Question 31

1 / 1 pts
The country has been experiencing frequent brownouts since its hydroelectric plants
experienced some technical problems. Statistics showed that the country has the
following average number of brownouts:

Number of Brownouts
Number of Months
per Month

2 0

3 4

3 6

4 8

For Lanie Company, each brownout costs P10,000. In view of this, the company is
considering to lease a generator for P40,000per month to provide power during
brownouts.
 
If Lanie Company would lease the generator in the coming year, how much is the
estimated savings (additional expense) per month next year?

  
P140,400
 

  
P 40,000
 

  
(P11,700)
 
Correct!
  
P11,700
 
 
Question 32
1 / 1 pts
Leilani Company uses materials X and Y in the manufacture of its only product. The
costs of materials X and Y are expected to decrease in the coming months.
 
The expected cost changes (which are independent of one another), as well as their
probabilities, were presented by the Purchasing Manager to the Budget Committee as
follows:

Decrease in Costs PROBABILITIES

  Material X                   Material Y

2% 20%                     40%

6%  50%                     10%

8% 30%                      50%

 
The probability of a 6% decrease in the cost of both Materials X and Y is

  
500%
 

  
60%
 
Correct!
  
5%
 

  
30%
 
 
Question 33
1 / 1 pts
Miss Lalaine owns a piece of land that is adjacent to a big area of vacant lot owned by
the city government. Recently, Miss Lalaine heard that the city government has plans
about the vacant lot. She inquired about such plans and she was given the following,
including each plan’s probability of occurrence:

  Probability

Plan A- Lease the lot to a businessman who will construct a mall on the lot 60%

        B- Construct a theme park on the vacant lot 30%

        C- Construct a building that will house some of the city government’s
10%
offices

 
Miss Lalaine knows that the values of her land, which she acquired ten years ago at a
cost of only P500 per square meter will increase depending on which plan would
materialize. Her estimates are as follows:

Plan A - P 5,000 per square meter

        B -     2,000

        C -     1,000

 
What is the expected value of the land?

  
P3,000
 

  
P2,667
 

  
P5,000
 
Correct!
   
P3,700
 
 
Question 34
3 / 3 pts
The Kingfisher JPIA is planning to conduct a fund raising project by selling roses on
Valentine’s Day. The roses, which can be purchased from a nearby supplier at P5 each,
will be sold to the students for P15 each. Any unsold roses at the end of the day will be
discarded.
 
The estimated numbers of roses that can be sold on such day, as well as their
probabilities, as follows:

Units of Roses Probability

600 0.20

800 0.30

1,000 0.40

1,200 0.10

 
1. What is the estimated sales of roses (in units) using an expected value
A

approach? 
A. 880                                                   
B. 1,000
C. 900
D. 400
 
2. What is the estimated unit sales of roses on Valentine’s Day using a deterministic
B

approach based on the most likely outcome? 

A. 880                                                   
B. 1,000
C. 900
D. 400
 
3. What is the conditional profit of purchasing 1,000 units of roses but selling only 800
A

units? 
A. P7,000
B. P8,000
C. P2,100 
D. P2,800
Answer 1:
Correct!A
Correct Answer
A.
 
Answer 2:
Correct!B
Correct Answer
B.
 
Answer 3:
Correct!A
Correct Answer
A.
 
 
Question 35
1 / 1 pts
Two companies share customers in the same market. Company X conducted a study of
the customers’ buying habits and obtained the following results:

Company X: 80% of its customers were repeat-customers each month, while 20% went to
Company Y.
Company Y: 60% of its customers were repeat-customers each month, while 40% went to
Company X.

If the customers’ buying habits continue for a long period, the percentage of customers
each company will have is

Company X Company Y

a.               80% 60%

b.             120% 80%

c.            66.6% 33.4%

d.           33.4% 66.6%

  
B
 
Correct!
  
C
 

  
A
 

  
D