Corditera Career Development College ___Gollege of Accountancy QUANTITATIVE TECHNIQUES 1A company & controling 2 complex project by determining the activites that must take place andthe relationship among these actives, Attention then is focus on those activites that have the greatest inflence on the project's estimated completion date. The quanta technique mast relevant 1 this ‘completion date. The quantitative 3. Cost-volume profit anahsis {rogram evaluation review technique b. Parametric programming & cueving anata 2. Program evaluation ang review technique (PERT is 2 system that uses “S Lease square method €. Economic Order Quantity (£00) fermula near programming 4, Network analyis 3. PERT andthe critical path method (CPM) are used for ' Determining the optimal product mix 1b Project scheduling ane control Determining produc costs 4. Determining the number of servers needed in a fastfood restaurant 4. A projects defined as 2 “e.Temporary endeavour € txpensive endeavour b. Continuous endeavour 4. Endless endeavour When using PERT, the expected tne for an activity when given an optimistic time (A), » pessimistic te (8, and most kay time ) is Calculated by which of he folowing formulas? a (@-a)s2 Ea s4m sb) +6 b fesbye2 1. aber) +6 6 Orange Service Firm i considering 2 S-phase project. The time estimates for compet of phate tof the projec are: Optimistic 2 months + Most tkely Amonths jy (9 ) ¢ Pessimistc 8 months Using PERT-CPM approach, what s the expected tie for completion of phase 17 2. Amonths ce Smorts 4S months 2.55 months 2. Critical Path Method (CPM) is # technique for analysing planning, and scheduling large, complex projects by determining the crital path from a single estimate for each event in a project. The eral path 12 Nts the manimurm amount of ime an activity may be delayed without delaying the total project beyond its target ime be ls the earliest starting time that an act fora project cn begin ©. isthe pessimistic ume estimate for an actvty ofa projec: ‘Ets the longest time path from the frst event tothe last event fora project |& Apple Company represent the following PERT-CPM data fora certain project. ‘Acsivite ‘Time in Weeks Preceding Activity a 34 2 3 a c 7\a a D a a e 274 8 F 4 8 6 1 ce H 5 D ‘Determine the projec’ (A) completion time ofthe critca path and (8) slacktime ofthe shortest path. 2. (A) 32 weeks (8)3 weeks HA) 11 weeks (8) 2 weeks bi (A) 12 weeks (8) 2 weeks 6.(A) 20 weeks (6) 1 week 9, Theprimary difference between PERT and CPM is that ‘2. CPM uses probabilities on the activity time and PERT does not 1. PERT considers aethty costs and CPM does not PERT can assign probabilities to activity times and CPM does not 3. CPM considers athy costs and PERT does nat 16, When doing a cost-ime trade-off in PERT analysis, the fist activity that shouldbe crashes isthe acthvity ‘With the largest amount of slack With lowest unit crash cost On the critical path with the maxéum possible time reduction ‘On the ertcl path withthe lowest unit crash cost ree16. v. 8 3. 20, 3,000 35,000 m oe 10,000 139,600 Au bs 8,800 29,500 (one What should Grapes Buliers crash? ay Aethity EF (2 weeks) B. Acthity BC (1 week) & activity DE (4 week) © Acthity BC (1 week) & activity EF (1 weet) 4. "Acthty DE (1 week) & activity EF (1 weet) ‘The Gantt chart used in project management combines which ofthe following functions? ‘Planning and leveling ‘Planning and scheduling b. Scheduling and evaluating Scheduling and controling AGantt chart Shows the erica path fora project 1. Is used for determining an optimal product mix Shows only the acthtes along the etal path ofa network i Does not necessary show te crital path through a network scat cae operating nan envronment wherein al the fats surrounding» deco are