does inflation benefit the lender or borrower?

Answers

Answer 1

Answer:

Borrowers

Explanation:

I looked it up lol


Related Questions

what is the internal rate of return on an investment with the following cash flows? year cash flow 0 –$106,000 1 42,900 2 37,300 3 48,600

Answers

The internal rate of return on this investment is Option B. 13.50 percent.

To calculate the internal rate of return (IRR) for an investment, we need to find the discount rate at which the present value of the investment's cash inflows equals the initial investment. In other words, we need to solve for the discount rate that makes the net present value (NPV) of the cash flows equal to zero.

Using the given cash flows, we can calculate the NPV at different discount rates and find the rate at which the NPV is zero. We can use a financial calculator or spreadsheet software like Excel to do this calculation.

Using the formula in Excel, we can use the IRR function as follows:

=IRR(range of cash flows)

where the range of cash flows is the range of values in cells A1 to A4, with negative values for the initial investment and positive values for the cash inflows.

Plugging in the values for this investment, we get an IRR of approximately 13.50 percent, which is option B.

Therefore, the internal rate of return on this investment is 13.50 percent, which means that the investment is expected to earn a return of 13.50 percent per year over its life. Therefore, the correct option is B.

The question was incomplete, Find the full content below:

what is the internal rate of return on an investment with the following cash flows? year cash flow 0 –$106,000 1 42,900 2 37,300 3 48,600

A. 27.43 percent

B. 13.50 percent

C. 9.14 percent

D. 10.18 percent

E. 40.50 percent

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The most important factor in an attractive business climate is the _____. Select one: a. presence of established markets b. easy access to growing markets c. high competition among companies d. high political risks e. limited infrastructure

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The most important factor in an attractive business climate is the easy access to growing markets (option b). The correct option is b).

In a business environment, having easy access to growing markets is crucial for companies to expand their customer base, increase sales, and achieve overall growth.

A growing market presents several advantages for businesses, including the potential for higher demand, greater market share, and increased profitability. It also offers more opportunities for innovation and product development, as businesses can identify new trends and adapt to changing consumer needs.

In contrast, the presence of established markets (option a) can offer stability, but may not provide as many growth opportunities due to market saturation. High competition among companies (option c) can make it difficult for businesses to gain a foothold and achieve success. High political risks (option d) can create an unstable environment, deterring investments and negatively affecting business operations. Limited infrastructure (option e) can impede the development and expansion of businesses, making it harder for them to reach customers and operate efficiently.

In conclusion, the most important factor in an attractive business climate is easy access to growing markets, as it offers businesses the opportunity for expansion, innovation, and increased profitability. Hence b) is the right answer.

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paul's next-door neighbor sheridan stole an unsolicited credit card from paul's mailbox that was sent to paul with his name on it. sheridan charged $5,000 on the card. what is paul's liability?

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Paul's subsequent-door neighbor Sheridan stole an unsolicited credit card Paul's liability is nothing since the neighbor is responsible for it.

Liabilities are the felony debts an agent owes to 0.33-party creditors. they can include bills payable, notes payable, and bank debt. All businesses should tackle liabilities so as to function and grow. A right balance of liabilities and fairness affords a stable foundation for a company.

Liabilities are any debts your enterprise has, whether it's bank loans, mortgages, unpaid payments, IOUs, or some other amount of cash that you owe a person else. in case you've promised to pay a person an amount of money in the future and have not paid them yet, that's a liability. Legal responsibility is something a person or corporation owes, normally an amount of cash. Liabilities are settled over time via the transfer of monetary blessings along with money, goods, or offerings.

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For over 40 years, Golden Creamery has been mixing up fresh, gourmet ice cream for customers. The company originated in Dallas and now boasts stores in 35 states. The business has primarily expanded by selling franchises to qualified candidates. Golden Creamery executives realize that the firm's success depends upon the success of each franchise. In the past, each individual franchise owner determined the best method for screening applicants. However, as the firm grows, Golden Creamery executives want to standardize the hiring process by requiring all franchisees to use the same preemployment tests, Which of the following, if TRUE, supports the argument that Golden Creamery should require franchise owners to use the firm's preemployment tests?
A. Hourly employees at Golden Creamery stores typically remain with the company long enough to be promoted to management positions.
B. Golden Creamery uses a series of videos to train new hires as well as a mentoring program that has proven successful in the past.
C. Individuals interested in working at a Golden Creamery store can complete online applications on the firm's website
D. Annual turnover rates for hourly employees of Golden Creamery stores are three times the rate of comparable businesses.

