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# HW 2 Answers - 1 BUSI 410 — Spring 2010 ANSWERS T0...

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Unformatted text preview: 1. BUSI 410 —- Spring 2010 ANSWERS T0 HOMEWORK #2 Vinton Auto insurance. The modei and resutts are shown on the first page of the attached Excel printouts, and the model formulas are shown on the second page. From these we can see that: a. b. C. The expected total cost of claims incurred by the company in any week is \$1143641. The probability that \$20,000 wili not be adequate to cover claims in any week is 16.67%. The level of cash that the company would need to be 95% certain they oeuld meet all claims is \$29,804.66. . Locai Car Dealership. The model and results are shown on the third page of the attached Excel printouts, and the model formulas are shown on the fourth page. From these we can see that: a. b. c. The expected number of cars that will be sold next Saturday is 8.5. The probability that the deaiership will earn the \$6,000 bonus is 37.2%. The expected payoff from the bonus is \$6,000 x 0.372 + \$0 x (1 — 0.372) a \$2,232. Hence, the deaier shouid not be willing to spend more than \$2,232 in incentives. Specialty Clothing Store. The model and results are shown on the fifth page of the attached Excel printouts, the model formulas are shown on the sixth page, and the decision tabie results are shown on the seventh page. From these we see that: a. b. On average, Michael would earn \$224,929.11 if he ordered 20,000 sweatshirts. P(Profit 5 \$5,000) is virtually zero. The value is so smali it is not even indicated on the frequency chart, and notice that the minimum simulated value in the 500 triais was \$100,956, so not even one single value of simulated profit was this tow. From the decision tabie we see that Michaei should order 24,000 sweatshirts. 29,339. own ””335 H w w h m m ..._ m m ”339:2 mnmzmmnm” Pu. on. 09 PM PM PM PM aw QM Emma «mum: wax.“— 5.. m" Um< “momma EEQEB wmumw umiﬂﬂa ”3an was; mom.“ 0m 3an nmmmam \$5555 23ng mg .33me am: :xmmmmn EWQn—mma m2. Jowmmg. n2. §wx§c3 EEQEB 3.. .853. 3.. EEQES €138_m% om: nae—um 09% \$9 .Sﬂmaa 33 new” 9“ 1&2.qu 4233. \$3 mam.” o.“ m: amwam 41me 3mm: imam: Eoum Mammuwa Dmiwzo: (\$138 mwmizmmm xcnoaw momma. 9n <mzmw=§ \$235.; memac3 xmzwm 5.5m; Emu: ma. maﬁa 2 0m n55. mow 408.3“ S: 3.39% \$89.8 mmboobo . @3089“ A, WT? . . mommnmmﬂ <mEmm moo mpwkwmé. mmbmomm mmhﬁb» mumbwrmompo “:5 Pam 0......35 mmﬁum maw‘mwwbw. mﬁbowmw mwmwbm r”! __-_I~m—""ﬂi Eocmcmmg £83533: Wmﬂawma 9w , mm 09.. «mum: Eimmwﬂ- PH 2;: mmummw waxnwmwg mm magma ammmmsm PM , nommm «mum: n63; 203mm. <5»: 333mm mmmwﬁﬁ UmFumA 9533 swimmgkacmm M: Exmwml gwmmaca menmma awwmmmme 8m: :wmzmmHEEQEB 3138.363 .2 ‘ ‘ “gmxmﬁca \$3933 «9 “Swag. nmw ‘ _ s a: Mmm<gm§ woq “3&3. R: .k wwwmw amdwmmmcmmn 2mm. Emaumw. Exm=mmﬁwmpo man Emmxumﬁ .mvaamummﬁxaown 03:: m: .335; .emE “ ii. 323m *9. .MoMmmmawmmwm ‘ ‘ . ..