Details of this Paper

FAU QMB3600 FINAL EXAM

Description

solution


Question

1. This problem is in reference to students who may or may not take advantage of the opportunities;provided in QMB such as homework. Some of the students pass the course, and some of them do not;pass. Research indicates that 40% of the students do the assigned homework. Of the students who do;homework, there is an 80% chance they will pass the course. The probability of not passing if the student;does not do the home work is 90%. What is the probability of a student not doing homework or passing?;A..32;B..52;C..94;D..92;E..38;2. Suppose that for a certain football game the probability that the home team will be ahead at half time;is 0.60 and the probability that the home team will be ahead at half time as well as at the final gun is 0.45.;What is the probability that the home team will win this game given that it is ahead at the half?;A..45;B..75;C..15;D..27;E. None of the above;2. Suppose that for a certain football game the probability that the home team will be ahead at half time;is 0.60 and the probability that the home team will be ahead at half time as well as at the final gun is 0.45.;What is the probability that the home team will win this game given that it is ahead at the half?;A..45;B..75;C..15;D..27;4. A quality control department finds that it accepted only 5% of all bad items and it rejected only 1% of;good items. A supplier has just delivered a shipment of a certain item. Past records show that only;90% of the parts of that supplier are good. If the department accepts an item, what is the probability that;the item is bad? Round your answer to five decimal places.;A. 0.05000;B. 0.00558;C. 0.35714;D. 0.09635;E. None of the above;E. None of the above;5. The probability that house sales will increase over the next six months is estimated at 0.25. It is also;estimated that the probability is 0.74 that 30 year fixed-loan mortgage rates will increase over this period.;Economists estimate that the probability is 0.89 that either housing sales or interest rates will increase.;The probability that both house sales and interest rates will increase is estimated at;A..100;B..185;C..705;D..900;E..50;6. Over the last 100 business days, Harry had 20 customers on 30 of those days, 25 customers on 20 days;35 customers on 30 days, 40 customers on 10 days, and 45 customers on 10 days. What is the variance of;the number of Harry?s customers?;A. 30;B. 38;C. 59;D. 75;E. 83;7. What is the probability that exactly 1 out of 10 cars experience a breakdown if the probability of a;breakdown is 30%?;A..5121;B..1211;C..0282;D..3828;E..4276;8. An accounts receivable auditor is examining accounts for a client. The accounts receivable balance can;be considered as a continuous random variable that exhibits normal distribution characteristics. The;mean amount due per account is $5000. The standard deviation is $1000. The auditor selects an account;at random.;The probability that the account selected by the Auditor has a balance which is outside of the range;between $6500 and $7000 is;A..05;B..10;C. 1.20;D..96;E..00;9. Suppose the length of time (in days) between sales for an automobile salesperson is modeled as an;exponential distribution with a mean of 2 days. What is the probability the salesperson goes more than 5;days without a sale?;A..75;B..92;C..08;D..40;E. None of the above;9. Suppose the length of time (in days) between sales for an automobile salesperson is modeled as an;exponential distribution with a mean of 2 days. What is the probability the salesperson goes more than 5;days without a sale?;A..75;B..92;C..08;D..40;E. None of the above;Use the following to answer questions 11-12;The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates;that profits next year (in thousands of dollars) will vary with demand for her services and has estimated demand;in three categories low, medium and high.;NUMBER;OF;BEAUTICIANS;DEMAND;LOW MEDIUM HIGH;One 50 75 100;Two 0 100 100;Three 100 70 300;11. If she uses the optimistic criterion, how many beauticians will she decide to hire?;A. one;B. two;C. three;D. either one or two;E. either two or three;12. If she uses the minimax regret criterion, how many beauticians will she decide to hire?;A. one;B. two;C. three;D. either one or two;E. either two or three;Use the following decision tree to respond to the next 5 questions;13. What is the expected value at node 4?;A. 47.50;B. 43.75;C. 70.00;D. 45.00;E. 71.25;14. What is the expected value of perfect information?;A. 45.00;B. 40.00;C. 10.00;D. 5.00;E. 49.25;15. What is the expected value at node 