BUS 660 Midterm Exam 2023 Questions and Answers

BUS 660 Midterm Exam 2023 Questions and Answers. When production volume exceeds the breakeven point, we can expected a profit 2. The complement of P(A | B) is P(A C | B) 3. If P(AU B) = P(A) + P(B), then A and B are mutually exclusive. True 4. A negative dual price indicates that increasing the right-hand side of the associated constraint would be detrimental to the objective. True 5. Which of the following exponential smoothing constant values puts the same weight on the most recent time series value as does a 5-period moving average? α = .2 6. When the exponential distribution probability is given as P(x ≤ 9 ) = 1 − e −9/18 the average value for x is 18 7. Problem 1-15 (Algorithmic) Preliminary plans are underway for construction of a new stadium for a major league baseball team. City officials question the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may purchase a box for $. The fixed construction cost for the upper-deck area is estimated to be $, with a variable cost of $ for each box constructed. a. What is the breakeven point for the number of luxury boxes in the new stadium? Breakeven point 4,500,000/(-) = 4,350,000 Luxury Boxes b. Preliminary drawings for the stadium show that space is available for the construction of up to 50 luxury boxes. Promoters indicate that buyers are available and that all 50 could be sold if constructed. What is your recommendation concerning the construction of luxury boxes? 50(-)- - 3,000,000 Profit 8. Because the dual price represents the improvement in the value of the optimal solution per unit increase in right-hand-side, a dual price cannot be negative. False 9. Gradual shifting of a time series to relatively higher or lower values over a long period of time is called trend. 10. If there is a maximum of 4,000 hours of labor available per month and 300 ping-pong balls (x1) or 125 wiffle balls (x2) can be produced per hour of labor, which of the following constraints reflects this situation? 300x1 + 125x2 4,000 The variable{x_1}x1represents the number of ping pong balls produced per hour and variable {x_2}x2represents the number of wiffle balls produced per hour. A total of 300 ping pong balls are available and 125 wiffle balls are available. Hence, there is a constraint on the number of labor hours. Total labor hours taken by the ping pong balls will be 300{x_1}300x1and by wiffle balls will be125{x_2}125x2. Since a maximum of 4000 labor hours are available so 300{x_1} + 125{x_2} ge x1+125x2≥4000is an incorrect constraint because it represents a minimum of 4000 total labor hours. The equation 425left( {{x_1} + {x_2}} right) le (x1+x2)≤4000will not be a correct constraint because it does not includes the restriction on the total hours required by each ball.