1.The profit equation for John Billiard Supply company is given as follows:
- Find selling price per unit, fixed cost and variable cost per unit.
- If company sells 10 units, then find total expenses of the company?
- If company sells 15 units, then what will be the total profit of the company?
- In a Production Company, the materials and labor cost for making a product is $200 and the fixed cost per week is $2000. The selling price for each product is $300.
- A manager is deciding whether or not to build a small facility. Demand is uncertain and can be either at a high or low level. If the manager chooses a small facility and demand is low, the payoff is $30. If the manager chooses a small facility and demand is high, the payoff is $10. On the other hand, if the manager chooses a large facility and demand is low, the payoff is -$20, but if demand is high, the payoff is $80.
- The following payoff table provides profits based on various possible decision alternatives and various levels of demand with probabilities of different demands:
- Given the following gasoline data:
- Number of students present in a class of STAT201 on different days of the week is given in the following table:
- If company sells 200 units, find total revenue for the company.
- How many products must be sold by the company per week to breakeven point?
- Develop the decision table.
- What would be the best decision based on the maximax criterion?
- What would be the best decision based on Hurwicz’s criterion of realism using α = 0.6?
States of Nature
What will be the expected value of perfect information (EVPI) for this situation?
- Compute the seasonal index for each quarter.
- Suppose we expect year 3 to have annual demand of 400.What is the forecast value for each quarter in year 3?
Number of students present in the class
- Develop a three-day moving average for Thursday.
- Develop a forecast of presents for Thursday using exponential smoothing with an alpha = 0.2.Assume that an initial forecast for Wednesday was 40.