# Saint GBA334 midterm exam

Question # 00032912 Posted By: echo7 Updated on: 11/22/2014 09:14 PM Due on: 11/30/2014
Subject Mathematics Topic General Mathematics Tutorials:
Question
1.

The following is a payoff table giving profits for various situations.

 State Of Nature Alternatives A B C Alternative 1 100 120 180 Alternative 2 120 140 120 Alternative 3 200 100 50 Do Nothing 0 0 0

The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. What decision should be made based on the minimax regret criterion?

(Points : 2.5)

 Question 2. 2. Hampton sells handcrafted yard decorations at county fairs. The variable cost to make these is \$20 each, and he sells them for \$50. The cost to rent a booth at teh afir is \$150. How many of these must Hampton sell to break even? (Points : 2.5)

Question 3. 3.

The following is a payoff table giving profits for various situations.

 State Of Nature Alternatives A B C Alternative 1 100 120 180 Alternative 2 120 140 120 Alternative 3 200 100 50 Do Nothing 0 0 0

The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. What decision should be made based on the equally likely criterion?

(Points : 2.5)

 Question 4. 4. The classical method of determining probability is (Points : 2.5)

 Question 5. 5. Enrollment in a particular class for the last four semesters has been 120, 126, 110, and 130 (listed from oldest to most recent). Develop a forecast of enrollment next semester using exponential smoothing with an alpha = 0.2. Assume that an initial forecast for the first semester was 120 (so the forecast and the actual were the same). (Points : 2.5)

 Question 6. 6. The dependent variable is also called the response variable. (Points : 2.5)

 Question 7. 7. The correlation coefficient resulting from a particular regression analysis was 0.58. What was the coefficient of determination? (Points : 2.5)

 Question 8. 8. What is the formula for the break-even point of a simple profit model? (Points : 2.5)

 Question 9. 9. The costs involved in a typical inventory model are order costs, management costs, and holding costs. (Points : 2.5)

 Question 10. 10. Mean absolute deviation (MAD) is simply the sum of forecast errors. (Points : 2.5)

 Question 11. 11. A medium-term forecast is considered to cover what length of time? (Points : 2.5)

Question 12. 12.

A store of Pizza Hut provides the following data on the quantity of pizzas sold during the month of January through July 2014, the price of a large pizza, and the advertising expenses.

 Quantity Sold Price Advertising Expenses 8500 \$10 \$3,000 4800 14 1000 6500 12 1500 7800 11 2000 6000 13 1500 8000 10 2500 7000 11 1800

The regression output is as follow:

 SUMMARY OUTPUT Regression Statistics Multiple R 0.98154 R Square 0.96342 Adjusted R Square 0.94513 Standard Error 301.7577 Observations 7 ANOVA df SS MS F Significance F Regression 2 9592912 4796456 52.67491 0.001338 Residual 4 364230.8 91057.69 Total 6 9957143 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 12460.58 3181.967 3.915998 0.017306 3626.02 21295.13 Price -577.885 204.148 -2.83071 0.047311 -1144.69 -11.0789 Advertising Expenses 0.615385 0.458403 1.342454 0.250575 -0.65735 1.888115

Which of the following is correct about the relationship between quantity sold and the price of pizza? (Points : 2.5)

 Question 13. 13. Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day moving average. (Points : 2.5)

 Question 14. 14. A model is a representation of a situation. (Points : 2.5)

 Question 15. 15. Historical data indicates that only 20% of cable customers are willing to switch companies. If a binomial process is assumed, then in a sample of 20 cable customers, what is the probability that no more than 3 customers would be willing to switch their cable? (Points : 2.5)

 Question 16. 16. Purchasing department supplies comprise one of the "carrying cost factors." (Points : 2.5)

 Question 17. 17. The jury of executive opinion forecasting model uses the opinions of a small group of high-level managers, often in combination with statistical models, and results in a group estimate of demand. (Points : 2.5)

