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MAT 540(Str) Marvelous Teaching / snaptutorial.com

This Tutorial contains 20 Sets of Final Exam (800 Questions/Answers) <br><br>

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MAT 540(Str) Marvelous Teaching / snaptutorial.com

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  1. MAT 540 Final Exam (20 Sets) For more classes visit www.snaptutorial.com This Tutorial contains 20 Sets of Final Exam (800 Questions/Answers) ************************************************ MAT 540 Midterm Exam (5 Sets) For more classes visit www.snaptutorial.com

  2. This Tutorial contains 5 Sets of Midterm Exam MAT 540 Midterm Exam Set 1 Question 1 Deterministic techniques assume that no uncertainty exists in model parameters. Question 2 A joint probability is the probability that two or more events that are mutually exclusive can occur simultaneously. Question 3 A continuous random variable may assume only integer values within a given interval. Question 4 A decision tree is a diagram consisting of circles decision nodes, square probability nodes, and branches. Question 5 Simulation results will always equal analytical results if 30 trials of the simulation have been conducted. Question 6 Excel can only be used to simulate systems that can be represented by continuous random variables. Question 7 Data cannot exhibit both trend and cyclical patterns. Question 8 The Delphi develops a consensus forecast about what will occur in the future. Question 9 In Bayesian analysis, additional information is used to alter the __________ probability of the occurrence of an event.

  3. Question 10 __________ is a measure of dispersion of random variable values about the expected value. Question 11 The __________ is the maximum amount a decision maker would pay for additional information. Question 12 Developing the cumulative probability distribution helps to determine Question 13 A seed value is a(n) Question 14 Pseudorandom numbers exhibit __________ in order to be considered truly random. Question 15 Consider the following frequency of demand: If the simulation begins with 0.8102, the simulated value for demand would be Question 16 __________ is a linear regression model relating demand to time. Question 17 worth 2 points, 1 hour time limit (chapters 1,ue units EXCEPT:The U.S. Department of Agriculture estimates that the yearly yield of limes per acre is distributed as follows: Yield, bushels per acre Probability 350 .10 400 .18 450 .50 500 .22 The estimated average price per bushel is $16.80.

  4. What is the expected yield of the crop? Question 18 __________ methods are the most common type of forecasting method for the long-term strategic planning process. Question 19 In exponential smoothing, the closer alpha is to __________, the greater the reaction to the most recent demand. Question 20 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: If the forecast for period 5 is equal to 275, use exponential smoothing with α = .40 to compute a forecast for period 7. Question 21 Question 22 Coefficient of determination is the percentage of the variation in the __________ variable that results from the __________ variable. Question 23 Which of the following possible values of alpha would cause exponential smoothing to respond the most slowly to sudden changes in forecast errors? Question 24 Consider the following demand and forecast. Period Demand Forecast 1 7 10 2 12 15 3 18 20 4 22

  5. If MAD = 2, what is the forecast for period 4? Question 25 An automotive center keeps tracks of customer complaints received each week. The probability distribution for complaints can be represented as a table or a graph, both shown below. The random variable xi represents the number of complaints, and p(xi) is the probability of receiving xi complaints. xi 0 1 2 3 4 5 6 p(xi) .10 .15 .18 .20 .20 .10 .07 What is the average number of complaints received per week? Round your answer to two places after the decimal. Question 26 An online sweepstakes has the following payoffs and probabilities. Each person is limited to one entry. The probability of winning at least $1,000.00 is ________. Question 27 A fair die is rolled 8 times. What is the probability that an even number (2,4, 6) will occur between 2 and 4 times? Round your answer to four places after the decimal. Question 28 A life insurance company wants to estimate their annual payouts. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 4 years. What proportion of the plan recipients would receive payments beyond age 75? Round your answer to four places after the decimal. Question 29 The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net

  6. revenues will vary with how well taxpayers comply with the new tax code. The following payoff table is given in thousands of dollars (e.g. 50 = $50,000). If he uses the maximin criterion, how many new workers will he hire? Question 30 An investor is considering 4 different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. Economic Condition Poor Average Good Excellent Investment (S1) (S2) (S3) (S4) A 50 75 20 30 B 80 15 40 50 C -100 300 -50 10 D 25 25 25 25 If the probabilities of each economic condition are 0.5, 0.1, 0.35, and 0.05 respectively, what is the highest expected payoff? Question 31 A normal distribution has a mean of 500 and a standard deviation of 50. A manager wants to simulate one value from this distribution, and has drawn the number 1.4 randomly. What is the simulated value? Question 32 Consider the following annual sales data for 2001-2008. Calculate the correlation coefficient . Use four significant digits after the decimal.