%www.:<mm\ﬂo 5i: 2<mmunmpw . Whoa“ 9n Qmmam wmaﬂwommmmaa 83 .5533me _ W how» 03: n_m.3m mﬂmzmsnm“ 43m 02. 03.33% gmzmaca a ncmwhogmwm E8” 53? u ncﬁoamwm ngWSnB u ncmoama Suﬁsm; Qﬂoama mammal 3032:? m 83 conch» zms. nmqm 33 2mg. 8% wocmﬁ .Emﬁ \$8: \$33: 28% mamaamwm casino: <m1mnnm mwméﬂmmm 5503 00mm. 0m <m2m i=2 \$3353 ﬁmXWBmB 5me \$33 3mm: ma. mag. «038% 553 mom who mba mba me mud ohmum Nmm 933 who Hubs Hmbo ohm 70m“. Umwmumzu - mowamﬂm M mgwnmﬁca n @3938 3,:me ":8? t 9633mm memacg # ~583de ﬁcﬂoﬁm a E; 7583mm :mem a \$33223. m 83 095m ”29: BE moi mama: BB comma” MW. _am2: Swoumw m «gamma Ear 33mg: Emwwzmmmﬁnm mag Bmxnmwé, Emnwmmem mumnmmmg 9055““ 903 2.05:." H 333:3 \$3me 28m.“ :5”? 19.33 memaca amamwa Umamun mémmﬁmanm 85 EB n9. £3333 mm<mscm .503... N 5&ng magma 28mm 58? mmgmzn gmxmaaa gmawzq UmBmza mémwwmwim worm wwmnm mama 938331 wméscm rmwocma gmxchB 3:339, mm_<mmmm mmw<mwm uznm mémmﬂmviw .675me wmézcm n8" um”. 223533 mémmnmazm 233m 43m“ 03.9. 3% 1.33” Noon meow NQDQ Moao mw woos mooo m “Momma. “mecca mammmgnmn ﬂaw gem: ”Sana: “Scam mmmnqmwa Umimmg <m1wznm mxmésmmm xcnomw 00mm. 0m gamma? \$2.453 wamaca xmsmm <55: 3mm; m8. mica mowmnwmw <mwcmm moo \$939: wwmbmobo Nﬁobowbo wmhmﬂwm mwwmmﬂobwha -N.~o 9mm 9»me Hoohmmbc whoboobo ”\$90“?th whmmbw ilaiil.inll..[ ::::::::::: £83m. m mnmnwi Qua—45m 2.03 # 2.03: H L Egéségﬁmhﬁﬁ magma musomﬁ :me @25me ngxmama amamza IIIIIIILMHMWWHMIIIIII Gémmﬂrma mama Egg; "13\$ umw mEmBmsi Igaa _mm<m::m H y...) d. zmsmcmmwénr 35” mm Cwmmmmﬁ mm mam 3.8% 0N3 “3.2.38 ”2185.5 IMNO 780 mm 759:: m a. _§m:m3:3 @3an HI—A :Soﬁ :me amBmaa 5.; [.1 U? Mm Wmémmﬂmzam moi mvumnm nmw mﬁmmnmgrmn Wmm<mmcm E3953 HH Nl—‘H _ uzwzﬁww. G 2:896 g ﬂag 1m «mmamﬂmw 52:» 33“ nHw Irwmmmﬂn 0H» .mmm meﬁnwm. E £83353 3:33.. mmmema mmm<mmm 318 3.33 . . mémmﬂmznm mmzmmmm NM NH N U.) ngmzﬁnwrmwwaméd mm<mscm I I [ E I E f E f E I MN U'I-b unwmgnnmw ,nomn um“ mimmamrwné mﬁmmwwxwmﬁ 0393 NM ‘401 M 00 43m. 3%: new” N KO 13%".an v33» DU O Lunwp'aew 96'ILE'OVZ (OO'OOO’ZI) paJapJo sugqsmams (00‘000’912) paJepJo SlJELISIEaMS (00'000‘81) pajama sugqsaeams .(OO'OOO’IZ) peJepm sumswamg O'OOO'PZ) paJapJo sugqsleamg O'OOO’LZ) paJapJo sngqszeamg 0'000‘02) pejepm sugqsleamg ...
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HW 2 Answers - 1 BUSI 410 — Spring 2010 ANSWERS T0...

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