In finance, beta is a measure of the systematic risk of a security in comparison to the market as a whole. Beta can be found by running a regression analysis of the monthly returns of the security versus the monthly returns of the general market. The regression output table below shows the relationship between Boeing's monthly returns and the monthly returns of the Standard and Poor's 500 (S&P 500) which is a stock market index of 500 large companies.
If beta is the average change in Boeing's monthly returns as the monthly returns of the S&P 500 increase by one, what is Boeing's beta?
A supply manager for TUV, Inc. contracts with a new supplier of a critical raw material. After receiving several shipments, TUV's manufacturing team finds too much variation in the material dimensions. A meeting is held between the engineering and quality staffs of both companies to discuss the situation. Which of the following should the supply manager do NEXT?
After a small country begins permitting the import of automobiles, a foreign automobile manufacturer begins shipping cars to the country. This manufacturer can produce cars much more cheaply than the only manufacturer located in the country and therefore enjoys significant profits. What will erode the profits for the foreign manufacturer?
A sourcing manager is negotiating a contract with a human resources supplier that has access to employee data, including social security numbers. The supplier proposes an annual cap of $10,000 on overall liability. In this situation, which of the following is the MOST important stakeholder for the sourcing manager to consult in regard to this supplier?
A manufacturing firm which prides itself on excellent customer service, quality, and prompt delivery decides to outsource several of its high volume, cost-driven products. The firm's supply manager is tasked with ensuring that service level expectations are maintained during the transition. Which of the following is the BEST step for the supply manager to take to ensure a smooth transition?
