Case study

Case study

´╗┐Jane wants to setup a photo shop. The cost to rent an office is $150 per week. The variable cost of making one photo is $20 and she can sell it for $50.
1. Jane has to sell _5_ photos per week to break even. (Please only enter an integer and include no units.)
Jane wants to setup a photo shop. The cost to rent an office is $150 per week. The variable cost of making one photo is $20 and she can sell it for $50.
2. If Jane sells 10 units, her profits would be __150__dollars. (Please only enter an integer and include no units.)
Paul wants to choose one of the two investment opportunities over three possible scenarios. Investment 1 will yield a return of $10,000 in Scenario 1, $2,000 in Scenario 2, and a negative return of -$5,000 in Scenario 3. Investment 2 will yield a return of $6,000 in Scenario 1, $4,000 in Scenario 2, and zero in Scenario 3. The probability for Scenario 1 is 0.2, for Scenario 2 is 0.3, and for Scenario 3 is 0.5.
3. If you were to choose the investment that maximizes Paul's Expected Money Value (EMV), then you should choose __________.
A.Investment 1
B.Investment 2
C.Indifferent
Paul wants to choose one of the two investment opportunities over three possible scenarios. Investment 1 will yield a return of $10,000 in Scenario 1, $2,000 in Scenario 2, and a negative return of -$5,000 in Scenario 3. Investment 2 will yield a return of $6,000 in Scenario 1, $4,000 in Scenario 2, and zero in Scenario 3. The probability for Scenario 1 is 0.2, for Scenario 2 is 0.3, and for Scenario 3 is 0.5.
4. If Paul is uncertain about the return for Investment 1 in Scenario 1, then this return has to be __21500___ dollars in order to make Paul indifferent between these two investments (i.e. the two investments would have the same EMV.) (Please only enter an integer and include no units.)





Sam has a cleaning service. To better allocate his resources, he would like to forecast his weekly orders based on the order number he received in...

Similar Essays