QUESTION 35

1. Which is the recommend decision alternative using the conservative approach?

   Use the following payoff table for a maximization problem.

   Decision Alternative	State of nature 1	State of nature 2
   D1	6	7
   D2	–2	2
   D3	2	–3
   D4	10	4

   	a.	D1
   	b.	D2
   	c.	D3
   	d.	D4
   	e.	None of the above

1.5 points   

QUESTION 36

1. You would like to invest in one of the three available investment plans: money market, bonds, or stocks. The payoffs (profits) of each plan under two possible future economic conditions, PE (poor economy) and GE (good economy), are shown below. The probability of the occurrence of PE is 0.2.

   PE GE

   Money Market 1000 2000

   Bonds 3000 2500

   Stocks 2000 4500

   Suppose that before making the investment decision, you consider hiring an economist who can provide either U = "unfavorable" or F = "favorable" report concerning the future economic conditions. Assume that the following information is also available:

   P(U/PE) = 0.6   P(F/PE) = 0.4

   P(U/GE) = 0.2   P(F/GE) = 0.8

   What is the posterior probability P(PE/F)?

   	a.	0.238
   	b.	0.047
   	c.	0.089
   	d.	0.111
   	e.	None of the above

QUESTION 38

1. You would like to invest in one of the three available investment plans: money market, bonds, or stocks. The payoffs (profits) of each plan under two possible future economic conditions, PE (poor economy) and GE (good economy), are shown below. The probability of the occurrence of PE is 0.2.

   PE GE

   Money Market 1000 2000

   Bonds 3000 2500

   Stocks 2000 4500

   In the light of the expected value approach, the expected profit for the best decision alternative is

   	a.	1200
   	b.	3600
   	c.	4000
   	d.	5100
   	e.	None of the above

1.5 points   

QUESTION 39

1. You would like to invest in one of the three available investment plans: money market, bonds, or stocks. The payoffs (profits) of each plan under two possible future economic conditions, PE (poor economy) and GE (good economy), are shown below. The probability of the occurrence of PE is 0.2.

   PE GE

   Money Market 1000 2000

   Bonds 3000 2500

   Stocks 2000 4500

   Suppose that before making the investment decision, you consider hiring an economist who can provide either U = "unfavorable" or F = "favorable" report concerning the future economic conditions. Assume that the following information is also available:

   P(U/PE) = 0.6   P(F/PE) = 0.4

   P(U/GE) = 0.2   P(F/GE) = 0.8

   What is the best decision alternative when a favorable report is provided by the economists?

   	a.	Stocks
   	b.	Money Market
   	c.	Bonds
   	d.	Both Money Market and Stocks
   	e.	None of the above

1.5 points   

QUESTION 40

1. Which is the recommend decision alternative using the optimistic approach?

   Use the following payoff table for a maximization problem.

   Decision Alternative	State of nature 1	State of nature 2
   D1	6	7
   D2	–2	2
   D3	2	–3
   D4	10	4

   	a.	D1
   	b.	D3
   	c.	D4
   	d.	D3
   	e.	None of the above

Answer all questions

Answer the following: (Use the Excel Sheet attached)

1. What two changes to the budget process you followed would you make to improve the budget management of the clinic?
2. Provide two recommendations to the owners to try to improve the financial performance of the clinic.

The stormwater system of a given site includes the surface overland flow which exits by a rectangular concrete channel to (Manning‘s n = 0.015) drain it. The drainage channel is 100 m long, 20 cm wide, and has a longitudinal slope of 0.6%. The catchment surface of 1950 m2 has an average slope of 0.7%. The site surface is rough asphalt pavement (Manning‘s n = 0.020) and the distance from the upstream catchment boundary to the channel inlet is 100 m. The 25-yr design effective rainfall rate of 78.45 mm/h, which will produce an estimated channel flow rate of 0.034 m3 /s and channel water depth of 0.2 m.

Determine:

a) Estimate the time of concentration of the overland flow over the site using the kinematic wave approach.

b) Estimate the time of concentration from the open channel using the velocity approach and Manning’s equation.

c) Estimate the total time of concentration of the catchment

Q3). A 10KW, 415V, 50Hz, 4 pole, Y (star)-connected induction motor is running at 1425 rpm and is delivering full load output while operating at 89% efficiency.

a) Find the total losses of the motor [4 marks]

b) If the Copper loss, Core loss and Rotational loss are at a ratio of 1:0.7:0.2, find each loss separately [6 marks]

c) What is the torque output of the motor? [4 marks]

d) If the full load power factor is 0.85, what is the current drawn by the motor? [4 marks]

e) Find the phase voltage and phase current of the motor? [6 marks]

f) Find the full load slip of the motor? What will be running speed of the motor if the frequency is changed to 40 Hz assuming the operating slip remains the same? [6 marks]

g) Find the running cost of the motor for a year if the duty is 50% and cost of electricity is 30c per unit [4 marks]

A 600​-room hotel can rent every one of its rooms at $90 per room. For each​ $1 increase in​ rent,

3 fewer rooms are rented. Each rented room costs the hotel​ $10 to service per day. How much should the hotel charge for each room to maximize its daily​ profit? What is the maximum daily​ profit?

