Cat Food Case Study

Decent Essays
Register to read the introduction… Total profit will increase by __________. Round your answer to the nearest integer and do not include the dollar “\$” sign.

1. -------------------------------------------------
Kitty Kennels provides overnight lodging for a variety of pets. An attractive feature is the quality of care the pets receive, including well balanced nutrition. The kennel’s cat food is made by mixing two types of cat food to obtain the “nutritionally balanced cat diet.” The data for the two cat foods are as follows:

Kitty Kennels wants to be sure that the cats receive at least 5 ounces of protein and at least 4 ounces of fat per day. What is the optimal cost of this plan? Write your answers with two significant places after the decimal and do not include the dollar “\$” sign. 2. -------------------------------------------------

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Find the optimal Z value for the following problem. Do not include the dollar “\$” sign with your
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A life insurance company wants to estimate their annual payouts. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 4 years. What proportion of the plan recipients would receive payments beyond age 74? Round your result to four significant places after the decimal. 4. -------------------------------------------------
The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. The probabilities of low, medium, and high compliance are 0.20, 0.40, and 0.40 respectively. What is the expected value of perfect information? Do not include the dollar “\$” sign with your answer.

5. -------------------------------------------------
An investor is considering 4 different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below.

Economic Condition
Poor Average Good Excellent
Investment (S1) (S2) (S3) (S4)
A 50 75 20 30
B 80 40 40

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