Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, whereasthe advanced model is faster but costs more. Profitability will depend on future demand. The following tablepresents an estimate of profits over the next three years.DecisionBasic modelAdvanced modelDecision alternativeBasic modelAdvanced modelFill in the table below for maximum and minimum profit payoffs under each model. Round your answers tothe nearest dollar.Opportunity Loss MatrixDecision alternativeBasic modelAdvanced modelMaximumLow$75,000$60,000LowDemand VolumeCalculate the amounts foregone by not adopting the optimal course of action for each possible demandlevel. Determine the maximum opportunity cost for each model. Fill in the table below. If your answer iszero, enter "0". Round your answers to the nearest dollar.Minimum$Future eventsMedium$80,000$130,000MediumHigh$170,000$220,000HighMaximumGiven the uncertainty associated with the demand volume, and no other information to work with, whatdecision would you make?

Find the Given details below: Given details: Decision Demand Volume Low Medium High Basic…

Answered: Edwards Machine Tools needs to purchase…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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In the table below ratings data on x = the quality of the speed of execution and y = overall satisfaction with electronic trades provided the estimated regression equation ŷ = 0.3402 +0.8922x. Brokerage Speed Satisfaction Scottrade, Inc. 3.5 3.4 Charles Schwab 3.0 3.1 Fidelity Brokerage Services 3.3 3.2 TD Ameritrade 3.6 3.5 E*Trade Financial 3.4 3.7 Vanguard Brokerage Services 3.8 3.6 USAA Brokerage Services 3.3 2.9 Thinkorswim 3.1 3.6 Wells Fargo Investments 2.4 2.4 Interactive Brokers 2.6 2.2 Zecco.com 2.7 3.1 At the 0.05 level of significance, test whether speed of execution and overall satisfaction are related. Show the ANOVA table. What is your conclusion? Source Sum of Squares Degrees Mean Square F (to 2 decimals) of Variation (to 4 decimals) of Freedom (to 4 decimals) Regression Error Total P-value is - Select your answer - We Select your answer - V reject Ho : B1 = 0, we conclude that speed of execution and overall satisfaction Select your answer - V related.
Refer to the payoff table below of profits in ($000). Which decision alternative results from using the Conservative (Pessimestic) Decision Rule? PAYOFF TABLE High Demand Small Medium Large 35 300 550 -10 Moderate Demand 35 150 75 -10 Low Demand Do Nothing O A. Large O B. Do nothing OC. Medium O D. Small O E. Cannot be determined since relative frequencies are missing. 35 50 -45 -10
I draw 5 cards from a deck (replacing each cardimmediately after it is drawn). I receive $4 for each heartthat is drawn. Find the mean and variance of my total payoff.
Use the table below to answer the questions that follow and caculate the Expected Monetary Value(EMV) of the different outcomesDECISION TABLE WITH CONDITIONAL VALUESSTATE OF NATUREFAVORABLE OUTCOME UNFAVORABLE OUTCOMEALTERNATIVES ($) ($)Start a big Company 2,000,000 -500,000Start a small company 800,000 -200,000Build Nothing 0 0Probabilities 0.3 0.7Calculate the following The EMV Maximin criterion Maximax criterion Minimax criterion
XYZ work in a small electric business in Basrah city. He had a sunshine controller device. He had to decide how to market his idea, and in the short term, his options could be summarised as selling the device locally, selling nationally through a website, entering a partnership with an existing company or selling the patent. His returns depended on demand, which he described as high, medium, or low. Using this simple model, he developed the matrix of potential annual gains shown below: Options Demand High Medium Low Market locally 60 90 45 Use website 23 90 78 Partnership 12 25 89 Sell patent 30 30 30 Identify the decision taken under the following approaches: (1) Equal probability (2) Regret (3) Hurwicz criterion. Note: The decision maker's degree of Pessimistic (a) is 0.3.
ro forma income statement. Given the income statement , for California Cement Company for 2013 and an expected sales growth rate of 6.67% for 2014, prepare a pro forma income statement for 2014. First, find the percentage of each income statement line from 2013 as a percent of sales. (Round to three decimal places.) California Cement Company Income Statement for 2013 Sales revenue $ 22,869,000 Cost of goods sold $ -11,637,000 Selling, general, and administrative expenses $ -3,993,000 Depreciation expenses $ -1,331,000 EBIT $ 5,908,000 Interest expense $ -175,000 Taxable income $ 5,733,000 Taxes $ -2,512,462 Net income $ 3,220,538 What is the sales forecast for 2014? (Round to the nearest dollar.) The pro forma income statement for 2014 is: (Round to the nearest dollar.) California Cement Company Pro Forma Income Statement for 2014 Sales revenue $ ? 100.00% Cost of goods sold $ ? 50.885 %…
SWOT analysis is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning. Please explain firms may leverage their understanding of RBV when planning ahead through SWOT analysis. Internal External Strengths Internal capabilities that may help a company reach its objectives Opportunities External factors that the company may be able to exploit to its advantage Positive Weaknesses Internal limitations that may interfere with a company's ability to achieve its objectives Threats Current and emerging external factors that may challenge the company's performance Negative
What is the relative tax advantage of corporate debt if the corporate tax rate is Tc=0.21 , the personal tax rate on interest is TpD=0.37 , but all equity income is received as capital gains and escapes tax entirely ( TpE=0 )? How does the relative tax advantage change if the company decides to pay out all equity income as cash dividends that are taxed at 20%? Note: Do not round intermediate calculations. Round your answers to 4 decimal places.
(1) Although expectations play an important role, consumption and investment decisions are observed to be highly dependent on current values of disposable income and cash flows, respectively. is this true or false explain ( i give posistive rating) i need quikly thank you
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B's Strategy Raise Price Don't Raise Price Raise A's profit $3,000 Price B's profit $3,000 A's profit $10,000 B's profit $15,000 A's Strategy Don't A's profit $15,000 Raise B's profit $10,000 A's profit $5,000 B's profit $5,000 Please refer to the figure above: Fim A's optimal strategy is O a. to not raise the price of its product. O b. to raise the price of its product. O c. dependent on what Firm B does. O d. indeterminate from this information, as no information is provided on Firm A's risk
The following table shows quarterly sales (in thousand units) for a product over 4 years. The overall sales average for the entire 4 years is 166.125 (thousand units). Fill in the missing values assuming there is no trend. Round seasonal indexes to 4 decimal places. Report Averages accurate to at most 2 decimal places. Report Actual sales ('000) accurate to the nearest integer. Year Year Seasonal Year 1 Year 2 Average 4 Index Quarter 205 211 182 1.1768 1 Quarter 152 170 158 156 2 Quarter 182 190 198 193 3 Quarter 128 112 113 0.7178 4

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