Answers

Answer: D

Explanation: High turnover rates suggest that Golden Creamery has problems hiring the most appropriate employees, which supports the implementation of a testing program. If hourly workers remained at the firm for a long time, then that would suggest the firm's current hiring practices do not need to be modified.  

If a firm's business activities do not result in profit maximization, whilst alternatives exist, then such activities amount to irresponsible actions. Discuss any five sets of economic responsibilities firms must embrace to ensure the protection and enhancement of the business.

Answers

Explanation:

For a company to remain profitable and competitive in the market, it must build a solid and positive positioning that guarantees itself and its stakeholders reliability and competence.

For this, some practices must be adopted in all its internal and external processes. Can be:

Compliance with local legislation. Development of policies that promote ethical behavior .Development of social programs .Environmental management focused on minimizing environmental impacts. Transparency in accounting results.

The company must institute social and environmental policies and practices since its strategic planning, as currently at a level of global competitiveness, companies are responsible for developing corporate governance with a focus on helping to promote good practices that assist in the development of society and preserving the environment. Having positive values ​​builds a positioning that increases the reliability of the company's processes and ensures the continuous improvement of the processes, the reduction of waste, the attraction of investors, etc.

influences of Business environment,​

Answers

Factors that Influence the business environment are :

Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment

The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.

Importance of business environment:

Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.

The economic environment is all the things that create an economic impact on the firm.

The social environment is all the traditions and customs of the society that creates an impact on the firm.

The technological environment is all the impact on the firm caused due to new technology and upgradations.

The political environment is the conditions and behavior that the elected representatives hold toward the business

The legal environment is entirely based on the rules and legislation of the authorities.

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What decision did a London Court Reach In this case?

What decision did a London Court Reach In this case?
What decision did a London Court Reach In this case?

Answers

Answer:

A.

Explanation:

I did B from the person above and got it wrong and it said that A was the answer :)

Answer:

A. The writing of The Da Vinci Code did not violate copyright law.

Explanation:

Right on ED2021, goodluck!

a firm is thinking of hiring an additional worker to their organization who can increase total productivity by 100 units a week. the cost of hiring him is $1,500 per week. if the price of each unit is $12, a. the mr of hiring the worker is $1,500 b. the mc of hiring the worker is $1,200 c. the firm should not hire the worker since mr < mc d. all the above

Answers

The firm should not hire worker since MR < MC can increase the total productivity by 100 units week.

What is productivity?

Productivity is a measure of how efficiently anything is produced, whether it be a good or a service. The most prevalent instance is that of the (aggregate) labour productivity index, with GDP per worker as one example. The decision between them depends on the goal of the productivity assessment and/or the availability of data. There are many various definitions of productivity (including some that are not specified as ratios of output to input). When determining a ratio-type measure of productivity, the major source of variation between different productivity measures is frequently tied (directly or indirectly) to how the outputs and inputs are combined. The production performance of businesses and countries is greatly influenced by productivity. Increasing productivity can also aid firms in making more money.

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How does the availability of economic resources in conjunction with the law of diminishing returns affect an entrepreneur's decisions?

Answers

Answer: A

Explanation:

According to the law of diminishing returns, the increase in output that results from adding a production factor is smaller. The law of diminishing returns aids the business in determining the ideal amount of output in production. This is so that the producer can determine whether or not the output has reached its maximum potential.

Why is the law of diminishing returns important?

Because economists anticipate that a firm's short-run marginal cost curves would slope upward as the number of output units rises, the law of diminishing returns is significant because it forms part of the theoretical framework.

According to the economic theory known as the law of diminishing returns, as an investment in a certain area rises, the rate of profit from that investment can no longer rise if other factors remain constant after a certain point.

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Which economic principle is related to supply and demand?