  7. Question 33 The following data summarizes the historical demand for a product. Use exponential smoothing with α = .2 and the smoothed forecast for July is 32. Determine the smoothed forecast for August. Question 34 Robert wants to know if there is a relation between money spent on gambling and winnings. What is the coefficient of determination? Note: please report your answer with 2 places after the decimal point. Question 35 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: Compute a 3-period moving average for period 6. Use two places after the decimal. Question 36 Given the following data, compute the MAD for the forecast. Question 37 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: Compute a 3-period moving average for period 4. Use two places after the decimal. Question 38 The following sales data are available for 2003-2008 :

  8. Calculate the absolute value of the average error. Use three significant digits after the decimal. Question 39 The following data summarizes the historical demand for a product If the forecasted demand for June, July and August is 32, 38 and 42, respectively, what is MAPD? Write your answer in decimal form and not in percentages. For example, 15% should be written as 0.15. Use three significant digits after the decimal. Question 40 This is the data from the last 4 weeks: Use the equation of the regression line to forecast the increased sales for when the number of ads is 10. MAT 540 Midterm Exam Set 2 Question 1 Deterministic techniques assume that no uncertainty exists in model parameters. Question 2 A joint probability is the probability that two or more events that are mutually exclusive can occur simultaneously. Question 3 An inspector correctly identifies defective products 90% of the time. For the next 10 products, the probability that he makes fewer than 2 incorrect inspections is 0.736. Question 4 A decision tree is a diagram consisting of circles decision nodes, square probability nodes, and branches.

  9. Question 5 Starting conditions have no impact on the validity of a simulation model. Question 6 Excel can only be used to simulate systems that can be represented by continuous random variables. Question 7 Data cannot exhibit both trend and cyclical patterns. Question 8 Qualitative methods are the least common type of forecasting method for the long-term strategic planning process. Question 9 __________ is a measure of dispersion of random variable values about the expected value. Question 10 In Bayesian analysis, additional information is used to alter the __________ probability of the occurrence of an event. Question 11 The __________ is the expected value of the regret for each decision. Question 12 Developing the cumulative probability distribution helps to determine Question 13 A seed value is a(n) Question 14 In the Monte Carlo process, values for a random variable are generated by __________ a probability distribution. Question 15 Two hundred simulation runs were completed using the probability of a machine breakdown from the table below. The average number of breakdowns from the simulation trials was 1.93 with a standard deviation of 0.20.

  10. Question 16 In exponential smoothing, the closer alpha is to __________, the greater the reaction to the most recent demand. Question 17 __________ is absolute error as a percentage of demand. Question 18 __________ is a category of statistical techniques that uses historical data to predict future behavior. Question 19 Worth 2 points, 1 hour time limit (chapters 1,ue units EXCEPT:The U.S. Department of Agriculture estimates that the yearly yield of limes per acre is distributed as follows: The estimated average price per bushel is $16.80. What is the expected yield of the crop? Question 20 __________ is a linear regression model relating demand to time. Question 21 Which of the following possible values of alpha would cause exponential smoothing to respond the most slowly to sudden changes in forecast errors? Question 23 __________ is the difference between the forecast and actual demand. Question 24 __________ methods are the most common type of forecasting method for the long-term strategic planning process. Question 25 A loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a

  11. loaf is larger than 21 oz? Round your answer to four places after the decimal. Question 26 An online sweepstakes has the following payoffs and probabilities. Each person is limited to one entry. The probability of winning at least $1,000.00 is ________. Question 27 A fair die is rolled 8 times. What is the probability that an even number (2,4, 6) will occur between 2 and 4 times? Round your answer to four places after the decimal. Question 28 A life insurance company wants to estimate their annual payouts. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 4 years. What proportion of the plan recipients would receive payments beyond age 75? Round your answer to four places after the decimal. Question 29 An investor is considering 4 different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. If the probabilities of each economic condition are 0.5, 0.1, 0.35, and 0.05 respectively, what is the highest expected payoff? Question 30 The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. The following payoff table is given in thousands of dollars (e.g. 50 = $50,000). If he thinks the chances of low, medium, and high compliance are 20%, 30%, and 50% respectively, what is the expected value of perfect

  12. information? Note: Please express your answer as a whole number in thousands of dollars (e.g. 50 = $50,000). Round to the nearest whole number, if necessary. Question 31 Given the following random number ranges and the following random number sequence: 62, 13, 25, 40, 86, 93, determine the average demand for the following distribution of demand. Question 32 The following data summarizes the historical demand for a product If the forecasted demand for June, July and August is 32, 38 and 42, respectively, what is MAPD? Write your answer in decimal form and not in percentages. For example, 15% should be written as 0.15. Use three significant digits after the decimal. Question 33 The following data summarizes the historical demand for a product. Use exponential smoothing with α = .2 and the smoothed forecast for July is 32. Determine the smoothed forecast for August. Question 34 Daily highs in Sacramento for the past week (from least to most recent) were: 95, 102, 101, 96, 95, 90 and 92. Develop a forecast for today using a 2 day moving average. Question 35 Robert wants to know if there is a relation between money spent on gambling and winnings. What is the coefficient of determination? Note: please report your answer with 2 places after the decimal point. Question 36 This is the data from the last 4 weeks:

  13. Use the equation of the regression line to forecast the increased sales for when the number of ads is 10. Question 37 Daily highs in Sacramento for the past week (from least to most recent) were: 95, 102, 101, 96, 95, 90 and 92. Develop a forecast for today using a weighted moving average, with weights of .6, .3 and .1, where the highest weights are applied to the most recent data. Question 38 Given the following data, compute the MAD for the forecast. Year Demand Forecast Question 39 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: Compute a 3-period moving average for period 6. Use two places after the decimal. Question 40 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: Compute a 3-period moving average for period 4. Use two places after the decimal. MAT 540 Midterm Exam Set 3 Question 1 Deterministic techniques assume that no uncertainty exists in model parameters.

