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MICA SCR Ahmedabad 2008 -09 MDM MID TERM TAKE HOME EXAM Section - B ---------------------------------------------------------------------------------------------------- 1. Please answer all the questions. 2. You can refer text book/class notes 3. Last date for submission is September 03, 2008 ---------------------------------------------------------------------------------------------------- Q.1. Duane Morgan, a market researcher at Kitchen Ease, Inc., is assessing alternative promotional strategies for a new kitchen wrap product. He is concentrating on two attributes of the product: (1) its low cost, and (2) its superior biodegradable characteristics. In test market X, his promotional materials emphasized low cost, and he emphasized the biodegradable properties in test market Y. During the test, Duane carefully monitored repeat purchases by households in each test market. His findings are summarized in the following probability distributions, where X is the percent of households in the 'low cost' test market making repeat purchases, and Y is the percent of households in the 'biodegradable' test market making repeat purchases. |X |P(X) | |Y |P(Y) | |0 |.55 | |0 |.05 | |5 |.25 | |5 |.10 | |10 |.10 | |10 |.35 | |15 |.05 | |15 |.35 | |20 |.03 | |20 |.10 | |25 |.02 | |25 |.05 | Discuss the managerial and ethical considerations of this situation. What can Duane conclude from these data' What other factors may help explain the differences between the two distributions' What graphic depiction should he choose for his presentation to the product managers' Q.2.Crosstabulation of responses from television viewers produced the following frequency distirbution of age categories and favorite TV program. |Favorite TV Program by Age | | |TV Program | | |Age |MTV |Simpsons |60 Minutes |COPS |Grand Total | |Under 12 |18 |8 |2 |2 |30 | |12 under 18 |29 |23 |3 |3 |58 | |18 under 25 |33 |33 |21 |11 |98 | |25 under 50 |6 |15 |35 |28 |84 | |50+ |1 |4 |6 |19 |30 | |Grand Total |87 |83 |67 |63 |300 | Discuss what the frequency distribution reveals about the relation between age and favorite TV program Q.3. . Richard Bowman, Purchasing Manager at Mid-West Medical Center, is reviewing the annual vendor performance report. Richard is searching for opportunities to reduce Mid-West's inventory costs, and pauses to study a table summarizing the delivery times (elapsed time from placing an order until the material is received) for two suppliers of surgical dressings and related materials. | |Medco Supplies |Gauze-R-US | |μ (days) |17 |9 | |σ (days) |5 |2 | Discuss the relevance of this information to Richard's objective of reducing inventory costs. Which vendor should Mid-West favor' Why' What other factors should Richard consider' Q.4. Mone Carlo Simulation analysis of a proposed capital expenditure indicates that the net present value of the project is normallly distributed with μ of $6,000 and a σ of $4,000. Discuss the risk and profitability aspects of the proposed capital expenditure. Q.5. Descriptive statistics of daily sales ($'s) were calculated for two Bob's Quick Shops -- the Southside store, and the Midcity store. | |Southside |Midcity | |Mean |5025.622 |2733.333 | |Standard Error |118.306 |249.1417 | |Median |5110.73 |2000 | |Mode |#N/A |1000 | |Standard Deviation |916.394 |1929.843 | |Sample Variance |839778 |3724294 | |Kurtosis |-0.64387 |-0.49322 | |Skewness |-0.05517 |0.860968 | |Range |3949.172 |6000 | |Minimum |3133.362 |1000 | |Maximum |7082.534 |7000 | |Sum |301537.3 |164000 | |Count |60 |60 | Describe what these descriptivie statistics indicate about daily sales at these two stores. === ALL THE BEST!! ===