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It might be inflation but I don’t take business classes

The economic principle which is related to supply and demand is known as the scarcity principle.

What is a scarcity principle?

The scarcity principle is a price link between dynamic supply and demand that is explained by economic theory. The scarcity principle states that the price of an item with a low supply and strong demand rises to meet the predicted demand.

Marketers frequently employ the notion to create fake scarcity and exclusivity for a certain product or good in order to drive demand for it.  The scarcity principle states that the price of a scarce commodity should grow until an equilibrium between supply and demand is attained. However, this would result in the good being restricted to those who can buy it.

Therefore, scarcity principle is related to supply and demand.

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What happens to the equilibrium price and equilibrium quantity when demand and supply increase simultaneously, but the relative size of the shifts are not known?.

Answers

When both the demand and supply increase  simultaneously, the equilibrium quantity will increase whereas the equilibrium price will be unknown.

An increase in demand leads to an increase in both the equilibrium quantity and equilibrium price, it is because it leads to more people buying the particular product as of increased demand which means a higher quantity will be sold as an increase in equilibrium quantity as more people are buying the price will go up leading lead to the higher equilibrium price. Similarly, an increase in supply leads to a decrease in equilibrium price and an increase in equilibrium quantity because more supply of goods is done to the market with the expectation of a rise in quantity and the price fall, So when both the supply and demand increase, the equilibrium price could go up, down, or stay the same,  can't be determined but the equilibrium quantity goes u

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2. What do you think Alana's goals should be?








Answers

I think Alana's goal should be to create a budget that will make her save enough money to pay for all expenses.

What's plutocrat? Plutocrat is any item or empirical record that's generally accepted as payment for goods and services and prepayment of debts, similar as levies, in a particular country or socio- profitable environment.The primary functions which distinguish plutocrat are as a medium of exchange, a unit of account, a store of value and occasionally, a standard of remitted payment. What's significance of plutocrat? Plutocrat can not buy happiness, but it can buy security and safety for you and your loved bones. Mortal beings need plutocrat to pay for all the effects that make your life possible, similar as sanctum, food, healthcare bills, and a good education

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How is car lease amount calculated?

Answers

Car lease amount is calculated by dividing the car value with the terms of the lease added with the interest amount to be paid.

To determine the car lease amount, you might need to do steps:

Geather lease informationsCalculate the car's valueDetermine the principal amountCalculate the interest aounAdd the principal and interest payments

First, you need to gather all related data about the vehicle you want to lease. You need the manufacturer suggested retail price (MSRP), negotiated price, residual value, term of lease, and interest rate factor. You might ask a car finance company or browsing in the internet to get these informations.

Next, you need to calculate the vehicle value by using the MSRP and residual value data. Since a lease is only up to 36 months, the full value of the car would not be used by the leaser. You can ask the car finance expert to get the information related the residual value of a vehice. You can negotiate the lease value between the MSRP and the residual value of the vehicle.

Then, you can calculate the principal amount of the car lease by dividing the negotiated car value with the term of the lease. You need to calculate te interest amount by multiplying the principal amount with the interest rate factor. Lastly, you need to sum up both the principal amount and interest amount to estimate your total lease payment.

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Mention five legal ways to spend money

Answers

Some ways that you can spend money legally are:

Buying booksGoing on a vacationBuying a companyGiving to the poor or a charityEmploying labor

What is Money?

This refers to the legal tender that is used for the buying and selling of goods and services that have an inherent value

Hence, we can see that based on the given question, money can be spent in a variety of ways legally and this includes starting a business, giving to the poor, etc.

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Bobby can vacuum two rooms in ten minutes or dust two rooms in twenty minutes. Bobby's schedule of possibilities indicates that

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Bobby can vacuum two rooms in ten minutes or dust two rooms in twenty minutes. Bobby's schedule of possibilities indicates that, he can either vacuum or dust one room in 15 minutes.

