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MAT 540 Midterm Exam (5 Sets)
MAT 540 Final Exam (20 Sets)
MAT 540 Week 1 Homework Chapter 1 and Chapter 11
MAT 540 Week 2 Homework Chapter 12

MAT 540 Week 1 Discussion Class Introductions
MAT 540 Week 2 Discussion Expected value of perfect
information
MAT 540 Week 3 Discussion Simulation
MAT 540 Week 4 Discussion Forecasting Methods
MAT 540 Week 5 Discussion Reflection
MAT 540 Week 6 Discussion LP Models

MAT 540 Week 7 Discussion sensitivity analysis
MAT 540 Week 8 Discussion Practice setting up linear
programming models for business applications
MAT 540 Week 9 Discussion Application of Integer
Programming
MAT 540 Week 10 Discussion Transshipment problems
MAT 540 Week 11 Discussion Reflection to Date

STRAYER MAT 540 Final Exam (24 Sets) NEW
540-final-exam-(24-sets)-recent
This Tutorial contains 20 Sets of Final Exam (800
Questions/Answers)

STRAYER MAT 540 Midterm Exam (5 Sets) NEW
540-midterm-exam-(5-sets)-recent
Question 1 Deterministic techniques assume that no
uncertainty exists in model parameters.
Question 2 A joint probability is the probability that two or
more events that are mutually exclusive can occur
simultaneously.
Question 3 A continuous random variable may assume only
integer values within a given interval.
Question 4 A decision tree is a diagram consisting of circles
decision nodes, square probability nodes, and branches.
Question 5 Simulation results will always equal analytical
results if 30 trials of the simulation have been conducted.
Question 6 Excel can only be used to simulate systems that can
be represented by continuous random variables.
Question 7 Data cannot exhibit both trend and cyclical
patterns.
Question 8 The Delphi develops a consensus forecast about
what will occur in the future.

Question 9 In Bayesian analysis, additional information is
used to alter the __________ probability of the occurrence of an
event.
Question 10 __________ is a measure of dispersion of random
variable values about the expected value.
Question 11 The __________ is the maximum amount a decision
maker would pay for additional information.
Question 12 Developing the cumulative probability
distribution helps to determine
Question 13 A seed value is a(n)
Question 14 Pseudorandom numbers exhibit __________ in order
to be considered truly random.
Question 15 Consider the following frequency of demand:
If the simulation begins with 0.8102, the simulated value for
demand would be
Question 16 __________ is a linear regression model relating
demand to time.
Question 17 worth 2 points, 1 hour time limit (chapters 1,ue
units EXCEPT:The U.S. Department of Agriculture estimates that
the yearly yield of limes per acre is distributed as follows:
Yield, bushels per acre Probability
350 .10

400 .18
450 .50
500 .22
The estimated average price per bushel is $16.80.
What is the expected yield of the crop?
Question 18 __________ methods are the most common type of
forecasting method for the long-term strategic planning
process.
Question 19 In exponential smoothing, the closer alpha is to
__________, the greater the reaction to the most recent demand.
Question 20 Given the following data on the number of pints
of ice cream sold at a local ice cream store for a 6-period time
frame:
If the forecast for period 5 is equal to 275, use exponential
smoothing with α = .40 to compute a forecast for period 7.
Question 21
Question 22 Coefficient of determination is the percentage of
the variation in the __________ variable that results from the
__________ variable.
Question 23 Which of the following possible values of alpha

would cause exponential smoothing to respond the most slowly
to sudden changes in forecast errors?
Question 24 Consider the following demand and forecast.
Period Demand Forecast
1 7 10
2 12 15
3 18 20
4 22
If MAD = 2, what is the forecast for period 4?
Question 25 An automotive center keeps tracks of customer
complaints received each week. The probability distribution
for complaints can be represented as a table or a graph, both
shown below. The random variable xi represents the number of
complaints, and p(xi) is the probability of receiving xi
complaints.
xi 0 1 2 3 4 5 6
p(xi) .10 .15 .18 .20 .20 .10 .07
What is the average number of complaints received per week?
Round your answer to two places after the decimal.
Question 26 An online sweepstakes has the following payoffs
and probabilities. Each person is limited to one entry.
The probability of winning at least $1,000.00 is ________.
Question 27 A fair die is rolled 8 times. What is the probability
that an even number (2,4, 6) will occur between 2 and 4 times?
Round your answer to four places after the decimal.

Question 28 A life insurance company wants to estimate their
annual payouts. Assume that the probability distribution of the
lifetimes of the participants is approximately a normal
distribution with a mean of 68 years and a standard deviation
of 4 years. What proportion of the plan recipients would
receive payments beyond age 75? Round your answer to four
places after the decimal.
Question 29 The local operations manager for the IRS must
decide whether to hire 1, 2, or 3 temporary workers. He
estimates that net revenues will vary with how well taxpayers
comply with the new tax code. The following payoff table is
given in thousands of dollars (e.g. 50 = $50,000).
If he uses the maximin criterion, how many new workers will
he hire?
Question 30 An investor is considering 4 different
opportunities, A, B, C, or D. The payoff for each opportunity will
depend on the economic conditions, represented in the payoff
table below.
Economic Condition
Poor Average Good Excellent
Investment (S1) (S2) (S3) (S4)
A 50 75 20 30
B 80 15 40 50
C -100 300 -50 10
D 25 25 25 25

If the probabilities of each economic condition are 0.5, 0.1, 0.35,
and 0.05 respectively, what is the highest expected payoff?
Question 31 A normal distribution has a mean of 500 and a
standard deviation of 50. A manager wants to simulate one
value from this distribution, and has drawn the number 1.4
randomly. What is the simulated value?
Question 32 Consider the following annual sales data for 2001-
2008.
Calculate the correlation coefficient . Use four significant digits
after the decimal.
Question 33 The following data summarizes the historical
demand for a product.
Use exponential smoothing with α = .2 and the smoothed
forecast for July is 32. Determine the smoothed forecast for
August.
Question 34 Robert wants to know if there is a relation
between money spent on gambling and winnings.
What is the coefficient of determination? Note: please report
your answer with 2 places after the decimal point.

frame:
Compute a 3-period moving average for period 6. Use two
Question 36 Given the following data, compute the MAD for the
forecast.
Question 37 Given the following data on the number of pints of
ice cream sold at a local ice cream store for a 6-period time
frame:
Question 38 The following sales data are available for 2003-
2008 :
Calculate the absolute value of the average error. Use three
significant digits after the decimal.
demand for a product
If the forecasted demand for June, July and August is 32, 38 and
42, respectively, what is MAPD? Write your answer in decimal
form and not in percentages. For example, 15% should be
written as 0.15. Use three significant digits after the decimal.
Question 40 This is the data from the last 4 weeks:

Use the equation of the regression line to forecast the increased
sales for when the number of ads is 10.
MAT 540 Midterm Exam Set 2
simultaneously.
Question 3 An inspector correctly identifies defective products
90% of the time. For the next 10 products, the probability that
he makes fewer than 2 incorrect inspections is 0.736.
Question 5 Starting conditions have no impact on the validity
of a simulation model.
patterns.
Question 8 Qualitative methods are the least common type of

process.
event.
Question 11 The __________ is the expected value of the regret for
each decision.
Question 14 In the Monte Carlo process, values for a random
variable are generated by __________ a probability distribution.
Question 15 Two hundred simulation runs were completed
using the probability of a machine breakdown from the table
below. The average number of breakdowns from the
simulation trials was 1.93 with a standard deviation of 0.20.
Question 17 __________ is absolute error as a percentage of
demand.

