MATH 540 Week 11 Final Exam 2

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Question 1 5 out of 5 points
In general, an increase in price increases the break even point if all costs are held constant. Answer Question 2

The feasible solution area contains infinite solutions to the linear program.

Question 3 5 out of 5 points

A change in the value of an objective function coefficient will always change the value of the optimal solution. Answer

Question 4

When using a linear programming model to solve the diet problem, the objective is generally to maximize nutritional content. Answer

Question 5 5 out of 5 points

In a 0-1 integer programming problem involving a capital budgeting application (where xj = 1, if project j is selected, xj = 0, otherwise) the constraint x1 x2 0 implies that if project 2 is selected, project 1 can not be selected. Answer

Question 6 5 out of 5 points

In a transshipment problem, items may be transported from destination to destination and from source to source. Answer

Question 7 5 out of 5 points

The events in an experiment are mutually exclusive if only one can occur at a time. Answer

Question 8 5 out of 5 points

The minimax criterion minimizes the maximum payoff. Answer

Question 9 5 out of 5 points

Excel can be used to simulate systems that can be represented by both discrete and continuous random variables. Answer

Question 10 5 out of 5 points

A cycle is an up and down movement in demand that repeats itself in less than 1 year. Answer

Question 11 5 out of 5 points

A bed and breakfast even every month if they book 30 rooms over the course of a month. Their fixed cost is $6000 per month and the revenue they receive from each booked room is $180. What is the variable cost per occupied room? Answer

Question 12 5 out of 5 points

If the price decreases but fixed and variable costs do not change, the break even point Answer

Question 13 Cully furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75000 to invest in shelves this week, and the warehouse has 18000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. What is the objective function? Answer

Question 14

Cully furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75000 to invest in shelves this week, and the warehouse has 18000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. In order to maximize profit, how many big shelves (B) and how many medium shelves (M) should be purchased? Answer

Question 15 5 out of 5 points

The following is an Excel Answer and Sensitivity reports of a linear

programming problem: The Answer Report:

Question 16 5 out of 5 points

Given the following linear programming problem that minimizes cost. Min Z = 2x + 8y Subject to 8x + 4y 64 2x + 4y 32 y2 What is the sensitivity range for the third constraint, y 2? Answer

Question 17 0 out of 5 points

Compared to blending and product mix problems, transportation problems are unique because Answer

Question 18 5 out of 5 points

Let xij = gallons of component i used in gasoline j. Assume that we have two components and two types of gasoline. There are 8,000 gallons of component 1 available, and the demand gasoline types 1 and 2 are 11,000 and 14,000 gallons respectively. Write the supply constraint for component 1. Answer

Question 19 5 out of 5 points

If we are solving a 0-1 integer programming problem, the constraint x1 =x2 is a __________ constraint. Answer

Question 20 5 out of 5 points

The Wiethoff Company has a contract to produce garden hoses for a customer. Wiethoff has 4 different machines that can produce this kind of hose. Write a constraint to ensure that if machine 4 is used, machine 1 will not be used. Answer

Question 21 5 out of 5 points

The assignment problem constraint x31+x32+x33+x34 2 means Answer

Question 22 The following table represents the cost to ship from Distribution Center 1, 2, or 3 to Customer A, B, or C.

The constraint that represents the quantity supplied by DC 1 is: Answer

Question 23 5 out of 5 points

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. What percentage of the students will take between 2 and 6 minutes to find a parking spot in the main parking lot. Answer

Question 24

Jim is considering pursuing an MS in Information Systems degree. He 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 Jim will not be accepted at either university? Answer

Question 25 5 out of 5 points

A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.

The conservative strategy is: Answer

Question 26 5 out of 5 points

A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.