 Question 18. 18. Demand for soccer balls at a new sporting goods store is forecasted using the following regression equation: Y = 98 + 2.2X where X is the number of months that the store has been in existence. Let April be represented by X = 4. April is assumed to have a seasonality index of 1.15. What is the forecast for soccer ball demand for the month of April (rounded to the nearest integer)? (Points : 2.5)

 Question 19. 19. The economic order quantity helps one estimate the optimal number of units to purchase with each order. (Points : 2.5)

 Question 20. 20. Inventory (Points : 2.5)

 Question 21. 21. Given two statistically independent events (A,B), the joint probability of P(AB) = P(A) + P(B). (Points : 2.5)

 Question 22. 22. The use of "expert opinion" is one way to approximate subjective probability values. (Points : 2.5)

Question 23. 23.

A store of Pizza Hut provides the following data on the quantity of pizzas sold during the month of January through July 2014, the price of a large pizza, and the advertising expenses.

 Quantity Sold Price Advertising Expenses 8500 \$10 \$3,000 4800 14 1000 6500 12 1500 7800 11 2000 6000 13 1500 8000 10 2500 7000 11 1800

The regression output is as follow:

 SUMMARY OUTPUT Regression Statistics Multiple R 0.98154 R Square 0.96342 Adjusted R Square 0.94513 Standard Error 301.7577 Observations 7 ANOVA df SS MS F Significance F Regression 2 9592912 4796456 52.67491 0.001338 Residual 4 364230.8 91057.69 Total 6 9957143 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 12460.58 3181.967 3.915998 0.017306 3626.02 21295.13 Price -577.885 204.148 -2.83071 0.047311 -1144.69 -11.0789 Advertising Expenses 0.615385 0.458403 1.342454 0.250575 -0.65735 1.888115

What is the coefficient of determination?

(Points : 2.5)

Question 24. 24.

The following is a payoff table giving profits for various situations.

 State Of Nature Alternatives A B C Alternative 1 100 120 180 Alternative 2 120 140 120 Alternative 3 200 100 50 Do Nothing 0 0 0

The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. What decision would a pessimist make?

(Points : 2.5)

 Question 25. 25. Mark Achin sells 3,600 electric motors each year. The cost of these is \$200 each, and demand is constant throughout the year. The cost of placing an order is \$40, while the holding cost is \$20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his total ordering cost be for the year? (Points : 2.5)

 Question 26. 26. The objective of a(n) ________ system is to reduce costs by integrating all of the operations of a firm. (Points : 2.5)

Question 27. 27.

The following is a payoff table giving profits for various situations.

 State Of Nature Alternatives A B C Alternative 1 100 120 180 Alternative 2 120 140 120 Alternative 3 200 100 50 Do Nothing 0 0 0

The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. What decision would an optimist make?

(Points : 2.5)

 Question 28. 28. The annual demand for a product is 1,000 units. The company orders 200 units each time an order is placed. The lead-time is 6 days, and the company has determined that 20 units should be held as a safety stock. There are 250 working days per year. What is the reorder point? (Points : 2.5)

 Question 29. 29. The coefficient of determination resulting from a particular regression analysis was 0.7921. What was the correlation coefficient, assuming a positive linear relationship? (Points : 2.5)

 Question 30. 30. "The probability of event B, given that event A has occurred" is known as a ________ probability. (Points : 2.5)

 Question 31. 31. In making inventory decisions, the purpose of the basic EOQ model is to (Points : 2.5)

Question 32. 32.

A store of Pizza Hut provides the following data on the quantity of pizzas sold during the month of January through July 2014, the price of a large pizza, and the advertising expenses.

 Quantity Sold Price Advertising Expenses 8500 \$10 \$3,000 4800 14 1000 6500 12 1500 7800 11 2000 6000 13 1500 8000 10 2500 7000 11 1800

The regression output is as follow:

 SUMMARY OUTPUT Regression Statistics Multiple R 0.98154 R Square 0.96342 Adjusted R Square 0.94513 Standard Error 301.7577 Observations 7 ANOVA df SS MS F Significance F Regression 2 9592912 4796456 52.67491 0.001338 Residual 4 364230.8 91057.69 Total 6 9957143 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 12460.58 3181.967 3.915998 0.017306 3626.02 21295.13 Price -577.885 204.148 -2.83071 0.047311 -1144.69 -11.0789 Advertising Expenses 0.615385 0.458403 1.342454 0.250575 -0.65735 1.888115

What is the correlation coefficient?