Question 18 __________ is a category of statistical techniques that
uses historical data to predict future behavior.
Question 19 Worth 2 points, 1 hour time limit (chapters 1,ue
demand to time.
Question 23 __________ is the difference between the forecast and
actual demand.
process.
Question 25 A loaf of bread is normally distributed with a
mean of 22 oz and a standard deviation of 0.5 oz. What is the
probability that a loaf is larger than 21 oz? Round your answer
to four places after the decimal.

Question 27 A fair die is rolled 8 times. What is the probability
that an even number (2,4, 6) will occur between 2 and 4
times? Round your answer to four places after the decimal.
opportunities,A, B, C, or D. The payoff for each opportunity will
table below.
comply with the new tax code. The following payoff table is
given in thousands of dollars (e.g. 50 = $50,000).
If he thinks the chances of low, medium, and high compliance
are 20%, 30%, and 50% respectively, what is the expected
value of perfect information? Note: Please express your

answer as a whole number in thousands of dollars (e.g. 50 =
$50,000). Round to the nearest whole number, if necessary.
Question 31 Given the following random number ranges and
the following random number sequence: 62, 13, 25, 40, 86, 93,
determine the average demand for the following distribution of
demand.
demand for a product.
Use exponential smoothing with α = .2 and the smoothed
forecast for July is 32. Determine the smoothed forecast for
August.
Question 34 Daily highs in Sacramento for the past week (from
least to most recent) were: 95, 102, 101, 96, 95, 90 and
92. Develop a forecast for today using a 2 day moving average.

Question 36 This is the data from the last 4 weeks:
92. Develop a forecast for today using a weighted moving
average, with weights of .6, .3 and .1, where the highest weights
are applied to the most recent data.
forecast.
Year Demand Forecast
frame:
frame:

Question 2 An inspector correctly identifies defective
products 90% of the time. For the next 10 products, the
probability that he makes fewer than 2 incorrect inspections is
0.736.
Question 6 A table of random numbers must be normally
distributed and efficiently generated.
patterns.
event.

Question 11 The __________ is the maximum amount a decision
maker would pay for additional information.
Question 14 Consider the following frequency of demand:
demand would be
Question 15 Random numbers generated by a __________
process instead of a __________ process are pseudorandom
numbers.
Question 16 __________ is a category of statistical techniques
that uses historical data to predict future behavior.
frame:
Question 18 Consider the following graph of sales.
Which of the following characteristics is exhibited by the data?

Question 19 Consider the following demand and forecast.
Period Demand Forecast
1 7 10
2 12 15
3 18 20
4 22
If MAD = 2, what is the forecast for period 4?
process.
What is the expected value at node 4? Round your answer to
the nearest whole number. Do not include the dollar sign “$” in
your answer.
Question 31 A normal distribution has a mean of 500 and a
standard deviation of
frame:

2008.
Determine a 4-year weighted moving average forecast for 2009,
where weights are W1 = 0.1, W2 = 0.2, W3 = 0.2 and W4 = 0.5.
Question 36 Daily highs in Sacramento for the past week
(from least to most recent) were: 95, 102, 101, 96, 95, 90 and
Question 37 Consider the following annual sales data for
2001-2008.
after the decimal.

Question 38 Daily highs in Sacramento for the past week
(from least to most recent) were: 95, 102, 101, 96, 95, 90 and
92. Develop a forecast for today using a weighted moving
average, with weights of .6, .3 and .1, where the highest weights
are applied to the most recent data.
frame:
forecast.
Question 2 An inspector correctly identifies defective products
90% of the time. For the next 10 products, the probability that
he makes fewer than 2 incorrect inspections is 0.736.
simultaneously.

Question 5 Simulation results will always equal analytical
results if 30 trials of the simulation have been conducted.
Question 6 A table of random numbers must be normally
distributed and efficiently generated.
patterns.
Question 9 Assume that it takes a college student an average of
5 minutes to find a parking spot in the main parking
lot. Assume also that this time is normally distributed with a
standard deviation of 2 minutes. What time is exceeded by
approximately 75% of the college students when trying to find
a parking spot in the main parking lot?
event.
each decision.
Question 12 Consider the following frequency of
demand:

demand would be
Question 16 __________ is a measure of the strength of the
relationship between independent and dependent variables.
demand to time.
Question 18 Coefficient of determination is the percentage of
the variation in the __________ variable that results from the
__________ variable.
Question 19 __________ is the difference between the forecast
and actual demand.
frame:

Question 22 worth 2 points, 1 hour time limit (chapters 1,ue
Yield, bushels per acre Probability
350 .10
400 .18
450 .50
500 .22
process.
Question 24 __________ is a category of statistical techniques that
uses historical data to predict future behavior.
Question 26 A loaf of bread is normally distributed with a
mean of 22 oz and a standard deviation of 0.5 oz. What is the

probability that a loaf is larger than 21 oz? Round your answer
to four places after the decimal.
Question 27 The drying rate in an industrial process is
dependent on many factors and varies according to the
following distribution.
Compute the mean drying time. Use two places after the
decimal.
opportunities,A, B, C, or D. The payoff for each opportunity will
table below.
comply with the new tax code.
If he is conservative, how many new workers will he hire?
• Question 31 Consider the following distribution and random
numbers:
If a simulation begins with the first random number, what

would the first simulation value would be __________.
• Question 32 This is the data from the last 4 weeks:
frame:
forecast.
Question 35 Consider the following annual sales data for 2001-
2008.
after the decimal.
What is the coefficient of determination? Use two significant

2008.
Determine a 4-year weighted moving average forecast for 2009,
where weights are W1 = 0.1, W2 = 0.2, W3 = 0.2 and W4 = 0.5.
2008 :
Calculate the absolute value of the average error. Use three
significant digits after the decimal.
simultaneously.