  14. Question 2 An inspector correctly identifies defective products 90% of the time. For the next 10 products, the probability that he makes fewer than 2 incorrect inspections is 0.736. Question 3 A continuous random variable may assume only integer values within a given interval. Question 4 A decision tree is a diagram consisting of circles decision nodes, square probability nodes, and branches. Question 5 Excel can only be used to simulate systems that can be represented by continuous random variables. Question 6 A table of random numbers must be normally distributed and efficiently generated. Question 7 The Delphi develops a consensus forecast about what will occur in the future. Question 8 Data cannot exhibit both trend and cyclical patterns. Question 9 In Bayesian analysis, additional information is used to alter the __________ probability of the occurrence of an event. Question 10 __________ is a measure of dispersion of random variable values about the expected value. Question 11 The __________ is the maximum amount a decision maker would pay for additional information. Question 12 Pseudorandom numbers exhibit __________ in order to be considered truly random.

  15. Question 13 Developing the cumulative probability distribution helps to determine Question 14 Consider the following frequency of demand: If the simulation begins with 0.8102, the simulated value for demand would be Question 15 Random numbers generated by a __________ process instead of a __________ process are pseudorandom numbers. Question 16 __________ is a category of statistical techniques that uses historical data to predict future behavior. Question 17 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: If the forecast for period 5 is equal to 275, use exponential smoothing with α = .40 to compute a forecast for period 7. Question 18 Consider the following graph of sales. Which of the following characteristics is exhibited by the data? Question 19 Consider the following demand and forecast. Period Demand Forecast 1 7 10 2 12 15 3 18 20 4 22 If MAD = 2, what is the forecast for period 4?

  16. Question 20 Consider the following graph of sales. Which of the following characteristics is exhibited by the data? Question 21 __________ methods are the most common type of forecasting method for the long-term strategic planning process. What is the expected value at node 4? Round your answer to the nearest whole number. Do not include the dollar sign “$” in your answer. Question 31 A normal distribution has a mean of 500 and a standard deviation of Question 32 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: Compute a 3-period moving average for period 6. Use two places after the decimal. Question 33 The following sales data are available for 2003- 2008. Determine a 4-year weighted moving average forecast for 2009, where weights are W1 = 0.1, W2 = 0.2, W3 = 0.2 and W4 = 0.5. Question 34 The following data summarizes the historical demand for a product If the forecasted demand for June, July and August is 32, 38 and 42, respectively, what is MAPD? Write your answer in decimal form and

  17. not in percentages. For example, 15% should be written as 0.15. Use three significant digits after the decimal. Question 35 Robert wants to know if there is a relation between money spent on gambling and winnings. What is the coefficient of determination? Note: please report your answer with 2 places after the decimal point. Question 36 Daily highs in Sacramento for the past week (from least to most recent) were: 95, 102, 101, 96, 95, 90 and 92. Develop a forecast for today using a 2 day moving average. Question 37 Consider the following annual sales data for 2001-2008. Calculate the correlation coefficient . Use four significant digits after the decimal. Question 38 Daily highs in Sacramento for the past week (from least to most recent) were: 95, 102, 101, 96, 95, 90 and 92. Develop a forecast for today using a weighted moving average, with weights of .6, .3 and .1, where the highest weights are applied to the most recent data. Question 39 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: Compute a 3-period moving average for period 4. Use two places after the decimal.

  18. Question 40 Given the following data, compute the MAD for the forecast. MAT 540 Midterm Exam Set 4 Question 1 Deterministic techniques assume that no uncertainty exists in model parameters. Question 2 An inspector correctly identifies defective products 90% of the time. For the next 10 products, the probability that he makes fewer than 2 incorrect inspections is 0.736. Question 3 A joint probability is the probability that two or more events that are mutually exclusive can occur simultaneously. Question 4 A decision tree is a diagram consisting of circles decision nodes, square probability nodes, and branches. Question 5 Simulation results will always equal analytical results if 30 trials of the simulation have been conducted. Question 6 A table of random numbers must be normally distributed and efficiently generated. Question 7 The Delphi develops a consensus forecast about what will occur in the future. Question 8 Data cannot exhibit both trend and cyclical patterns. Question 9 Assume that it takes a college student an average of 5 minutes to find a parking spot in the main parking lot. Assume also that this time is normally distributed with a standard deviation of 2 minutes.

  19. What time is exceeded by approximately 75% of the college students when trying to find a parking spot in the main parking lot? Question 10 In Bayesian analysis, additional information is used to alter the __________ probability of the occurrence of an event. Question 11 The __________ is the expected value of the regret for each decision. Question 12 Consider the following frequency of demand: If the simulation begins with 0.8102, the simulated value for demand would be Question 13 Pseudorandom numbers exhibit __________ in order to be considered truly random. Question 14 Developing the cumulative probability distribution helps to determine Question 15 A seed value is a(n) Question 16 __________ is a measure of the strength of the relationship between independent and dependent variables. Question 17 __________ is a linear regression model relating demand to time. Question 18 Coefficient of determination is the percentage of the variation in the __________ variable that results from the __________ variable.