Bobby's schedule of possibilities indicates that he can either vacuum two rooms in ten minutes or dust two rooms in twenty minutes. Let's analyze this information.
Tthe amount of time it takes Bobby to complete one room, we divide the time by the number of rooms. For vacuuming, Bobby takes 10 minutes to vacuum 2 rooms, so it takes him 5 minutes to vacuum one room. Similarly, for dusting, Bobby takes 20 minutes to dust 2 rooms, so it takes him 10 minutes to dust one room.
Now, let's consider the time it would take Bobby to vacuum and dust one room. If he vacuums one room, it takes 5 minutes, and if he dusts one room, it takes 10 minutes. We can find the total time it takes Bobby to complete both tasks by adding these times together.
So, Bobby can vacuum and dust one room in a total of 5 + 10 = 15 minutes.
Bobby's schedule of possibilities indicates that he can either vacuum two rooms in ten minutes or dust two rooms in twenty minutes. To find the time it takes to complete one room, we divide the total time by the number of rooms. Bobby takes 10 minutes to vacuum 2 rooms, so it takes him 5 minutes to vacuum one room.

Similarly, for dusting, he takes 20 minutes to dust 2 rooms, so it takes him 10 minutes to dust one room. When we consider vacuuming and dusting one room, it takes Bobby a total of 5 + 10 = 15 minutes. This means that Bobby can either vacuum or dust one room in 15 minutes.

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Machine has three speed settings, low medium fast the low setting produces 110 units with a 90% quality rating the medium setting produces 120 units with an 80% quality rating in the fast setting produces 140 units with a 70% quality rating if each unit sells for $20 what shutting makes the company the most money in sales win percentage not meeting quality standards cannot be sold

Answers

The low setting makes the company the most money in sales, with a total revenue of $1980

To determine which setting makes the company the most money, we need to calculate the total revenue generated by each setting while taking into account the quality rating. For the low setting, the company produces 110 units with a 90% quality rating, which means that 10% of the units are not sellable. So, the total number of sellable units is 110 x 0.9 = 99 units. The revenue generated from selling these units is 99 x $20 = $1980. For the medium setting, the company produces 120 units with an 80% quality rating, which means that 20% of the units are not sellable. So, the total number of sellable units is 120 x 0.8 = 96 units. The revenue generated from selling these units is 96 x $20 = $1920.

For the fast setting, the company produces 140 units with a 70% quality rating, which means that 30% of the units are not sellable. So, the total number of sellable units is 140 x 0.7 = 98 units. The revenue generated from selling these units is 98 x $20 = $1960.

Therefore, the low setting makes the company the most money in sales, with a total revenue of $1980

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Scenario: NewTel, Inc.

NewTel is a telephone company with a policy of filling positions internally, through promotions, rather than hiring from outside. Until recently, the company had a strong engineering focus and tended to promote people into senior executive positions from the engineering areas. Consequently, almost all of the company’s 14 senior executives joined the company over 20 years ago in junior engineering positions. There is increasing pressure on NewTel to become more marketing and service-oriented. As a result, four people were hired last year from consumer products and retail firms to fill new senior executive positions in marketing and service management. The external hires were necessary because current employees were not sufficiently qualified. Now there are signs of tension among senior executives, particularly during budget deliberations where there is limited discretionary spending on new corporate activities. The four new hires have been frustrated in their attempts to have the company put more money into marketing and customer services instead of technology investment. The conflict episodes are viewed by both sides as personal attacks rather than attempts to resolve the problem.

The four new hires’ attempt to have the company put more money into marketing and customer services instead of technology investment. This is mainly an example of conflict due to:
A. role ambiguity.
B. lack of communication.
C. sequential task interdependence.
D. overt behaviors.
E. goal incompatibility.

Answers

Answer:

E. goal incompatibility.

Explanation:

Analyzing the scenario above, it is possible to see that the cause of the conflict is due to incompatibility of goals, that is, there are different objectives and goals between the teams and organizational departments, which causes a lack of consensus that culminates in the conflict.

This is a negative situation for the company, which is a set of systems that must operate in favor of the same objectives and goals. in order to listen to all the parties involved, and then start from a principle where everyone feels heard and integrated in the development of organizational goals, creating an environment of trust and positive relationship in the company.

