You have uploaded a document containing practice questions from a Quantitative Methods & Analysis course. The assessment covers topics like Decision Analysis, Break-even Analysis, and Forecasting.

Here are explanations and solutions to a few of these questions:

1. Decision Analysis: Optimistic & Pessimistic Approaches

• Optimistic outlook (Maximax): Choose the method with the lowest cost under the best (High demand) scenario. For Method C, the cost is $375,000, which is the lowest.
• Pessimistic outlook (Maximin): Choose the method with the lowest cost under the worst (Low demand) scenario. For Method D, the cost is $300,000, which is the lowest.

2. Break-even Egg Production Question

• Indifference point (where both options cost the same): $7500 + 0.10x = 6000 + 0.15x \quad \Rightarrow \quad x = 30000 \text{ eggs}$ Answer: 30,000 eggs (B).

3. Break-even Cost for Kitchen Appliances

• Break-even quantity: 10,000 units, selling price = $20/unit, variable cost = $12/unit. To find the fixed cost: $10000 = \frac{\text{Fixed cost}}{20 - 12} \quad \Rightarrow \quad \text{Fixed cost} = 80,000$ Answer: $80,000 (B).

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Here are 5 related questions:

1. How would you use Laplace criterion to choose among alternatives in decision-making?
2. What is the Minimax Regret decision rule, and how does it apply here?
3. How does altering fixed costs impact the break-even quantity in production analysis?
4. What are the benefits of using exponential smoothing in forecasting?
5. How can you calculate correlation coefficients from a regression analysis?

Tip: When making decisions under uncertainty, it's helpful to use probabilities with expected value calculations to balance risk and reward!