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Old 07-26-2017, 12:00 AM
robyp74 robyp74 is offline
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Default EOM4 - Task 3 - Table Interpretation

I'm having some trouble deciding how to interpret the Quickwich valuation table in Task 3. At first I thought the base scenario was pre-tainted food and pre-marketing boost. I was going to argue that stores closed but COGS appears to rise way too much for that. So then I started thinking the base scenario was post-tainted food but obviously still pre-marketing boost. Then the drop in wages, equipment, and supplies doesn't make sense.

Simply put: does the base scenario already include the food being tainted, or no?
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Old 07-28-2017, 11:05 AM
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SirCountador SirCountador is offline
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The base scenario represents the expected value of the company's performance assuming that all goes according to plan. Shocks to the baseline scenario represent deviations to that plan.

ex: You're feeling good and plan to enjoy a walk in the park tomorrow. If you get sick or win the lottery between now and then, your plan would likely be impacted.

Last edited by SirCountador; 07-28-2017 at 11:09 AM..
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