Amy Lloyd is interested in leasing a new Honda and has contacted three automobile dealers for pricing information. Each dealer offered Amy a closed-end 36-month lease with no down payment due at the time of signing. Each lease includes a monthly charge and a mileage allowance. Additional miles receive a surcharge on a per-mile basis. The monthly lease cost, the mileage allowance, and the cost for additional miles follow:
Dealer Monthly Cost Mileage Allowance Cost per Add’l Mile
Hepburn Honda $299 36,000 $0.15
Midtown Motors $310 45,000 $0.20
Hopkins Automotive $325 54,000 $0.15
Amy decided to choose the lease option that will minimize her total 36-month cost. The difficulty is that Amy is not sure how many miles she will drive over the next three years. For purposes of this decision, she believes it is reasonable to assume that she will drive 12,000 miles per year, 15,000 miles per year, or 18,000 miles per year. The probabilities that Amy drives 12,000, 15,000, or 18,000 miles per year are 0.5, 0.4, and 0.1 respectively.
Construct a decision tree showing the decision alternatives, states of nature (including probabilities), and calculated EV (expected value) for each decision alternative. Use circle, square, and line shapes to create the tree.
What would your recommendation be? What other factors (objective or subjective) might influence your recommendation?
Answers
EV (expected value) for each decision alternative assumption of 12,000 kilometers is $2,223.
Amy's decision-making process represented by a decision tree is given below.
The circles of the decision tree stand in for choice points, the squares for states of nature, and the connecting lines for potential outcomes.
We multiply the cost by the likelihood of each possible state of nature and add the results to determine the expected value (EV) for each decision alternative. The products add up to the EV.
For instance, the EV for selecting Hepburn Honda with a yearly mileage assumption of 12,000 kilometers would be:
EV = ($299 × 0.5 × $1,260) + ($299 × 0.4 × $2,160) + ($299 × 0.1 × $3,060)
EV = $630 + $1,296 + $297
EV = $2,223
To determine the EV for every possible scenario, repeat this computation for each alternative decision.
The decision tree and EV calculations suggest going with Hepburn Honda, with an annual mileage assumption of 12,000 kilometers. Out of all the options, its estimated cost is the lowest.
1. One further aspect that could have an impact on the recommendation is the dealerships' dependability and reputation.
2. Details particular to each lease agreement.
3. Any additional services or advantages that the dealerships provide.
4. Amy's personal preferences, such as the dealership's convenience or location.
5. Possibility of modifying or negotiating the lease terms.
6. The availability and caliber of maintenance or customer support services.
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Related Questions
The point where revenues from sales equal all costs is called the: A. variable costs B. break-even point C. target costing D. price point
B. break-even point
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The point where revenues from sales equal all costs is called the break-even point. The break-even point (BEP) is the point at which the sales revenue equals the fixed and variable costs of producing a product or service.
The break-even point is often used to determine if a project is worth pursuing or if it will be profitable. What is the importance of break-even point The importance of the break-even point is that it tells business owners and managers the minimum level of revenue
they need to generate in order to cover their costs and avoid losses. By calculating their break-even point, they can then set their sales targets and pricing strategies accordingly.
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It shortens the life of the engine parts , changes the behavior of combustion , and impairs lubrication
What effect does excessive heat have on reciprocating engines ?
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Excessive heat has multiple negative effects on the reciprocating engines. The effect of excessive heat on reciprocating engines is as follows:It changes the behavior of combustion:
Excessive heat raises the temperature in the engine, causing a change in the behavior of the combustion process. The combustion chamber temperature increases, which causes the ignition process to occur too early, making the engine operate poorly. The engine could become damaged due to this cause. It impairs lubrication:
The oil in the engine loses its effectiveness when the temperature rises, leading to inadequate lubrication and the development of deposits, which can obstruct the movement of engine parts. The lifespan of the engine is shortened as a result of this.It shortens the life of engine parts: The extreme heat in the engine will cause the engine parts to warp, crack, and become worn out. Furthermore, the excessive heat causes metal parts to expand, contract, and become loose, which could cause engine failure.
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in cry, the beloved country, the native land act of 1913 gave how much land to the black, native citizens?
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Our Galaxy is one member of a small cluster of galaxies. an isolated galaxy, not a member of any cluster. one member of a large, irregular cluster of thousands of galaxies. one member of a large, regular cluster of thousands of galaxies.
one member of a small cluster of galaxies.
