PART 1
1. For a moving average forecast to be of any use to us, what assumption must be true?
2. In a regression equation, what is y hat?
3. Given the following data, calculate the two-year moving averages for years 5 through 10.
4. While conducting an accounting audit of their finished goods inventory, Farmer's Market clerks were able to construct the following data one of their nonseasonal baskets.
(a) Use trend projection to estimate the relationship between time and sales (state the equation).
(b) Calculate forecasts for the first four months of the next year.
PART 2
1. What is the first step in solving a break-even analysis using a graphic approach?
2. Define NPV
3. What limits the use of a graphical solution to LP
4. What are the three parts of a wait-line system?
5. In reference to queuing, what is a limited or finite population?
6. What does FIFO mean?
7. Describe or define a negative exponential-probability distribution
8. Which waiting-line model has a dependent relationship between the length of the queue and the arrival rate?
9. XYZ plating is going ahead on an expansion project. They will be able to earn $300 per hour and run 3,000 hours per year. What is the net present value for the next five years with an interest rate of 6%?
PART 3
1. Briefly discuss the decision methods used when there is complete uncertainty as to which state in a decision environment may occur.
2. Chad's Pottery Barn has enough clay to make 24 small vases or 6 large vases. He has only enough of a special glazing compound to glaze 16 of the small vases or 8 of the large vases. Let X1 = the number of small vases and X2 = the number of large vases.
3. XYZ coating company has reviewed four new processes for improving their coating line. The four processes, labeled A, B, C, and D use different technology and have different capacities. All the processes have the same level of production and the lifetime