BUSN 603: Multiple Choice Questions Set Part 2-8
Jane wants to set up a photo shop. The cost to rent is $150 per week. The variable cost of making one photo is $20 and she can sell it for $50.
1. Jane has to sell ______ photos per week to break even
2. If Jane sells 10 units ,her profits would be ______ dollars
Paul wants to choose one of the two investments opportunities over three possible scenarios. Investment 1 will yield a return of $10000 in scenario1, $2000 in scenario 2 and a negative return of $5000 in scenario 3. Investment 2 will yield a return of $6000 in scenario 1,$4000 in scenario 2 and zero in scenario 3. The probability 1 is 0.2,for scenario 2 is 0.3 and for scenario 3 is 0.5
1/If you were to choose the investment that maximizes Paul’s Expected Money Value(EMV),then you should choose______
a. Investment 1
2/If Paul is uncertain about the return for investment 1,then this return has to be ____dollars in order to make Paul indifferent between these two investments(i.e two investments would have the same EMV).
Sam has a cleaning service. To better allocate his resources, he would like to forecast his weekly order based on the order number he received in the past 13 weeks as shown in the following table.
week 1 11
week 2 14
week 3 16
week 4 10
week 5 15
week 6 17
week 7 11
week 8 14
week 9 17
week 10 12
wekk 11 14
week 12 16
week 13 15
1/ Using a three week moving average , Sam’s forecast for his week 14 order number is ________
2/ Using a three week weighted moving average with weights 3,2,and 1 given to the most recent ,second most recent and third most recent week, respectively, Sam’s forecast for week 14 is __________.
3/ If the MAD for moving average is 4.17 and the MAD for weighted moving average is 2.38, then which forecast is more accurate?
A/ Moving average
b/ Weighted moving average
c/ The same
d/Not enough information o evaluate
The Low Knock oil company produces two grades of cut-rate gasoline for industrial distribution. The grades, regular and economy are produced by refining a blend of two types of crude oil type X type 100 and type X220 . Each crude oil differs not only in cost per barrel ,but in composition as well. The following table indicate the percentage of crucial ingredients found in each of the crude oil and the cost per barrel for each.
CRUDE OIL TYPE INGREDIENT A (%) INGREDIENT B (%) COST/BARELL
X100 35 55 30.00
X220 60 25 34.80
Weekly demand for the regular grade of low knock gasoline is at least 25,000 barrels and demand for the economy is at least 32,000 barrel per week.At least 45% of each barrel of regular must be ingredient A. At most 50% of each barrel of economy should contain ingredient B,while the gasoline yield from one barrel of crude depends on the type of crude and the type of processing used. We assume for the sake of this example that one barrel of crude oil will yield 0.46 barrel of gasoline.
1/At the optimal production, does the company just make enough regular gasoline to meet the demand?. Does the company just make enough economy gasoline to meet the demand?
2/ To minimize the production cost , the optimal amount of X100 crude oil used in producing regular gasoline is ________barrels and the optimal amount of X220 Crude oil used in producing regular gasoline is _______ barrels.
3/ To minimize the production cost , the optimal amount of X100 crude oil is used in producing economy gasoline is ________barrels and the optimal amount of X220 crude oil used in producing economy gasoline is __________.
At a car wash station , on average , there are 4 cars coming in for service every 10 minutes. The average wash time is 2 minutes. The poisson distribution is appropriate for the arrival rate and service times are exponentially distributed.Please convert all rates into cars per hour and answer the following questions.
1/ The average time a car spent in the waiting line is ______hours and the total time a car spent in the car wash station is _____hour.
2/The average number of cars in this car wash station is _______
3/ The probability that there are no cars in this station is ________
4/ The probability that there are exactly two cars in this station is _________
To study the weight accuracy of a 50lbs fertilizer bag. 12 samples of 12 bags of fertilizer in each sample were taken and the results are as follows
Sample 1 47 1.1
Sample 2 46 1.31
Sample 3 46 0.91
Sample 4 47 1.1
Sample 5 48 1.21
Sample 6 50 0.82
Sample 7 49 0.86
Sample 8 49 1.11
Sample 9 51 1.12
Sample 10 52 0.99
Sample 11 50 0.86
Sample 12 51 1.2
1/ The overall average weight of a bag of fertilizer is _____pound and the average range is _____pound.
2/The Upper control limit for a 99.7% control chart for the menu is _____ pound and the lower control limit is _____pound.
3/ The upper control limit for a 99.7% control chart for the range is _____pound and the lower control limit is ______pound.
A grocery store needs to sell 3000 cartons of 2L 2% milk per month. The sales is relatively constant throughout the month. The owner of this grocery store purchases milk from a supplier 50 miles away for $2 per carton and it takes a day to restock. The holding cost per carton per month is $1.5 and the ordering cost per order is about $18.5 including labor, gas and deperciation. Consider a month of 30 days.
1/The optimal order quantity is about________cartons of milk and the average inventory is about _________ cartons.
2/Given the optimal order quantity calculated above, if the average inventory is 136 cartons, then the montly holding cost is ________ dollars and the total cost including the cost of supply or the total unit cost for all units, holding and ordering is ______dollars
3/ The reorder point is _____ cartons
A cafeteria wants to introduce a new burger with bread and beef together weighing at least 1 ounce. The cafeteria manager also wants the new burger to meet a new nutrition standard ,i.e contain at least 17 units of vitamin A and 10 units of vitamin B. Each ounce of beef containing 1 unit vitamin A and 6 units of vitamin B , while each ounce of bread contains 2 units vitamin A and 1 unit of vitamin B. The price of beef is $0.5 per ounce and the price of bread is $0.1 per ounce.
1/ To minimize the cost , the cafeteria should use____ounces of beef and ____ounces of bread to make the new burger .
2/ If the cafeteria use 1.18 ounces of beef and 2.91 ounces of bread to make the new burger, the total cost of the new burger excluding other ingredients is ____dollars and the content of vitamin A is ____while that for vitamin B is ____