test3-practice-key

test3-practice-key - Exam III Name _key_ Practice _ Part I....

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1 Exam III Name ________key_______________ Practice ______________________________________________________________________________ Part I. Fill in the blank. 2 pts each 12 points total. 1) ___Capital recovery__________ is the annualized equivalent value of the initial investment cost of a capital asset. 2) _Coefficient of Variation__ measures variability relative to the mean and is found by dividing the standard deviation by the mean. 3) A __cumulative distribution function___________________________ is a graph of the values for all possible outcomes for an event and the probability that the actual outcome will be equal to or less than each value. 4) A ___decision tree______________ is a diagram that traces out several possible management strategies, the potential outcomes from an event, and their results. 5) __Diversification__________________ is a risk-reducing strategy whereby the manager produces two or more commodities to reduce overall income variability. 6) The ___operating profit margin ratio___________________________________ measures the proportion of gross revenue that is left after paying all expenses; it is found by dividing the dollar return to farm assets by the gross revenue of the farm.
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2 Short Answers Various points. l) List 5 ways to improve labor efficiency. (5 points) 1) more capital investment per worker 2) use of larger-scale machinery 3) adopting less labor intensive technology 4) simplifying work procedures 5) ensuring a comfortable working environment (There are other acceptable answers.) 2) Look at the efficiency measures in the table below. 5 pts. Our Farm Comparison Group Average Gross Revenue Per Person $130,000 $100,000 Machinery Cost Per Acre $70 $50 Corn yield per acre 80 96 Soybean yield per acre 40 35 Calving rate 85% 90% Weaned calf weight 600 550 Provide an analysis of the information given in terms of how "our farm" in relation to the comparison group.
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3. (6 pts.) List the three basic standards of comparison in farm business analysis. 1)
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test3-practice-key - Exam III Name _key_ Practice _ Part I....

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