2?;A. 35.00;B. 7.50;C. 47.50;D. 49.50;E. 55.00;16. What is the best decision strategy for the manager?;A. Do not do the survey, select a large store;B. Do not do the survey, select a Small store;C. Do the survey. If the survey shows low demand then select a small store;If the survey shows high demand then select a large store.;D. Do the survey. If the survey shows low demand then select a large store;If the survey shows high demand then select a small store.;E. None of the above is correct;17. What is the expected value of sample information?;A. 45.00;B. 71.25;C. 49.50;D. 1.25;E. 4.50;17-2. What is the efficiency of the sample information?;18. A statistician working for a car manufacturer developed a statistical model for predicting delivery;time (the number of days between ordering a car and actual delivery) of a particular model for which;there is a range of factory-fitted options. Use the output below to forecast the difference in delivery times;for cars with 6 options and 9 options, rounded to two decimal places.;A. 4.38;B. 3.28;C. 6.58;D. 9.84;E. 29.73;SUMMARY OUTPUT;Regression Statistics;Multiple R 0.92;R Square 0.85;Adjusted R Square 0.83;Standard Error 4.38;Observations 10;Analysis of Variance;df SS;Regression 1 890.19;Residual 8 153.41;Total 9 1043.59;Coefficients Standard Error;Intercept 29.73 Y-int 2.99;Factory-Fitted Options (Ind) 3.28 Slope 0.48;19. Given the table below what is the MAD and the MSE?;Period Actual Forecast;1 95 100;2 108 110;3 123 120;4 130 130;The Acme Computer Company has recorded sales of one of its products for a six-week period;Using the three-week simple moving-average method, forecast sales for week 7.;21. Shown below are data that reflect the number of daily traffic accidents at a dangerous city;intersection. The regression equation is: number of accidents = 5.3 + 0.5 t;What is the forecasted number of accidents for day 6?;Day (t) number of accidents;1 5;2 7;3 8;4 6;5 8;A. 8.0;B. 5.8;C. 8.3;D. 0.6;E. 9.0?;22. The following table contains the number of consumer complaints received in a Publix supermarket in;Florida. Use exponential smoothing with a constant of? = 0.33 to forecast the number of complaints in;March, round to the nearest whole number of complaints.;Month Number of Complaints;January 36;February 45;March 81;April 90;May 108;June 144;A. 39;B. 42;C. 45;D. 53;E. 64;For the next 3 questions, consider the following summary output from Microsoft Excel for a simple;regression of Halliburton (ticker symbol H;23. According to the regression model, the correlation between Halliburton?s stock price and the;S&P500 index value is;A. Positive.;B. Negative.;C. Significant and either positive or negative.;D. Significant, but it cannot be determined whether the correlation is positive or negative.;E. Not significant.;24. The regression model ABOVE is;A. Not significant, because the standard error of the intercept is high compared to the;standard error of the independent variable.;B. Significant at the 0.01 level, because the coefficient of determination is less than 0.05.;C. Significant at the 0.05 level, because the p-value is less than 0.05.;D. Not significant, because the coefficient of determination is larger than 1.0.;E. Significant at the 0.01 level, because the t-statistic is negative.;25a. According to the regression model ABOVE, when the S&P 500 index value is 1,000, the forecasted;Halliburton stock price is;A. $29.75/share.;B. $0.35/share.;C. $122/share.;D. $121.65/share.;E. Cannot be determined from the tabulated data;25b. The S&P index value must be $1,200 for the Halliburton stock to be priced at $24.75. Corporate AAA bond interest rates for 12 consecutive months are 9.5%, 9.3%, 9.4%, 9.6%, 9.8%;9.7%, 9.8%, 10.5%, 9.9%, 9.7%, 9.6% and 9.6%. The three-month weighted moving average;forecast (with weights 0.2, 0.4 and 0.4 - from oldest to most recent respectively) for the next month;rounded to two decimal places, is;A. 9.60% Month Rates (%) Forecast Weights;B. 9.65% 1 9.5 - Oldest 0.2;C. 9.70% 2 9.3 - Middle 0.4;D. 9.62% 3 9.4 - Recent 0.4;E. None of the above;Questions 27 & 28 apply to this information: Quill Manufacturing Business makes two models of;marking pens. An unlabeled graph for this problem and the requirements for each lot of pens in the three;manufacturing departments are given below. All three departments are necessary in the production of;both types of pens. The profit for either kind of pen is $1000 per lot. An unlabeled graph for this;problem is given below. The dotted line represents the objective function line.;Fliptop Model Tiptop Model Available production hrs.;Ink Assembly 3 4 