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Thus, the correct option is: one member of a small cluster of galaxies. Our galaxy is one member of a small cluster of galaxies.
The name of our galaxy is Milky Way. Milky Way has an irregular spiral shape and a central bar. It is surrounded by smaller satellite galaxies such as the Magellanic Clouds, Sagittarius Dwarf, Canis Major Dwarf, and more.
There are a few neighboring galaxies in our cluster, including the Andromeda galaxy, Triangulum galaxy, and more. The Milky Way is not an isolated galaxy but a member of a small cluster of galaxies.
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This individual keeps close contact with all members of his or her party, persuades party members to vote along the party line, and counts votes for key legislation
A. Speaker of the house
B.majority/minority whip
C. majority/minority leader
D.president pro tempore
E. committee chairperson
Answers
Option B is correct. The individual that keeps close contact with all members of his or her party, persuades party members to vote along the party line, and counts votes for key legislation is the majority/minority whip.
In politics, a whip is an official in a political party whose primary responsibility is to ensure party discipline in a legislature. Whips are a party's "enforcers," who usually help the party leader to keep the legislators in line and to make sure that the members vote in line with the party's policy.
They assist the party leader in ensuring that party members attend and vote as required, as well as acting as the party's main channel of communication with backbenchers. More about Whip: Whip in politics is an official in a political party whose main responsibility is to ensure party discipline in a legislature. They are tasked with keeping legislators in line and making sure they vote in line with the party's policy.
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Explain in your own words any four methods of Writer Class.
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The Writer class is an abstract class in Java that serves as the foundation for character stream output classes. Any class that extends the Writer class must implement all of its abstract methods.
The following are four commonly used methods of the Writer class:
1. write(char[] cbuf, int off, int len) - This method is used to write len characters of the char array cbuf, beginning at offset off.
2. write(int c) - This method is used to write the specified character c to the output stream.
3. flush() - This method is used to flush the stream. This is done to ensure that any buffered data is written out to the underlying output device.
4. close() - This method is used to close the stream. This is done to ensure that any resources being used by the stream are released.
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hat Jill Based on an evolutionary analysis of spatial skills, you should predict t will be better than Jack at 0 a. remembering locations. O b. reading a map. O c. mentally rotating visual images. O d. learning a maze.
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Based on an evolutionary analysis of spatial skills, you should predict that Jill will be better than Jack at mentally rotating visual images. There are several cognitive skills that one may develop over time. It is also known that spatial intelligence is one of the most important aspects of cognitive development.
This skill requires a combination of both left and right brain functions to accomplish. The skill of spatial intelligence allows people to perceive visual information and then manipulate it mentally to imagine it from different angles. It helps individuals understand what they see in a deeper way. Spatial intelligence can also help with math and science skills. Spatial intelligence has different types of competencies, including: Visual-Spatial Imagery:
The capability to use visual details to represent objects or directions in the mind. It is the skill to visually create images in your mind and manipulate them.Mental Rotation: The skill to spin or rotate mental representations of objects in the mind. It involves being able to visualize and manipulate two-dimensional and three-dimensional figures, and to mentally transform or rotate those figures in order to match a visual pattern in one's mind.
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What does nuance mean in writing?
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Nuance in writing refers to the subtle and delicate aspects of language that add depth, complexity, and shades of meaning to the text.
In writing, nuance refers to the art of conveying intricate ideas, emotions, and perspectives through carefully chosen words, sentence structures, and literary techniques. It involves capturing the subtle nuances of human experience, the complexities of relationships, and the intricacies of ideas. Nuance allows writers to express the shades of meaning that go beyond the surface level, making the writing more engaging, thought-provoking, and rich.
By incorporating nuance in their writing, authors can create multidimensional characters, depict the complexities of moral dilemmas, and explore the depth of human emotions. Nuance adds layers to the narrative, enabling readers to connect with the story on a deeper level and encouraging them to contemplate the intricacies of the themes and messages conveyed.
Writers achieve nuance through various techniques, such as the skillful use of metaphor and symbolism, careful selection of vocabulary, subtle changes in tone or perspective, and the inclusion of subtext. It requires a keen understanding of the subject matter, an ability to observe and reflect on the nuances of human behavior, and a command of the language to express these subtleties effectively.
In conclusion, nuance in writing is the art of capturing the subtle and intricate aspects of language to convey deeper meaning, complexity, and shades of interpretation. It allows writers to go beyond the surface level, engaging readers in a thoughtful exploration of the human condition.