  20. Question 19 __________ is the difference between the forecast and actual demand. Question 20 Consider the following graph of sales. Which of the following characteristics is exhibited by the data? Question 21 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: If the forecast for period 5 is equal to 275, use exponential smoothing with α = .40 to compute a forecast for period 7. Question 22 worth 2 points, 1 hour time limit (chapters 1,ue units EXCEPT:The U.S. Department of Agriculture estimates that the yearly yield of limes per acre is distributed as follows: Yield, bushels per acre Probability 350 .10 400 .18 450 .50 500 .22 The estimated average price per bushel is $16.80. What is the expected yield of the crop? Question 23 __________ methods are the most common type of forecasting method for the long-term strategic planning process. Question 24 __________ is a category of statistical techniques that uses historical data to predict future behavior. Question 25 A life insurance company wants to estimate their annual payouts. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68

  21. years and a standard deviation of 4 years. What proportion of the plan recipients would receive payments beyond age 75? Round your answer to four places after the decimal. Question 26 A loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a loaf is larger than 21 oz? Round your answer to four places after the decimal. Question 27 The drying rate in an industrial process is dependent on many factors and varies according to the following distribution. Compute the mean drying time. Use two places after the decimal. Question 28 An online sweepstakes has the following payoffs and probabilities. Each person is limited to one entry. The probability of winning at least $1,000.00 is ________. Question 29 An investor is considering 4 different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. If the probabilities of each economic condition are 0.5, 0.1, 0.35, and 0.05 respectively, what is the highest expected payoff? Question 30 The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. If he is conservative, how many new workers will he hire?

  22. • Question 31 Consider the following distribution and random numbers: If a simulation begins with the first random number, what would the first simulation value would be __________. • Question 32 This is the data from the last 4 weeks: Use the equation of the regression line to forecast the increased sales for when the number of ads is 10. Question 33 Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: Compute a 3-period moving average for period 4. Use two places after the decimal. Question 34 Given the following data, compute the MAD for the forecast. Question 35 Consider the following annual sales data for 2001-2008. Calculate the correlation coefficient . Use four significant digits after the decimal. Question 36 Robert wants to know if there is a relation between money spent on gambling and winnings. What is the coefficient of determination? Use two significant places after the decimal. Question 37 The following data summarizes the historical demand for a product

  23. If the forecasted demand for June, July and August is 32, 38 and 42, respectively, what is MAPD? Write your answer in decimal form and not in percentages. For example, 15% should be written as 0.15. Use three significant digits after the decimal. Question 38 The following sales data are available for 2003- 2008. Determine a 4-year weighted moving average forecast for 2009, where weights are W1 = 0.1, W2 = 0.2, W3 = 0.2 and W4 = 0.5. Question 39 Daily highs in Sacramento for the past week (from least to most recent) were: 95, 102, 101, 96, 95, 90 and 92. Develop a forecast for today using a 2 day moving average. Question 40 The following sales data are available for 2003-2008 : Calculate the absolute value of the average error. Use three significant digits after the decimal. MAT 540 Midterm Exam Set 5 Question 1 Deterministic techniques assume that no uncertainty exists in model parameters. Question 2 A continuous random variable may assume only integer values within a given interval. Question 3 A joint probability is the probability that two or more events that are mutually exclusive can occur simultaneously.

  24. Question 4 A decision tree is a diagram consisting of circles decision nodes, square probability nodes, and branches. Question 5 Excel can only be used to simulate systems that can be represented by continuous random variables. Question 6 Starting conditions have no impact on the validity of a simulation model. Question 7 Qualitative methods are the least common type of forecasting method for the long-term strategic planning process. Question 8 Data cannot exhibit both trend and cyclical patterns. Question 9 minutes to find a parking spot in the main parking lot. Assume also that this time is normally distributed with a standard deviation of 2 minutes. What time is exceeded by approximately 75% of the college students when trying to find a parking spot in the main parking lot? Assume that it takes a college student an average of 5 Question 10 variable values about the expected value. __________ is a measure of dispersion of random Question 11 The __________ is the expected value of the regret for each decision. Question 12 simulation begins with 0.8102, the simulated value for demand would be Consider the following frequency of demand: If the Question 13 instead of a __________ process are pseudorandom numbers. Random numbers generated by a __________ process Question 14 the probability of a machine breakdown from the table below. The Two hundred simulation runs were completed using

  25. average number of breakdowns from the simulation trials was 1.93 with a standard deviation of 0.20. No. of breakdowns per week Probability Cumulative probability What is the probability of 2 or fewer breakdowns? Question 15 Pseudorandom numbers exhibit __________ in order to be considered truly random. Question 16 uses historical data to predict future behavior. __________ is a category of statistical techniques that Question 17 forecasting method for the long-term strategic planning process. __________ methods are the most common type of Question 18 demand to time. __________ is a linear regression model relating Question 19 (chapters 1,ue units EXCEPT:The U.S. Department of Agriculture estimates that the yearly yield of limes per acre is distributed as follows: The estimated average price per bushel is $16.80. What is the expected yield of the crop? rob 14, and 15)estion worth 2 points, 1 hour time limit Question 20 __________, the greater the reaction to the most recent demand. In exponential smoothing, the closer alpha is to Question 21 demand. __________ is absolute error as a percentage of Question 22 following characteristics is exhibited by the data? Consider the following graph of sales. Which of the

