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i. Briefly outline the steps involved in hypothesis testing ii. Use a table to illustrate how Type I and Type II error can occur
A MANUFACTURING COMPANY FORECAST THAT IT IS LIKELY TO SELL 8, 00,000 UNITS FOR THE YEAR 2021. THE PROCESSING COST OF AN ORDER IS RS.200 AND THE CARRYING COST PER UNIT OF INVENTORY IS RS.16. THE LEAD TIME OF AN ORDER IS 5 DAYS.(A) WHAT WOULD BE THE ECONOMIC ORDER QUANTITY (EOQ) AND RE-ORDER POINT ASSUMING 360 DAYS IN A YEAR? (5 MARKS)(B) THE COMPANY IMPLEMENTS BUSINESS PROCESS REENGINEERING WHICH RESULTS IN TO REDUCTION OF 25% IN COST OF AN ORDER, 15% IN CARRYING COST PER UNIT OF INVENTORY AND 20% IN LEAD TIME OF AN ORDER. WHAT WOULD BE THE NEW EOQ AND RE-ORDER POINT.
Consider the linear demand curve Q = 50 – 2.5p where Q is quantity demanded and p is the price of the good. When the price changes from sh5 to sh10 what is the associated change in consumer’s surplus? Illustrate in a clear diagram.
Evaluate and explain these two statements. 1. An increase in fixed cost increases the minimum-cost output. 2. An increase in fixed cost increases marginal cost.
Can you explain why taking a monotonic transformation of a utility function doesn’t change the marginal rate of substitution?
In the market for Fante Kenley, the supply and demand functions respectively are and When there is excess demand, price adjusts according to the equation a) Find the long run equilibrium price, P* (that is, the price at which there is no excess demand or supply). b) Formulate and solve he first order differential equation giving P as a function of time, t. Is this market dynamically stable or unstable? c) If the initial price is P = 50, how close will the price be to its long run equilibrium value, when t = 10?
with the aid of a well labelled diagram briefly explain the concept of opportunity cost, scarcity and choice in the production possibilities frontier
Does a monopolistic competitor produce too much or too little output compared to the most efficient level? What practical considerations make it difficult for policymakers to solve this problem?