Daniel Electric is planning to open a distribution center. The center will cost $500,000. 0. The company can finance 96% of the project with 8. 2%, $10,000. 00 bonds. The remaining capital will come from internal sources. Complete the form to evaluate the effect of financial leverage on the proposed center. Evaluate the earnings potential of the project assuming that operating income will increase by 7. 6%, 7. 8%, or 8. 0% of the center cost.


Under which possible outcome should Daniel Electric open the distribution center? Check all that apply.


8. 0%

7. 8%

7. 6%

Answers

Daniel Electric should open the distribution center at 7. 6%.

What is financial leverage?

Leverage in finance refers to any strategy that involves borrowing money to make purchases with the expectation that future earnings will be significantly greater than the cost of borrowing. When you borrow money to make an investment with the aim of higher returns, you are using financial leverage. It's based on the notion that you have to spend money to make money. Purchasing a home, making an investment in a business, or purchasing an investment property are examples of financial leverage. To raise the return on equity, leverage is used. However, using too much financial leverage makes it harder to pay off debt, which raises the chance of failing.

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Write a generalization about the relationship between price and the quantity supplied

Answers

Answer:

PRICE CHANGES

Price and quantity supplied are directly related. As price goes down, the quantity supplied decreases; as the price goes up, quantity supplied increases. Price changes cause changes in quantity supplied represented by movements along the supply curve.

She sells seashells on a seashore But the value of these shells will fall Due to the laws of supply and demand No one wants to buy shells 'cause there's loads on the sand


Step 1: you must create a sense of scarcity Shells will sell much better if the people think they’re rare, you see Bare with me, take as many shells as you can find and hide 'em on an island stockpile 'em high until they’re rarer than a diamond


Step 2: you gotta make the people think that they want 'em Really want 'em, really freakin want 'em Hit 'em like Bronson Influencers, product placement, featured prime time entertainment If you haven’t got a shell then you're just a freaking wasteman


Three: it's monopoly, invest inside some property, start a corporation, make a logo, do it properly "Shells must sell", that will be your new philosophy Swallow all your morals they're a poor man's quality


Four: expand, expand, expand, clear forest, make land, fresh blood on hand


Five: why just shells? Why limit your self? She sells seashells, sell oil as well!


Six: guns, sell stocks, sell diamonds, sell rocks, sell water to a fish, sell the time to a clock


Seven: press on the gas, take your foot off the brakes Run to be the president of the United States


Eight: big smile mate, big wave that's great Now the truth is overrated, tell lies out the gate


Nine: Polarise the people, controversy is the game It don't matter if they hate you if they all say your name


Ten: the world is yours, step out on a stage to a round of applause You're a liar, a cheat, a devil, on the floor And you sell seashells on the seashore

She sells seashells on a seashore But the value of these shells will fall Due to the laws of supply and

Answers

Answer:

Amazing story 10/10

Explanation:

This text is a fun and musical piece of writing that makes fun of different subjects like money, selling things, having an impact on others, and how power works.

What is the seashells  about?

This text talks about using the idea of selling seashells on a seashore to explain a bigger idea about how people can be manipulated and controlled by big companies and society.

This passage is written in a way that shows different aspects of a story. It covers things like creating a feeling of not having enough, changing how people think about things, and gaining more power.

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If discount points were paid in order to get a lower interest rate, paying the loan off early will serve to decrease the APR. True False

Answers

The given statement "If discount points were paid to get a lower interest rate, taking care of the credit early will effectively diminish the APR." is false because the APR is a proportion of the expense of getting, which incorporates both the financing cost.

The APR is determined given the advance terms and addresses the annualized cost of getting over the whole credit term, including both the interest and any relevant expenses.

It's vital to take note that the APR is a normalized measure used to look at credit offers from various banks, and it gives a more exhaustive perspective on the advance expense contrasted with the financing cost alone.

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What are different sources of Power in
any organization? Explain any two,
2+4= 6 marks

Answers

In an organization, power can be derived from various sources. Some common sources of power in an organization include.

Legitimate Power: This power is derived from an individual's formal position or authority within the organization. It is based on the belief that the person has the right to make decisions and give orders.

Reward Power: This power comes from an individual's ability to provide rewards, such as promotions, bonuses, or other incentives. It motivates others to comply with their requests or directives.

Coercive Power: Coercive power is based on the fear of negative consequences or punishment. It is the ability to impose penalties or take away privileges, which can influence others to comply.

Expert Power: Expert power is derived from an individual's knowledge, skills, or expertise in a particular area. It is based on the belief that the person has valuable information or insights, and others perceive them as credible and competent.

Referent Power: Referent power is based on interpersonal relationships and admiration. It comes from others' identification and desire to be associated with a person they respect, admire, or want to emulate.

Informational Power: Informational power is derived from having access to valuable or critical information. It includes the ability to control and distribute information, which can give individuals an advantage in decision-making and influencing others.

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How do producers and consumers think similarly and differently about price?

Answers

Answer:

hsjshsbajakiaiauahabwj

Explanation:

jqbavsysuaiqjqnabahahai

A bond that makes no coupon payments and is initially priced at a deep discount is called a __________ bond. group of answer choices municipal zero coupon treasury junk

Answers

A bond that makes no coupon payments and is initially priced at a deep discount is called a "zero coupon bond."

Zero coupon bonds are also known as "discount bonds" because they are issued and initially traded at a price significantly lower than their face value or redemption value. Unlike regular bonds that pay periodic interest or coupon payments, zero coupon bonds do not make any coupon payments during their term.

The unique characteristic of zero coupon bonds is that they are issued at a discount to their face value, meaning investors purchase them for less than the amount they will receive at maturity. The discount represents the interest that accrues over the bond's life, and the bondholder receives the face value of the bond at maturity.

Since zero coupon bonds do not provide periodic interest payments, their return to investors comes from the difference between the purchase price and the face value upon maturity. This allows investors to benefit from compounding interest, as the bond's price appreciates over time, moving towards its face value.

Zero coupon bonds are issued by various entities, including governments, municipalities, corporations, and financial institutions. While the term "municipal" is commonly associated with bonds issued by local governments, it does not specifically refer to zero coupon bonds. Similarly, "treasury" bonds are issued by the government and can include zero coupon bonds, but not all treasury bonds are zero coupon bonds. "Junk" bonds, on the other hand, refer to bonds that are rated below investment-grade due to their higher default risk and are not necessarily zero coupon bonds.

Therefore, the correct answer is "zero coupon."

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Bought goods
for
cash $100
to double
entry system.

Answers

Purchases account is going to increase on the credit side and the cash account is going to decrease ( to be written on the credit side).

Answer:Purchase account Dr.$100

              cash account Cr.$100

Explanation:

At the end of 2 years, P dollars invested at an interest rate r compounded annually increases to an amount, A dollars, given by the following formula. A=P(1+i)
2
Find the interest rate if $192 increased to $363 in 2 years. Wite your answer as a percent.

Answers

The interest rate is 47.22%.

The given formula, \(A = P(1 + r)^2,\) represents the amount A that a principal P will grow to after 2 years at an interest rate of r compounded annually.

In this case, we are given that $192 increased to $363 in 2 years. Let's denote $192 as the principal P and $363 as the amount A. Plugging these values into the formula, we have:

$363 = \($192(1 + r)^2\)

To find the interest rate r, we can rearrange the equation as follows:

\((1 + r)^2\)= $363 / $192

Simplifying the right side, we get:

\((1 + r)^2\) = 1.890625

Taking the square root of both sides, we have:

1 + r = √1.890625

1 + r = 1.375

Subtracting 1 from both sides, we get:

r = 1.375 - 1

r = 0.375

Finally, to express the interest rate as a percentage, we multiply by 100:

r = 0.375 * 100

r = 37.5%

Therefore, the interest rate is 37.5%.

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What types of procedures in schools could benefit from TQM? If students are regularly late for classes, how can the school use TQM tools to help solve the problem?

Answers

TQM:514
SO THE ANSWER FOR THE TWM IS
393

Ex. 2) Cecile placed $17,000 in a 270 days term deposit earning 4.25%. How much will the bank pay Cecile on the maturity date? ETER English (United States) RAE FOCUS ng may kay may say ay may DELL

Answers

The amount that the bank will pay to Cecile at the maturity date is $17,251.25.

