10-2 Scenario Analysis: Printing Equipment

The owner of a small printing company is considering the purchase of additional printing equipment to expand her business. If the owner expands the business and sales are high, projected profits (minus the cost of the equipment) should be $90,000; if sales are low, projected profits should be $40,000. If the equipment is not purchased, projected profits should be $70,000 if sales are high and $50,000 if sales are low.Are there options other than the purchase of additional equipment that should be considered in making the decision to expand the business?If the owner is optimistic about the company’s future sales, should the company expand by purchasing the equipment?Is the owner’s optimism or pessimism about sales the only factor that may impact the company’s profits?The equipment to be purchased is known in the industry to have a useful life of five years. How might this impact the printing company?
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QSO 510 Scenario Analysis Guidelines and Rubric
Knowledge of statistics is important foundational knowledge for analyzing data. Equally important is what you can do with that information. An overarching goal
of this course is to consider how statistics informs decision making, or data-based decision making. Throughout this course, you will be asked to make decisions
and then to consider the impact of those choices. Whether in stock trading, in car sales, or on the production floor, the decisions you make as a business
professional should be directly influenced by the data available to you. Careful analysis is the key to data-based decision making.
Each module task below provides a scenario and a list of questions for you to answer using data-based decision making.
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Module Two: Stock Options
Module Four: Cars Sold
Module Five: Computer Chips
Module Six: Vacation Time
Module Eight: Promotion
Module Ten: Printing Equipment
Specifically, the following critical elements must be addressed:
I.
II.
III.
IV.
Main Elements
Integration and Application
Analysis
Critical Thinking
Guidelines for Submission: Your analysis of the scenario must be submitted as a 1- to 2-page Microsoft Word document with double spacing and 12-point Times
New Roman font.
Rubric
Critical Elements
Main Elements
Integration and
Application
Analysis
Critical Thinking
Articulation of
Response
Exemplary (100%)
Thoroughly addresses each of
the main elements found in the
individual prompts and guiding
questions for each scenario
All of the course concepts are
correctly applied
Meets “Proficient” and the
quality of the statistical analysis
is above minimum quality
standards for competent
Draws insightful conclusions that
are thoroughly defended with
peer-reviewed evidence and
examples
Proficient (90%)
Adequately addresses all of the
main elements found in the
individual prompts and guiding
questions for each scenario
Most of the course concepts are
correctly applied
Represents competency with
respect to the statistical analysis
Needs Improvement (70%)
Addresses most but not all of the
main elements found in the
individual prompts and guiding
questions for scenario
Some of the course concepts are
correctly applied
Statistical analysis is evident, but
does not meet standards
Not Evident (0%)
Addresses less than half of the
main elements found in the
individual prompts or guiding
questions for each scenario
Does not correctly apply any of
the course concepts
Statistical analysis is not evident
Value
20
Draws informed conclusions that
are justified with evidence based
on peer-reviewed research
Draws logical conclusions, but
does not defend with evidence
based on peer-reviewed research
Does not draw logical conclusions
10
Submission is free of errors
related to citations, grammar,
spelling, syntax, and organization
and is presented in a professional
and easy to read format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
Earned Total
10
20
40
100%

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