Compute the expected loss/profit from the line

Assignment Help Econometrics
Reference no: EM131047194

You've just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following:

? There's a 70% chance that profit will increase by $100,000.

? There's a 20% chance that profit will remain the same.

? There's a 10% chance that profit will decrease by $15,000.

a. Gain of $100,000

b. Gain of $71,500

c. Loss of $15,000

d. Gain of $68,500

Reference no: EM131047194

Questions Cloud

Design of new products using decide framework : What is the Importance of Evaluation in the Creation and Design of New Products using DECIDE framework?
Plan an e-commerce site for a real or hypothetical business : Plan an e-commerce site for a real or hypothetical business and implement the site using open source tools. Students are to present their plan and implementation in an oral presentation using PowerPoint and in a written summary.
Major issues with wegmans food markets : How to resolve major issues with wegmans food markets? Must include (1) operations management technique (2) method of application (3) evaluation plan.
Net present value and its profitability index : The sum of the present values of the future cash flows of a project happens to equal the inital cost of that investment at a required rate of 14%. From this data, what would be the investment's internal rate of return, its net present value, and i..
Compute the expected loss/profit from the line : Compute the expected loss/profit from the line
Basic characteristics of a simple retirement plan : a. Briefly explain the basic characteristics of a SIMPLE retirement plan.b. Identify the major problems that are currently present in tax-deferred retirement plans.
Appropriate view about successful international business : In light of the course BUAD 420 which is international business, give an appropriate view about successful International Business as to how to operate effectively and strategically. Go into details about what you have learned throughout the course..
What is the expected npv of the product : What is the expected NPV of the product?
Identify is risks from the case study : Identify IS risks from the case study, including analysing the likelihood, level of risks and implications to the business.

Reviews

Write a Review

Econometrics Questions & Answers

  Question about cpi calculation

Assume that the price index is one hundred and a typical basket of goods and services cost $8. Within the basket, you had four hamburgers and 3 hot dogs.

  1 suppose that currency in circulation is 600 billion the

1. suppose that currency in circulation is 600 billion the amount of checkable deposits is 900 billion excess reserves

  Why the auditing firm was not found guilty of issuing

The auditors however have no responsibility to report internal control weaknesses in the audit report and failing to do so does not constitute a material misstatement or omission.

  What will gradually happen to the value of the dollar

Suppose that economists have made the following projections for the coming year Exports $540B, imports $710B, capital outflow $320, capital inflow $420. As the year is unfolding, it turns out that these projections are proving to be quite accurate

  What savings rate would be needed in order for the economy

Suppose that the economy under study has the following characteristics: s = 0.30 n = 0.02 g = 0.10 d = 0.03K = 1600 Y = 800 N = 100 A = 2 Y = F(K, N, A) = AF(K, N) = A(K^(1/2))(N^(1/2))

  Create an excel plot of the two pw curves

A company is considering replacing its asphalt parking lots with concrete, at first cost of $1,200,000, and an annual maintenance cost of $15,000. Another option is also available, which is resurfacing the parking lots with asphalt with a first co..

  Determine how far in kilometers does the town spread

There is a monocentric town that is shaped in a circle. The yearly rent for land in the CBD there is $36,000 per dunam. The value of the agricultural land on the outskirts of the town is $1,500 per dunam. The cost to travel in the town is $310 per..

  What would the cash flow diagram look like

If an alternative has an advance payment of $100,000 upon contract award and then quarterly payments of $25,000 for the next 3 years, what would the cash flow diagram look like

  What is the first action you would take as the president

Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable..

  Determine the equivalent annual cost at an interest rate

Rolled ball screws are suitable for high precision applications such as water jet cutting. Their total manufacturing cost is expected to decrease because of increased productivity, as shown in the table. determine the equivalent annual cost at an ..

  Calculate the total revenues for each price-quantity

Given the simple demand schedule information in the table above, calculate the coefficient of price elasticity of demand four times. Note that the coefficient of price elasticity of demand over the entire range of the demand schedule is 1, indicat..

  What are the implications in our economy of output

Between October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4 percent. How is it possible for output to increase without a proportional increase in the number of workers

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd