 0.5.
Question 1 of 2 5.0 Points
If you were to choose the investment that maximizes Paul's Expected Money Value (EMV), then you
should choose __________.
A. Investment 1
B. Investment 2
C. Indifferent
Reset Selection
If Paul is uncertain about the return for Investment 1 in Scenario 1, then this return has to be
21500 dollars in order to make Paul indifferent between these two investments (i.e. the two
Business Decision-Making
Jane wants to setup a photo shop. The cost to rent an office is $150 per week. The variable cost
of making one photo is $20 and she can sell it for $50.
5.0 Points
Jane has to sell 5 photos per week to break even. (Please only enter an
integer and include no units.)
If Jane sells 10 units, her profits would be 150 dollars. (Please only enter an integer and
include no units.)
Mark for Review What's This?
Paul wants to choose one of the two investment opportunities over three possible scenarios.
Investment 1 will yield a return of $10,000 in Scenario 1, $2,000 in Scenario 2, and a negative
return of -$5,000 in Scenario 3. Investment 2 will yield a return of $6,000 in Scenario 1, $4,000
in Scenario 2, and zero in Scenario 3. The probability for Scenario 1 is 0.2, for Scenario 2 is 0.3,
and for Scenario 3 is 0.5.
Question 1 of 2 5.0 Points
If you were to choose the investment that maximizes Paul's Expected Money Value (EMV), then you
should choose __________.
A. Investment 1
B. Investment 2
C. Indifferent
Reset Selection
If Paul is uncertain about the return for Investment 1 in Scenario 1, then this return has to be
21500 dollars in order to make Paul indifferent between these two investments (i.e. the two
investments would have the same EMV.) (Please only enter an integer and include no units.)
Mark for Review What's This?
Sam has a cleaning service. To better allocate his resources, he would like to forecast his weekly
orders 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
Week 11 14
Week 12 16
Week 13 15
Question 1 of 3 5.0 Points
Using a three week moving average, Sam's forecast for his Week 14 order number is 15 .
(Please round to two decimal points and include no units.)
Mark for Review What's This?
Question 2 of 3 5.0 Points
Using a three week weighted moving average with weights 3, 2, and 1 given to the most recent, second
most recent, and third most recent week, respectively, Sam's forecast for his Week 14 order number is
15.17 . (Please round to two decimal points and include no units.)
Mark for Review What's This?
Question 3 of 3 5.0 Points
If the MAD for moving average is 4.17 and the MAD for weighted moving average is 2.38, then which
forecast is more accurate?
A. Moving average
B. Weighted moving average
Mark for Review What's This?
Sam has a cleaning service. To better allocate his resources, he would like to forecast his weekly
orders 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
Week 11 14
Week 12 16
Week 13 15
Question 1 of 3 5.0 Points
Using a three week moving average, Sam's forecast for his Week 14 order number is 15 .
(Please round to two decimal points and include no units.)
Mark for Review What's This?
Question 2 of 3 5.0 Points
Using a three week weighted moving average with weights 3, 2, and 1 given to the most recent, second
most recent, and third most recent week, respectively, Sam's forecast for his Week 14 order number is
15.17 . (Please round to two decimal points and include no units.)
Mark for Review What's This?
Question 3 of 3 5.0 Points
If the MAD for moving average is 4.17 and the MAD for weighted moving average is 2.38, then which
forecast is more accurate?
A. Moving average
B. Weighted moving average
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Subject
Operations Management