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MAT 540 Week 11, Final Exam
MAT 540 Week 11, Final Exam
Question 1
In an unbalanced transportation model, supply does not equal demand and one set of constraints uses ≤ signs.
Answer
True
False
Question 2
A cycle is an up and down movement in demand that repeats itself in less than 1 year.
Answer
True
False
Question 3
Excel can be used to simulate systems that can be represented by both discrete and continuous random variables.
Answer
True
False
Question 4
Validation of a simulation model occurs when the true steady state average results have been reached.
Answer
True
False
Question 5
In a total integer model, all decision variables have integer solution values.
Answer
True
False
Question 6
Adjusted exponential smoothing is an exponential smoothing forecast adjusted for seasonality.
Answer
True
False
Question 7
Using the maximin criterion to make a decision, you
Answer
Construct a table of regrets. Look at the maximum regret for each decision. Select the decision with the smallest maximum regret.
Look at the worst payoff for each possible decision and select the decision with the largest worst payoff
Look at the best payoff for each possible decision and select the decision with the largest best payoff
Consult an astrological table to forecast the state of nature
Question 8
In linear programming problems, multiple optimal solutions occur
Answer
when constraint lines are parallel to each other.
when the objective function is parallel to a constraint line
every possible solution point violates at least one constraint
when the dual price for a particular resource is very small
Question 9
Events that cannot occur at the same time in any trial of an experiment are:
Answer
exhaustive
dependent
independent
mutually exclusive
Question 10
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.
(chart would not copy/paste)
If the probability of brisk business is .40 and for slow business is .60, the expected value of perfect information is:
Answer
12
55
57
Question 11
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.
(chart would not copy/paste)
The conservative (maximin) strategy is:
Answer
Buy
Rent
Lease
Brisk.
Question 12
Steinmetz furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $100 and requires 100 cubic feet of storage space, and each medium shelf costs $50 and requires 80 cubic feet of storage space. The company has $25000 to invest in shelves this week, and the warehouse has 18000 cubic feet available for storage. Profit for each big shelf is $85 and for each medium shelf is $75. What is the constraint on money to invest?
Answer
Max Z = 85B + 75M
100B + 50M ≤ 25000
100B + 50M ≥ 25000
100B + 80M = 18000
Question 13
Steinmetz furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $100 and requires 100 cubic feet of storage space, and each medium shelf costs $50 and requires 80 cubic feet of storage space. The company has $25000 to invest in shelves this week, and the warehouse has 18000 cubic feet available for storage. Profit for each big shelf is $85 and for each medium shelf is $75. What is the storage space constraint?
Answer
Max Z = 75B + 85M
100B + 50M ≥ 25000
100B + 80M ≤ 18000
100B + 80M = 18000
Question 14
The production manager for Beer etc. produces 2 kinds of beer: light (L) and dark (D). Two resources used to produce beer are malt and wheat. He can obtain at most 4800 oz of malt per week and at most 3200 oz of wheat per week respectively. Each bottle of light beer requires 12 oz of malt and 4 oz of wheat, while a bottle of dark beer uses 8 oz of malt and 8 oz of wheat. Profits for light beer are $2 per bottle, and profits for dark beer are $1 per bottle. What is the optimal weekly profit?
Answer
$1000
$900
$800
$700
Question 15
Given the following linear programming problem that minimizes cost.
Min Z = 2x + 8y
Subject to 8x + 4y ≥ 64
2x + 4y ≥ 32
y ≥ 2
What is the sensitivity range for the third constraint, y ≥ 2?
Answer
0 to 4
2 to 5.33
0 to 5.33
4 to 6.33
Question 16
In a portfolio problem, X1, X2, and X3 represent the number of shares purchased of stocks 1, 2, an 3 which have selling prices of $15, $47.25, and $110, respectively. The investor has up to $50,000 to invest. The investor stipulates that stock 1 must not account for more than 35% of the number of shares purchased. Which constraint is correct?
Answer
X1 ≤ 0.35
X1 = 0.35 (50000)
X1 ≤ 0.35(X1 + X2 +.X3)
X1 = 0.35(X1 + X2 +.X3)
Question 17
In a portfolio problem, X1, X2, and X3 represent the number of shares purchased of stocks 1, 2, an 3 which have selling prices of $15, $47.25, and $110, respectively. The investor has up to $50,000 to invest.
An appropriate part of the model would be
Answer
15X1 + 47.25X2 +110 X3 ≤ 50,000
MAX Z =15X1 + 47.25X2 + 110X3
X1 + X2 +X3 ≤ 50,000
MAX Z = 50(15)X1 + 50 (47.25)X2 + 50 (110)X3
Question 18
In a capital budgeting problem, if either project 1 or project 2 is selected, then project 5 cannot be selected. Which of the alternatives listed below correctly models this situation?