  26. Question 23 cause exponential smoothing to respond the most slowly to sudden changes in forecast errors? Which of the following possible values of alpha would Question 24 cream sold at a local ice cream store for a 6-period time frame: Given the following data on the number of pints of ice ************************************************ MAT 540 Week 1 Discussion Class Introductions For more classes visit www.snaptutorial.com "Class Introductions" Please respond to the following: • Please introduce yourself, including your educational and career goals, as well as some personal information about yourself. In your

  27. introduction, please draw from your own experience (or use a search engine) to give an example of how probability is used in your chosen profession. If you get your information from an online or other resource, be sure to cite the source of the information ************************************************ MAT 540 Week 1 Homework Chapter 1 and Chapter 11 (Solutions 100% Correct) For more classes visit www.snaptutorial.com MAT 540 Week 1 Homework Chapter 1 1. The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is

  28. $65,000. The variable cost of recapping a tire is $7.5. The company charges$25 to recap a tire. a. For an annual volume of 15, 000 tire, determine the total cost, total revenue, and profit. b. Determine the annual break-even volume for the Retread Tire Company operation. 2. Evergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.20. Evergreen sells the fertilizer for $0.45 per pound. Determine the monthly break-even volume for the company. 3. If Evergreen Fertilizer Company in problem 2 changes the price of its fertilizer from $0.45 per pound to $0.55 per pound, what effect will the change have on the break-even volume? 4. If Evergreen Fertilizer Company increases its advertising expenditure by $10,000 per year, what effect will the increase have on the break-even volume computed in problem 2? 5. Annie McCoy, a student at Tech, plans to open a hot dog stand inside Tech’s football stadium during home games. There are 6 home games scheduled for the upcoming season. She must pay the Tech athletic department a vendor’s fee of $3,000 for the season. Her stand and other equipment will cost her $3,500 for the season. She estimates that each hot dog she sells will cost her $0.40. she

  29. has talked to friends at other universities who sell hot dogs at games. Based on their information and the athletic department’s forecast that each game will sell out, she anticipates that she will sell approximately 1,500 hot dogs during each game. a. What price should she charge for a hot dog in order to break even? b. What factors might occur during the season that would alter the volume sold and thus the break-even price Annie might charge? 6. The college of business at Kerouac University is planning to begin an online MBA program. The initial start-up cost for computing equipment, facilities, course development and staff recruitment and development is $400,000. The college plans to charge tuition of $20,000 per student per year. However, the university administration will charge the college $10,000 per student for the first 100 students enrolled each year for administrative costs and its share of the tuition payments. a. How many students does the college need to enroll in the first year to break-even? b. If the college can enroll 80 students the first year, how much profit will it make? MAT540 Homework c. The college believes it can increase tuition to $25,000, but doing so would reduce enrollment to 50. Should the college consider doing this?

  30. 7. The following probabilities for grades in management science have been determined based on past records: Grade Probability A 0.1 B 0.2 C 0.4 D 0.2 F 0.10 1.00 The grades are assigned on a 4.0 scale, where an A is a 4.0, a B a 3.0, and so on. Determine the expected grade and variance for the course. 8. An investment firm is considering two alternative investments, A and B, under two possible future sets of economic conditions good and poor. There is a .60 probability of good economic conditions occurring and a .40 probability of poor economic conditions occurring. The expected gains and losses under each economic type of conditions are shown in the following table: Investment Economic Conditions Good Poor A $380,000 -$100,000 B $130,000 $85,000 Using the expected value of each investment alternative, determine which should be selected. 9. The weight of the bags of fertilizer is normally distributed, with a mean of 45 pounds and a

  31. standard deviation of 5 pounds. What is the probability that a bag of fertilizer will weigh between 38 and 50 pounds 10. The polo Development Firm is building a shopping center. It has informed renters that their rental spaces will be ready for occupancy in 18 months. If the expected time until the shopping center is completed is estimated to be 15 months, with a standard deviation of 5 months, what is the probability that the renters will not be able to occupy in 18 months? 11. The manager of the local National Video Store sells videocassette recorders at discount prices. If the store does not have a video recorder in stock when a customer wants to buy one, it will lose the sale because the customer will purchase a recorder from one of the many local competitors. The problem is that the cost of renting warehouse space to keep enough recorders in inventory to meet all demand is excessively high. The manager has determined that if 85% of customer demand for recorders can be met, then the combined cost of lost sales and inventory will be minimized. The manager has estimated that monthly demand for recorders is normally distributed, with a mean of 175 recorders and a standard deviation of 55. Determine the number of recorders the manager should order each month to meet 85% of customer demand.

