Exhibit 5-14

question 17

Multiple Choice

Exhibit 5-14.The foreclosure crisis has been particularly devastating in housing markets in much of the south and west United States,but even when analysis is restricted to relatively strong housing markets the numbers are staggering.For example,in 2011 an average of three residential properties were auctioned off each weekday in the city of Boston,up from an average of one per week in 2005. Refer to Exhibit 5-14.What is the probability that at least one foreclosure auction occurred in Boston on a randomly selected weekday of 2011?

• A)0.0498
• B)0.1494
• C)0.8009
• D)0.9502

Realize the importance of value chain activities in an organization.

Gain insight into quality control and its impact on operations management.

Understand the distinction between variables and constants in economic analysis.

Comprehend the basics of economic modeling and its purpose.

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Definitions:

Offshoring

The relocation of a business process or operation from one country to another, typically to exploit lower labor costs or favorable regulatory environments.

Shipping Costs

Expenses associated with transporting goods from one location to another.

Raw Material Costs

Expenses associated with acquiring the unprocessed materials needed to manufacture a product. These costs are a significant component of total production cost.

Total Cost Of Offshoring

The comprehensive calculation of all expenses related to relocating business operations abroad, including setup, operational, and labor costs.