Exhibit 12.5 The Following Questions Use the Information Below

question 45

Essay

Exhibit 12.5
The following questions use the information below.
The owner of Sal's Italian Restaurant wants to study the growth of his business using simulation. He is interested in simulating the number of customers and the amount ordered by customers each month. He currently serves 1000 customers per month and feels this can vary uniformly between a decrease of as much as 5% and an increase of up to 9%. The bill for each customer is a normally distributed random variable with a mean of $20 and a standard deviation of $5. The average order has been increasing steadily over the years and the owner expects the mean order will increase by 2% per month. You have created the following spreadsheet to simulate the problem.
-A simulation model was replicated 100 times yielding a mean of 82.59 with variance of 17.66. Of the 100 replications, 11 replications yielded an outcome over a value of 100. What is the 95% confidence interval on the proportion of simulations whose outcomes exceeded a value of 100?

Recognize how the Alternative Minimum Tax (AMT) works and identify tax preference items.

Learn how the material participation tests affect the categorization of income and losses.

Understand the role of nonrecourse and qualified nonrecourse financing in at-risk determinations.

Identify how passive loss rules regulate the deduction of business activity losses.

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Definitions:

Managerial Roles

Specific categories of managerial behavior including interpersonal, informational, and decisional roles.

Mintzberg's Ten

A framework of ten management roles categorized into interpersonal, informational, and decisional roles, developed by Henry Mintzberg.

Katz's Three

An organizational theory that identifies three primary managerial skills essential for successful management: technical, human, and conceptual skills.

Performance Efficiency

The degree to which tasks are executed accurately and economically, maximizing output while minimizing waste.