Question 6 Starting conditions have no impact on the validity
of a simulation model.
Question 7 Qualitative methods are the least common type of
process.
patterns.
Question 9 Assume that it takes a college student an average
of 5 minutes to find a parking spot in the main parking
standard deviation of 2 minutes. What time is exceeded by
approximately 75% of the college students when trying to find
a parking spot in the main parking lot?
each decision.
Question 12 Consider the following frequency of demand: If
the simulation begins with 0.8102, the simulated value for
demand would be

Question 13 Random numbers generated by a __________
process instead of a __________ process are pseudorandom
numbers.
Question 14 Two hundred simulation runs were completed
using the probability of a machine breakdown from the table
below. The average number of breakdowns from the
simulation trials was 1.93 with a standard deviation of 0.20.
No. of breakdowns per week Probability Cumulative
probability
What is the probability of 2 or fewer breakdowns?
Question 16 __________ is a category of statistical techniques
that uses historical data to predict future behavior.
process.
demand to time.
Question 19 rob 14, and 15)estion worth 2 points, 1 hour time
limit (chapters 1,ue units EXCEPT:The U.S. Department of
Agriculture estimates that the yearly yield of limes per acre is
distributed as follows:

Question 21 __________ is absolute error as a percentage of
demand.
Question 22 Consider the following graph of sales. Which of
the following characteristics is exhibited by the data?
frame:

STRAYER MAT 540 Week 1 Discussion Class Introductions NEW
540-week-1-discussion-class-introductions-recent
"Class Introductions" Please respond to the following:
• Please introduce yourself, including your educational and
career goals, as well as some personal information about
yourself. In your introduction, please draw from your own
experience (or use a search engine) to give an example of how
probability is used in your chosen profession. If you get your
information from an online or other resource, be sure to cite
the source of the information

STRAYER MAT 540 Week 1 Homework Chapter 1 and Chapter
11 NEW
540-week-1-homework-chapter-1-and-chapter-11-recent
1. The Retread Tire Company recaps tires. The fixed annual cost
of the recapping operation is$65,000. The variable cost of
recapping a tire is $7.5. The company charges$25 to recap a
tire.
a. For an annual volume of 15, 000 tire, determine the total
cost, total revenue, and profit.
b. Determine the annual break-even volume for the Retread
Tire Company operation.
2. Evergreen Fertilizer Company produces fertilizer. The
company’s fixed monthly cost is $25,000,and its variable cost
per pound of fertilizer is $0.20. Evergreen sells the fertilizer for
$0.45 perpound. Determine the monthly break-even volume for
the company.
3. If Evergreen Fertilizer Company in problem 2 changes the
price of its fertilizer from $0.45 perpound to $0.55 per pound,
what effect will the change have on the break-even volume?4. If
Evergreen Fertilizer Company increases its advertising
expenditure by $10,000 per year, whateffect will the increase
have on the break-even volume computed in problem 2?5.
Annie McCoy, a student at Tech, plans to open a hot dog stand
inside Tech’s football stadiumduring home games. There are 6

home games scheduled for the upcoming season. She must pay
theTech athletic department a vendor’s fee of $3,000 for the
season. Her stand and other equipmentwill cost her $3,500 for
the season. She estimates that each hot dog she sells will cost
her $0.40. shehas talked to friends at other universities who
sell hot dogs at games. Based on their informationand the
athletic department’s forecast that each game will sell out, she
anticipates that she will sellapproximately 1,500 hot dogs
during each game.
a. What price should she charge for a hot dog in order to break
even?
b. What factors might occur during the season that would alter
the volume sold and thus the
break-even price Annie might charge?
6. The college of business at Kerouac University is planning to
begin an online MBA program. Theinitial start-up cost for
computing equipment, facilities, course development and staff
recruitmentand development is $400,000. The college plans to
charge tuition of $20,000 per student per year.However, the
university administration will charge the college $10,000 per
student for the first 100students enrolled each year for
administrative costs and its share of the tuition payments.
a. How many students does the college need to enroll in the first
year to break-even?
b. If the college can enroll 80 students the first year, how much
profit will it make?
MAT540 Homework
c. The college believes it can increase tuition to $25,000, but
doing so would reduce enrollment to
50. Should the college consider doing this?

7. The following probabilities for grades in management
science have been determined based on past
records:
Grade Probability
A 0.1
B 0.2
C 0.4
D 0.2
F 0.10
1.00
The grades are assigned on a 4.0 scale, where an A is a 4.0, a B a
3.0, and so on. Determine the
expected grade and variance for the course.
8. An investment firm is considering two alternative
investments, A and B, under two possible futuresets of
economic conditions good and poor. There is a .60 probability
of good economicconditionsoccurringand a .40 probability of
poor economic conditions occurring. The expected gains
andlosses under each economic type of conditions are shown in
the following table:
Investment
Economic Conditions
Good Poor
A $380,000 -$100,000
B $130,000 $85,000
Using the expected value of each investment alternative,
determine which should be selected.
9. The weight of the bags of fertilizer is normally distributed,
with a mean of 45 pounds and astandard deviation of 5 pounds.
What is the probability that a bag of fertilizer will weigh
between38 and 50 pounds

10. The polo Development Firm is building a shopping center. It
has informed renters that their rentalspaces will be ready for
occupancy in 18 months. If the expected time until the shopping
center iscompleted is estimated to be 15 months, with a
standard deviation of 5 months, what is theprobability that the
renters will not be able to occupy in 18 months?
11. The manager of the local National Video Store sells
videocassette recorders at discount prices. Ifthe store does not
have a video recorder in stock when a customer wants to buy
one, it will lose thesale because the customer will purchase a
recorder from one of the many local competitors. Theproblem
is that the cost of renting warehouse space to keep enough
recorders in inventory to meetall demand isexcessively high.
The manager has determined that if 85% of customer demand
forrecorders can be met, then the combined cost of lost sales
and inventory will be minimized. Themanager has estimated
that monthly demand for recorders is normally distributed,
with a mean of175 recorders and a standard deviation of 55.
Determine the number of recorders the managershould order
each month to meet 85% of customer demand.

STRAYER MAT 540 Week 1-11 All Homework, DQs, Midterm (5
Set) , Final Exam (20 Set) NEW
540-week-1-11-all-homework-dqs-midterm-final-exam-
recent
MAT 540 Midterm Exam (5 Sets)
MAT 540 Final Exam (20 Sets)

information
Programming

STRAYER MAT 540 Week 1-11 All Discussion Question NEW
540-week-1-11-all-discussion-question-recent
information
Programming

STRAYER MAT 540 Week 1-10 All Homework NEW
540-week-1-10-all-homework-recent

STRAYER MAT 540 Week 2 Discussion Expected value of perfect
information NEW
540-week-2-discussion-expected-value-of-perfect-
information-recent
In your own words, explain how to obtain the “expected value
of perfect information” for any payoff table, which has
probabilities associated with each state of nature. Then,
provide an example, drawing from any of the payoff tables in
Problems 1-17 in the back of Chapter 12. If no probabilities are
given for the states of nature, then assume equal likelihood.

