Question: The operations manager of a musical instrument

> For each of the following F values, determine whether the probability indicated is greater than or less than 1%: (a) P(F5,4 > 14) (b) P(F6,3 > 30) (c) P(F10,12 > 4.2) (d) P(F2,3 > 35) (e) P(F2,3 < 35)

> For each of the following F values, determine whether the probability indicated is greater than or less than 5%: (a) P(F3,4 > 6.8) (b) P(F7,3 > 3.6) (c) P(F20,20 > 2.6) (d) P(F7,5 > 5.1) (e) P(F7,5 < 5.1)

> The Jamis Corporation is involved with waste management. During the past 10 years, it has become one of the largest waste disposal companies in the Midwest, serving primarily Wisconsin, Illinois, and Michigan. Bob Jamis, president of the company, is cons

> Coren Chemical, Inc., develops industrial chemicals that are used by other manufacturers to produce photographic chemicals, preservatives, and lubricants. One of their products, K-1000, is used by several photographic companies to make a chemical that is

> A mortgage lender attempted to increase its business by marketing its subprime mortgage. This mortgage is designed for people with a less-than-perfect credit rating, and the interest rate is higher to offset the extra risk. In the past year, 20% of these

> Burger City is a large chain of fast-food restaurants specializing in gourmet hamburgers. A mathematical model is now used to predict the success of new restaurants based on location and demographic information for that area. In the past, 70% of all rest

> Policy Pollsters is a market research firm specializing in political polls. Records indicate in past elections, when a candidate was elected, Policy Pollsters had accurately predicted this 80% of the time and was wrong 20% of the time. Records also show,

> Market Researchers, Inc., has been hired to perform a study to determine if the market for a new product will be good or poor. In similar studies performed in the past, whenever the market actually was good, the market research study indicated that it wo

> A particular test for the presence of steroids is to be used after a professional track meet. If steroids are present, the test will accurately indicate this 95% of the time. However, if steroids are not present, the test will indicate this 90% of the ti

> Jim Sellers has been able to estimate his utility for a number of different values. He would like to use these utility values in making the decision in Problem 3-44: U(-$80,000) = 0, U(-$65,000) = 0.5, U(-$60,000) = 0.55, U(-$20,000) = 0.7, U(-$5,000) =

> What is an alternative? What is a state of nature?

> Jim Sellers is thinking about producing a new type of electric razor for men. If the market were favorable, he would get a return of $100,000, but if the market for this new type of razor were unfavorable, he would lose $60,000. Since Ron Bush is a good

> Patients arrive at the emergency room of Costa Valley Hospital at an average of 5 per day. The demand for emergency room treatment at Costa Valley follows a Poisson distribution. (a) Using Appendix C, compute the probability of exactly 0, 1, 2, 3, 4, an

> A new integrated computer system is to be installed worldwide for a major corporation. Bids on this project are being solicited, and the contract will be awarded to one of the bidders. As a part of the proposal for this project, bidders must specify how

> The time to complete a construction project is normally distributed with a mean of 60 weeks and a standard deviation of 4 weeks. (a) What is the probability the project will be finished in 62 weeks or less? (b) What is the probability the project will be

> Armstrong Faber produces a standard number-two pencil called Ultra-Lite. Since Chuck Armstrong started Armstrong Faber, sales have grown steadily. With the increase in the price of wood products, however, Chuck has been forced to increase the price of th

> Susan Williams has been the production manager of Medical Suppliers, Inc., for the past 17 years. Medical Suppliers, Inc., is a producer of bandages and arm slings. During the past 5 years, the demand for No-Stick bandages has been fairly constant. On av

> Steve Goodman, production foreman for the Florida Gold Fruit Company, estimates that the average sale of oranges is 4,700 and the standard deviation is 500 oranges. Sales follow a normal distribution. (a) What is the probability that sales will be greate

> An industrial oven used to cure sand cores for a factory manufacturing engine blocks for small cars is able to maintain fairly constant temperatures. The temperature range of the oven follows a normal distribution with a mean of 450 ℉ and a standard devi

> The Lubricant is an expensive oil newsletter to which many oil giants subscribe, including Ken Brown (see Problem 3-17 for details). In the last issue, the letter described how the demand for oil products would be extremely high. Apparently, the American

> The Technically Techno company has several patents for a variety of different flash memory devices that are used in computers, cell phones, and a variety of other things. A competitor has recently introduced a product based on technology very similar to

> Describe what is involved in the decision process.

