A former White House aide, who is now the owner of a Washington lobbying firm, is trying to decide whether to hire one, two, or three assistant lobbyists. He estimates that profits next year (in thousands of dollars) will vary with demand for his lobbying services as follows:                                                                DemandDemandDemand # of Assistants Low Medium High One 620 100 620 Two -300 250 555 Three 0 0 615If he feels the chances of low, medium, and high demand are 50%, 20%, and 30% respectively, what is the expected value of perfect information? 

The weekly output of a fabrication process is shown below together with data for labor and material inputs. Standard selling price is $100 per unit. Overhead is charged weekly at the rate of $1,000 plus 0.5 times direct labor cost. Assume a 40-hour week and an hourly wage of $10. Material cost is $10 per foot.                   Week Output (units) # Workers Material(Feet)  1 400 5 3600  2 448 6 5000 The labor productivity growth from week 1 to week 2 is:

What is the break-even quantity for the following situation? FC = $1,400 VC = $3 per unit Rev = $10 per unit

Given the following information, the utilization is: Effective capacity = 65 units per day Design capacity = 100 units per day Actual output = 60 units per day

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $30,000. He estimates that he could charge $15.00 for an office visit to have a patient’s blood analyzed, while the actual cost of a blood analysis would be $8.00. What would be his profit if he were to perform 5,000 HIV blood analyses?

A Quality Analyst at a pizza store wanted to make sure every pizza is “perfect.” He looked at the last eight pizzas that were ordered and were ready to be delivered. He counted all the defects per pizza. A defect can be: too little cheese, burnt crust, toppings not well distributed, etc. Pizza Total Defectives 1 7 2 9 3 16 4 5 5 2 6 8 7 8 8 7 What is the lower and the upper control limits for this control chart, using 3 sigma control limits

A design engineer measured the service life of a halogen headlamp his company produces. On three recent production batches, he tested service life on random samples of four headlamps each. sample Service life (hours) 1 515 520 505 490 2 600 555 480 525 3 590 595 450 615 What is the UCL for the mean control chart, using 3-sigma control limits?

Given the following information, the efficiency is: Effective capacity = 85 units per day Design capacity = 100 units per day Utilization = 55%

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $30,000. He estimates that he could charge $15.00 for an office visit to have a patient’s blood analyzed, while the actual cost of a blood analysis would be $8.00. If this new blood analysis machine has design and effective capacities of 8,000 and 5,000 blood analyses per year, respectively, and Dr. J. expects to be 85% efficient in his use of this machine, how many HIV blood analyses does he plan to perform each year?

A Quality Analyst wants to construct a control chart for determining whether errors in bank transactions are under control. She looked at samples of 1000 transactions each week, for four weeks in a row. A transaction was considered defective, if the analyst detected any error in the transaction. Week Total Defectives 1 15 2 50 3 65 4 25 What is the sample proportion of defective transactions in week 1?