6. Probability and Expected Value: Question: A company is launching a new product. Based on market research, the probabilities of low, medium, and high sales are 0.3, 0.4, and 0.3, respectively. Calculate the expected value of sales. Answer: Expected Value=(Low SalesP low) +(Medium Sales-P medium)+(High Sales P high) 7. Decision and Event Trees: Question: Create a decision tree for a business decision you are facing, considering different possible outcomes and associated probabilities. Answer: Draw a decision tree illustrating the decision-making process, including various branches and nodes. 8. Performance Trees: Question: Design a performance tree for a customer service process, identifying key performance indicators (KPIs) and their interrelationships. Answer: Draw a performance tree with nodes representing different KPIs and their connections. 9. Predictive Models: Question: You have historical sales data for a product. Build a simple linear regression model to predict future sales based on a relevant variable (e.g., advertising spend). Answer: Develop and present the regression equation and interpret the model coefficients. 10. Performance Improvement and Diagnostic Tools: Question: A company is experiencing a decline in product quality. Use a fishbone diagram to identify potential causes for the decline. Answer: Create a fishbone diagram with branches representing different potential causes for the decline in product quality. 11. Activity-Based Measures: Question: Implement activity-based costing for a manufacturing company with two products. Allocate overhead costs based on the consumption of resources. Calculate the cost per unit for each product. Answer: Allocate overhead costs to each product based on their resource consumption and calculate the cost per unit. ||