> Although Ken Brown (discussed in Problem 3-17) is the principal owner of Brown Oil, his brother Bob is credited with making the company a financial success. Bob is vice president of finance. Bob attributes his success to his pessimistic attitude about bu

> The game of roulette is popular in many casinos around the world. In Las Vegas, a typical roulette wheel has the numbers 1–36 in slots on the wheel. Half of these slots are red, and the other half are black. In the United States, the roulette wheel typic

> There are 10 questions on a true–false test. A student feels unprepared for this test and randomly guesses the answer for each of these. (a) What is the probability that the student gets exactly 7 correct? (b) What is the probability that the student get

> What are the expected value and variance of the following probability distribution? RANDOM VARIABLE X PROBABILITY 1 …………………………………………………….. 0.05 2 …………………………………………………….. 0.05 3 …………………………………………………….. 0.10 4 …………………………………………………….. 0.10 5 …………………………………………

> The North side rifle team has two markspersons, Dick and Sally. Dick hits a bull’s-eye 90% of the time, and Sally hits a bull’s-eye 95% of the time. (a) What is the probability that either Dick or Sally or both will hit the bull’s-eye if each takes one

> The schedule for the Killers next year is as follows (refer to Problem 2-24): Game 1: The Machos Game 2: Mama&acirc;&#128;&#153;s Boys Problem 2-24: The Boston South Fifth Street Softball League consists of three teams: Mama&acirc;&#128;&#153;s Boys, te

> Compute the probability of “loaded die given that a 3 was rolled,” as shown in the example in Section 2.3, this time using the general form of Bayes’ Theorem from Equation 2-5 Theorem from Equation 2-5: P(A/B) = P(B/A) P(A) P(B/A)P(A) + P(B/A′)P(A′)

> In a sample of 1,000 representing a survey from the entire population, 650 people were from Lake town, and the rest of the people were from River City. Out of the sample, 19 people had some form of cancer. Thirteen of these people were from Lake town. (a

> Bismarck Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000 and for proposal B, $34,000. The variable cost for A is $10 and for B, $14. The reve

> Zoe Garcia is the manager of a small office-support business that supplies copying, binding, and other services for local companies. Zoe must replace a worn-out copy machine that is used for black-and white copying. Two machines are being considered, and

> How is a utility curve used in selecting the best decision for a particular problem?

> WTVX, Channel 6, is located in Eugene, Oregon, home of the University of Oregon. The station was owned and operated by George Wilcox, a former Duck (University of Oregon football player). Although there were other television stations in Eugene, WTVX was

> The Boston South Fifth Street Softball League consists of three teams: Mama&acirc;&#128;&#153;s Boys, team 1; the Killers, team 2; and the Machos, team 3. Each team plays the other teams just once during the season. The win&acirc;&#128;&#147;loss record

> Ace Machine Works estimates that the probability its lathe tool is properly adjusted is 0.8. When the lathe is properly adjusted, there is a 0.9 probability that the parts produced pass inspection. If the lathe is out of adjustment, however, the probabil

> The lost Israeli soldier mentioned in Problem 2-21 decides to rest for a few minutes before entering the desert oasis he has just found. Closing his eyes, he dozes off for 15 minutes, wakes, and walks toward the center of the oasis. The first person he s

> The oasis outpost of Abu Ilan, in the heart of the Negev desert, has a population of 20 Bedouin tribesmen and 20 Farima tribesmen. El Kamin, a nearby oasis, has a population of 32 Bedouins and 8 Farima. A lost Israeli soldier, accidentally separated from

> David Mashley teaches two undergraduate statistics courses at Kansas College. The class for Statistics 201 consists of 7 sophomores and 3 juniors. The more advanced course, Statistics 301, has 2 sophomores and 8 juniors enrolled. As an example of a busin

