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a. How can break-even analysis be used in selecting a new plant site?
b. What are potential advantages and disadvantage of locating a production facility in foreign country instead of using domestic location?
c. A company that produces pleasure boats has decided to expand one of its line. Current facilities are insufficient to handle the increased workload, so company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable cost: fixed cost would be $250,000 per year, and variable costs would be $500 per boat. Subcontracting would involve a cost per boat of $2,500 and expansion would require an annual fixed cost of $50,000 and variable cost of $1,000 per boat.
i. Find the range of output for each alternative that would yield the lowest total cost
ii. Which alternative would yield the lowest total cost for an expected annual volume of 150 boats?
iii. What other factors might be considered in choosing between expansions and subcontracting?
Large Sample Test for Proportion A random sample of size n (n > 30) has a sample proportion p of members possessing a certain attribute (success). To test the hypothesis that t
Median Median is a position average. It is the value of middle item of a variable when the items are arranged according to their values either in ascending or descending order.
Properties of correlation
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In a three-cornered paint ball duel, A, B, and C successively take shots at each other until only one of them remains paint free. Once hit, a player is out of the game and gets no
Ten balls are put in 6 slots at random.Then expected total number of balls in the two extreme slots
Advantages of Sampling Why should we settle on a sample instead of studying the entire population? Sampling has the following advantages over a census (study of the entire pop
Index Number Meaning and Definitions of Index Number The index numbers are the special type of averages which are presented in percentages and computed on certain base.
Suppose both the Repair record 1978 and Company headquarters are believed to be significant in explaining the vector (Price, Mileage, Weight). Here, because of the limited sample s
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