Assignment
Question 1
Assume you have a normal distribution representing the likelihood of completion times. The mean of this distribution is 10, and the standard deviation is 3. The probability of completing the project in 7 or fewer days is the same as the probability of completing the project in 13 days or more.
True
False
Question 2
Suppose that 10 golfers enter a tournament and that their respective skill levels are approximately the same. Six of the entrants are female and two of those are older than 40 years old. Three of the men are older than 40 years old. What is the probability that the winner will be either female or older than 40 years old?
0.000
1.100
0.900
0.198
0.200
Question 3
Which of the following is not true about continuous random variables?
They can only be integer values.
Some may be described by uniform distributions or exponential distributions.
The entire area under each of the curves equals 1.
They have an infinite set of values.
The area under each of the curves represents probabilities.
Question 4
The number of cell phone minutes used by high school seniors follows a normal distribution with a mean of 500 and a standard deviation of 50. What is the probability that a student uses more than 350 minutes?
0.999
0.382
0.001
0.618
None of the above
Question 5
By studying a person's Utility Curve, one can determine whether the individual is a risk seeker, risk avoider, or is indifferent to risk.
True
False
Question 6
The following is a payoff table giving profits for various situations.
|
|
States of nature
|
|
Alternatives
|
A
|
B
|
C
|
|
Alternatives 1
|
120
|
140
|
120
|
|
Alternatives 2
|
200
|
100
|
50
|
|
Alternatives 3
|
100
|
120
|
180
|
|
Do Nothing
|
0
|
0
|
0
|
What decision would an optimist make?
Do Nothing
State of Nature A
Alternative 3
Alternative 2
Alternative 1
Question 7
The following is an opportunity loss table.
What decision should be made based on the minimax regret criterion?
Alternative 1
Alternative 2
Alternative 3
Does not matter
State of Nature A
Question 8
An air conditioning and heating repair firm conducted a study to determine if the average outside temperature could be used to predict the cost of an electric bill for homes during the winter months in Houston, Texas. The resulting regression equation was:
Y = 227.19 - 1.45X, where Y = monthly cost, X = average outside air temperature
If the temperature averaged 48 degrees during December, what is the forecasted cost of December's electric bill?
157.59
227.19
172.09
None of the above
$227.19 - $1.45(48 ) = $157.59
Question 9
Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day moving average.
15
13
28
12.5
14
Question 10
Demand for soccer balls at a new sporting goods store is forecasted using the following regression equation: Y = 98 + 2.2X where X is the number of months that the store has been in existence. Let April be represented by X = 4. April is assumed to have a seasonality index of 1.15.What is the forecast for soccer ball demand for the month of April (rounded to the nearest integer)?
123
107
100
115
None of the above
Question 11
Which of the following is part of the determination of EOQ?
Annual demand
Cost of production labor
Total revenue
Purchase cost
Cost of stockouts
Question 12
Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his total ordering cost be for the year?
$200
$2,000
$720
$2,720
None of the above
Question 13
Daniel Trumpe has computed the EOQ for a product he sells to be 400 units. However, due to recent events, he has a cash flow problem. Therefore, he orders only 100 units each time he places an order. Which of the following is true for this situation?
Annual ordering cost will be higher than annual holding cost.
Annual ordering cost will equal annual holding cost.
Annual ordering cost will be lower than annual holding cost.
Nothing can be determined without more information.
Annual ordering cost will be unaffected by the order policy change.
Question 14
Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. How many units should Andre order each time?
400
200
500
100
None of the above
Question 15
The mathematical theory behind linear programming states that an optimal solution to any problem will lie at a(n) __________ of the feasible region.
interior point or center
maximum point or minimum point
interior point or extreme point
corner point or extreme point
none of the above
Question 16
Consider the following linear programming problem:
Maximize 12X + 10Y
Subject to: 4X + 3Y ≤ 480
2X + 3Y ≤ 360
all variables ≥ 0
The maximum possible value for the objective function is:
360.
1560.
480.
1520.
None of the above
Question 17
The first step in planning and scheduling a project is to develop the __________.
PERT/CPM network diagram
work breakdown structure
employee scheduling plan
variance calculations for each activity
critical path
Question 18
A straight line representing all non-negative combinations of X1 and X2 for a particular profit level is called a(n)
constraint line.
profit line.
sensitivity line.
objective line.
isoprofit line.
Question 19
Variations that usually occur in a process are called:
process variations.
control variations.
assignable variations.
natural variations.
none of the above
Question 20
A suburban specialty restaurant has developed a single drive-thru window. Customers order, pay, and pick up their food at the same window.Arrivals follow a Poisson distribution, while service times follow an exponential distribution. If the average number of arrivals is 6 per hour and the service rate is 2 every 15 minutes, what is the average number of customers in the system?
3.00
0.50
2.25
4.00
None of the above.