> The Springfield Kings, a professional basketball team, has won 12 of its last 20 games and is expected to continue winning at the same percentage rate. The team’s ticket manager is anxious to attract a large crowd to tomorrow’s game but believes that dep

> Last year, at Northern Manufacturing Company, 200 people had colds during the year. One hundred fifty five people who did no exercising had colds, and the remainder of the people with colds were involved in a weekly exercise program. Half of the 1,000 em

> Ever tight, a leading manufacturer of quality nails, produces 1-, 2-, 3-, 4-, and 5-inch nails for various uses. In the production process, if there is an overrun or the nails are slightly defective, they are placed in a common bin. Yesterday, 651 of the

> An urn contains 8 red chips, 10 green chips, and 2 white chips. A chip is drawn and replaced, and then a second chip drawn. What is the probability of (a) a white chip on the first draw? (b) a white chip on the first draw and a red on the second? (c) tw

> A silver dollar is flipped twice. Calculate the probability of each of the following occurring: (a) a head on the first flip (b) a tail on the second flip given that the first toss was a head (c) two tails (d) a tail on the first and a head on the secon

> Briefly discuss how a utility function can be assessed. What is a standard gamble, and how is it used in determining utility values?

> A student taking Management Science 301 at East Haven University will receive one of the five possible grades for the course: A, B, C, D, or F. The distribution of grades over the past 2 years is as follows: GRADE NUMBER OF STUDENTS A …………………………………….… 8

> Students in a management science class have just received their grades on the first test. The instructor has provided information about the first test grades in some previous classes, as well as the final averages for the same students. Some of these gra

> Using computer software, find the least-squares regression line for the data in Problem 4-10. Based on the F test, is there a statistically significant relationship between the demand for guitars and the number of YouTube views? Problem 4-10: The operat

> Using the data in Problem 4-10, test to see if there is a statistically significant relationship between sales and YouTube views at the 0.05 level of significance. Use the formulas in this chapter and Appendix D. Problem 4-10: The operations manager of

> Raptor Fuels produces three grades of gasoline&acirc;&#128;&#148; Regular, Premium, and Super. All of these are produced by blending two types of crude oil&acirc;&#128;&#148;Crude A and Crude B. The two types of crude contain specific ingredients that he

> Working with chemists at Virginia Tech and George Washington Universities, landscape contractor Kenneth Golding blended his own fertilizer, called “Golding-Grow.” It consists of four chemical compounds: C-30, C-92, D-21, and E-11. The cost per pound for

> Modem Corporation of America (MCA) is the world&acirc;&#128;&#153;s largest producer of modem communication devices. MCA sold 9,000 of the regular model and 10,400 of the smart (&acirc;&#128;&#156;intelligent&acirc;&#128;&#157;) model this September. Its

> Outdoor Inn (see Problem 7-41) expanded its tent making operations later in the year. While still making the Double Inn tent, it is also making a larger tent, the Family Rolls, which has four rooms. The company can produce up to a combined total of 280 t

> Outdoor Inn, a camping equipment manufacturer in southern Utah, is developing a production schedule for a popular type of tent, the Double Inn. Orders have been received for 180 of these to be delivered at the end of this month, 220 to be delivered at th

> What is the purpose of Bayesian analysis? Describe how you would use Bayesian analysis in the decision-making process.

> The Weinberger Electronics Corporation manufactures four highly technical products that it supplies to aerospace firms that hold NASA contracts. Each of the products must pass through the following departments before being shipped: wiring, drilling, asse

> The Feed &acirc;&#128;&#153;N Ship Ranch fattens cattle for local farmers and ships them to meat markets in Kansas City and Omaha. The owners of the ranch seek to determine the amounts of cattle feed to buy so that minimum nutritional standards are satis

> Refer to the Bhavika Investments (Problem 7-37) situation once again. It has been decided that, rather than minimizing risk, the objective should be to maximize return while placing a restriction on the amount of risk. The average risk should be no mo

> Bhavika Investments, a group of financial advisors and retirement planners, has been requested to provide advice on how to invest $200,000 for one of its clients. The client has stipulated that the money must be put into either a stock fund or a money ma

> The three princes of Serendip Went on a little trip. They could not carry too much weight; More than 300 pounds made them hesitate. They planned to the ounce. When they returned to Ceylon They discovered that their supplies were just about gone When, wha