STRAYER MAT 540 Week 2 Homework Chapter 12 NEW
540-week-2-homework-chapter-12-recent
Week 2 Homework
Chapter 12
1. A local real estate investor in Orlando is considering three
alternative investments; a motel, a restaurant, or a theater.
Profits from the motel or restaurant will be affected by the
availability of gasoline and the number of tourists; profits from
the theater will be relatively stable under any conditions. The
following payoff table shows the profit or loss that could result
from each investment:
Determine the best investment, using the following decision
criteria.
a. Maximax
b. Maximin
c. Minimax regret
d. Hurwicz (α = 0.4)

e. Equal likelihood
2. A concessions manager at the Tech versus A&M football game
must decide whether to have the vendors sell sun visors or
umbrellas. There is a 35% chance of rain, a 25% chance of
overcast skies, and a 40% chance of sunshine, according to the
weather forecast in college junction, where the game is to be
held. The manager estimates that the following profits will
result from each decision, given each set of weather conditions:
a. Compute the expected value for each decision and select the
best one.
b. Develop the opportunity loss table and compute the expected
opportunity loss for each decision.
3. Place-Plus, a real estate development firm, is considering
several alternative development projects. These include
building and leasing an office park, purchasing a parcel of land
and building an office building to rent, buying and leasing a
warehouse, building a strip mall, and selling condominiums.
The financial success of these projects depends on interest rate
movement in the next 5 years. The various development
projects and their 5- year financial return (in $1,000,000s)
given that interest rates will decline, remain stable, or increase,
are in the following payoff table. Place-Plus real estate
development firm has hired an economist to assign a
probability to each direction interest rates may take over the
next 5 years. The economist has determined that there is a
0.45 probability that interest rates will decline, a 0.35
probability that rates will remain stable, and a
0.2 probability that rates will increase.

a. Using expected value, determine the best project.
b. Determine the expected value of perfect information.
4. The director of career advising at Orange Community College
wants to use decision analysis to provide information to help
students decide which 2-year degree program they should
pursue. The director has set up the following payoff table for
six of the most popular and successful degree programs at OCC
that shows the estimated 5-Year gross income ($) from each
degree for four future economic conditions:
Determine the best degree program in terms of projected
income, using the following decision criteria:
a. Maximax
b. Maximin
c. Equal likelihood
d. Hurwicz (α=0.4)
5. Construct a decision tree for the following decision situation
and indicate the best decision.
Fenton and Farrah Friendly, husband-and-wife car dealers, are
soon going to open a new dealership. They have three offers:
from a foreign compact car company, from a U.S. producer of
full-sized cars, and from a truck company. The success of each
type of dealership will depend on how much gasoline is going to
be available during the next few years. The profit from each
type of dealership, given the availability of gas, is shown in the
following payoff table:

STRAYER MAT 540 Week 2 Quiz 1 Set 1 QUESTIONS NEW
540-week-2-quiz-1-set-1-questions-recent
Question 1: Parameters are known, constant values that are
usually coefficients of variables in equations.
Question 2: If variable costs increase, but price and fixed costs
are held constant, the break even point will decrease.
Question 3: Probabilistic techniques assume that no
Question 4: Fixed cost is the difference between total cost and
total variable cost.
Question 5: A binomial probability distribution indicates the
probability of r successes in n trials.
Question 6: The events in an experiment are mutually
exclusive if only one can occur at a time.
Question 7: If events A and B are independent, then P(A|B) =
P(B|A).
Question 8: If fixed costs increase, but variable cost and price
remain the same, the break even point
Question 9: If the price increases but fixed and variable costs
do not change, the break even point
Question 10: A bed and breakfast breaks even every month if
they book 30 rooms over the course of a month. Their fixed
cost is $4200 per month and the revenue they receive from

each booked room is $180. What their variable cost per
occupied room?
Question 11: EKA manufacturing company produces Part #
2206 for the aerospace industry. Each unit of part # 2206 is
sold for $15. The unit production cost of part # 2206 is $3. The
fixed monthly cost of operating the production facility is $3000.
How many units of part # 2206 have to be sold in a month to
break-even?
Question 12: In a binomial distribution, for each of n trials, the
event
Question 13: The expected value of the standard normal
distribution is equal to
Question 14: The area under the normal curve represents
probability, and the total area under the curve sums to
Question 15: Administrators at a university are planning to
offer a summer seminar. The costs of reserving a room, hiring
an instructor, and bringing in the equipment amount to $3000.
Suppose that it costs $25 per student for the administrators to
provide the course materials. If we know that 20 people will
attend, what price should be charged per person to break
even? Note: please report the result as a whole number,
rounding if necessary and omitting the decimal point.
Question 16: A production process requires a fixed cost of
$50,000. The variable cost per unit is $25 and the revenue per
unit is projected to be $45. Find the break-even point.
Question 17: Administrators at a university will charge
students $158 to attend a seminar. It costs $2160 to reserve a
room, hire an instructor, and bring in the equipment. Assume it
costs $50 per student for the administrators to provide the
course materials. How many students would have to register
for the seminar for the university to break even?Note: please
report the result as a whole number, omitting the decimal
point.
Question 18: Wei is considering pursuingan MS in Information

Systems degree. She has applied to two different universities.
The acceptance rate for applicants with similar qualifications is
20% for University X and 45% for University Y. What is the
probability that Wei will be accepted by at least one of the two
universities? {Express your answer as a percent. Round (if
necessary) to the nearest whole percent and omit the decimal.
For instance, 20.1% would be written as 20}
Question 19: An inspector correctly identifies defective
products 90% of the time. For the next 10 products, what is the
probability that he makes fewer than 2 incorrect
inspections?Note: Please report your answer with two places
to the right of the decimal, rounding if appropriate.
Question 20: An automotive center keeps tracks of customer
for complaints can be represented as a table (shown
below). The random variable xi represents the number of
complaints.
xi 0 1 2 3 4 5 6
p(xi) .10 .15 .18 .20 .20 .10 .07
Note: Please report your answer with two places to the right of
the decimal, rounding if appropriate.

Question 1 Probabilistic techniques assume that no
Question 2 Fixed cost is the difference between total cost
and total variable cost.
Question 3 If variable costs increase, but price and fixed
costs are held constant, the break even point will decrease.
Question 4 Parameters are known, constant values that are
Question 5 If events A and B are independent, then P(A|B) =
P(B|A).
Question 7 The events in an experiment are mutually
exclusive if only one can occur at a time.
Question 8 If fixed costs increase, but variable cost and price
Question 9 If the price increases but fixed and variable costs
do not change, the break even point
Question 10 The indicator that results in total revenues being
equal to total cost is called the
Question 11 A model is a functional relationship that
includes:
Question 12 In a binomial distribution, for each of n trials, the

event
Question 13 The area under the normal curve represents
Question 14 The expected value of the standard normal
Question 15 Administrators at a university will charge
students $158 to attend a seminar. It costs $2160 to reserve a
room, hire an instructor, and bring in the equipment. Assume
it costs $50 per student for the administrators to provide the
course materials. How many students would have to register
for the seminar for the university to break even? Note: please
report the result as a whole number, omitting the decimal
point.
Question 16 A production run of toothpaste requires a fixed
cost of $100,000. The variable cost per unit is $3.00. If 50,000
units of toothpaste will be sold during the next month, what
sale price must be chosen in order to break even at the end
of the month? Note: please report the result as a whole
number, rounding if necessary and omitting the decimal
point.
Question 17 Administrators at a university are planning to
offer a summer seminar. The costs of reserving a room,
hiring an instructor, and bringing in the equipment amount to
$3000.
Suppose that it costs $25 per student for the administrators
to provide the course materials. If we know that 20 people
will attend, what price should be charged per person to break
Question 18 The variance of the standard normal distribution
is equal to __________.
Question 19 Employees of a local company are classified
according to gender and job type. The following table
summarizes the number of people in each job category.

