1. Because Barcelona “is constantly raising the bar,” the company experiences high turnover and is constantly hiring. Why might Scott want to change this approach to human resource management? A. It is impossible to use performance appraisals to determine pay increases and potential for advancement. B. Running ads on Craigslist and spending managers’ time screening candidates are costs to the business. C. Barcelona is unlikely to achieve greater diversity in its workforce. D. Barcelona will not be able to build the capabilities of its workforce.
2. You are creating a LP model that seeks to optimize the amount of money you invest in 6 different mutual funds. The mutual funds and their corresponding risk rating (on a scale of 1-10, with 10 being the most risky) are as follows:
Growth1 – 4, Growth2 – 7, Balanced – 2, SmallCap – 9, LargeCap – 6, International – 8.
(Abbreviations for the funds: GW1, GW2, BL, SC, LC, IT )
You have a total amount of $100,000 that you can invest, but your model does not have to invest all $100,000.
A constraint for your model needs to insure that the weighted average risk of your invested funds cannot exceed 5. Which choice below is the only accurate representation of that requirement for use in an LP model?
A) 4GW1 + 7GW2 + 2BL + 9SC + 6LC + 8IT >= 5
B) (4GW1 + 7GW2 + 2BL + 9SC + 6LC + 8IT)/(GW1 + GW2 + BL + SC + LC + IT) <= 5.
C) -1GW1 + 2GW2 – 3BL + 4SC + 1LC + 3IT <= 0
D) 4GW1 + 7GW2 + 2BL + 9SC + 6LC + 8IT <= 500,000.