PrintWorks Inc. is a company that specializes in high-volume commercial printing for businesses / academic institutions. One of the most critical pieces of equipment in its facility is a large, state-of-the-art printing press that handles all their bulk printing orders. This is the only machine in the facility that can handle the largest client’s orders: when thousands of pages are needed within a short window of time like 24-48 hours.  If this state-of-the-art printing press were to break down, PrintWorks Inc. would be unable to fulfill any large bulk orders and would have to delay production until it was repaired. Worst case, the clients would go else where for their printing needs.  The risk of loss to this critical piece of machinery, which could halt PrintWork’s ability to fulfill orders, would fall under which quadrant of risk?

Rocko is the Risk Manager of Wacky Warehouse Inc., and he is deciding if he should purchase insurance for the company’s $1 million warehouse. He is stuck between two risk management options:  1) Retain the exposure of loss at the warehouse: which has an Expected Value (Loss) = $10,000  2) Purchase Full Insurance: which has a premium = $15,000 Full Insurance has a Policy Limit = $1,000,000 (the value of the building); and it has no deductible   Rocko considers both financial and non-financial decision-making criteria when making his choice. After weighing the Total Cost of each option, he decides to purchase Full Insurance for $15,000.  Based on the above information, which of the following must be true? 

Fahrenheit Energy is a popular energy drink among Gen Z’ers that is sold exclusively in the United States. The executive team of Fahrenheit Energy are contemplating expanding into the European Market, by offering its product in England and Ireland. Based on market research the executive team believes the geographic expansion has an 85% probability of being a success and returning a profit. However, the executive team also believes there is a 15% probability that the product will not return a profit in these new markets.  Fahrenheit Energy’s management team deciding whether or not to expand into the European market falls under which quadrant of risk?  

Rachel, the Risk Manager of Titan Technologies, wants to engage in self-insured retention (“self insurance”) for the workers compensation exposure of the firm’s 2,500 employees. Rachel believes there are many advantages to this idea. However, her key concern is the possibility of an extremely high severity worker’s compensation loss occurring (such as the death of multiple employees) which could potentially cost the company multi-millions of dollars. Titan Technologies is a “lean” business and simply would not be able to retain / pay for such a large loss out of its internal financial resources. What issue of self-insured retention as a risk financing option does the underlined portion of the above scenario present for Titan Technologies?

Magnus Manufacturing is assessing the possibility of a failure of a critical piece of equipment at its Harrisburg, PA manufacturing plant; and the corresponding losses that the equipment failures would cause. After performing a quantitative analysis of the company’s historical information, the Risk Manager of Magnus Manufacturing derived the following Probability Distribution:  Outcome Probability  Loss ($$$) No Equipment Failure 0.60 $0 Minor Equipment Failure 0.25 $15,000 Moderate Equipment Failure 0.125 $75,000 Major Equipment Failure 0.025 $250,000   Question #1:  What is the Expected Value (Loss) for the failure of a critical piece of equipment at Magnus Manufacturing’s – Harrisburg, PA plant?  = [choice1]   Question #2: The Risk Manager wants to compare the risk between the company’s Harrisburg, PA manufacturing plant and the company’s largest manufacturing plant in Philadelphia, PA. After performing even further quantitative analysis, the Risk Manager of Magnus Manufacturing derived the following information about the two manufacturing plants:  Harrisburg, PA Manufacturing Plant: Expected Value (Loss) = calculated above in Question #1 Standard Deviation = $44,000 Philadelphia, PA Manufacturing Plant:  Expected Value (Loss) = $55,000 Standard Deviation = $97,550   Which one of the two manufacturing plants poses MORE risk (uncertainty) of equipment failure; as determined by the most critical objective measure of risk? (or worded another way the equalizing measure of dispersion) And what is the numerical value of the most critical objective measure of risk?  = [choice2]

What concept best explains why risk pooling works and lowers the amount of risk an insurance company faces?

7) A directed graph  has  vertices, numbered  through  . The  matrix  is the adjacency matrix for  . The matrices  and  are given below. Which edge isnotin the transitive closure of  ?

In your own words, what does it mean for an HR professional to be a “strategic business partner?”

4) Graph  is defined by the arrow diagram below. Select the properties that accurately describe the following sequence with respect to graph  

Often people who drink too much alcohol attempt to “sober up” by drinking coffee. Several studies support the idea that caffeine