> Graphically solve the following problem: Maximize profit = 8X1 + 5X2 subject to X1 + X2 &acirc;&#137;&curren; 10 X1 &acirc;&#137;&curren; 6 X1, X2 &Atilde;&#154; 0 (a) What is the optimal solution? (b) Change the right-hand side of constraint 1 t

> The computer output on the next page is for a product mix problem in which there are two products and three resource constraints. Use the output to help you answer the following questions. Assume that you wish to maximize profit in each case. (a) How ma

> Consider the LP formulation given in Problem 7-31. If the second constraint is changed from 2X + 3Y ≤ 240 to 2X + 4Y ≤ 240, what effect will this have on the optimal solution? Problem 7-31: Consider the following LP problem: Maximize profit = 5X + 6 Y

> Consider the following LP problem: Maximize profit = 5X + 6 Y subject to 2X + Y ≤ 120 2X + 3Y ≤ 240 X, Y ≥ 0 (a) What is the optimal solution to this problem? Solve it graphically. (b) If a technical breakthrough occurred that raised the

> Graph the following LP problem and indicate the optimal solution point: Maximize profit = $3X + $2Y subject to 2X + Y ≤ 150 2X + 3Y ≤ 300 (a) Does the optimal solution change if the profit per unit of X changes to $4.50? (b) What happens if the

> Give an example of a good decision that you made that resulted in a bad outcome. Also give an example of a bad decision that you made that had a good outcome. Why was each decision good or bad?

> Consider the following four LP formulations. Using a graphical approach, determine (a) which formulation has more than one optimal solution. (b) which formulation is unbounded. (c) which formulation has no feasible solution. (d) which formulation is cor

> The seasonal yield of olives in a Piraeus, Greece, vineyard is greatly influenced by a process of branch pruning. If olive trees are pruned every two weeks, output is increased. The pruning process, however, requires considerably more labor than permitti

> Woofer Pet Foods produces a low-calorie dog food for overweight dogs. This product is made from beef products and grain. Each pound of beef costs $0.90, and each pound of grain costs $0.60. A pound of the dog food must contain at least 9 units of Vitamin

> The stock brokerage firm of Blank, Leibowitz, and Weinberger has analyzed and recommended two stocks to an investors&acirc;&#128;&#153; club of college professors. The professors were interested in factors such as short-term growth, intermediate growth,

> Consider this LP formulation: Minimize cost = $X + 2Y subject to X + 3Y ≥ 90 8 X + 2Y ≥ 160 3 X + 2Y ≥ 120 Y ≤ 70 X, Y ≥ 0 Graphically illustrate the feasible region, and apply the isocost line procedure to indicate which corner point produces th

> Referring to the Texas Lotto situation in Problem 7-20, suppose the investor has changed his attitude about the investment and wishes to give greater emphasis to the risk of the investment. Now the investor wishes to minimize the risk of the investment a

> A winner of the Texas Lotto has decided to invest $50,000 per year in the stock market. Under consideration are stocks for a petrochemical firm and a public utility. Although a long-range goal is to get the highest possible return, some consideration is

> MSA Computer Corporation manufactures two models of smartphones, the Alpha 4 and the Beta 5. The firm employs five technicians, working 160 hours each per month, on its assembly line. Management insists that full employment (i.e., all 160 hours of time)

> The dean of the Western College of Business must plan the school’s course offerings for the fall semester. Student demands make it necessary to offer at least 30 undergraduate and 20 graduate courses in the term. Faculty contracts also dictate that at le

> The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: its carpenters (labor force) and a supply of redwood for use in the furniture. During the next production

> What is a risk seeker? What is a risk avoider? How do the utility curves for these types of decision makers differ?

