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Saint MBA550 midterm exam

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solution

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Question;Question 1.;1.;EOQ is the optimal order quantity that will ________ total inventory costs.;(Points: 5);maximizeminimizesteadymaintain;Question 2.;2.;If fixed costs increase, but variable cost and price remain the same, the break-even point;(Points: 5);decreases.increases.remains the same.may increase or decrease, depending on sales.;Question 3.;3.;People who take a chance on a bonanza with a very low probability of occurrence in lieu of a sure thing are;(Points: 5);risk takers.risk averters.risk calculators.risk predictors.;Question 4.;4.;Which steps of the management science process can either be a;recommended decision or information that helps a manager make a;decision?;(Points: 5);Model implementationProblem definitionModel solutionProblem formulation;Question 5.;5.;EKA manufacturing company produces part #2206 for the;aerospace industry. The unit production cost of part #2206 is \$3. The;fixed monthly cost of operating the production facility is \$3000. Next;month's demand for part #2206 is 200 units. How much should the company;charge for each unit of part #2206 to break even?;(Points: 5);\$12\$15\$18\$20;Question 6.;6.;probability is an estimate based on personal belief, experience, or knowledge of a situation.;(Points: 5);BinomialSubjectiveMarginalJoint;Question 7.;7.;In an EOQ model, as the carrying cost increases, the order quantity;(Points: 5);increases.decreases.remains the same.cannot be determined.;Question 8.;8.;are generally independent of the volume of units produced and sold.;(Points: 5);Fixed costsVariable costsProfitsAverage costs;Question 9.;9.;are good for stable demand with no pronounced behavioral patterns.;(Points: 5);Longer-period moving averagesShorter-period moving averagesMoving averagesWeighted moving averages;Question 10.;10.;A single-channel queuing system has an average service time;of 8 minutes and an average time between arrivals of 10 minutes. What is;the hourly arrival rate?;(Points: 5);8642;Question 11.;11.;Mutually exclusive events are;(Points: 5);events with identical probabilities.events that have no outcomes in common.events that have no effect on each other.events that are represented in a Venn diagram by two overlapping circles.;Question 12.;12.;The maximin criterion results in the;(Points: 5);minimum of the maximum payoffs.maximum of the maximum payoffs.maximum of the minimum payoffs.minimum of the minimum payoffs.;Question 13.;13.;In decision making, the choice of an appropriate criterion is dependent on;(Points: 5);the risk personality of the decision makerthe number of nodes in the decision tree.the magnitude of the payoffs.none of the above.;Question 14.;14.;The components of break-even analysis are;(Points: 5);cost and profit.volume and cost.volume, cost and profit.volume and profit.;Question 15.;15.;The term ________ refers to testing how a problem solution reacts to changes in one or more of the model parameters.;(Points: 5);graphical solutiondecision analysissensitivity analysisbreak-even analysis;Question 16.;16.;A single-server queuing system has average time between;arrivals of 20 minutes and a service time of 10 minutes each. Assuming;Poisson arrivals and exponential service times, the utilization factor;is approximately _____.;(Points: 5);0.250.330.502.0;Question 17.;17.;A university is planning a seminar. It costs \$3000 to reserve;a room, hire an instructor, and bring in the equipment. Assume 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?;(Points: 5);\$120\$150\$175\$200;Question 18.;18.;The ________ is the expected value of the regret for each decision.;(Points: 5);expected valueexpected opportunity lossexpected value of perfect informationnone of the above;Question 19.;19.;Bayesian analysis involves a(n) ________ probability.;(Points: 5);a prioriposteriorjointrelative frequency;Question 20.;20.;A small entrepreneurial company is trying to decide between;developing two different products that they believe they can sell to two;potential companies, one large and one small. If they develop Product;A, they have a 50% chance of selling it to the large company with annual;purchases of about 20,000 units. If the large company won't purchase;it, then they think they have an 80% chance of placing it with a smaller;company, with sales of 15,000 units. On the other hand if they develop;Product B, they feel they have a 40% chance of selling it to the large;company, resulting in annual sales of about 17,000 units. If the large;company doesn't buy it, they have a 50% chance of selling it to the;small company with sales of 20,000 units. What is the probability that;Product B will being purchased by the smaller company?;(Points: 5);0.20.30.50.6

Paper#54235 | Written in 18-Jul-2015

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