Quant test 1
The last step in any problem-solving process is to choose the correct alternative among those available.
False
Procedures in Problem Solving (Steps 1‐7)
1. Identify and define the problem 2. Determine the set of alternative solutions. 3. Determine the criterion or criteria that will be used to evaluate the alternatives. 4. Evaluate the alternatives. 5. Choose an alternative. 6. Implement the selected alternative. 7. Evaluate the results to determine whether a satisfactory solution has been obtained.
Decision Making: Quantitative Analysis (steps 1-5)
1. Model Development 2. Data Preparation 3. Model Solution 4. Report Generation 5. Quantitative and qualitative considerations
There is a fixed cost of €50,000 to start the production process. Once the process has begun, the variable cost per unit is €25. The revenue per unit is projected to be €45. a. Write an expression for the total cost. b. Write an expression for total revenue. c. Write an expression for total profit. d. Find the breakeven point.
Let the number of units be x Total Cost = 25X+50000 Total Revenue = 45X Total Profit (45-25)x-50000 Break Even Point = Fixed Cost/ Contribution per unit Contribution per unit = 45-25 = $ 20 Break Even Point = 50000/20 = 2500 units
A marketing research firm must determine how many daytime interviews(D), and evening interviews(E) to conduct. At least 40% of the interviews must be in the evening. A correct constraint is : -.4D+.6E>= 0 True False
True
The most critical component in determining the success or failure of any quantitative approach to decision making is problem definition True False
True
The Break even point is the point at which the volume of output produced is the result of total revenue equaling total cost True False
True?
Organizers of an Internet training session will change participants €150 to attend. It costs €3000 to reserve the room, hire the instructor, bring in the equipment, and advertise. Assume it costs €25 per student for the organizers to provide the course materials. a. How many students would have to attend for the company to break even? b. If the trainers think, realistically, that 20 people will attend, then what price should be charged per person for the organization to break even?
a. C(x)= 3000 - 25x R(x) = 150x Break-even students = 24 b. Cost = 3000 + 25(20) Revenue = 20p Breakeven price = 175
Three major area of business analytics:
a. Descriptive Analytics- What it is, Data queries, Reports, Descriptive Statistics, Data visualization (dashboard), Data-mining techniques, Basic what-if spreadsheet models b. Predictive Analytics-Use of models constructed from paste data to predict the future or ascertain the impact of one variable on another (Forecasting and Regression Analysis) c. Prescriptive Analysis- Optimization, Operations Research/Management Science, Decision-Making Models... Find the best solution to an objective function
A snack food manufacturer buys corn for tortilla chips from two cooperatives, one in Iowa and one in Illinois. The price per unit of the Iowa corn is €6.00 and the price per unit of the Illinois corn is €5.50. a. Define variables that would tell how many units to purchase from each source. b. Develop an objective function that would minimize the total cost c. The manufacturer needs at least 12000 units of corn. The Iowa cooperative can supply up to 8000 units., and the Illinois cooperative can supply at least 6000 units. Develop constraints for these conditions.
a. Let the number of units purchased from Iowa be x and number of units purchased from Illinois be y b. Min TC= $5.5x +$6.0y c. i.) x+y ≥12000 ii.) x ≤ 8000 iii.) y ≥6000 iiii) x,y >= 0
Which of the following is a valid objective function for a linear programming problem? a. Min 8xy b. Min 4x + 3y +(1/2)z c. Min 5x^2 + 6y^2 d. Max (x1+ x2)/x3
b. Min 4x + 3y +(1/2)z
In a multicriteria decision problem a. it is impossible to select a single decision alternative b. The decision maker must evaluate each alternative with respect to each criterion c. successive decisions must be made over time d. All are correct
b. The decision maker must evaluate each alternative with respect to each criterion
The improvement in the value of the objective function per unit increase in the right-hand side is the a. sensitivity value b. dual price c. constraint coefficient d. slack value
b. dual price
The amount by which the left side of a less-than- or -equal-to constraint is smaller than the right side a. is known as a surplus b. is known as slack c. is optimized for the linear programming problem d. exists for each variable in a linear programming problem
b. is known as slack
Based on the per- unit increase in the right- hand side of the constraint, the dual price measures the a. increase in the value of the optimal solution b. decrease in the value of the optimal solution c. improvements in the value of the optimal solution d. change in the value of the optimal solution
c. improvements in the value of the optimal solution
Sensitivity analysis is concerned with how certain changes affect the a. feasible solution b. unconstrained solution c. optimal solution d. degenerative solution
c. optimal solution
Let A, B, and C be the amounts invested in companies A, B, and C. If no more than 50% of the total investment can be in company B, then a. B <= 5 b. A- .5 + C < 0 c. .5A - B - .5C <= 0 d. -.5A + .5B - .5C <= 0
d. -.5A + .5B - .5C <= 0
Let M be the number of units to make and B be the number of units to buy. If it costs €2 to make a unit and €3 to buy a unit and 4000 units are needed, the objection function is a. Max 2M + 3B b. Min 4000(M + B) c. Max 8000M + 12000B d. Min 2M +. 3B
d. Min 2M + 3B
The maximization or minimization of a desired quantity is the a. goal of management science b. decision for decision analysis c. constraint of operations research d. objective of linear functioning
d. objective of linear functioning