Male (M) Female (F)
Job
Administrative (AD) 110 10
Salaried staff (SS) 30 50
Hourly staff (HS) 60 40
If an employee is selected at random, what is the probability
that the employee is female or works as a member of the
administration?
Question 20 An inspector correctly identifies defective
products 90% of the time. For the next 10 products, what is
the probability that he makes fewer than 2 incorrect
inspections? Note: Please report your answer with two
places to the right of the decimal, rounding if appropriate.

Question 1 Parameters are known, constant values that are
Question 2 In general, an increase in price increases the break
even point if all costs are held constant.
Question 3 If variable costs increase, but price and fixed costs
are held constant, the break even point will decrease.
Question 4 Probabilistic techniques assume that no
Question 5 If events A and B are independent, then P(A|B) =
P(B|A).
Question 6 The events in an experiment are mutually exclusive
if only one can occur at a time.
Question 7 A binomial probability distribution indicates the
probability of r successes in n trials.
Question 8 A model is a functional relationship that includes:
Question 9 If the price increases but fixed and variable costs do
not change, the break even point
Question 10 If fixed costs increase, but variable cost and price
Question 11 A bed and breakfast breaks even every month if

they book 30 rooms over the course of a month. Their fixed
cost is $4200 per month and the revenue they receive from
each booked room is $180. What their variable cost per
occupied room?
Question 12 The expected value of the standard normal
Question 13 In a binomial distribution, for each of n trials, the
event
Question 14 The area under the normal curve represents
Question 15 A production run of toothpaste requires a fixed
cost of $100,000. The variable cost per unit is $3.00. If 50,000
units of toothpaste will be sold during the next month, what
sale price must be chosen in order to break even at the end of
the month? Note: please report the result as a whole number,
Question 16 Administrators at a university are planning to
offer a summer seminar. The costs of reserving a room, hiring
an instructor, and bringing in the equipment amount to $3000.
Suppose that it costs $25 per student for the administrators to
provide the course materials. If we know that 20 people will
attend, what price should be charged per person to break
Question 17 A production process requires a fixed cost of
$50,000. The variable cost per unit is $25 and the revenue per
unit is projected to be $45. Find the break-even point.
Question 18 Wei is considering pursuing an MS in Information
Systems degree. She has applied to two different universities.
The acceptance rate for applicants with similar qualifications is
20% for University X and 45% for University Y. What is the
probability that Wei will be accepted by at least one of the two
universities? {Express your answer as a percent. Round (if

necessary) to the nearest whole percent and omit the decimal.
For instance, 20.1% would be written as 20}
Question 19 The variance of the standard normal distribution
is equal to __________.
Question 20 An automotive center keeps tracks of customer
for complaints can be represented as a table (shown
below). The random variable xi represents the number of
complaints.
xi 0 1 2 3 4 5 6
p(xi) .10 .15 .18 .20 .20 .10 .07
Note: Please report your answer with two places to the right of
the decimal, rounding if appropriate.

STRAYER MAT 540 Week 3 Discussion Simulation NEW
540-week-3-discussion-simulation-recent
Select one (1) of the following topics for your primary
discussion posting:
Identify the part of setting up a simulation in Excel that you find
to be the most challenging, and explain why.
Identify resources that can help you with that. Explain how
simulation is used in the real world.
Provide a specific example from your own line of work, or a line
of work that you find particularly interesting.

1. The Hoylake Rescue Squad receives an emergency call every
1, 2, 3, 4, 5, or 6 hours, according to
the following probability distribution. The squad is on duty 24
hours per day, 7 days per week:
Time Between
a. Simulate the emergency calls for 3 days (note that this will
require a “running” , or cumulative,
hourly clock), using the random number table.
b. Compute the average time between calls and compare this
value with the expected value of the
time between calls from the probability distribution. Why are
the result different?
2. The time between arrivals of cars at the Petroco Services
Station is defined by the following
probability distribution:
Time Between
a. Simulate the arrival of cars at the service station for 20
arrivals and compute the average time
between arrivals.

b. Simulate the arrival of cars at the service station for 1 hour,
using a different stream of random
numbers from those used in (a) and compute the average time
between arrivals.
c. Compare the results obtained in (a) and (b).
3. The Dynaco Manufacturing Company produces a product in a
process consisting of operations of
five machines. The probability distribution of the number of
machines that will break down in a
week follows:
a. Simulate the machine breakdowns per week for 20 weeks.
b. Compute the average number of machines that will break
down per week.
4. Simulate the following decision situation for 20 weeks, and
recommend the best decision.
A concessions manager at the Tech versus A&M football game
must decide whether to have the
vendors sell sun visors or umbrellas. There is a 30% chance of
rain, a 15% chance of overcast skies,
and a 55% chance of sunshine, according to the weather
forecast in college junction, where the
game is to be held. The manager estimates that the following
profits will result from each decision,
given each set of weather conditions:
MAT540 Homework
5. Every time a machine breaks down at the Dynaco
Manufacturing Company (Problem 3), either 1, 2,
or 3 hours are required to fix it, according to the following
probability distribution:
Repair Time (hr.) Probability

Simulate the repair time for 20 weeks and then compute the
average weekly repair time.

Question 1 If two events are not mutually exclusive, then P(A or
B) = P(A) + P(B)
Question 2 Probability trees are used only to compute
conditional probabilities.
Question 3 Seventy two percent of all observations fall within 1
standard deviation of the mean if the data is normally
distributed.
Question 4 Both maximin and minimin criteria are optimistic.
Question 5 The equal likelihood criterion assigns a probability
of 0.5 to each state of nature, regardless of how many states of
nature there are.
Question 6 The Hurwicz criterion is a compromise between the
minimax and minimin criteria.
Question 7 Using the minimax regret criterion, we first
construct a table of regrets. Subsequently, for each possible
decision, we look across the states of nature and make a note of
the maximum regret possible for that decision. We then pick
the decision with the largest maximum regret.