(Points : 2.5)

 Question 33. 33. Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day weighted moving average where the weights are 3 and 1 are (Points : 2.5)

Question 34. 34.

A store of Pizza Hut provides the following data on the quantity of pizzas sold during the month of January through July 2014, the price of a large pizza, and the advertising expenses.

 Quantity Sold Price Advertising Expenses 8500 \$10 \$3,000 4800 14 1000 6500 12 1500 7800 11 2000 6000 13 1500 8000 10 2500 7000 11 1800

The regression output is as follow:

 SUMMARY OUTPUT Regression Statistics Multiple R 0.98154 R Square 0.96342 Adjusted R Square 0.94513 Standard Error 301.7577 Observations 7 ANOVA df SS MS F Significance F Regression 2 9592912 4796456 52.67491 0.001338 Residual 4 364230.8 91057.69 Total 6 9957143 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 12460.58 3181.967 3.915998 0.017306 3626.02 21295.13 Price -577.885 204.148 -2.83071 0.047311 -1144.69 -11.0789 Advertising Expenses 0.615385 0.458403 1.342454 0.250575 -0.65735 1.888115

Which of the two independent variables, Price and advertising expenses, is a good predictor of quantity sold?

(Points : 2.5)

Question 35. 35.

A store of Pizza Hut provides the following data on the quantity of pizzas sold during the month of January through July 2014, the price of a large pizza, and the advertising expenses.

 Quantity Sold Price Advertising Expenses 8500 \$10 \$3,000 4800 14 1000 6500 12 1500 7800 11 2000 6000 13 1500 8000 10 2500 7000 11 1800

The regression output is as follow:

 SUMMARY OUTPUT Regression Statistics Multiple R 0.98154 R Square 0.96342 Adjusted R Square 0.94513 Standard Error 301.7577 Observations 7 ANOVA df SS MS F Significance F Regression 2 9592912 4796456 52.67491 0.001338 Residual 4 364230.8 91057.69 Total 6 9957143 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 12460.58 3181.967 3.915998 0.017306 3626.02 21295.13 Price -577.885 204.148 -2.83071 0.047311 -1144.69 -11.0789 Advertising Expenses 0.615385 0.458403 1.342454 0.250575 -0.65735 1.888115

Which of the following is correct about the regression model?

(Points : 2.5)

 Question 36. 36. Theft is one of the "ordering cost factors." (Points : 2.5)

 Question 37. 37. To determine the effect of input changes on decision results, we should perform a sensitivity analysis. (Points : 2.5)

 Question 38. 38. If computing a causal linear regression model of Y = a + bX and the resultant r2 is very near zero, then one would be able to conclude that (Points : 2.5)

 Question 39. 39. Which of the following statements (are) is not true about regression models? (Points : 2.5)

 Question 40. 40. Which of the following factors is (are) not included in ordering cost? (Points : 2.5)

 Question 41. 41. When using the EOL as a decision criterion, the best decision is the alternative with the largest EOL value. (Points : 2.5)

 Question 42. 42. The concept of inventory is applicable to both manufacturing and service organizations. (Points : 2.5)

 Question 43. 43. The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is \$20 per order, and the holding cost is 20 percent of the purchase cost. Currently, the purchase cost is \$40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each time an order is placed. What is the total holding cost for the year using this policy? (Points : 2.5)

 Question 44. 44. One problem in using a quantitative model is that the necessary data may be unavailable. (Points : 2.5)

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1. ## Solution: Saint GBA334 midterm exam

Tutorial # 00032278 Posted By: echo7 Posted on: 11/22/2014 09:15 PM
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