The Quality Control Manager for the NKA Inc Based on Historical Data,if the Lot Is of Poor Quality,40

question 37

Multiple Choice

The quality control manager for the NKA Inc.must decide whether to accept (alternative 1) ,further analyze (alternative 2) ,or reject (alternative 3) the shipment (lot) of incoming material.The historical data indicates that there is 30% chance that the lot is poor quality (S₁) ,50% chance that the lot is fair quality (S₂) ,and 20% chance that the lot is good quality (S₃) .Assume the following payoff table is available.The values in the payoff table are in thousands of dollars. $$\begin{array} { l c c c } & { \text { States of Nature } } \\\text { Decision } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } & \mathrm {~S} _ { 3 } \\\text { Accept } & 20 & 30 & 90 \\\text { Further analyze } & 60 & 70 & 15 \\\text { Reject } & 80 & 50 & 30\end{array}$$
Based on historical data,if the lot is of poor quality,40% of the items are defective.If the lot is fair quality,22% of the items are defective.If the lot is good quality,10 % of the items are defective.The quality control manager inspects one unit from a recent shipment.After inspecting one unit,the manager determines that the unit is defective.Based on this additional information,what is the revised (posterior) probability for the further analyze state?

• A)44
• B)52
• C)18
• D)39
• E)48

Understand the value added by the Du Pont identity in financial analysis.

Evaluate the significance of considering multiple aspects when analyzing financial ratios and their implications for firm operations and cash flows.

Understand the components and calculations of net working capital.

Identify and classify different types of assets, including fixed and intangible assets.

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Definitions:

Advertising Budget

The amount of money allocated by a business for activities related to the promotion and advertising of its products or services.

Monthly Sales

The total revenue generated from sales operations within a specific month.

Sales Commissions

A portion of the sale price paid to salespersons as a reward for their sales efforts, typically a percentage of the sales they generate.

Monthly Sales

The total revenue generated from the sale of goods or services by a company within a month.