C207 Module 3
1. Linear Programming: A craftsman builds two kinds of birdhouses. One
for bluebirds and one for cardinals. He knows the amount of labor and
the units of lumber that are needed for each birdhouse. The craftsman
has available 60 hours of labor and 120 units of lumber. Which
technique should the craftsman use to minimize cost?
2. Cross Over: Ski Boards, Inc. wants to enter the market quickly with a
new finish on its ski boards. It has three choices: refurbish the old
equipment, make major modifications or purchase new equipment.
The company has estimated the fixed and variable cost for each
option. Which technique should they use to select the least costly
option?
3. Chi-square: Which analysis technique can be used with
hypothesis testing when nominal or categorical data is gathered?
4. Normal distribution: United Motors indicates that gas mileage tests of
one of their cars, the Starbird 300, under city driving conditions has a
mean of 30 mph and a median of 29.9 mph. Which type of distribution
would this testing represent?
5. ANOVA: North American Oil Company is attempting to develop a
reasonably priced gasoline that will deliver improved gasoline
mileage. As part of its devel- opment process, the company would
like to compare the effects of three types of gasoline. Which analysis
technique should the company use to compare the performances of
each gasoline type?
6. $8: Enterprise Industries produces Fresh, a brand of liquid laundry
detergent. In order to study the relationship between price and
demand for the large bottle of Fresh, the company develops the
following relationship: Demand = 600 + 50X. What price is needed to
produce a demand of 1000?
7. Trend: A large manufacturer wants to forecast demand for a piece of
pollu- tion-control equipment. A review of the past 12 months of sales
indicates that sales are increasing. What time series pattern does the
sales likely exhibit?
, 8. Multiple Regression Analysis: A car dealership wishes to forecast car
sales based upon price discounts and television ads. What forecasting
technique should the dealership use?
9. 104,500: A city hospital wishes to evaluate the labor hours it needs
based upon monthly occupied bed days and average length of
patients' stay. The estimated regression is: y = 2000 + 75X1 + 65X2
What scenario would be predicted if X1 = 500 and X2 = 1000?
10.Autocorrelation: A company uses time series analysis to develop its
product forecast. The forecaster uses simple linear regression but
notices that the past
1. Linear Programming: A craftsman builds two kinds of birdhouses. One
for bluebirds and one for cardinals. He knows the amount of labor and
the units of lumber that are needed for each birdhouse. The craftsman
has available 60 hours of labor and 120 units of lumber. Which
technique should the craftsman use to minimize cost?
2. Cross Over: Ski Boards, Inc. wants to enter the market quickly with a
new finish on its ski boards. It has three choices: refurbish the old
equipment, make major modifications or purchase new equipment.
The company has estimated the fixed and variable cost for each
option. Which technique should they use to select the least costly
option?
3. Chi-square: Which analysis technique can be used with
hypothesis testing when nominal or categorical data is gathered?
4. Normal distribution: United Motors indicates that gas mileage tests of
one of their cars, the Starbird 300, under city driving conditions has a
mean of 30 mph and a median of 29.9 mph. Which type of distribution
would this testing represent?
5. ANOVA: North American Oil Company is attempting to develop a
reasonably priced gasoline that will deliver improved gasoline
mileage. As part of its devel- opment process, the company would
like to compare the effects of three types of gasoline. Which analysis
technique should the company use to compare the performances of
each gasoline type?
6. $8: Enterprise Industries produces Fresh, a brand of liquid laundry
detergent. In order to study the relationship between price and
demand for the large bottle of Fresh, the company develops the
following relationship: Demand = 600 + 50X. What price is needed to
produce a demand of 1000?
7. Trend: A large manufacturer wants to forecast demand for a piece of
pollu- tion-control equipment. A review of the past 12 months of sales
indicates that sales are increasing. What time series pattern does the
sales likely exhibit?
, 8. Multiple Regression Analysis: A car dealership wishes to forecast car
sales based upon price discounts and television ads. What forecasting
technique should the dealership use?
9. 104,500: A city hospital wishes to evaluate the labor hours it needs
based upon monthly occupied bed days and average length of
patients' stay. The estimated regression is: y = 2000 + 75X1 + 65X2
What scenario would be predicted if X1 = 500 and X2 = 1000?
10.Autocorrelation: A company uses time series analysis to develop its
product forecast. The forecaster uses simple linear regression but
notices that the past
