WGU C723 QUANTITATIVE ANALYSIS FOR BUSINESS
EXAM 2024 ACTUAL EXAM 2 VERSIONS COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY GRADED A+
A creamery purchases three different types of cheese: panela cheese at $3.75 per
pound, goat cheese at $7.10 per pound, and Oaxaca cheese at $4.50 per pound. The
daily demand for each cheese is 45, 22, and 63 pounds respectively. The creamery
has a dedicated supplier for each type of cheese, and the ordering cost is $2.00 per
order. It is expensive to keep these products in inventory because they are highly
perishable. The holding cost is estimated to be 0.5% of the purchasing price for each
type of cheese. - ANSWER: 951 pounds
A small manufacturer of mountain bikes located in Denver, Colorado, buys tires from
a supplier in China. There is a monthly demand of 200 tires. The cost of placing an
order is $200 and the holding cost is $24 per tire per year. If the purchasing price is
$45 per tire and the economic order quantity is used, what is the total annual
inventory cost? - ANSWER: $112,800
A textile company produces tablecloths and cloth napkins. The production process
includes two steps: cutting and sewing. Every day at least 2 production hours must
be worked in the cutting department and 6 production hours must be worked in the
sewing department. The time needed for cutting and sewing each item as well as the
production costs for each item are provided in the table below:
ProductTime Needed to Cut FabricTime Needed to SewProduction CostsTablecloths8
minutes9 minutes$9.50Cloth Napkins1.5 minutes6 minutes$3.50
Let X 1 represent the number of tablecloths to be produced and let X 2 represent the
number of cloth napkins to be produced. What is the equation of the objective
function Z that optimizes the production cost? - ANSWER: Min Z = 9.50X 1 + 3.50X 2
A manufacturing plant produces exactly 10 tons of a combination of three products
per day. The production costs are five, four, and three dollars for products one, two,
and three, respectively. The plant works 480 minutes per day. Each ton of product
one, two, and three requires 45, 50, and 55 minutes of processing time, respectively.
What is the correct linear programming model for minimizing the production cost? -
ANSWER: Min Z = 5 X 1 + 4 X 2 + 3 X 3Subject to X 1 + X 2 + X 3 = 1045 X 1 + 50 X 2 +
55 X 3 ≤ 480 X 1, X 2, X 3 ≥ 0
Consider the following linear programming formulation: MIN
26X 1 + 14X 2 +12X 3
Subject to
2X 1+3X 2+1X 3≥30
6X 1+3X 2+1X 3≥50
X 1, X 2, X 3 ≥ 0
, The optimal solution is OBJECTIVE FUNCTION VALUE 1) 228.0000 VARIABLE VALUE
REDUCED COST X1 5.000000 26.000000 X2 7.000000 14.000000 X3 0.000000
12.000000 ROW SLACK OR SURPLUS DUAL PRICES 2) 1.000000 0.000000 3) 1.000000
0.000000 What is the optimal value of X 3? - ANSWER: 0
A sporting goods company makes sports bandanas and flags. It costs $10 to produce
one bandana and $12 to produce one flag. It takes 1/4 yard of material to make one
bandana and 1/2 yard of material to make one flag.What is the constraint in this
scenario? - ANSWER: The amount of material available
A local music store that hosts live music has been a very popular hangout for years.
However, the owner is concerned that the increasing popularity of new methods of
music delivery will soon make the business obsolete. The owner is considering
building a small recording studio in the basement of the store. The nearest
professional studio is 50 miles away, so a new studio may appeal to local musicians
and increase foot traffic. The owner has all the costs of building the studio and also
estimated how much revenue might increase due to the new studio (from studio
rental fees, increased food and drink sales if more people come to the live music
shows, etc.). The owner will use this information to determine net present value for
the studio.Which method of analysis should this owner use to make a
determination? - ANSWER: Quantitative
An employee working for the Highway Safety Department in Albany, New York has
the job to predict the automobile accidents in Albany for the next year. The
employee currently has monthly data on the following variables for the city of
Albany: the number of automobiles registered, the sales of alcoholic beverages, and
the rainfall in inches. How can this employee realistically predict the accidents in
Albany for next year? - ANSWER: Use a multiple regression equation using accident
as the dependent variable and others as independent variables
A textile company is a manufacturer of fireproof uniforms in Mexico. The company is
planning on opening operations in the United States and Canada, which requires a
capacity expansion of 100%. The company has three alternatives: build a large plant,
build a small plant, or subcontract.There are two possible states of nature: a
favorable market and a moderate market. If the future market is favorable, the
payoffs are $13, $5, and $7 million for building a large plant, building a small plant,
and subcontracting, respectively. Similarly, for a future moderate market, the
payoffs are $2, $8, and $3 million for building a large plant, building a small plant,
and subcontracting, respectively. The company has estimated the probability of a
favorable market as 0.40. The textile company needs to make a decision about either
building a plant or subcontracting.What is the relationship between uncertainty and
the decision-making - ANSWER: Uncertainty is less relevant to the decision-making
process than risk.
Inventory Turns - ANSWER: The number of times inventory is sold or used during a
specific period (such as a year or quarter). A higher figure means a firm is selling
products quickly.
