BUS 660 Midterm exam questions with correct answers
When|IIproduction|IIvolume|IIexceeds|IItheIIbreakeven|IIpoint,|IIweIIcan
|II expectedIIa|IIprofit
1. The|IIcomplement |IIof |IIP(A|II||IIB)
isIIP(AC |II||IIB)
II
2. If|IIP(AU|IIB)|II=|IIP(A)|II+|IIP(B),|IIthenIIAIIand|IIB|IIare|IImutually|IIexclusive.
True
3. AIInegative |IIdual|IIprice|IIindicates |IIthat|IIincreasing|IIthe|IIright-hand |IIside|IIof |IItheIIassociated|IIconstraint|IIwould|IIbeIIdetrimental |IIto|IIthe|IIobjective.
True
4. Which|IIof|IIthe|IIfollowing|IIexponential|IIsmoothing|IIconstant|IIvalues|IIputs|IIthe|IIsame|IIweight|IIon|IIthe|IImost|IIrecent|IItime|IIseries|IIvalue|IIas|IIdoes|IIa|II5-period|IImoving
|II average?IIα |II=|II.2
5. When|IIthe|IIexponential|IIdistribution|IIprobability|IIis|IIgiven|IIas|IIP(x|II≤|II9|II)|II=|II1|II−|IIe−9/18|IIthe|IIaverage|IIvalue
|II for|IIx|IIisII18
6. Problem |II1-15 |II(Algorithmic)
Preliminary | IIplans | IIare | IIunderway | IIfor | IIconstruction | IIof | IIa | IInew | IIstadium | IIfor | IIa | IImajor | IIleague | IIbaseball | IIteam. | IICity | IIofficials | IIquestion | IIthe
| IInumber | IIand | IIprofitability | IIof | IIthe | IIluxury | IIcorporate | IIboxes | IIplanned | IIfor |IIthe | IIupper | IIdeck | IIof | IIthe | IIstadium. | IICorporations | IIand | IIselected
| IIindividuals | IImay | IIpurchase | IIa | IIbox | IIfor | II$300000. | IIThe | IIfixed | IIconstruction | IIcost | IIfor |IIthe | IIupper-deck | IIarea | IIis | IIestimated | IIto | IIbe | II$4500000,
| IIwith | IIa | IIvariable | IIcost | IIof | II$150000 | IIfor | IIeach | IIbox | IIconstructed.
a. What|IIis|IIthe|IIbreakeven|IIpoint|IIforIIthe|IInumber|IIof|IIluxury|IIboxes|IIin|IIthe|IInew|IIstadium?
Breakeven |IIpoint
, 4,500,000/(300000-
|II
150000)
=|II4,350,000 |IILuxury|IIBoxes
b. Preliminary | IIdrawings | IIfor | II the |II stadium | II show | II that | II space | II is |II available |II for | II the |II construction | II of | II up | II to | II 50 |II luxury | II boxes. | II Promoters | II indicate
| II that | II buyers |IIare
, II available |II and |II that |II all | II 50 |II could |II be |II sold |II if |II constructed. |II What |II is |II your |II recommendation |II concerning |II the |II construction |II of |II luxury boxes?
|II
50(300000-150000)-4500000
When|IIproduction|IIvolume|IIexceeds|IItheIIbreakeven|IIpoint,|IIweIIcan
|II expectedIIa|IIprofit
1. The|IIcomplement |IIof |IIP(A|II||IIB)
isIIP(AC |II||IIB)
II
2. If|IIP(AU|IIB)|II=|IIP(A)|II+|IIP(B),|IIthenIIAIIand|IIB|IIare|IImutually|IIexclusive.
True
3. AIInegative |IIdual|IIprice|IIindicates |IIthat|IIincreasing|IIthe|IIright-hand |IIside|IIof |IItheIIassociated|IIconstraint|IIwould|IIbeIIdetrimental |IIto|IIthe|IIobjective.
True
4. Which|IIof|IIthe|IIfollowing|IIexponential|IIsmoothing|IIconstant|IIvalues|IIputs|IIthe|IIsame|IIweight|IIon|IIthe|IImost|IIrecent|IItime|IIseries|IIvalue|IIas|IIdoes|IIa|II5-period|IImoving
|II average?IIα |II=|II.2
5. When|IIthe|IIexponential|IIdistribution|IIprobability|IIis|IIgiven|IIas|IIP(x|II≤|II9|II)|II=|II1|II−|IIe−9/18|IIthe|IIaverage|IIvalue
|II for|IIx|IIisII18
6. Problem |II1-15 |II(Algorithmic)
Preliminary | IIplans | IIare | IIunderway | IIfor | IIconstruction | IIof | IIa | IInew | IIstadium | IIfor | IIa | IImajor | IIleague | IIbaseball | IIteam. | IICity | IIofficials | IIquestion | IIthe
| IInumber | IIand | IIprofitability | IIof | IIthe | IIluxury | IIcorporate | IIboxes | IIplanned | IIfor |IIthe | IIupper | IIdeck | IIof | IIthe | IIstadium. | IICorporations | IIand | IIselected
| IIindividuals | IImay | IIpurchase | IIa | IIbox | IIfor | II$300000. | IIThe | IIfixed | IIconstruction | IIcost | IIfor |IIthe | IIupper-deck | IIarea | IIis | IIestimated | IIto | IIbe | II$4500000,
| IIwith | IIa | IIvariable | IIcost | IIof | II$150000 | IIfor | IIeach | IIbox | IIconstructed.
a. What|IIis|IIthe|IIbreakeven|IIpoint|IIforIIthe|IInumber|IIof|IIluxury|IIboxes|IIin|IIthe|IInew|IIstadium?
Breakeven |IIpoint
, 4,500,000/(300000-
|II
150000)
=|II4,350,000 |IILuxury|IIBoxes
b. Preliminary | IIdrawings | IIfor | II the |II stadium | II show | II that | II space | II is |II available |II for | II the |II construction | II of | II up | II to | II 50 |II luxury | II boxes. | II Promoters | II indicate
| II that | II buyers |IIare
, II available |II and |II that |II all | II 50 |II could |II be |II sold |II if |II constructed. |II What |II is |II your |II recommendation |II concerning |II the |II construction |II of |II luxury boxes?
|II
50(300000-150000)-4500000