known exactly, and each akernatve ‘ssocited only with one possible outcome, The environment i own ay a: Certainty © Uncertainty be Rik .Conflet eet Store sels four computer models designates 25 100, A100, RIGO, and 1100. The store manager has made random number {assignments to represent costumer choices based on pest sales cae, ‘The assignments are shown below: Sandom Numbers P00 ‘A100 100 00 ‘The probability that a costumer wil select model P100 is 2 10% 50K be 20K 4. Cannot be determined from given information crete rca pecs a Geman, the folowing rumbers are erm in sequence 2 8 and 6. The simulation indents hat the thet costumer wll purchase 3. Medel P100 ‘© Model R100 b_ Model A100 6. Medel T100 ‘A quantitative technique useful in projecting a firms sales and profits s ‘2. Profitability distribution theory Leeming curves b. Gantt charting <4. Queuing theory ‘Expected value in decson analysis 2, standing deviation using the probablties 2s weights «An arithmetic mean using the probabilities as weights ‘© The standard deviation dhided by the coefficient of variation &. _Ameasure of the difference between the best possible outcome ofthe orignal decision ‘The term expected value refers to the Value which would be asigned to variable if a problem were tobe treated ina deterministic manner > Most lie singe outcome selected from among a numberof posible aernaties ‘& Tals ofa normal probsbilty distribution Mean value ofa variable nt se eoeene ae marketing conutant prepared the flowing probsblty dsbutiondeserbing the relative ikethood of ‘monthly sales volume levels and related income (loss): Monthly sales volume Probability tocome floss) 6,000 10% yer, oo) (14) >) 12,000 20% 100 924 | 18, 000 40% swor| 60,000. 24k | Dx 24,000, 20% | 100,000 208 { 30,000, 10% 240,000 EK ‘Banana decides to market the new product, whats the expected value ofthe added monthiy income? ‘2. F240, 000 £53,000 60, 000 4.48, 000,‘Rem2i to22are based on folowinginformation A group of Ks sets macapuno candies at 2 basketball ge. The candies are sd for P00 each, and the com pe cacy & 73D. 3 ‘rsols candies are iscarded because they wil be stake before the ner basteball game. The frecuercy Gatien of Se Geman ‘Seconds pertain game tase oie Probab 1 2onvcanes azo somances oss Db | semanas oo» ‘5,000 candies 03s 7 Lsomveanses ozo {2 Whatls the escmated demand for meczpuro cance tthe ne basketball game using an pected ive snesac> 2 foo ance CS omnes 2 amanda Seomenoe 22. Whats the estimated deren for macapune candies tthe next basketball game using 2 deterministic anesech Bese She Sos By = 4,000 candies 5, 000cancies Bi sano caries (AS nance 23, The conditional profit per game of having 4 00 canes avalabe but only sling 3, 000 cancies 5 #0 = P2800 © P2.600 a Pz 30 ePs00 26, Raspberry Enterprises, iste of compact es (CDs), is davloping ts budgeted cost of goods sod for 20:4, Reseberry has Gwwionss she folowmg range of sales esurtes and esos OBS IOS ‘Soles exknate 60.000 85,000 om 309,000 64,200 Raspberry’ cost of goods sold averages 80% of sales. What the expected value of Raspberr's 2014 cost of goo Sic? P6720 = P84,000 P68,000 &.P 85,000 25, The Pineapple Company produces its productin batches of 100 unis. The units each batch are then testes. The reste fame teeing Se ‘most recert 200 batches are shown below VotsfaledperGatch Number of Satches : ‘0 : S ; : ; = : 2 femoe a Eo = wesc concn beet a rb : Why > 1 =o “am ote ois santa bd oe re Repeating eit sew ee sates nanan o-a0 oe anit 7 4 ] 401-600 asx f ciao se 2 Wha a ttyl eg ter se pt? 2 OK bm com $706ete pected slescf he new reduc? hint compute average ang) 400 ato Sm 28. Chery Ditbutors ey sr cite to increases day mun purchases of 100 boxes Aboxatmuffinscosts P 200 and sls F 3.00 ‘through