standard deviation of 2 minutes. Find the probability that a
randomly selected college student will take between 2 and 6
minutes to find a parking spot in the main parking lot.
Question 9 The chi-square test is a statistical test to see if an
observed data fit a _________.
Question 10 The metropolitan airport commission is
considering the establishment of limitations on noise pollution
around a local airport. At the present time, the noise level per
jet takeoff in one neighborhood near the airport is
approximately normally distributed with a mean of 100
decibels and a standard deviation of 3 decibels. What is the
probability that a randomly selected jet will generate a noise
level of more than 105 decibels?
Question 11 A group of friends are planning a recreational
outing and have constructed the following payoff table to help
them decide which activity to engage in. Assume that the
payoffs represent their level of enjoyment for each activity
under the various weather conditions.
Weather
Cold Warm Rainy
S1 S2 S3
Bike: A1 10 8 6
Hike: A2 14 15 2
Fish: A3 7 8 9
What is the conservative decision for this situation?
Question 12 A business owner is trying to decide whether to
buy, rent, or lease office space and has constructed the
following payoff table based on whether business is brisk or
slow.
The maximin strategy is:
Question 12 The maximin criterion results in the

slow.
If the probability of brisk business is .40 and for slow business
is .60, the expected value of perfect information is:
Question 14 A brand of television has a lifetime that is
normally distributed with a mean of 7 years and a standard
deviation of 2.5 years. What is the probability that a randomly
chosen TV will last more than 8 years? Note: Write your
answers with two places after the decimal, rounding off as
appropriate.
Question 15 A life insurance company wants to update its
actuarial tables. Assume that the probability distribution of the
of 3.5 years. What proportion of the plan participants are
expected to see their 75th birthday? Note: Write your answers
with two places after the decimal, rounding off as appropriate.
Question 16 A manager has developed a payoff table that
indicates the profits associated with a set of alternatives under
2 possible states of nature.
Alt S1 S2
1 10 2
2 -2 8
3 8 5
What is the highest expected value? Assume that the
probability of S2 is equal to 0.4.
Question 17 Consider the following decision tree.
What is the expected value for the best decision? Round your
answer to the nearest whole number.

slow.
Question 19 If the probability of brisk business is .40, what is
the numerical maximum expected value?
Question 20 The quality control manager for ENTA Inc. must
decide whether to accept (a1), further analyze (a2) or reject
(a3) a lot of incoming material. Assume the following payoff
table is available. Historical data indicates that there is 30%
chance that the lot is poor quality (s1), 50 % chance that the lot
is fair quality (s2) and 20% chance that the lot is good quality
(s3).
What is the numerical value of the maximin?

Question 1 If two events are not mutually exclusive, then P(A or
B) = P(A) + P(B)
Question 2 Seventy two percent of all observations fall within 1
standard deviation of the mean if the data is normally
distributed.
Question 3 Probability trees are used only to compute
conditional probabilities.
Question 4 Using the minimax regret criterion, we first
construct a table of regrets. Subsequently, for each possible
decision, we look across the states of nature and make a note of
the maximum regret possible for that decision. We then pick
the decision with the largest maximum regret.
Question 5 The maximin approach involves choosing the
alternative with the highest or lowest payoff.
minimax and minimin criteria.
maximax and maximin criteria.
standard deviation of 2 minutes. Find the probability that a
randomly selected college student will take between 2 and 6
minutes to find a parking spot in the main parking lot.

Question 9 A professor would like to utilize the normal
distribution to assign grades such that 5% of students receive
A's. If the exam average is 62 with a standard deviation of 13,
what grade should be the cutoff for an A? (Round your answer.
Question 10 The metropolitan airport commission is
considering the establishment of limitations on noise pollution
around a local airport. At the present time, the noise level per
jet takeoff in one neighborhood near the airport is
approximately normally distributed with a mean of 100
decibels and a standard deviation of 3 decibels. What is the
probability that a randomly selected jet will generate a noise
level of more than 105 decibels?
Question 11 Determining the worst payoff for each alternative
and choosing the alternative with the best worst is called
slow.
The maximin strategy is:
slow.
If the probability of brisk business is .40 and for slow business
is .60, the expected value of perfect information is
Question 14 The maximin criterion results in the
Question 15 A life insurance company wants to update its
actuarial tables. Assume that the probability distribution of the
of 3.5 years. What proportion of the plan participants are
expected to see their 75th birthday? Note: Write your answers
with two places after the decimal, rounding off as appropriate.
Question 16 A brand of television has a lifetime that is

normally distributed with a mean of 7 years and a standard
deviation of 2.5 years. What is the probability that a randomly
chosen TV will last more than 8 years? Note: Write your
answers with two places after the decimal, rounding off as
appropriate.
slow.
Question 17 If the probability of brisk business is .40, what is
the numerical maximum expected value?
Question 18 A manager has developed a payoff table that
indicates the profits associated with a set of alternatives under
2 possible states of nature.
Alt S1 S2
1 10 2
2 -2 8
3 8 5
Compute the expected value of perfect information assuming
that the probability of S2 is equal to 0.4.
Question 19 A group of friends are planning a recreational
outing and have constructed the following payoff table to help
them decide which activity to engage in. Assume that the
payoffs represent their level of enjoyment for each activity
under the various weather conditions.
Weather
Cold Warm Rainy
S1 S2 S3
Bike: A1 10 8 6
Hike: A2 14 15 2
Fish: A3 7 8 9
Question 20 If the probabilities of cold weather (S1), warm

weather (S2), and rainy weather (S3) are 0.2, 0.4, and 0.4,
respectively what is the EVPI for this situation?
Consider the following decision tree.
What is the expected value for the best decision? Round your
answer to the nearest whole number.

STRAYER MAT 540 Week 4 Discussion Forecasting Methods
NEW
540-week-4-discussion-forecasting-methods-recent
Discuss Forecasting Methods
discussion posting:
• Identify any challenges you have in setting up a time-series
analysis in Excel. Explain what they are and why they are
challenging. Identify resources that can help you with that.
• Explain how forecasting is used in the real world. Provide a
specific example from your own line of work, or a line of work
that you find particularly interesting.

1. The manager of the Carpet City outlet needs to make an accurate
forecast of the demand for Soft Shag carpet (its biggest seller). If the
manager does not order enough carpet from the carpet mill,
customer will buy their carpet from one of Carpet City’s many
competitors. The manager has collected the following demand data
for the past 8 months: Compute a 3-month moving average forecast
for months 4 through 9.
a. Compute a weighted 3-month moving average forecast for months
4 through 9. Assign weights of 0.55, 0.35, and 0.10 to the months in
sequence, starting with the most recent month.
b. Compare the two forecasts by using MAD. Which forecast appears
to be more accurate?
2. The manager of the Petroco Service Station wants to forecast the
demand for unleaded gasoline next month so that the proper
number of gallons can be ordered from the distributor. The owner
has accumulated the following data on demand for unleaded
gasoline from sales during the past 10 months:

a. Compute an exponential smoothed forecast, using an α value of
0.4
b. Compute the MAD.
3. Emily Andrews has invested in a science and technology mutual
fund. Now she is considering liquidating and investing in another
fund. She would like to forecast the price of the science and
technology fund for the next month before making a decision. She
has collected the following data on the average price of the fund
during the past 20 months:
a. Using a 3-month average, forecast the fund price for month 21.
b. Using a 3-month weighted average with the most recent month
weighted 0.5, the next most recent month weighted 0.30, and the
third month weighted 0.20, forecast the fund price for month 21.
c. Compute an exponentially smoothed forecast, using α=0.3, and
forecast the fund price for month 21.
d. Compare the forecasts in (a), (b), and (c), using MAD, and indicate
the most accurate.
4. Carpet City wants to develop a means to forecast its carpet sales.
The store manager believes that the store’s sales are directly related
to the number of new housing starts in town. The manager has
gathered data from county records on monthly house construction
permits and from store records on monthly sales. These data are as
follows:
Monthly Carpet Sales Monthly Construction
(1,000 yd.) Permits