Answer
x1 + x2 + x5 ≤ 1
x1 + x2 + x5 ≥1
x1 + x5 ≤ 1, x2 + x5 ≤ 1
x1  x5 ≤ 1, x2  x5 ≤ 1
Question 19
The Kirschner Company has a contract to produce garden hoses for a customer. Kirschner has 5 different machines that can produce this kind of hose. Write the constraint that indicates they have to use at least three of the five machines in their production.
Answer
Y1 + Y2 + Y3 + Y4
+ Y5 ≤ 3
Y1 + Y2 + Y3 + Y4
+ Y5 = 3
Y1 + Y2 + Y3 + Y4
+ Y5 ≥ 3
none of the above
Question 20
The following table represents the cost to ship from Distribution Center 1, 2, or 3 to Customer A, B, or C.
(chart would not copy/paste)
The constraint that represents the quantity demanded by Customer B is:
Answer
6X1B + 2X2B + 8X3B ≤ 350
6X1B + 2X2B + 8X3B = 350
X1B + X2B + X3B ≤ 350
X1B + X2B + X3B = 350
Question 21
A professor needs help from 3 student helpers to complete 4 tasks. The first task is grading; the second is scanning; the third is copying, and the fourth is organizing student portfolios. The estimated time for each student to do each task is given in the matrix below.
(chart would not copy/paste)
Which of the following constraints represents the assignment for student A?
Answer
XA1 +XA2 + XA3 + XA4 = 0
XA1 +XA2 + XA3 + XA4 = 1
XA1 +XA2 + XA3 + XA4 ≥ 1
XA1 +XA2 + XA3 + XA4 ≥ 0
Question 22
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
11.13%
47.72%
43.32%
62.47%
Question 23
Professor Dewey would like to assign grades such that 15% of students receive As. If the exam average is 62 with a standard deviation of 13, what grade should be the cutoff for an A? (Round your answer.)
Answer
75
79
84
88
Question 24
Consider the following graph of sales.
(graph would not copy/paste)
Which of the following characteristics is exhibited by the data?
Answer
Trend only
Trend plus seasonal
Trend plus irregular
Seasonal
Question 25
__________ moving averages react more slowly to recent demand changes than do __________ moving averages.
Answer
Longerperiod, shorterperiod
Shorterperiod, longerperiod
Longerperiod, longerperiod
Shorterperiod, shorterperiod
Question 26
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 10minute intervals. Based on 100 tenminute intervals, the following probability distribution and random number assignments developed.
Number of Arrivals Probability Random numbers
6 .1 .01  .10
7 .3 .11  .40
8 .3 .41  .70
9 .2 .71  .90
10 .1 .91  .00
Suppose the next three random numbers were .18, .89 and .67. How many customers would have arrived during this 30minute period?
Answer
23
24
22
25
Question 27
In the Monte Carlo process, values for a random variable are generated by __________ a probability distribution.
Answer
sampling from
running
integrating
implementing
Question 28
Suppose that a production process requires a fixed cost of $50,000. The variable cost per unit is $10 and the revenue per unit is projected to be $50. Find the breakeven point.
Answer
Question 29
Nixon’s Bed and Breakfast has a fixed cost of $5000 per month and the revenue they receive from each booked room is $200. The variable cost per room is $75. How many rooms do they have to sell each month to break even? (Note: The answer is a whole number. Give the answer as a whole number, omitting the decimal point. For instance, use 12 for twelve rooms).
Answer
Question 30
Students are organizing a "Battle of the Bands" contest. They know that at least 100 people will attend. The rental fee for the hall is $200 and the winning band will receive $500. In order to guarantee that they break even, how much should they charge for each ticket? (Note: Write your answer with two significant places after the decimal and do not include the dollar “$” sign. For instance, for five dollars, write your answer as 5.00).
Answer
Question 31
Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of $30 on each tractor and $30 on each lawn mower, and they sell all they can produce. The time requirements in the machine shop, fabrication, and tractor assembly are given in the table.
(chart would not copy/paste)
Formulation:
Let x = number of tractors produced per period
y = number of lawn mowers produced per period
MAX 30x + 30y
subject to 2 x + y ≤ 60
2 x + 3y ≤ 120
x ≤ 45
x, y ≥ 0
The graphical solution is shown below.
(graph would not copy/paste)
What is the shadow price for assembly? Write your answers with two significant places after the decimal and do not include the dollar “$” sign.
