CIMA Exam CIMAPRO19-P01-1 Topic 9 Question 67 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 67
Topic #: 9

[All CIMAPRO19-P01-1 Questions]

A manager must select one of three projects, W, X or Y.

The following payoff table has been prepared to show the outcomes in $000 at three possible levels of demand:

The manager is now preparing a regret matrix.

What figure (in $000) will be shown for Project Y in the regret matrix if the average demand arises?

A150

B110

C520

D160

Show Suggested Answer

Suggested Answer: A

References:

by Glory at Mar 20, 2023, 06:09 PM

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Jonelle

2 months ago

This question is so dry, it's making me thirsty! Maybe the manager should just flip a coin and call it a day. But if I had to guess, I'd say the regret for Project Y in the average demand scenario is $160,000. Option D FTW!

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Rosalind

14 days ago

Yeah, $160,000 for Project Y in the regret matrix makes sense. Let's see if the manager goes with that option.

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Salley

15 days ago

I agree, Option D seems like the best choice here. Let's hope the manager makes the right decision.

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Dortha

21 days ago

I think you're right, the regret for Project Y in the average demand scenario is $160,000. Option D is the way to go!

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Janella

2 months ago

Regret matrix, huh? Sounds like a band name. Or maybe a new cryptocurrency. Anyway, I'm going with option C. $520,000 sounds like a pretty good payoff to me, even if it's not the maximum. Hey, at least I'm not the one who has to make the tough decisions around here!

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Shayne

2 months ago

Ah, the age-old question of which project to choose. This is like trying to pick a winner at the horse races - you never know for sure until the race is run! But I think I've got it figured out. The regret for Project Y when average demand arises is $160,000, so option D is the correct answer.

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Jade

16 days ago

So, the manager should probably avoid choosing Project Y if the average demand arises.

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Glen

20 days ago

That makes sense, Project Y seems to have the highest regret at average demand.

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Milly

21 days ago

I think you're right, the regret for Project Y at average demand is $160,000.

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Kendra

2 months ago

I'm not sure about this one. The payoff table shows the outcomes, but I'm having a hard time figuring out how to calculate the regret matrix. Maybe I should have paid more attention in my decision-making class.

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Alica

2 months ago

Well, this is a tricky one. If average demand arises, then the payoff for Project Y is $520,000, which is the highest among the three projects. So, the regret for Project Y would be the difference between this and the maximum payoff, which is $160,000. Option C is the correct answer.

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