Given that

Cecile placed $17,000 in a 270 days term deposit earning 4.25%.

The interest earned on the term deposit is calculated using the simple interest formula which is expressed as-

I = PRT

Where;

P is the principal or the initial deposit,

R is the rate of interest as a decimal

T is the time in years.

In this case,

P = $17,000,

R = 4.25%

= 0.0425 (since the interest rate is given as a percentage), and

T = 270/365

= 0.7397 (since the time given is in days and we need to convert it to years by dividing by 365).

Hence, the interest earned, I = 17000 × 0.0425 × 0.7397

= $251.25

Therefore, the amount that the bank will pay to Cecile at the maturity date is the sum of the principal and the interest earned which is;

=$17,000 + $251.25

= $17,251.25

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A manufacturer from central New York produces high-efficiency air-conditioners, called "Polar Bear", sold nation-wide as the top-rated model. Only a flawless perfect air-conditioner will be sold as "Polar Bear". Due to the company’s strict inspection standard, its production site finds an air-conditioner have a 80% probability to be perfect for being badged as a "Polar Bear" and a 20% probability to be defective. The perfect "Polar Bear" air-conditioners are highly praised by the consumer testing groups and sold with a unit profit of $2,500 per air-conditioner. A defective air-conditioner is initially inspected and later repaired to be sold as a "Refurbished" air-conditioner with a unit profit of $1,100 per air-conditioner. In July 2022, a batch of 12 air-conditioners from this production line is collected.
1) What is the probability that exactly 3 air-conditioners from this July 2022 batch are defective and later sold as "Refurbished" air-conditioners?
2) What is the probability that there are more "Polar Bear" air-conditioners than "Refurbished" air-conditioners from this July 2022 batch?
3) What is the probability that this July 2022 batch can bring in a total profit of more than $27,000?

Answers

1) The probability that exactly 3 air-conditioners from the July 2022 batch are defective and later sold as "Refurbished" air-conditioners is approximately 0.2373 or 23.73%.

1) Probability of exactly 3 defective air-conditioners:

Using the binomial probability formula:

P(X = 3) = (12C3) * (0.2^3) * (0.8^9)

P(X = 3) = (12! / (3! * (12-3)!)) * (0.2^3) * (0.8^9)

P(X = 3) = (220) * (0.008) * (0.134)

P(X = 3) ≈ 0.2373 (or 23.73%)

2) Probability of more "Polar Bear" air-conditioners than "Refurbished" air-conditioners:

We need to calculate the probabilities for k = 7, 8, 9, 10, 11, and 12, where k represents the number of perfect air-conditioners.

P(Perfect > Defective) = P(X = 7) + P(X = 8) + P(X = 9) + P(X = 10) + P(X = 11) + P(X = 12)

Using the binomial probability formula:

\(P(X = k) = (12Ck) * (0.2^k) * (0.8^{12-k})\)

Calculating each term:

P(X = 7) = (12C7) * (0.2^7) * (0.8^5) ≈ 0.0266 (or 2.66%)

P(X = 8) = (12C8) * (0.2^8) * (0.8^4) ≈ 0.0109 (or 1.09%)

P(X = 9) = (12C9) * (0.2^9) * (0.8^3) ≈ 0.0025 (or 0.25%)

P(X = 10) = (12C10) * (0.2^10) * (0.8^2) ≈ 0.0004 (or 0.04%)

P(X = 11) = (12C11) * (0.2^11) * (0.8^1) ≈ 0.00003 (or 0.003%)

P(X = 12) = (12C12) * (0.2^12) * (0.8^0) ≈ 0.000001 (or 0.0001%)

Summing up the probabilities:

P(Perfect > Defective) ≈ 0.0266 + 0.0109 + 0.0025 + 0.0004 + 0.00003 + 0.000001

P(Perfect > Defective) ≈ 0.0405 (or 4.05%)

3) Probability of total profit exceeding $27,000:

We need to calculate the probabilities for each case where the total profit exceeds $27,000. We sum up the probabilities for k = 0 to 12, where k represents the number of defective air-conditioners.