36;Molding Time 5 4 40;Plastic 5 2 30;27. What is the optimal production quantity of the Fliptop model?;A. 5 lots;B. 4 lots;C. 2 lots;D. 7 lots;E. 6 lots;28. If all the constraint inequalities in the original problem were?, then the following is true;A. The value of the objective function at the optimum solution is zero;B. There will be multiple optimal solutions;C. The problem will become unbounded;D. The problem has a unique solution;E. None of the above is true;29. Let M be the number of units to make and B be the number of units to buy of a certain product. If it;costs $2 to make a unit and $3 to buy a unit and 4000 units are needed, the objective function of the LP;model to minimize the cost of production would be;A. Min 4000 (M + B);B. Max 8000M + 12000B;C. Min 2M + 3B;D. Max 2M + 3B;E. Min 4000U -2M-3B;30. The Quiet Meadow Studio sells photographs and prints. It cost $20 to purchase each photograph and;it takes 2 hours to frame it. It costs $25 to purchase each print and it takes 5 hours to frame it. The store;has at most $400 to spend and at most 60 hours to frame.;It makes $30 profit on each photograph and $50 profit on each print. Determine the maximum profit.;A. 360;B. 600;C. 700;D. 740;E. 800;Questions 31 & 32 apply to this information: Quality Bike Maps has produced four map designs for the local;area. A limited amount of time (in minutes) is allocated to the printing, cutting and folding of each map.;Additionally, at least one thousand of map designs A, B, and C must be printed. The profit per map is $1 for A;and B and $2 for C and D. The Excel output is provided below.;Max Profit = A + B + 2 C + 2 D;s.t. 1A + 2 B + 3 C + 3 D < 15000 Print;2 A + 4 B + C + 3 D 1000 Print B;C > 1000 Print C;Microsoft Excel Sensitivity Report;Objective Function Value $10,166.67;31. Answer the following question using the Excel output above. Which constraint(s) are binding?;A. Print and Fold;B. Cut and Print A;C. Print B and Print C;D. Print and Cut;E. Print, Fold, Print B and Print C;32. Answer the following question using the Excel output above. Keeping within the confines of the;problem, the profit on Map A has increased by one dollar. Determine the new objective function value.;A. 1,500;B. 11,166.67;C. 11,500.67;D. 11,666.67;E. 12,566.67;33. Quentin Magic Brown manufactures sports shoes and wants to maximize the company's profits. The;company makes two types of sport shoe, Airwalkers and Bouncy Basketball shoes. The company earns;$10 profit on each pair of Airwalkers and $18 profit on each pair of Bouncy Basketball shoes.;The manufacturing process includes cutting the materials on a machine and having workers assemble the;pieces. Each pair of Airwalkers requires 3 minutes of cutting time and the Bouncy Basketball shoes;require 2 minutes. The machines that cut the material can run at most 1200 minutes a week.;Each worker takes 7 hours to assemble a pair of Airwalkers and 8 hours to assemble a pair of Bouncy;Basketball shoes, the maximum number of hours available is 3500 per week.;Determine the maximum profit for this problem?;A. $3200;B. $4000;C. $4280;D. $6295;E. $7875;Questions 34-37 apply to the Excel output for the Quantum Mo-Botics model is below. The company;makes three types of machines and has limitations with regards to the amount of skilled and unskilled;labor hours available and time on the assembly line.;MAX Profit = 800SemiAuto+1000Robotic + 500Manual;s.t.;30SemiAuto + 100Robotic + 45Manual < 4500 Skilled Labor;100SemiAuto + 70Robotic + 90Manual >> Graphing points (0, 600) (150, 0);28C + 32S >>> Graphing points (0, 437.5) (500, 0);a. What is the optimal solution?;b. Now add a constraint: demand for Strawberry is always less than 200 cases and determine the optimal;solution.;c. Add another constraint: demand for Chocolate is always less than 400 cases and determine the optimal;solution.;39. Using the decision table below;0.2 0.7 0.1;S1 S2 S3;D1 500 300 -400;D2 600 200 200;D3 -100 -300 900;a. Determine the expected value for the best decision?;b. Determine the most you would pay for a highly reliable forecast.? $140;b.;40. In a survey about soft drinks it was found that 5% of the respondents like diet soft drinks.;12% of them liked the brand Coke. Of all the Diet soda drinkers 40% liked Coke.;a. What is the probability that a respondent like Coke and Diet drinks? P(Coke & Diet) =? 0.02;a.;b. What is the probability that the respondent like Diet or not Coke? P(Diet or Not Coke) =? 0.90;b.;c. Of the people who did not like diet drinks, what is the probability that that liked Coke?

 

Paper#31837 | Written in 18-Jul-2015

Price : $52
SiteLock