  32. ************************************************ MAT 540 Week 1-10 All Homework For more classes visit www.snaptutorial.com MAT 540 Week 1 Homework Chapter 1 and Chapter 11 MAT 540 Week 2 Homework Chapter 12 MAT 540 Week 3 Homework Chapter 14 MAT 540 Week 4 Homework Chapter 15 MAT 540 Week 6 Homework Chapter 2 MAT 540 Week 7 Homework Chapter 3 MAT 540 Week 8 Homework Chapter 4 MAT 540 Week 9 Homework Chapter 5

  33. MAT 540 Week 10 Homework Chapter 6 ************************************************ MAT 540 Week 1-11 All Discussion Question For more classes visit www.snaptutorial.com MAT 540 Week 1 Discussion Class Introductions MAT 540 Week 2 Discussion Expected value of perfect information MAT 540 Week 3 Discussion Simulation MAT 540 Week 4 Discussion Forecasting Methods MAT 540 Week 5 Discussion Reflection

  34. MAT 540 Week 6 Discussion LP Models MAT 540 Week 7 Discussion sensitivity analysis MAT 540 Week 8 Discussion Practice setting up linear programming models for business applications MAT 540 Week 9 Discussion Application of Integer Programming MAT 540 Week 10 Discussion Transshipment problems MAT 540 Week 11 Discussion Reflection to Date ************************************************ MAT 540 Week 1-11 All Homework, DQs, Midterm (5 Set) , Final Exam (20 Set) For more classes visit www.snaptutorial.com

  35. MAT 540 Midterm Exam (5 Sets) MAT 540 Final Exam (20 Sets) MAT 540 Week 1 Homework Chapter 1 and Chapter 11 MAT 540 Week 2 Homework Chapter 12 MAT 540 Week 3 Homework Chapter 14 MAT 540 Week 4 Homework Chapter 15 MAT 540 Week 6 Homework Chapter 2 MAT 540 Week 7 Homework Chapter 3 MAT 540 Week 8 Homework Chapter 4 MAT 540 Week 9 Homework Chapter 5 MAT 540 Week 10 Homework Chapter 6 MAT 540 Week 1 Discussion Class Introductions MAT 540 Week 2 Discussion Expected value of perfect information MAT 540 Week 3 Discussion Simulation MAT 540 Week 4 Discussion Forecasting Methods MAT 540 Week 5 Discussion Reflection MAT 540 Week 6 Discussion LP Models

  36. MAT 540 Week 7 Discussion sensitivity analysis MAT 540 Week 8 Discussion Practice setting up linear programming models for business applications MAT 540 Week 9 Discussion Application of Integer Programming MAT 540 Week 10 Discussion Transshipment problems MAT 540 Week 11 Discussion Reflection to Date ************************************************ MAT 540 Week 2 Discussion Expected value of perfect information For more classes visit www.snaptutorial.com

  37. In your own words, explain how to obtain the “expected value of perfect information” for any payoff table, which has probabilities associated with each state of nature. Then, provide an example, drawing from any of the payoff tables in Problems 1-17 in the back of Chapter 12. If no probabilities are given for the states of nature, then assume ************************************************ equal likelihood. MAT 540 Week 2 Homework Chapter 12 For more classes visit www.snaptutorial.com MAT540

  38. Week 2 Homework Chapter 12 A local real estate investor in Orlando is considering three alternative investments; a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment: 1. Determine the best investment, using the following decision criteria. a. Maximax b. Maximin c. Minimax regret d. Hurwicz (α = 0.4) e. Equal likelihood A concessions manager at the Tech versus A&M football game must decide whether to have the vendors sell sun visors or umbrellas. There is a 35% chance of rain, a 25% chance of overcast skies, and a 40% chance of sunshine, according to the weather forecast in college junction, where the game is to be held. The manager estimates that the following profits will result from each decision, given each set of weather conditions: 2. a. Compute the expected value for each decision and select the best one.

  39. Develop the opportunity loss table and compute the expected opportunity loss for each decision. b. Place-Plus, a real estate development firm, is considering several alternative development projects. These include building and leasing an office park, purchasing a parcel of land and building an office building to rent, buying and leasing a warehouse, building a strip mall, and selling condominiums. The financial success of these projects depends on interest rate movement in the next 5 years. The various development projects and their 5- year financial return (in $1,000,000s) given that interest rates will decline, remain stable, or increase, are in the following payoff table. Place-Plus real estate development firm has hired an economist to assign a probability to each direction interest rates may take over the next 5 years. The economist has determined that there is a 3. probability that interest rates will decline, a 0.35 probability that rates will remain stable, and a 0.45 0.2 probability that rates will increase. a. Using expected value, determine the best project. b. Determine the expected value of perfect information. The director of career advising at Orange Community College wants to use decision analysis to provide information to help students decide which 2-year degree program they should pursue. The director has set up the following payoff table for six of the most popular and successful degree programs at OCC that shows the estimated 5-Year gross income ($) from each degree for four future economic conditions: 4. Determine the best degree program in terms of projected income, using the following decision criteria:

  40. a. Maximax b. Maximin c. Equal likelihood d. Hurwicz (α=0.4) Construct a decision tree for the following decision situation and indicate the best decision. 5. Fenton and Farrah Friendly, husband-and-wife car dealers, are soon going to open a new dealership. They have three offers: from a foreign compact car company, from a U.S. producer of full-sized cars, and from a truck company. The success of each type of dealership will depend on how much gasoline is going to be available during the next few years. The profit from each type of dealership, given the availability of gas, is shown in the following payoff table: ************************************************ MAT 540 Week 2 Quiz 1 (3 Sets)

