Bob Mackey is the principle owner of Fuels Inc
Bob Mackey is the principle owner of Fuels Inc. Bob has been able to increase his salary by a factor of over 100. At the present time, Bob has to remain competitive in his industry, so he has the following alternatives regarding fuel equipment purchases.
Equipment Favorable Market Unfavorable Market
Panther $200,000 $100,000
Knight $300,000 $75,000
JB Billow $50,000 $12,000
Compose a paper in which you make a recommendation to Bob and Fuels Inc. In your paper, be sure to include the following components:
an explanation of the type of decision Bob is facing,
a discussion on the decision criteria that should be used,
a description of how you will apply the six steps of the decision-making process and,
a recommendation for which alternative is best for Fuels Inc. Why?
Your completed paper must be at least two pages in length. You must integrate your textbook and at least two other academic sources. Be sure to include an introduction and conclusion section in your paper. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed.
If you need more practice on the math skills that are required in this assignment, the CSU Math Center created this Decision Analysis Example recording that might help you when completing this assignment. A transcript and closed captioning are available once you access the video.
Sample Solution
Bob Mackey is facing a financial decision concerning the purchase of fuel-related equipment for his business, Fuels Inc. In order to make an informed decision, there are several criteria that must be taken into consideration. First and foremost, Bob must consider the cost associated with purchasing each piece of equipment. He must also take into account any potential savings he could realize by buying one piece of equipment over another based on market conditions. Additionally, he must weigh the value he will receive from each piece of equipment against its cost in order to determine if it will provide a sufficient return-on-investment (ROI) for Fuels Inc. The Panther is priced at $200,000 as favorable market conditions prevail ($100,000 under unfavorable market conditions). The Knight is priced at $300,000 under favorable market conditions ($75,000 under unfavorable market conditions). Lastly, JB Billow costs $50,000 in favorable markets ($12,000 in unfavorable markets). Given these prices and current market conditions Bob has two options that offer significant ROI: the Panther or Knight.
Oviposition, or the laying of eggs, is broken down into pre-oviposition and post-oviposition. In this experiment we observed pre-oviposition factors using the model species Callosobrachus maculatus, commonly known as the bean beetle. Small and large lima beans were used to test whether or not bean beetles had a preferred site size for oviposition. We hypothesized that if a preference was shown, the majority of eggs will be oviposited on the larger lima beans when compared to small lima beans. To do this we placed 15 small and 15 large lima beans in 3 petri dishes, then added 3 female and 2 male bean beetles in each and waited 2 weeks to allow fertilization and oviposition. Because our subject was exposed to both sizes of beans throughout the experiment, we interpreted our results by observing the number of eggs laid on each individual bean. From our observations we calculated the mean, standard deviation, standard error of mean, and for statistical purposes, ran a t-test. We found our results to be statistically significant, therefore we rejected the null hypothesis. From this we can concur that C. maculatus prefers smaller sized beans for oviposition.