Andrew C Definis
Homework #4
RMI 2101 Class Meeting: 740-1010
02/26/2017
Homework 4 (18 points)
1. In “The Only Lifeline was the Wal-Mart”,
a. How did Wal-Mart plan to keep food from thawing and going bad if power was lost? (2 pts.)
They had backup generators and fuel shipped to Florida stores. The trucks also delivered dry ice to prevent the food from thawing for 72 hours if the generators were to fail.
b. What risk control techniques does Walmart’s Emergency Operations Center use? (2 points)
Loss reduction- Walmart had backup generators and fuel shipped to their stores in case of power outages. Wal-Mart also did not have looting on a mass scale because they gave out food and water to those in need. Loss …show more content…
In A Wal-Mart prevented food from going bad and it allowed an adequate supply of the merchandise to operate. In part C Wal-Mart typically opens within 24 hours allowing operations to continue as soon as possible.
2. In ‘How Long a Shot is the Powerball?’
a. What factors influence the expected value of a Powerball ticket? (4 points)
The non-jack pot/ jack pot size expectations and the amount of tickets sold is the factors of a Powerball ticket with no power play. The odds of hitting the jack pot and the portion of the jack pot you will receive if there are other winners. The power play is a number between 2-5 which takes the non-jack pot odds and multiplies it by 3.5 and double the cost of the ticket. However, the main two influences are the jack pot size and the amount of tickets sold.
b. What percentage of a dollar spent on a Powerball ticket goes toward the pot? (2pts)
The article states “Of every dollar sold, 30 cents goes into the cash jackpot pool and accumulates until there is a winner or winners”.
c. If a winner selects the cash option, what return would the winner need to earn to equal the annuity option? (2
Homework #4
RMI 2101 Class Meeting: 740-1010
02/26/2017
Homework 4 (18 points)
1. In “The Only Lifeline was the Wal-Mart”,
a. How did Wal-Mart plan to keep food from thawing and going bad if power was lost? (2 pts.)
They had backup generators and fuel shipped to Florida stores. The trucks also delivered dry ice to prevent the food from thawing for 72 hours if the generators were to fail.
b. What risk control techniques does Walmart’s Emergency Operations Center use? (2 points)
Loss reduction- Walmart had backup generators and fuel shipped to their stores in case of power outages. Wal-Mart also did not have looting on a mass scale because they gave out food and water to those in need. Loss …show more content…
In A Wal-Mart prevented food from going bad and it allowed an adequate supply of the merchandise to operate. In part C Wal-Mart typically opens within 24 hours allowing operations to continue as soon as possible.
2. In ‘How Long a Shot is the Powerball?’
a. What factors influence the expected value of a Powerball ticket? (4 points)
The non-jack pot/ jack pot size expectations and the amount of tickets sold is the factors of a Powerball ticket with no power play. The odds of hitting the jack pot and the portion of the jack pot you will receive if there are other winners. The power play is a number between 2-5 which takes the non-jack pot odds and multiplies it by 3.5 and double the cost of the ticket. However, the main two influences are the jack pot size and the amount of tickets sold.
b. What percentage of a dollar spent on a Powerball ticket goes toward the pot? (2pts)
The article states “Of every dollar sold, 30 cents goes into the cash jackpot pool and accumulates until there is a winner or winners”.
c. If a winner selects the cash option, what return would the winner need to earn to equal the annuity option? (2