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NEW QUESTION: 1
If, in addition to the estimated profits, management of the bank assesses the probabilities of high, medium, and low demands to be 0.3, 0.4 and 0.3, respectively, what is the expected opportunity loss from selecting location L4?
A. US$5.50
B. US$5.00
C. US$7.90
D. US$7.50
Answer: A
Explanation:
First, the opportunity loss matrix must be prepared:

The expected opportunity loss from selecting location L4 is thus US $5.50 [($3 x 0.3) + ($4 x 0.4) + ($10 x)

NEW QUESTION: 2
What is a value stream?
A. A starting point for triggering other value streams
B. A decision structure represented by formal modeling notation
C. A stakeholder triggered, end-to-end perspective
D. A detailed view of what the business does to deliver value
Answer: C

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