P(Total Profit > $27,000) = P(Profit > $27,000) = P(X = 0) + P(X = 1) + ... + P(X = 12)

Using the binomial probability formula and considering the profits for each air-conditioner type:

P(X = k) = (12Ck) * (0.2^k) * (0.8^(12-k))

Profit for "Polar Bear" air-conditioner = $2,500

Profit for "Refurbished" air-conditioner = $1,100

Calculating each term:

P(X = 0) = (12C0) * (0.2^0) * (0.8^12) ≈ 0.0687 (or 6.87%)

P(X = 1) = (12C1) * (0.2^1) * (0.8^11) ≈ 0.2061 (or 20.61%)

P(X = 2) = (12C2) * (0.2^2) * (0.8^10) ≈ 0.2835 (or 28.35%)

...

P(X = 12) = (12C12) * (0.2^12) * (0.8^0) ≈ 0.000001 (or 0.0001%)

Summing up the probabilities:

P(Total Profit > $27,000) ≈ P(X = 0) + P(X = 1) + P(X = 2) + ... + P(X = 12)

The probability that the July 2022 batch can bring in a total profit of more than $27,000 depends on the specific calculations for each case, considering the profits from selling both "Polar Bear" and "Refurbished" air-conditioners.

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S7.12 The three-station work cell at Pullman Mfg., Inc. is illustrated in Figure S7.8. It has two machines at station 1 in par- allel (i.e., the product needs to go through only one of the two machines before proceeding to station 2). a) What is the throughput time of this work cell? b) What is the bottleneck time of this work cell? c) What is the bottleneck station?d) If the firm operates 8 hours per day, 6 days per week, what is
the weekly capacity of this work cell?

Station 1 Machine A


20units/hr


Station 1 Machine B


20 units/hr


Station 2


12 units/hr


Station 3


8 units/hr

Answers

a) The throughput time of this work cell is approximately 0.2583 hours per unit, b) The bottleneck time of this work cell is approximately 1/20 hour per unit, c) The bottleneck station is Station 1, d) The weekly capacity of this work cell is approximately 12.3996 units per week.


In this case, we have three stations: Station 1, Station 2, and Station 3. At Station 1, there are two machines in parallel, Machine A and Machine B, both with a capacity of 20 units per hour. Since the product only needs to go through one of these machines, the time it takes at Station 1 is the same for either machine.

Let's assume that the product goes through Machine A at Station 1. The time it takes for the product to pass through Station 1 is given by the reciprocal of the machine's capacity, which is 1/20 hour per unit.

At Station 2, the product moves at a rate of 12 units per hour, so the time it takes for the product to pass through Station 2 is 1/12 hour per unit.

Finally, at Station 3, the product moves at a rate of 8 units per hour, so the time it takes for the product to pass through Station 3 is 1/8 hour per unit.

To calculate the throughput time, we add up the times for each station: 1/20 + 1/12 + 1/8

= 0.05 + 0.0833 + 0.125

= 0.2583 hours per unit.

Therefore, the throughput time of this work cell is approximately 0.2583 hours per unit.

Since both machines at Station 1 have the same capacity of 20 units per hour, the bottleneck time is the reciprocal of this capacity, which is 1/20 hour per unit.

So, the bottleneck time of this work cell is approximately 1/20 hour per unit.

As for the bottleneck station, it is Station 1 because it has the longest time required for the product to pass through, which is the bottleneck time we just calculated.

Lastly, to determine the weekly capacity of this work cell, we need to multiply the throughput time by the number of hours the firm operates per day and the number of days per week.

The throughput time we calculated earlier is 0.2583 hours per unit. The firm operates 8 hours per day and 6 days per week.

So, the weekly capacity of this work cell can be calculated as follows: 0.2583 (hours per unit) * 8 (hours per day) * 6 (days per week) = 12.3996 units per week.

Therefore, the weekly capacity of this work cell is approximately 12.3996 units per week.

In summary:
a) The throughput time of this work cell is approximately 0.2583 hours per unit.
b) The bottleneck time of this work cell is approximately 1/20 hour per unit.
c) The bottleneck station is Station 1.
d) The weekly capacity of this work cell is approximately 12.3996 units per week.

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