9 17
14 25
10 8
12 7
15 14
9 7
24 45
21 19
20 28
a. Develop a linear regression model for these data and forecast
carpet sales if 30 construction permits for new homes are filed.
b. Determine the strength of the causal relationship between
monthly sales and new home construction by using correlation.
5. The manager of Gilley’s Ice Cream Parlor needs an accurate
forecast of the demand for ice cream.
The store orders ice cream from a distributor a week ahead; if the
store orders too little, it loses business, and if it orders too much, the
extra must be thrown away. The manager belives that a major
determinant of ice cream sales is temperature (i.e.,the hotter the
weather, the more ice cream people buy). Using an almanac, the
manager has determined the average day time temperature for 14
weeks, selected at random, and from store records he has
determined the ice cream consumption for the same 14 weeks.
These data are summarized as follows:
a. Develop a linear regression model for these data and forecast the
ice cream consumption if the average weekly daytime temperature
is expected to be 85 degrees.
b. Determine the strength of the linear relationship between
temperature and ice cream consumption by using correlation.

c. What is the coefficient of determination? Explain its meaning.

STRAYER MAT 540 Week 5 Discussion Reflection NEW
540-week-5-discussion-reflection-recent
"Reflection to date• Please respond to the following: In a
paragraph, reflect on what you've learned so far in this
course. Identify the most interesting, unexpected, or useful
thing you've learned and explain why

STRAYER MAT 540 Week 6 Discussion LP Models NEW
540-week-6-discussion-lp-models-recent
Discuss LP Models
discussion posting:
• The objective function always includes all of the decision
variables, but that is not necessarily true of the constraints.
Explain the difference between the objective function and the
constraints. Then, explain why a constraint need not refer to all
the variables.
• Pick any constraint from any problem in the text, and explain
how to plot the line that corresponds to that constraint.

1. A Cereal Company makes a cereal from several ingredients.
Two of the ingredients, oats and rice,provide vitamins A and B.
The company wants to know how many ounces of oats and rice
it shouldinclude in each box of cereal to meet the minimum
requirements of 45 milligrams of vitamin A and13 milligrams
of vitamin B while minimizing cost. An ounce of oats
contributes 10 milligrams ofvitamin A and 2 milligram of
vitamin B, whereas an ounce of rice contributes 6 milligrams of
Aand 3 milligrams of B. An ounce of oats costs $0.06, and an
ounce of rice costs $0.03.
a. Formulate a linear programming model for this problem.
b. Solve the model by using graphical analysis.
2. A Furniture Company produces chairs and tables from two
resources- labor and wood. Thecompany has 125 hours of labor
and 45 board-ft. of wood available each day. Demand for chairs
is
limited to 5 per day. Each chair requires 7 hours of labor and
3.5 board-ft. of wood, whereas a tablerequires 14 hours of labor
and 7 board-ft. of wood. The profit derived from each chair is

$325 andfrom each table, $120. The company wants to
determine the number of chairs and tables to produceeach day
in order to maximize profit. Formulate a linear programming
model for this problem.
b. Solve the model by using graphical analysis. (Do not round
the answers)
c. How much labor and wood will be unused if the optimal
numbers of chairs and tables are
produced?
3. Kroeger supermarket sells its own brand of canned peas as
well as several national brands. Thestore makes a profit of
$0.28 per can for its own peas and a profit of $0.19 for any of
the nationalbrands. The store has 6 square feet of shelf space
available for canned peas, and each can of peasakes up 9 square
inches of that space. Point-of-sale records show that each week
the store neversales more than half as many cans of its own
brand as it does of the national brands. The storewants to know
how many cans of its own brand of peas of peas and how many
cans of the nationalbrands to stock each week on the allocated
shelf space in order to maximize profit.
b. Solve the model by using graphical analysis.
MAT540 Homework
4. Solve the following linear programming model graphically:
Minimize Z=8X1 + 6X2

STRAYER MAT 540 Week 7 Discussion sensitivity analysis NEW
540-week-7-discussion-sensitivity-analysis-recent
discussion posting:
• Identify any challenges you have in setting up a linear
programming problem in Excel, and solving it with Solver.
Explain exactly what the challenges are and why they are
challenging. Identify resources that can help you with that.
• Explain what the shadow price means in a maximization
problem. Explain what this tells us from a management
perspective.

1. Southern Sporting Good Company makes basketballs and
footballs. Each product is produced fromtwo resources rubber
and leather. Each basketball produced results in a profit of $11
and eachfootball earns $15 in profit. The resource
requirements for each product and the total resourcesavailable
are as follows:
Product
Total resources available 600 900
a. Find the optimal solution.
b. What would be the effect on the optimal solution if the profit
for the basketball changed from$11 to $12?
c. What would be the effect on optimal solution if 400
additional pounds of rubber could beobtained? What would be
the effect if 600 additional square feet of leather could be
obtained?
2. A company produces two products, A and B, which have
profits of $9 and $7, respectively. Eachunit of product must be
processed on two assembly lines, where the required

production times areas follows:
Product
Resource Requirements per Unit
Line 1 Line 2
A 11 5
B 6 9
Total Hours 65 40
a. Formulate a linear programming model to determine the
optimal product mix that willmaximize profit.
b. What are the sensitivity ranges for the objective function
coefficients?
c. Determine the shadow prices for additional hours of
production time on line 1 and line 2 andindicate whether the
company would prefer additional line 1 or line 2 hours.
3. Formulate and solve the model for the following problem:
Irwin Textile Mills produces two types of cotton cloth denim
and corduroy. Corduroy is a heavier
grade of cotton cloth and, as such, requires 8 pounds of raw
cotton per yard, whereas denim
requires 6 pounds of raw cotton per yard. A yard of corduroy
requires 4 hours of processing time;a yard od denim requires
3.0 hours. Although the demand for denim is practically
unlimited, themaximum demand for corduroy is 510 yards per
month. The manufacturer has 6,500 pounds ofcotton and 3,000
hours of processing time available each month. The
manufacturer makes a profitof $2.5 per yards of denim and
$3.25 per yard of corduroy. The manufacturer wants to know
howmany yards of each type of cloth to produce to maximize
profit. Formulate the model and put itinto standard form. Solve
it
a. How much extra cotton and processing time are left over at

the optimal solution? Is the demandfor corduroy met?
b. If Irwin Mills can obtain additional cotton or processing time,
but not both, which should itselect? How much? Explain your
answer.
4. The Bradley family owns 410 acres of farmland in North
Carolina on which they grow corn andtobacco. Each acre of corn
costs $105 to plant, cultivate, and harvest; each acre of tobacco
costs
$210. The Bradleys’ have a budget of $52,500 for next year. The
government limits the numberof acres of tobacco that can be
planted to 100. The profit from each acre of corn is $300;
theprofit from each acre of tobacco is $520. The Bradleys’ want
to know how many acres of eachcrop to plant in order to
maximize their profit.
a. Formulate the linear programming model for the problem
and solve.
b. How many acres of farmland will not be cultivated at the
optimal solution? Do the Bradleys usethe entire 100-acre
tobacco allotment?
c. The Bradleys’ have an opportunity to lease some extra land
from a neighbor. The neighbor isoffering the land to them for
$110 per acre. Should the Bradleys’ lease the land at that
price?What is the maximum price the Bradleys’ should pay
their neighbor for the land, and howmuch land should they
lease at that price?
MAT540 Homework
d. The Bradleys’ are considering taking out a loan to increase
their budget. For each dollar theyborrow, how much additional
profit would they make? If they borrowed an additional

$1,000,would the number of acres of corn and tobacco they
plant change?

