Susan Winslow Has Two Alternative Routes to Travel from Her

question 19

Essay

Susan Winslow has two alternative routes to travel from her home in Olport to her office in Lewisburg.She can travel on Freeway 5 to Freeway 57 or on Freeway 55 to Freeway 91.The time distributions are as follows: ​
Do a five-day simulation of each of the two combinations of routes using the random numbers below.Based on this simulation,which routes should Susan take if her objective is to minimize her total travel time?

Grasp the significance of activity levels in the management of costs and the preparation of flexible budgets.

Interpret the implications of variances on material cost and efficiency.

Recognize the importance of standards in budgeting and variance analysis.

Understand how the measurement of efficiency varies with actual and standard costs in manufacturing overhead.

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Definitions:

Extreme Negative Returns

Significant losses in investment value over a short period, often unexpected.

Value At Risk

Value at Risk (VaR) is a statistical measure used to assess the risk of loss on a specific portfolio of financial assets, indicating the maximum potential loss over a given time frame at a certain confidence level.

Negatively Skewed

Refers to a distribution that is asymmetrical and has a longer tail on the left side of the peak, indicating more values fall below the mean.

Standard Deviation

A statistical measure representing the dispersion or variability of a set of data points from their mean, often used in finance to gauge the volatility of an investment.