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1) EXPLAIN STEP BY STEP HOW TO SOLVE THE PROBLEM MacDonald Products, Inc., of Clarkson,
New York, has the option of (a) proceeding immediately with production of a new top-of-theline stereo TV that has just completed prototype testing or (b) having the value analysis team
complete a study. If Ed Lusk, VP for operations, proceeds with the existing prototype (option a),
the firm can expect sales to be 100,000 units at $550 each, with a probability of .6, and a .4
probability of 75,000 at $550. If, however, he uses the value analysis team (option b), the firm
expects sales of 75,000 units at $750, with a probability of .7, and a .3 probability of 70,000 units
units at $750. Value analysis, at a cost of $100,000, is only used in option b. Which option has
the highest expected monetary value (EMV)?
2) EXPLAIN STEP BY STEP HOW TO SOLVE THE PROBLEM Mary Beth Marrs, the manager of an
apartment complex, feels overwhelmed by the number of complaints she is receiving. Below is
the check sheet she has kept for the past 12 weeks. Develop a Pareto chart using this
information. What recommendations would you make?
3) How Can I Capitalize on Situations with Unmet Demand 200 WORDS
4) Why Does the Age Change Based on My Product Revisions? 200 WORDS
5) How does the business buying process differ from the consumer buyer process?
6) Your manager suggests you do everything in your power to limit customer complaining.
Make an argument about why your firm should encourage consumers to complain. 200
WORDS

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