  41. For more classes visit www.snaptutorial.com MAT 540 Week 2 Quiz 1 Set 1 QUESTIONS Question 1: Parameters are known, constant values that are usually coefficients of variables in equations. Question 2: If variable costs increase, but price and fixed costs are held constant, the break even point will decrease. Question 3: Probabilistic techniques assume that no uncertainty exists in model parameters. Question 4: Fixed cost is the difference between total cost and total variable cost. Question 5: A binomial probability distribution indicates the probability of r successes in n trials. Question 6: The events in an experiment are mutually exclusive if only one can occur at a time. Question 7: If events A and B are independent, then P(A|B) = P(B|A). Question 8: If fixed costs increase, but variable cost and price remain the same, the break even point Question 9: If the price increases but fixed and variable costs do not change, the break even point Question 10: A bed and breakfast breaks even every month if they book 30 rooms over the course of a month. Their fixed cost is $4200 per month and the revenue they receive from each booked room is $180. What their variable cost per occupied room? Question 11: EKA manufacturing company produces Part # 2206 for the aerospace industry. Each unit of part # 2206 is sold for $15. The unit production cost of part # 2206 is $3. The fixed monthly cost of operating the production facility is $3000. How many units of part # 2206 have to be sold in a month to break-even? Question 12: In a binomial distribution, for each of n trials, the event

  42. Question 13: The expected value of the standard normal distribution is equal to Question 14: The area under the normal curve represents probability, and the total area under the curve sums to Question 15: Administrators at a university are planning to offer a summer seminar. The costs of reserving a room, hiring an instructor, and bringing in the equipment amount to $3000. Suppose that it costs $25 per student for the administrators to provide the course materials. If we know that 20 people will attend, what price should be charged per person to break even? Note: please report the result as a whole number, rounding if necessary and omitting the decimal point. Question 16: A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Find the break-even point. Question 17: Administrators at a university will charge students $158 to attend a seminar. It costs $2160 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $50 per student for the administrators to provide the course materials. How many students would have to register for the seminar for the university to break even?Note: please report the result as a whole number, omitting the decimal point. Question 18: Wei is considering pursuing an MS in Information Systems degree. She has applied to two different universities. The acceptance rate for applicants with similar qualifications is 20% for University X and 45% for University Y. What is the probability that Wei will be accepted by at least one of the two universities? {Express your answer as a percent. Round (if necessary) to the nearest whole percent and omit the decimal. For instance, 20.1% would be written as 20} Question 19: An inspector correctly identifies defective products 90% of the time. For the next 10 products, what is the probability that he makes fewer than 2 incorrect inspections?Note: Please report your answer with two places to the right of the decimal, rounding if appropriate.

  43. Question 20: An automotive center keeps tracks of customer complaints received each week. The probability distribution for complaints can be represented as a table (shown below). The random variable xi represents the number of complaints, and p(xi) is the probability of receiving xi complaints. xi 0 1 2 3 4 5 6 p(xi) .10 .15 .18 .20 .20 .10 .07 What is the average number of complaints received per week? Note: Please report your answer with two places to the right of the decimal, rounding if appropriate. MAT 540 Week 2 Quiz 1 Set 2 QUESTIONS Question 1 Probabilistic techniques assume that no uncertainty exists in model parameters. Question 2 Fixed cost is the difference between total cost and total variable cost. Question 3 If variable costs increase, but price and fixed costs are held constant, the break even point will decrease. Question 4 Parameters are known, constant values that are usually coefficients of variables in equations. Question 5 If events A and B are independent, then P(A|B) = P(B|A). Question 6 A continuous random variable may assume only integer values within a given interval. Question 7 The events in an experiment are mutually exclusive if only one can occur at a time. Question 8 If fixed costs increase, but variable cost and price remain the same, the break even point Question 9 If the price increases but fixed and variable costs do not change, the break even point Question 10 The indicator that results in total revenues being equal to total cost is called the Question 11 A model is a functional relationship that includes: Question 12 In a binomial distribution, for each of n trials, the event

  44. Question 13 The area under the normal curve represents probability, and the total area under the curve sums to Question 14 The expected value of the standard normal distribution is equal to Question 15 Administrators at a university will charge students $158 to attend a seminar. It costs $2160 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $50 per student for the administrators to provide the course materials. How many students would have to register for the seminar for the university to break even? Note: please report the result as a whole number, omitting the decimal point. Question 16 A production run of toothpaste requires a fixed cost of $100,000. The variable cost per unit is $3.00. If 50,000 units of toothpaste will be sold during the next month, what sale price must be chosen in order to break even at the end of the month? Note: please report the result as a whole number, rounding if necessary and omitting the decimal point. Question 17 Administrators at a university are planning to offer a summer seminar. The costs of reserving a room, hiring an instructor, and bringing in the equipment amount to $3000. Suppose that it costs $25 per student for the administrators to provide the course materials. If we know that 20 people will attend, what price should be charged per person to break even? Note: please report the result as a whole number, rounding if necessary and omitting the decimal point. Question 18 The variance of the standard normal distribution is equal to __________. Question 19 Employees of a local company are classified according to gender and job type. The following table summarizes the number of people in each job category. Male (M) Female (F) Job Administrative (AD) Salaried staff (SS) 110 30 10 50