1. The Howell’s decided to build a resort hotel on land owned by Chief Ugundi. For each of the following items, indicate whether the cost should be recorded as Land (L), Land Improvements (LI), Resort Hotel (RH), or Equipment (E) by placing the correct answer in the space provided. Answer Fences around the property site cost $50,000 Construction of the resort hotel cost $5,000,000 Demolition of existing huts on the land cost $80,000 Installation of wooden sidewalks between the resort hotel and parking lot cost $40,000 Architectural fees for the resort hotel cost $30,000 A construction permit obtained from Chief Ugundi cost $20,000 Clearing the brush and removing unwanted trees on the site cost $60,000 Purchased a wagon to assist with hauling away trees and dirt for $25,000 The Professor charged $40,000 to act as engineer and architect on the resort hotel Constructing permanent tiki torches around the site as lighting cost $10,000 Landscaping (shrubs and decorative ornaments) around the resort cost $100,000 The actual purchase price for the land cost $200,000

Misc Information: Mr. Burns sold off all of his fixed assets from the nuclear power plant. Also, there was an adjustment to the allowance for uncollectible account during your brief respite. Mr. Smithers performed the necessary entries to get the books up to date; this included the reduction of the mortgage payable. However, you will calculate interest expense, bad debt expense, and depreciation expense. These amounts will not be given to you. Good luck and time manage appropriately. ***For any note/mortgage payable, you find interest expense the same way you find interest revenue. ***

Check Figures:

                        Unadjusted Net Loss: ($9,737)

                        Adjusted Net Loss: ($360,991)

Journal Entries:

1. January 2: After returning from exile, Mr. Burns invested $600,000 of personal funds directly in the business (retained earnings) to strengthen his grip on the cookie market. No common stock ownership was given.

2. January 3: In order to keep the IRS off his trail, Mr. Burns transferred money from his personal account into a Cayman Island secret account for $1,000,000.

3. January 3: In order to expand his cookie factory and be able to dump toxic waste without being impeded by the Feds, Mr. Burns bought land for cash for $500,000. The bald children in the park were drawing attention from the Environmental Protection Agency.

4. January 4: After threatening to block out the sun, Mr. Burns was able to collect $115,000 of the 2020 accounts receivable beginning balance.

5. January 5: In order to ease his beginning of the year cash flow crunch, Mr. Burns issued Common Stock (1,500,000 shares at $2.00 per share). The Par Value is $1.00 per share.

6. February 1: In order to keep up with being 104 year old hip evil billionaire, Mr. Burns decided to purchase a new truck. The truck cost $60,000. Mr. Burns put a down payment on the truck of $10,000 and took out a note for the rest (long term). The interest rate of the note is 10%. The truck will depreciated by miles. The expected life of the truck is 100,000 miles.

7. February 20: Mr. Burns sold his delicious cookies to Candy Store on account $300,000. Mr. Burns offered terms 2/20, n40. The cost of merchandise sold was $150,000.

8. February 28: Mr. Burns bought cookie dough (inventory) to keep the cookie assembly line going. Mr. Burns paid cash for the cookie dough $400,000

9. March 1^st. Mr. Burns reclassed the current portion of long term notes payable. Reclass only the portion on the balance sheet as of January 1st, 2020.

10. March 5: Mr. Burns paid for the following expenses that came in: Sales Salary Expense $70,000, Advertising Expense $50,000, and Delivery Expense $40,000. All of the expenses were paid in one transaction.

11. March 6: Mr. Burns collected $30,000 of the 1/1/2020 balance of the note receivable from Mayor Quimby. The interest rate was 15% and the Note was written on July 1^th, 2019

12. March 7: The Candy Store paid Mr. Burns what they owed him on account.

13. March 15: Mr. Burns paid income tax payable owed from last year.

Science has been recognized as a critical input in good decision making for park managers. How does the use of science benefit park management decisions?

You are the revenue manager of a 200-room hotel in Memphis. The management controllable costs (variable room costs) incurred when selling 1 room are $50. You are interested in evaluating hotel performance for two scenarios: fixed pricing and differential pricing.

Scenario one is that you used a fixed pricing strategy: at a selling pricing $200 per night your hotel would sell 150 rooms on a given day.

Scenario two is that you implement a three-price strategy: low rate $150 per night, regular rate $200 per night, and high rate $250 per night. Your hotel would sell 100 low-priced rooms, 60 regular-priced rooms, and 20 high-priced rooms per day.

2. Discuss which scenario generates more revenue for your hotel and why?