Answer
Question 32
Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of $30 on each tractor and $30 on each lawn mower, and they sell all they can produce. The time requirements in the machine shop, fabrication, and tractor assembly are given in the table.
(chart would not copy/paste)
Formulation:
Let x = number of tractors produced per period
y = number of lawn mowers produced per period
MAX 30x + 30y
subject to 2 x + y ≤ 60
2 x + 3y ≤ 120
x ≤ 45
x, y ≥ 0
The graphical solution is shown below.
(graph would not copy/paste)
What is the shadow price for fabrication? Write your answers with two significant places after the decimal and do not include the dollar “$” sign.
Answer
Question 33
Klein 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 kennel’s 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:
Cat Food Cost/oz protien (%) fat (%)
Partner's Choice $0.20 45 20
Feline Excel $0.15 15 30
Klein Kennels wants to be sure that the cats receive at least 5 ounces of protein and at least 3 ounces of fat per day. What is the optimal cost of this plan? Note: Please write your answers with two significant places after the decimal and do not include the dollar “$” sign. For instance, $9.45 (nine dollars and fortyfive cents) should be written as 9.45
Answer
Question 34
Find the optimal Z value for the following problem. Do not include the dollar “$” sign with your answer.
Max Z = x1 + 6x2
Subject to: 17x1 + 8x2 ≤ 136
3x1 + 4x2 ≤ 36
x1, x2 ≥ 0 and integer
Answer
Question 35
A life insurance company wants to update its actuarial tables. 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 participants are expected to survive to see their 75th birthday? Note: Round your answer, if necessary, to two places after the decimal. Please express your answer with two places after the decimal.
Answer
Question 36
Ms. Hegel is considering four different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below.
Investment Economic Conditions
Poor
(S1) Average
(S2) Good
(S3) Excellent
(S4)
A 80 15 18 47
B 50 75 35 35
C 90 225 50 12
D 36 25 25 27
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? Note: Report your answer as an integer, rounding to the nearest integer, if applicable
Answer
Question 37
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? The following payoff table is given in thousands of dollars (e.g. 50 = $50,000). Note: Please express your answer as a whole number in thousands of dollars (e.g. 50 = $50,000). Round to the nearest whole number, if necessary.
(chart would not copy/paste)
Answer
Question 38
The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. The probabilities of low, medium, and high compliance are 0.20, 0.30, and 0.50 respectively. What is the expected value of perfect information? Do not include the dollar “$” sign with your answer. The following payoff table is given in thousands of dollars (e.g. 50 = $50,000). Note: Please express your answer as a whole number in thousands of dollars (e.g. 50 = $50,000). Round to the nearest whole number, if necessary.
(chart would not copy/paste)
Answer
Question 39
The following sales data are available for 20032008 :
Year Sales Forecast
2003 7 7
2004 8 8.5
2005 12 10.5
2006 14 13
2007 16 15
2008 18 16
Calculate the MAPD and express it in decimal notation. Please express the result as a number with 4 decimal places. If necessary, round your result accordingly. For instance, 9.14677, should be expressed as 9.1468
Answer
Question 40
Consider the following decision tree. The objective is to choose the best decision among the two available decisions A and B. Find the expected value of the best decision. Do not include the dollar “$” sign with your answer.
(graph would not copy/paste)
Answer
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local
operations manager
*** the IRS must ****** whether to **** * 2 ** * ********* workers ** ********* that *** ******** will **** **** how well taxpayers ****** **** the new *** **** *** ************* ** *** medium *** **** ********** *** *** 030 *** *** ************ **** ** the ******** ***** ** perfect ************ Do not ******* *** ****** *************** sign **** **** ****** *** following ****** ***** ** ***** ** ********* ** ******* *** ** * ******* Note: ****** express **** ****** ** * whole number in thousands ** dollars (eg 50 * $50000) ***** ** *** ******* ***** number ** necessary (chart ***** *** copy/paste)
******* ******** *** The
following
sales data
are ********* *** 20032008 : **** ***** ********* ****
7 ** ****
8 85 2005
** **** ****
14 *** 2007
** *** ****
** *** Calculate
the **** ***
******* it ** ******* ******** ****** ******* the ****** ** a number with * ******* places ** necessary round **** ****** *********** For ******** 914677 ****** ** expressed ** 91468 ******* ******** *** ********
***
following ********
tree *** ********* ** ** ****** the **** ******** among *** two ********* decisions A *** * **** *** ******** value ** the **** decision Do *** ******* the dollar *************** **** **** **** answer (graph ***** *** ************
******