Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Question
A toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The different mechanisms have three different setup costs (overheads) and variable costs and, therefore, the profit from the dolls is dependent on the volume of sales. The anticipated payoffs are as follows.
| Light Demand | Moderate Demand | Heavy Demand | |
| Probability | 0.25 | 0.45 | 0.3 |
| Wind-up action | $325,000 | $190,000 | $170,000 |
| Pneumatic action | $300,000 | $420,000 | $400,000 |
| Electrical action | -$400,000 | $240,000 | $800,000 |
a. What is the EMV of each decision alternative?
b. Which action should be selected?
c. What is the expected value with perfect information?
d. What is the expected value of perfect information?
Answer
This answer is hidden. It contains 308 characters.
Related questions
Q:
Identify JIT scheduling tactics.
Q:
What is a kanban?
Q:
What three things does the Toyota Production System (TPS) emphasize?
Q:
__________ is any deviation from the optimum process that delivers perfect product on time, every time.
Q:
The __________ is the lowest level of quality that we are willing to accept.
Q:
The term __________ is used to describe how well a process makes units within design specifications (or tolerances).
Q:
The __________ are calculated to show how much allowance should be made for natural variation.
Q:
The __________ is a quality control chart that indicates when changes occur in the central tendency of a production process.
Q:
Which of the following is true regarding the average outgoing quality level?A) An AOQ value of 1 is ideal, because all defects have been removed.B) AOQ is always greater than AQL but less than LTPD.C) AOQ rises (worsens) following inspection of failed lots.D) AOQ is very low (very good) for extremely poor quality lots.E) None of the above is true.
Q:
In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQA) worsens (AOQ becomes a larger fraction)B) improves (AOQ becomes a smaller fraction)C) is not affected, but the AQL is improvedD) is not affectedE) falls to zero
Q:
A Type II error occurs whenA) a good lot is rejectedB) a bad lot is acceptedC) the population is worse than the LTPDD) the proportion of defectives is very smallE) none of the above
Q:
Average outgoing quality (AOQ) usuallyA) worsens with inspectionB) stays the same with inspectionC) improves with inspectionD) may either improve or worsen with inspectionE) is the average quality before inspectionAnswer: C
Q:
Which of the following is true regarding the relationship between AOQ and the true population percent defective?A) AOQ is greater than the true percent defective.B) AOQ is the same as the true percent defective.C) AOQ is less than the true percent defective.D) There is no relationship between AOQ and the true percent defective.E) The relationship between these two cannot be determined.
Q:
Acceptance samplingA) may involve inspectors taking random samples (or batches) of finished products and measuring them against predetermined standardsB) may involve inspectors taking random samples (or batches) of incoming raw materials and measuring them against predetermined standardsC) is more economical than 100% inspectionD) may be either of a variable or attribute type, although attribute inspection is more common in the business environmentE) All of the above are true.
Q:
A Cp of 1.33 indicates how many sigma limitsA) 1B) 1.33C) 2D) 3E) 4
Q:
The normal application of a p-chart is inA) process sampling by variablesB) acceptance sampling by variablesC) process sampling by attributesD) acceptance sampling by attributesE) none of the above
Q:
The mean and standard deviation for a process for which we have a substantial history are= 120 and u03c3 = 2. For the x-bar chart, a sample size of 16 will be used. What is the mean of the sampling distribution?A) 1/8 (0.125)B) 7.5C) 2D) 40E) 120
Q:
The type of inspection that classifies items as being either good or defective isA) variable inspectionB) attribute inspectionC) fixed inspectionD) all of the aboveE) none of the above
Q:
Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows forA) Type I errorsB) about 95.5% variationC) natural variationD) all types of variationE) assignable variation
Q:
Suppose that a three stage process had reliability ratings of .7, .8, and .9 at each station and that a failure at any station represented a failure for the entire process. If each station is given a redundant check with .9 reliability, what is the increase in system reliability?
Q:
Which product design below has the higher system reliability?
Q:
The academic service commonly referred to as "registration" consists of several smaller components: advising, registration for courses, fee assessment, financial aid calculations, and fee payment. Each of these modules operates independently and has some probability of failure for each student. If the five probabilities which accompany these services are 95%, 90%, 99%, 98%, and 99%, what is the "reliability" of the entire product from the student's perspectivethe probability that all five will work according to plan?
Q:
Mean charts and range charts complement one another, one detecting shifts in process average, the other detecting shifts in process dispersion.
Q:
The x-bar chart indicates that a gain or loss of uniformity has occurred in dispersion of a production process.
Q:
A woodworker is concerned about the quality of the finished appearance of her work. In sampling units of a split-willow hand-woven basket, she has found the following number of finish defects in ten units sampled: 4, 0, 3, 1, 2, 0, 1, 2, 0, 2.a. Calculate the average number of defects per basketb. If 3-sigma control limits are used, calculate the lower control limit, centerline, and upper control limit.