EXAM 2024 ACTUAL EXAM 2 VERSIONS COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY GRADED A+
A creamery purchases three different types of cheese: panela cheese at $3.75 per
pound, goat cheese at $7.10 per pound, and Oaxaca cheese at $4.50 per pound. The
daily demand for each cheese is 45, 22, and 63 pounds respectively. The creamery
has a dedicated supplier for each type of cheese, and the ordering cost is $2.00 per
order. It is expensive to keep these products in inventory because they are highly
perishable. The holding cost is estimated to be 0.5% of the purchasing price for each
type of cheese. - ANSWER: 951 pounds
A small manufacturer of mountain bikes located in Denver, Colorado, buys tires from
a supplier in China. There is a monthly demand of 200 tires. The cost of placing an
order is $200 and the holding cost is $24 per tire per year. If the purchasing price is
$45 per tire and the economic order quantity is used, what is the total annual
inventory cost? - ANSWER: $112,800
A textile company produces tablecloths and cloth napkins. The production process
includes two steps: cutting and sewing. Every day at least 2 production hours must
be worked in the cutting department and 6 production hours must be worked in the
sewing department. The time needed for cutting and sewing each item as well as the
production costs for each item are provided in the table below:
ProductTime Needed to Cut FabricTime Needed to SewProduction CostsTablecloths8
minutes9 minutes$9.50Cloth Napkins1.5 minutes6 minutes$3.50
Let X 1 represent the number of tablecloths to be produced and let X 2 represent the
number of cloth napkins to be produced. What is the equation of the objective
function Z that optimizes the production cost? - ANSWER: Min Z = 9.50X 1 + 3.50X 2
A manufacturing plant produces exactly 10 tons of a combination of three products
per day. The production costs are five, four, and three dollars for products one, two,
and three, respectively. The plant works 480 minutes per day. Each ton of product
one, two, and three requires 45, 50, and 55 minutes of processing time, respectively.
What is the correct linear programming model for minimizing the production cost? -
ANSWER: Min Z = 5 X 1 + 4 X 2 + 3 X 3Subject to X 1 + X 2 + X 3 = 1045 X 1 + 50 X 2 +
55 X 3 ≤ 480 X 1, X 2, X 3 ≥ 0
Consider the following linear programming formulation: MIN
26X 1 + 14X 2 +12X 3
Subject to
2X 1+3X 2+1X 3≥30
6X 1+3X 2+1X 3≥50
X 1, X 2, X 3 ≥ 0
, The optimal solution is OBJECTIVE FUNCTION VALUE 1) 228.0000 VARIABLE VALUE
REDUCED COST X1 5.000000 26.000000 X2 7.000000 14.000000 X3 0.000000
12.000000 ROW SLACK OR SURPLUS DUAL PRICES 2) 1.000000 0.000000 3) 1.000000
0.000000 What is the optimal value of X 3? - ANSWER: 0
A sporting goods company makes sports bandanas and flags. It costs $10 to produce
one bandana and $12 to produce one flag. It takes 1/4 yard of material to make one
bandana and 1/2 yard of material to make one flag.What is the constraint in this
scenario? - ANSWER: The amount of material available
A local music store that hosts live music has been a very popular hangout for years.
However, the owner is concerned that the increasing popularity of new methods of
music delivery will soon make the business obsolete. The owner is considering
building a small recording studio in the basement of the store. The nearest
professional studio is 50 miles away, so a new studio may appeal to local musicians
and increase foot traffic. The owner has all the costs of building the studio and also
estimated how much revenue might increase due to the new studio (from studio
rental fees, increased food and drink sales if more people come to the live music
shows, etc.). The owner will use this information to determine net present value for
the studio.Which method of analysis should this owner use to make a
determination? - ANSWER: Quantitative
An employee working for the Highway Safety Department in Albany, New York has
the job to predict the automobile accidents in Albany for the next year. The
employee currently has monthly data on the following variables for the city of
Albany: the number of automobiles registered, the sales of alcoholic beverages, and
the rainfall in inches. How can this employee realistically predict the accidents in
Albany for next year? - ANSWER: Use a multiple regression equation using accident
as the dependent variable and others as independent variables
A textile company is a manufacturer of fireproof uniforms in Mexico. The company is
planning on opening operations in the United States and Canada, which requires a
capacity expansion of 100%. The company has three alternatives: build a large plant,
build a small plant, or subcontract.There are two possible states of nature: a
favorable market and a moderate market. If the future market is favorable, the
payoffs are $13, $5, and $7 million for building a large plant, building a small plant,
and subcontracting, respectively. Similarly, for a future moderate market, the
payoffs are $2, $8, and $3 million for building a large plant, building a small plant,
and subcontracting, respectively. The company has estimated the probability of a
favorable market as 0.40. The textile company needs to make a decision about either
building a plant or subcontracting.What is the relationship between uncertainty and
the decision-making - ANSWER: Uncertainty is less relevant to the decision-making
process than risk.
Inventory Turns - ANSWER: The number of times inventory is sold or used during a
specific period (such as a year or quarter). A higher figure means a firm is selling
products quickly.