> A candidate for mayor in a small town has allocated $40,000 for last-minute advertising in the days preceding the election. Two types of ads will be used: radio and television. Each radio ad costs $200 and reaches an estimated 3,000 people. Each televisi

> Electro comp’s management realizes that it forgot to include two critical constraints (see Problem 7-14). In particular, management decides that there should be a minimum number of air conditioners produced in order to fulfill a contract. Also, due to an

> The Electro comp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wiring and 2

> Refer to Problem 6-66. Develop a net material requirements plan assuming that there are currently 150 units of part A, 40 units of part B, 50 units of subassembly C, and 100 units of part F in inventory. Problem 6-66: The lead time for each of the parts

> The lead time for each of the parts in the SL72 (Problem 6-64) is one week, except for part B, which has a lead time of two weeks. Develop a net material requirements plan for an order of 800 SL72s. Assume that currently there are no parts in inventory.

> Blair H. Dodds III runs a medium- to large-sized home eBay business dealing in vintage photographs. The annual demand for his photos is approximately 50,000. The annual overhead cost (excluding the purchase price) to buy the photographs is $4,000 per yea

> The demand for product S is 100 units. Each unit of S requires 1 unit of T and 0.5 ounce of U. Each unit of T requires 1 unit of V, 2 units of W, and 1 unit of X. Finally, each unit of U requires 0.5 ounce of Y and 3 units of Z. All items are manufacture

> Using the data from Figures 6.12&acirc;&#128;&#147;6.14, develop a net material requirements plan for 50 units of item A assuming that it takes only 1 unit of item B for each unit of item A. Figures 6.12: Figures 6.14: / / Material Structure Tre

> Given the information in Problem 6-60, develop a gross material requirements plan for 50 units of item A. Problem 6-60: This chapter presents a material structure tree for item A in Figure 6.12. Assume that it now takes 1 unit of item B to make every un

> This chapter presents a material structure tree for item A in Figure 6.12. Assume that it now takes 1 unit of item B to make every unit of item A. What impact does this have on the material structure tree and the number of items D and E that are needed?

> What is the difference between a discrete probability distribution and a continuous probability distribution? Give your own example of each.

> Consider the Emarpy Appliance situation in Problem 6-58. If Richard Feehan wants to minimize the total annual inventory cost, how many refrigerators should be produced in each production run? How much would this save the company in inventory costs compar

> Emarpy Appliance produces all kinds of major appliances. Richard Feehan, the president of Emarpy, is concerned about the production policy for the company’s best-selling refrigerator. The demand for this has been relatively constant at about 8,000 units

> Paula Shoemaker produces a weekly stock market report for an exclusive readership. She normally sells 3,000 reports per week, and 70% of the time her sales range from 2,900 to 3,100. The report costs Paula $15 to produce, but Paula is able to sell report

> Linda Stanyon has been the production manager for Plano Produce for over eight years. Plano Produce is a small company located near Plano, Illinois. One produce item, tomatoes, is sold in cases, with daily sales averaging 400 cases. Daily sales are assum

> The marginal loss on Washington Reds, a brand of apples from the state of Washington, is $35 per case. The marginal profit is $15 per case. During the past year, the mean sales of Washington Reds in cases was 45,000 cases, and the standard deviation was

> In addition to selling Christmas trees during the Christmas holidays, Harry’s Hardware sells all the ordinary hardware items (see Problem 6-53). One of the most popular items is Great Glue HH, a glue that is made just for Harry’s Hardware. The selling pr

> Harry’s Hardware does a brisk business during the year. During Christmas, Harry’s Hardware sells Christmas trees for a substantial profit. Unfortunately, any trees not sold at the end of the season are totally worthless. Thus, the number of trees to stoc

> John Lindsay sells CDs that contain 25 software packages that perform a variety of financial functions, including net present value, internal rate of return, and other financial programs typically used by business students majoring in finance. Depending

> Sunbright Citrus Products produces orange juice, grapefruit juice, and other citrus-related items. Sunbright obtains fruit concentrate from a cooperative in Orlando consisting of approximately 50 citrus growers. The cooperative will sell a minimum of 100

> Xemex has collected the following inventory data for the six items that it stocks: Lynn Robinson, Xemex&acirc;&#128;&#153;s inventory manager, does not feel that all of the items can be controlled. What order quantities do you recommend for which inven

> Describe what it means for two events to be independent.

> H & K Electronic Warehouse sells a 12-pack of AAA batteries, and this is a very popular item. Demand for this is normally distributed, with an average of 50 packs per day and a standard deviation of 16. The average delivery time is five days, with a stan