regular store. Any bones not sol not sol through regular store are sold through thi store for Pi. asin the fol rotates astocated with projected cost changes Oe ae eee a ae ‘Acitonal sales Probably, © ox 100 am el Te \Woatis the eects value of cherry decision to buy 100 atonal boxes of muffins? a P28 ers Pao ares 235, Mango Company uses to major inputs in ts production. To prepare ts manufacturing operations budget the company ha oproect the ‘est changes ofthese material inputs. The cost changes are independent of ene another. The purchasing department provises the following prebsbites associate with projected cot changes Cost change Material Materia 2 3Kipcrese 03 os ‘Swineresee os 04 10K nerease 02 01 \Wnat isthe profrabity ofa 3% increase inthe costa both Matera 1 and Materia 2? aK «80% wR a.20% 30. Watermelon Company.has thre sles departments each contributing the following percentages of total sales, dothing. SOM aréware $e ane mrocer 20% Bach department has had the folowing average annual damaged goods rates doting. 23 haréware, OM, ae geery(SIO A random corporate aut has found a weekly damage goods cotes o°suicient magnitude to alarm Waterman's "manageient. Whats the probably thatthe damaged occurred inthe Gothing department? Soe csaame So/e a cate 3. The mad teigue used for stuns hing sequen of vrs wih evel posable autres ssc wth each ter 2, Necworkanas ern ey pO Decision tree analysis 4. linear programming, 132. Awine maker must decile whether to harvest grapes now ain four weeks. Harvesting now wil eld 109, 000 bates of wine netting P2 er bottle. the wine maker walts and the weather tums cold (probable: 20%) the yield be cut in half but net P 3 per bottle f the weather doesnot turn cold the vel wil depend on rain With rain (probably: SOM), a full yet netting P 4 pr Bote wil result Without ‘in, there wil stl be aful100, 00 bette yield, Bu the net will only be 3 per bottle, What ls the eptimaLcpected value? ‘2. 200,000, © P 350, 000 oars & P310,000 «4. 400,000 FOO XZ) rok 433. A contractor has been invited to submit bid on a large and complcated construction project. The preparation of the bid proposal wil cost ‘about P 20, 000. Management fees that ifthe company bid ow, enough to result ane poft OF SO, 00, there wil bea GOK chonce ‘of geting the ob. fhe company bids high, enough to result ina P 100, 000 net pro, the chance f getting the contract would oly be 120%. What shoul the company do? 2. id low, enough tallow fr P50, 000 profit since the expected value of pays P22, 000 be Bid high, enough tallow fr P 100,000 prof since the expected vale of payot iP, 000, ‘Bd high enought allow for P100, 00 prof since the expected valve of payot P20, 000 6. Makeno bid 24, Which of the folowing statements does not appy to deco tree anahss? ‘2. Thesum ofthe probabiies ofthe events is ess than one Allo the events are mutually exlsive Allof the event areincuded Ithe decison The branches emanate from anode romleftto right tems 35 10 37 ore based onthe following information | beverage stand can sll ether sft drinks or coffee on any given day. If the stands sell oft rinks and the weather is ot i wal make P2, S00; ithe weather i co, the profit willbe P 3, 000i the stand sls coffee andthe weathers ho, wi make ® 900; the weathers cold, the proft wil be #2, 000. The probablty af cold weather ona given cay a this time Is 60%. 35, The expected pay for sling coffees 3 P1360 =.P2,200, s x wd P90 6. 3,900, a . 136, The expected payoff ithe vendor hes the perfect information 5 3 Pa,360 G2, 200 T 2. P3,960 3° 3,900 Bad 37. Considering only the information given, if the probability of hot weather given a hot weather forecast (G0%, then how much would the vendor bewiling to pay forthe forecast? - % 300 P60 A & P500 .P1,000