  45. Hourly staff (HS) 60 40 If an employee is selected at random, what is the probability that the employee is female or works as a member of the administration? Question 20 An inspector correctly identifies defective products 90% of the time. For the next 10 products, what is the probability that he makes fewer than 2 incorrect inspections? Note: Please report your answer with two places to the right of the decimal, rounding if appropriate. MAT 540 Week 2 Quiz 1 Set 3 QUESTIONS Question 1 Parameters are known, constant values that are usually coefficients of variables in equations. Question 2 In general, an increase in price increases the break even point if all costs are held constant. Question 3 If variable costs increase, but price and fixed costs are held constant, the break even point will decrease. Question 4 Probabilistic techniques assume that no uncertainty exists in model parameters. Question 5 If events A and B are independent, then P(A|B) = P(B|A). Question 6 The events in an experiment are mutually exclusive if only one can occur at a time. Question 7 A binomial probability distribution indicates the probability of r successes in n trials. Question 8 A model is a functional relationship that includes: Question 9 If the price increases but fixed and variable costs do not change, the break even point Question 10 If fixed costs increase, but variable cost and price remain the same, the break even point Question 11 A bed and breakfast breaks even every month if they book 30 rooms over the course of a month. Their fixed cost is $4200 per month and the revenue they receive from each booked room is $180. What their variable cost per occupied room? Question 12 The expected value of the standard normal distribution is equal to

  46. Question 13 In a binomial distribution, for each of n trials, the event Question 14 The area under the normal curve represents probability, and the total area under the curve sums to Question 15 A production run of toothpaste requires a fixed cost of $100,000. The variable cost per unit is $3.00. If 50,000 units of toothpaste will be sold during the next month, what sale price must be chosen in order to break even at the end of the month? Note: please report the result as a whole number, rounding if necessary and omitting the decimal point. Question 16 Administrators at a university are planning to offer a summer seminar. The costs of reserving a room, hiring an instructor, and bringing in the equipment amount to $3000. Suppose that it costs $25 per student for the administrators to provide the course materials. If we know that 20 people will attend, what price should be charged per person to break even? Note: please report the result as a whole number, rounding if necessary and omitting the decimal point. Question 17 A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Find the break-even point. Question 18 Wei is considering pursuing an MS in Information Systems degree. She has applied to two different universities. The acceptance rate for applicants with similar qualifications is 20% for University X and 45% for University Y. What is the probability that Wei will be accepted by at least one of the two universities? {Express your answer as a percent. Round (if necessary) to the nearest whole percent and omit the decimal. For instance, 20.1% would be written as 20} Question 19 The variance of the standard normal distribution is equal to __________. Question 20 An automotive center keeps tracks of customer complaints received each week. The probability distribution for complaints can be represented as a table (shown below). The random

  47. variable xi represents the number of complaints, and p(xi) is the probability of receiving xi complaints. xi 0 1 2 3 4 5 6 p(xi) .10 .15 .18 .20 .20 .10 .07 What is the average number of complaints received per week? Note: Please report your answer with two places to the right of the decimal, rounding if appropriate. ************************************************ MAT 540 Week 3 Discussion Simulation For more classes visit www.snaptutorial.com

  48. Select one (1) of the following topics for your primary discussion posting: Identify the part of setting up a simulation in Excel that you find to be the most challenging, and explain why. Identify resources that can help you with that. Explain how simulation is used in the real world. Provide a specific example from your own line of work, or a line of work that you find particularly interesting. ************************************************ MAT 540 Week 3 Homework Chapter 14 For more classes visit www.snaptutorial.com

  49. MAT 540 Week 3 Homework Chapter 14 1. The Hoylake Rescue Squad receives an emergency call every 1, 2, 3, 4, 5, or 6 hours, according to the following probability distribution. The squad is on duty 24 hours per day, 7 days per week: Time Between a. Simulate the emergency calls for 3 days (note that this will require a “running” , or cumulative, hourly clock), using the random number table. b. Compute the average time between calls and compare this value with the expected value of the time between calls from the probability distribution. Why are the result different? 2. The time between arrivals of cars at the Petroco Services Station is defined by the following probability distribution: Time Between a. Simulate the arrival of cars at the service station for 20 arrivals and compute the average time between arrivals. b. Simulate the arrival of cars at the service station for 1 hour, using a different stream of random numbers from those used in (a) and compute the average time between arrivals. c. Compare the results obtained in (a) and (b). 3. The Dynaco Manufacturing Company produces a product in a process consisting of operations of

  50. five machines. The probability distribution of the number of machines that will break down in a week follows: a. Simulate the machine breakdowns per week for 20 weeks. b. Compute the average number of machines that will break down per week. 4. Simulate the following decision situation for 20 weeks, and recommend the best decision. A concessions manager at the Tech versus A&M football game must decide whether to have the vendors sell sun visors or umbrellas. There is a 30% chance of rain, a 15% chance of overcast skies, and a 55% chance of sunshine, according to the weather forecast in college junction, where the game is to be held. The manager estimates that the following profits will result from each decision, given each set of weather conditions: MAT540 Homework 5. Every time a machine breaks down at the Dynaco Manufacturing Company (Problem 3), either 1, 2, or 3 hours are required to fix it, according to the following probability distribution: Repair Time (hr.) Probability Simulate the repair time for 20 weeks and then compute the average weekly repair time.

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