BUSOBA 2321 Final Question and Answer [2026] |
UPDATED ACTUAL Exam | Ultimate Study Guide
• Profit Model -✓✓ 𝜋 = sx - vx - f
profit = price(x) - VC(x) - FC
• Indifference Points -✓✓ point where total profit/cost of two alternatives are equal
to each other
**to find, set equations equal
• Break Even Points -✓✓ when revenue = costs, so profit = 0
**to find, set profit equation =0
• Maximax -✓✓ max of maxes, optimistic
• Maximin -✓✓ max of mins, pessimistic
• Minimax -✓✓ subtract each column value by column max value (regret table).
then take the min of the row maxes
• EMV -✓✓ expected monetary value = (value at strong demand(p)) + (value at
weak demand(1-p))
**equally likely = same probability for each state of nature
• Regret Table -✓✓ build by subtracting each column value by column max.
**used to find minimax regret and EOL
UPDATED ACTUAL Exam | Ultimate Study Guide
• Profit Model -✓✓ 𝜋 = sx - vx - f
profit = price(x) - VC(x) - FC
• Indifference Points -✓✓ point where total profit/cost of two alternatives are equal
to each other
**to find, set equations equal
• Break Even Points -✓✓ when revenue = costs, so profit = 0
**to find, set profit equation =0
• Maximax -✓✓ max of maxes, optimistic
• Maximin -✓✓ max of mins, pessimistic
• Minimax -✓✓ subtract each column value by column max value (regret table).
then take the min of the row maxes
• EMV -✓✓ expected monetary value = (value at strong demand(p)) + (value at
weak demand(1-p))
**equally likely = same probability for each state of nature
• Regret Table -✓✓ build by subtracting each column value by column max.
**used to find minimax regret and EOL
