1. Describe the process of implementing a good spreadsheet model. Be sure to describe some possible conceptual steps, formulas, tables, and auditing features you might use. Feel free to give any examples that may help.

2. Cox Electric makes electronic components and has estimated the following for a new design of one of its products:

Fixed cost = $10,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

a. Build an influence diagram that illustrates how to calculate profit.

b. Give a mathematical model for calculating profit.

c. If Cox Electric makes 12,000 units of the new product, what is the resulting profit?

3. Describe the process of decision analysis with probabilities. Make sure to talk about the expected value approach, decision trees, sensitivity analysis, and how sample information may be used to revise and improve the decision analysis. Feel free to give examples to highlight your explanations.