WGU C723 Pre- Assessment (Latest 2023\/ 2024) Quantitative Analysis for Business Exam |100% Correct| Actual Questions and Verified Answers| Grade A<\/p>\n\n\n\n
WGU C723 Pre- Assessment (Latest 2023\/
2024) Quantitative Analysis for Business
Exam |100% Correct| Actual Questions and
Verified Answers| Grade A
Q: A firm that manufactures reusable heating and cooling system filters needs a new supplier
for two of the major filtering components. Five potential suppliers have been assessed using
scores between 1 and 5, as shown in the following table (the higher score indicates better
expected performance):
Supplier ID, On-Time Delivery Cost, Cost, Capacity, Total Score
Supplier 1 5, 4, 3, 12
Supplier 2 4, 3, 3, 10
Supplier 3 5, 2, 5, 12
Supplier 4 3, 3, 5, 11
Supplier 5 4, 4, 3, 11
Which decision model step does the table represent? O Generating alternatives
O Choosing the best alternative
O Evaluating alternatives
O Listing alternatives
Answer:
Evaluating alternatives
Q: A textile company is a manufacturer of fireproof uniforms in Mexico. The company is
planning on opening operations in the United States and Canada, which
requires a capacity expansion of 100%. The company has three alternatives::
build a large plant, build a small plant or subcontract.
There are two possible states of nature: a favorable market and a moderate market. If the future
market is favorable, the payoffs are $13, $5, and $7 million for
building a large plant, building a small plant, and subcontracting, respectively. Similarly, for a
future moderate market, the payoffs are $2, $8, and S3 million for
building a large plant, building a small plant, and subcontracting, respectively. The company has
estimated the probability of a favorable market as 0.40. The textile
company needs to make a decision about either building a plant or subcon- tracting.<\/p>\n\n\n\n
What is the relationship between uncertainty and the decision-making process in this scenario?
O Uncertainty about a future moderate market makes the decision-making process unfeasible.
O Uncertainty makes the decision-making process more difficult.
O Uncertainty is less relevant to the decision-making process than risk.
O Uncertainty is an inherent part of the decision-making process.
Answer:
Uncertainty is less relevant to the decision-making process than risk.
Key Differences Between Risk and Uncertainty. The risk is defined as the situation of winning or
losing something worthy. Uncertainty is a condition where there is no knowledge about the
future events. Speculation of uncertain events may lead to inaccurate decisions.
Q: . A successful Mexican seafood restaurant in Texas has a single owner and a single location.
The owner is debating the next step for the business. The owner thinks that opening only a
couple of new locations in the area could help maintain the customers’ perception of a unique
local restaurant, which has been part of its success. On the other hand, franchising the restaurant
could drive rapid economic growth and therefore develop an image as a re- gional restaurant. It
is also possible that a combination of new local locations and franchising could bring better
financial and public relations results. This option has the highest associated cost, whereas
opening only a couple of new locations or franchising would cost less. In any case, the owner
believes the worst-case scenario is to have moderate demand and the best-case scenario
is to have high demand.
Which major decision is this owner facing? O How to estimate future demand
O How to avoid the worst-case scenario
O How to expand the business
O How to find new locations
Answer:
How to expand the business
Q: A scouting troop has been invited to sell ice cream sandwiches as a fundraiser at the city
park July 4th fireworks celebration. The sandwiches will cost one dollar
each and will be sold for two dollars each. There are no other costs because the city park has
agreed to provide use of facilities and freezers. The scouts will have to<\/p>\n\n\n\n
dispose of, eat, or give away any ice cream sandwiches that are left over after the event. The
following “Payout Table” provides values for the events and alternatives of the ice cream
venture.
(Value Of Events profit in Dollars) Alternative Inventory
1,000, 1,100, 1,200, 1,300, 1,400
Events Demand
1000(10%), 1100(20%), 1200(40%), 1300(20%), 1400(10%)
Expected Value
$1,000, A, B, C, D
Inventory level, Demand in $, Expected Value
1300, $700, $900, $1100, $1300, $1300, $1,080
What is the missing value for C, which has an expected value of an inventory of 1,300?
O $ 1,200
O $ 1,000
O $ 1,080
O $ 1,120
Answer:
$1,080
cuz (700x.1)+(900x.2)+(1100x.4)+(1300x.2)+(1300x.1)=1080
Q: A company offers tax preparation services through a chain of 30 small offices in Kansas.
Susan, the VP of marketing, has proposed adding an online app to target college students who
want to start a business while they are still in school. According to Susan’s data, there has been a
200% increase in new small businesses licensed to owners aged 18 to 22 years. The company has
a small information technology (IT) department that has neither the time nor the expertise to
build such an app. Therefore, three alternatives are being considered:
1) Outsource the work to an app development company to build the app
2) Sign up as a client of a company that already offers this type of app
3) Expand the IT department by hiring a programmer to develop the app
Kevin, the VP of Finance, believes it is more likely that the trend in college students opening
small businesses will rapidly decline. He has put together the following
table to show the company’s estimated profit in the first two years for each alternative. Use the
table to calculate the expected values.<\/p>\n\n\n\n
Alternative Outsource the work Sign up with an app Hire a programmer
Decline in trend
Likelihood: 80%
$4,000
$3,000
-$4,000
Continuing trend
Likelihood: 20%
$9,000
$6,000
$18,000
What is the highest expected value? O $400
O $3,600
O $6,800
O $5,000
Answer:
$5,000
cuz (4000x.8)+(9000x.2)=5000 and (3000x.8)+(6000x.2)=3600 and (-4000x.8)+(18000x.2)=400
Q: Dawn owns a dog day care company that offers kenneling services for dogs that weigh less
than 30 pounds. Dawn has decided to expand the building that houses the kennels by 1,000
square feet. She needs to decide whether
to use the added square footage to continue only boarding dogs under 30 pounds or to start
accommodating larger dogs.
Dawn has estimated that if she allocates the expansion to larger dogs, she will earn additional
revenue of $22,000 per year in a strong economy and additional revenue of $16,000 per year in a
weak economy. If the expansion is exclusively for dogs under 30 pounds, she will earn additional
revenue of $20,000 per year in a
strong economy and additional revenue of $17,500 per year in a weak econo- my. She believes
the likelihood of a strong economy is 60% and the likelihood of a
weak economy is 40%.
Which option provides the best payout for Dawn’s business?
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