Nuance in writing and how it enhances the reader's experience by adding layers of meaning, complexity, and emotional depth to the text. Nuance is the hallmark of skilled writers who understand the power of subtlety and carefully chosen words in creating impactful narratives.
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Consider the statement, "Please tell me whether or not you think it should be possible for a pregnant woman to obtain a legal abortion if she is married and does not want any more children." For the 1996 General Social Survey, conducted by the National Opinion Research Center(NORC), 842 replied "yes" and 982 replied "no". Let π denote the population proportion who would reply "yes". Find the P-value for testing H 0
:π=0.5 using the score test, and construct a 95% confidence interval for π.
Answers
Based on the analysis, the null hypothesis that the proportion of people who replied "yes" is 0.5 is rejected. The sample proportion was approximately 0.462, resulting in a P-value of 0.0008. A 95% confidence interval for the proportion is (0.4365, 0.4875). Therefore, there is evidence to suggest that the true proportion differs from 0.5.
State the null and alternative hypotheses
Null hypothesis (H₀): The proportion of people who replied "yes" to the statement is equal to 0.5 (π = 0.5).
Alternative hypothesis (H₁): The proportion of people who replied "yes" to the statement is not equal to 0.5 (π ≠ 0.5).
Calculate the sample proportion (hat p) and the sample size (n)
Given in the problem, the sample proportion (hat p) is 842/1824 ≈ 0.462 and the sample size (n) is 1824.
Calculate the score test statistic (z)Using the formula for the score test statistic:
z = (hat p - π₀) / √((π₀(1 - π₀)) / n)
= (0.462 - 0.5) / √((0.5(1 - 0.5)) / 1824)
≈ -3.5404
Calculate the P-valueSince this is a two-sided test, we need to find the probability that a standard normal random variable is greater than 3.5404 (P(Z > 3.5404)). The P-value is twice this probability.
P-value = 2 × P(Z > 3.5404)
≈ 2 × 0.0004
= 0.0008
Therefore, the P-value is 0.0008.
Make a decision based on the P-valueAt the 0.05 significance level, we reject the null hypothesis if the P-value is less than the significance level. In this case, since the P-value (0.0008) is less than 0.05, we reject the null hypothesis. There is sufficient evidence to suggest that the proportion of people who replied "yes" is not equal to 0.5.
Construct a confidence intervalUsing the formula for the confidence interval:
CI = hat p ± z_(α/2) * √((hat p(1 - hat p)) / n)
For a 95% confidence interval, the critical value z_(α/2) can be found such that P(Z > z_(α/2)) = α/2. Since α = 0.05, we have α/2 = 0.025. Looking up the z-table or using a calculator, the critical value is approximately 1.96.
Substituting the values into the formula:
CI = 0.462 ± 1.96 * √((0.462 * 0.538) / 1824)
= (0.462 ± 1.96 * 0.013)
Calculating the lower and upper bounds of the confidence interval:
CI = (0.462 - 0.0255, 0.462 + 0.0255)
= (0.4365, 0.4875)
Therefore, we can be 95% confident that the population proportion who replied "yes" is between 0.4365 and 0.4875.
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How sustainable is Yeti's competitive advantage? What are their key resources / capabilities from a company perspective? Do those resources or capabilities have value, hard to imitate perspective, rare component? Please provide a detail analysis of the specific resource or capability with a paragraph response.
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Yeti's competitive advantage is sustainable. This is evident from the brand's strong brand image, customer loyalty, and market share. Yeti has a unique set of key resources and capabilities that contribute to its competitive advantage and make it difficult for competitors to imitate.
Some of the key resources and capabilities that Yeti possesses are discussed below: Key Resources/ Capabilities from Company Perspective:1. Strong Brand Image - Yeti has a strong brand image in the outdoor products market due to its high-quality products. The brand has successfully positioned itself as a premium and reliable brand, which has helped it develop customer loyalty and drive sales.2.
Product Quality - Yeti has invested heavily in research and development to ensure that its products are of the highest quality. This has helped the brand to develop a loyal customer base, who are willing to pay a premium price for its products.3. Distribution Network - Yeti has a strong distribution network, which includes both online and offline channels. This has helped the brand to reach a wider customer base and expand its market share.4. Patent Portfolio - Yeti has a strong patent portfolio that protects its products from being imitated by competitors. This has helped the brand to maintain its competitive advantage and prevent competitors from entering the market with similar products.
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