*** F5 June 2015 Exam was.. Instant Poll and comments ***

I am very disappointed with the exam. thought was well prepared. especially in B with the transfer price & ZBB questions.

The questions in part B were very tricky.

@drice99 said:
Is the minimum transfer price 740+extra cont lost 30=770.max tp 800?

I believe minimum transfer price is the higher of suppling division’s lost contribution (850-770=80) or marginal costs (740), therefore I got it as 740.

part b is quite difficult but I hope I will be passed because part A minimum 15 mcq,s surely give right ans

Minimax regret the answer shoulb be B right ?

@lesbella said:
Minimax regret the answer shoulb be B right ?

Can’t remember which letter it was but I vaguely remember something around $80 ish. We had to find the max regret (highest of each column) and then choose the lowest of these so the selling price was whichever one corresponded to that.

I remembered the minimax regret answer was 375 from the loss table. Anyone gets the same?

I agreed with the learning rate question as all the options are suggest slower rate.

Please correct me if I’m wrong

@lilit274 said:
My answer is 375

It is because the regret table was provided, no need to construct it.

@bryanip3a1b said:
I remembered the minimax regret answer was 375 from the loss table. Anyone gets the same?

I agreed with the learning rate question as all the options are suggest slower rate.

Please correct me if I’m wrong

I honestly can’t remember what the options were but think I got it right. That’s the problem with the MCQs – you can’t remember them afterwards. I know there were two that I wasn’t convinced of my answer but I can’t remember what they were – apart from the fact they weren’t calculations ones.

Can’t wait to see the exam go up so I can try and figure out how I did.

@nikaacca said:
in section b, when there was discuss about skimming ,I wrote that it’s not suitable decision ,
because as they mentioned the demand was elastic (2 $ change in price change demand)
so if they set high price there will be demand fall if they set price 310 demand will be zero , as we calculated

I think I said that it MAY be suitable because met some of the conditions (short life cycle, high development costs, new and unique product) but no info on barriers to entry and demand was elastic so needed further info/investigation before making recommendation.

I noticed that the questions like this in the revision kit all sat on the fence so I did too!

Lilit , your answer makes me sad 🙁
because you are right
now I remember that there were 0 , because it was already constructed,
hate test , if it was in part B I would get 0.5 point , despite my wrong answer they would mark me for knowing of minimax regret

@jenny3549 said:
Can’t remember exactly the options but have a feeling it was none of the above. The learning rate is faster than expected and think all the options suggested slower?

Yeah,also chose none of the above

@nikaacca said:
in section b, when there was discuss about skimming ,I wrote that it’s not suitable decision ,
because as they mentioned the demand was elastic (2 $ change in price change demand)
so if they set high price there will be demand fall if they set price 310 demand will be zero , as we calculated

I very much doubt as other conditions such as
1. It is a differentiated product
2. It has a short life cycle
3. There was a huge investment.
The above conditions make skimming a good option

Kainosvik, yes I wrote it, and mentioned that it would be good , but what about elastic?
when we calculate price -310 zero demand?
every 2$ they loss 2000 demand