Question
In: Statistics and Probability
Your boss was so happy to learn that you just completed a lecture on the applications...
Your boss was so happy to learn that you just completed a lecture on the applications of probability distributions in decision making last night. She called you to her office and asked you to help her decide which of the two comparable supercomputers A or B she should purchase.
Supercomputer A costs $14,000 and supercomputer B costs $14,800. Your company replaces supercomputers every three years. The repair contract for supercomputer A costs $70 per month and covers and unlimited number of repairs. The repair contract for supercomputer B costs $200 per repair. Based on past performance, the distribution of the number of repairs over any one-year period for supercomputer B is shown below:
Your boss asked that you give a recommendation based on the overall cost as to which supercomputer A or B along with its repair contract should be purchased. What would your recommendation be? Give a statistical justification to support your recommendation.
Solutions
orchestra answered 1 year agoRelated Solutions
Your boss is so impressed with your answers to the previous questions, he assigns you an...
Your boss is so impressed with your answers to the previous
questions, he assigns you an additional task of calculating the
selling price for a new product. The company expects that a $25,000
profit goal is reasonable for this product if they are able to sell
18,000 units. What is the appropriate selling price for this new
product? Remember that you can calculate the contribution by adding
fixed costs to the profit goal and then dividing by the total
quantity...
Assume you work for the Virginia Department of Health. Your boss just came to you with...
Assume you work for the Virginia Department of Health. Your boss
just came to you with one of his brilliant ideas to reduce smoking
in the state. He just learned that raising the price of a good will
reduce consumption of it, so he wants to impose a “sin” tax on
cigarettes to reduce smoking by 1,000 packs per day. From your
economic research unit, you know the inverse demand function for
cigarettes P(cig)=10-4Q(cig) [paranethesis are subscripts] where
P(cig) is...
You have just landed your dream summer internship, and your boss asks you to analyze a...
You have just landed
your dream summer internship, and your boss asks you to analyze a
project that has an investment cost of $2,000,000, to be paid today
(t = 0), and will generate a cash-flow of $200,000 in the first
year (t = 1). The cash-flow will then grow at 10% per year for the
next six years (the last time the cash-flow grows at 10% is from t
= 6 to t = 7). Afterwards, as competition increases,...
You have just started your summer? internship, and your boss asks you to review a recent...
You have just started your summer? internship, and your boss
asks you to review a recent analysis that was done to compare three
alternative proposals to enhance the? firm's manufacturing
facility. You find that the prior analysis ranked the proposals
according to their? IRR, and recommended the highest IRR? option,
Proposal A. You are concerned and decide to redo the analysis using
NPV to determine whether this recommendation was appropriate. But
while you are confident the IRRs were computed? correctly,...
You have just started your summer internship, and your boss asks you to review a recent...
You have just started your summer internship, and your boss asks
you to review a recent analysis that was done to compare three
alternative proposals to enhance the firm's manufacturing facility.
You find that the prior analysis ranked the proposals according to
their IRR and recommended the highest IRR option, Proposal A. You
are concerned and decide to redo the analysis using NPV to
determine whether this recommendation was appropriate. But while
you are confident the IRRs were computed correctly,...
You have just landed your dream summer internship, and your boss asks you to analyze a...
You have just landed your dream summer internship, and your
boss asks you to analyze a project that has an investment cost of
3,500,000, to be paid today (t = 0), and will generate a cash-flow
of 350,000 in the first year (t = 1). The cash-flow will then grow
at 12% per year for the next eight years (the last time the
cash-flow grows at 12% is from t = 8 to t = 9). Afterwards, as
competition increases,...
You have just calculated your firm's WACC. Your boss has asked you to do an NPV...
You have just calculated your firm's WACC. Your boss has asked
you to do an NPV analysis of a potential new project, but you
realise that the project is riskier than the firm's other projects.
What should you do? Select one: a. Reject the project. b. Conduct
the NPV analysis using the WACC as the discount rate. c. Conduct
the NPV analysis using an appropriate discount rate, which will be
higher than the firm's WACC. d. Conduct the NPV analysis...
Your boss has just congratulated you on the wonderful job you did this year. In order...
Your boss has just congratulated you
on the wonderful job you did this year. In order to formally
recognize your achievements, he would like to either give you a
bonus, or increase your salary. If you take the bonus, you will
receive $5,000 immediately. The salary increase would be a 1.5%
addition to the 40,000 per annum you currently receive, payable at
each year-end. In either event, you must pay taxes at a rate of 44%
and plan to work...
What examples of learning by "happy accident" or just by chance have you experienced in your...
What examples of learning by "happy accident" or just by chance
have you experienced in your own life?
What do you think it means for a person (especially a scientist)
to have a "prepared mind," as Pasteur describes?
How can a person prepare his or her mind to be open to chance
within a particular discipline? What roles might education, job
experience, and life experience play in creating a prepared
mind?
Often researchers must try many things that don't work...
You just got off the phone with your boss, and boy was he mad. The final...
You just got off the phone with your boss, and boy was he mad.
The final numbers just came in for the year, and you went over your
budget by over 6%. As Director of Operations, you oversee most of
the production departments at the Whispering Phone Book. Your
budget covers production, distribution, and operations. Your boss
wouldn’t listen when you tried to explain that the overage was not
all your fault, and in fact, was not all bad. You...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Describe the principles and operations of movement sensors: Doppler-Effect Velocity sensor and Spring-Mass Accelerometor; State the...
- This is all one question, thank you so much in advance. The Bigbee Bottling Company is...
- For Questions 1-3: consider the following code: public class A { private int number; protected String...
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
ADVERTISEMENT