If the probability of brisk business is .40 and for slow business is .60, the expected value of perfect information is: Answer

Question 27 5 out of 5 points

A bakery is considering hiring another clerk to better serve customers. To help with this decision, records were kept to determine how many customers arrived in 10-minute intervals. Based on 100 ten-minute intervals, the following probability distribution and random number assignments developed. Number of Arrivals 6 7 8 9 10 Probability .1 .3 .3 .2 .1 Random numbers .01 - .10 .11 - .40 .41 - .70 .71 - .90 .91 - .00

Suppose the next three random numbers were .18, .89 and .67. How many customers would have arrived during this 30-minute period? Answer

Question 28

For the following frequency distribution of demand, the random number 0.8177 would be interpreted as a demand of:

Answer

Question 29 5 out of 5 points

Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing? Answer

Question 30 5 out of 5 points

Consider the following graph of sales.

Which of the following characteristics is exhibited by the data? Answer

Question 31 5 out of 5 points

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 breakeven point. Answer

Question 32

Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of $30 on each tractor and $30 on each lawn mower, and they sell all they can produce. The time requirements in the machine shop, fabrication, and tractor assembly are given in the table.

Formulation: Let

x = number of tractors produced per period y = number of lawn mowers produced per period

MAX 30x + 30y subject to 2 x + y 60 2 x + 3y 120 x 45 x, y 0 The graphical solution is shown below.

What is the shadow price for fabrication? Write your answers with two significant places after the decimal and do not include the dollar $ sign. Answer

Question 33 5 out of 5 points

Consider the following linear program, which maximizes profit for two products, regular (R), and super (S): MAX 50R + 75S s.t. 1.2R + 1.6 S 600 assembly (hours) 0.8R + 0.5 S 300 paint (hours) .16R + 0.4 S 100 inspection (hours) Sensitivity Report: Cell $B$7 $C$7 Cell Name Regular = Super = Final Reduced Objective Value Cost Coefficient 291.67 0.00 50 133.33 0.00 75 Final Shadow Constraint Value Price R.H. Side 563.33 300.00 100.00 0.00 33.33 145.83 600 300 100 Allowable Increase 70 50 Allowable Increase 1E+30 39.29 12.94 Allowable Decrease 20 43.75 Allowable Decrease 36.67 175 40

Name Assembly $E$3 (hr/unit) $E$4 Paint (hr/unit) $E$5 Inspect (hr/unit)

If downtime reduced the available capacity for painting by 40 hours (from 300 to 260 hours), profits would be reduced by __________. Write your answers with two significant places after the decimal and do not include the dollar $ sign. Answer

Question 34

Kitty Kennels provides overnight lodging for a variety of pets. An attractive feature is the quality of care the pets receive, including well balanced nutrition. The kennels cat food is made by mixing two types of cat food to obtain the nutritionally balanced cat diet. The data for the two cat foods are as follows:

Kitty Kennels wants to be sure that the cats receive at least 5 ounces of protein and at least 3 ounces of fat per day. What is the optimal cost of this plan? Write your answers with two significant places after the decimal and do not include the dollar $ sign. Answer: 3.50 (tolerance: 0) Chapter 4 Answer

Question 35

Find the optimal Z value for the following problem. Do not include the dollar $ sign with your answer. MAX Z = 5x1 + 8x2 s.t. x1 + x2 6

5x1 + 9x2 45 x1, x2 0 and integer Answer

Question 36

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 result to four significant places after the decimal. Answer

Question 37 5 out of 5 points

Consider the following decision tree. The objective is to choose the best decision among the two available decisions A and B. Find the expected value of the best decision. Do not include the dollar $ sign with your answer.

Answer

Question 38 5 out of 5 points

An investor is consider 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 Average Good (S2) (S3) 75 20 15 40 300 -50 25 25

Investment A B C D

Poor (S1) 50 80 -100 25

Excellent (S4) 30 50 10 25

Suppose all states of the world are equally likely (each state has a probability of 0.25). What is the expected value of perfect information? Round up your answer to the nearest integer. Answer

Question 39 5 out of 5 points

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 probabilities of low, medium, and high compliance are 0.20, 0.30, and 0.50 respectively. What are the expected net revenues for the number of workers he will decide to hire? Do not include the dollar $ sign with your answer.

Answer

Question 40

The following sales data are available for 2003-2008 :

Year 2003 2004 2005 2006 2007 2008

Sales 7 12 14 20 16 25

Forecast 9 10 15 22 18 21

Calculate the MAPD and express it in decimal notation. Use four significant digits after the decimal. Answer