Question 1: Graphical solutions to linear programming
problems have an infinite number of possible objective
function lines.
Question 2: The following inequality represents a resource
constraint for a maximization problem:
X + Y ≥ 20
Question 3: In minimization LP problems the feasible region is
always below the resource constraints.
Question 4: In a linear programming problem, all model
parameters are assumed to be known with certainty.
Question 5: A feasible solution violates at least one of the
constraints.
Question 6: If the objective function is parallel to a constraint,
the constraint is infeasible.
Question 8: Cully furniture buys 2 products for resale: big
shelves (B) and medium shelves (M). Each big shelf costs $500
and requires 100 cubic feet of storage space, and each medium
shelf costs $300 and requires 90 cubic feet of storage space.
The company has $75000 to invest in shelves this week, and the
warehouse has 18000 cubic feet available for storage. Profit for
each big shelf is $300 and for each medium shelf is $150. What
is the maximum profit?

Question 9: The following is a graph of a linear programming
problem. The feasible solution space is shaded, and the optimal
solution is at the point labeled Z*.
Which of the following points are not feasible?
Question 10: The production manager for the Coory soft drink
company is considering the production of 2 kinds of soft drinks:
regular (R) and diet(D). Two of the limited resources are
production time (8 hours = 480 minutes per day) and syrup
limited to 675 gallons per day. To produce a regular case
requires 2 minutes and 5 gallons of syrup, while a diet case
needs 4 minutes and 3 gallons of syrup. Profits for regular soft
drink are $3.00 per case and profits for diet soft drink are $2.00
per case. What is the time constraint?
The equation for constraint DH is:
Question 12: Which of the following statements is not true?
Question 13: In a linear programming problem, a valid
objective function can be represented as
Question 14: The linear programming problem:
MIN Z = 2x1 + 3x2
Subject to: x1 + 2x2 ≤ 20
5x1 + x2 ≤ 40
4x1 +6x2 ≤ 60
x1 , x2 ≥ 0 ,
This linear programming problem is a:
Question 16: A graphical representation of a linear program is
shown below. The shaded area represents the feasible region,
and the dashed line in the middle is the slope of the objective
function.

If this is maximization, which extreme point is the optimal
solution?
Question 17: Which of the following could be a linear
programming objective function?
Question 18: Solve the following graphically
Max z = 3x1 +4x2
s.t. x1 + 2x2 ≤ 16
2x1 + 3x2 ≤ 18
x1 ≥ 2
x2 ≤ 10
x1, x2 ≥ 0
Find the optimal solution. What is the value of the objective
function at the optimal solution? Note: The answer will be an
integer. Please give your answer as an integer without any
decimal point. For example, 25.0 (twenty five) would be written
25
Question 19: Consider the following linear programming
problem:
Max Z = $15x + $20y
Subject to: 8x + 5y ≤ 40
0.4x + y ≥ 4
x, y ≥ 0
At the optimal solution, what is the amount of slack associated
with the first constraint?
Question 20: Max Z = $3x + $9y
Subject to: 20x + 32y ≤ 1600
4x + 2y ≤ 240
y ≤ 40
x, y ≥ 0
with the second constraint?

MAT 540 Week 7 Quiz 3 Set 3 QUESTIONS NEW
Question 1: A feasible solution violates at least one of the
constraints.
Question 2: A linear programming model consists of only
decision variables and constraints.
Question 4: In minimization LP problems the feasible region is
always below the resource constraints.
Question 5: Surplus variables are only associated with
minimization problems.
Question 7: A linear programming problem may have more
than one set of solutions.
regular (R) and diet(D). Two of the limited resources are

production time (8 hours = 480 minutes per day) and syrup
limited to 675 gallons per day. To produce a regular case
requires 2 minutes and 5 gallons of syrup, while a diet case
needs 4 minutes and 3 gallons of syrup. Profits for regular soft
drink are $3.00 per case and profits for diet soft drink are $2.00
per case. What is the time constraint?
regular and diet. Two of her limited resources are production
time (8 hours = 480 minutes per day) and syrup (1 of her
ingredients) limited to 675 gallons per day. To produce a
regular case requires 2 minutes and 5 gallons of syrup, while a
diet case needs 4 minutes and 3 gallons of syrup. Profits for
regular soft drink are $3.00 per case and profits for diet soft
drink are $2.00 per case. For the production combination of
135 cases of regular and 0 cases of diet soft drink, which
resources will not be completely used?
Question 10: In a linear programming problem, the binding
constraints for the optimal solution are:
5x1 + 3x2 ≤ 30
2x1 + 5x2 ≤ 20
Which of these objective functions will lead to the same optimal
solution?
Question 11: Which of the following statements is not true?
regular (R) and diet (D). Two of her limited resources are
production time (8 hours = 480 minutes per day) and syrup (1
of her ingredients) limited to 675 gallons per day. To produce a
regular case requires 2 minutes and 5 gallons of syrup, while a
diet case needs 4 minutes and 3 gallons of syrup. Profits for
regular soft drink are $3.00 per case and profits for diet soft
drink are $2.00 per case. What is the objective function?

Which of the following points are not feasible?
Question 14: Decision variables
Question 15: Cully furniture buys 2 products for resale: big
shelves (B) and medium shelves (M). Each big shelf costs $500
and requires 100 cubic feet of storage space, and each medium
shelf costs $300 and requires 90 cubic feet of storage space.
The company has $75000 to invest in shelves this week, and the
warehouse has 18000 cubic feet available for storage. Profit for
each big shelf is $300 and for each medium shelf is $150. What
is the objective function?
Question 16: Which of the following could be a linear
programming objective function?
Which of the following constraints has a surplus greater than 0?
Question 18: A graphical representation of a linear program is
shown below. The shaded area represents the feasible region,
and the dashed line in the middle is the slope of the objective
function. What would be the new slope of the objective function
if multiple optimal solutions occurred along line segment AB?
Write your answer in decimal notation.
Question 19: Consider the following linear programming
problem:
Max Z = $15x + $20y
Subject to: 8x + 5y ≤ 40
0.4x + y ≥ 4
x, y ≥ 0
with the first constraint?
Question 20: Consider the following minimization problem:
Min z = x1 + 2x2

s.t. x1 + x2 ≥ 300
2x1 + x2 ≥ 400
2x1 + 5x2 ≤ 750
x1, x2 ≥ 0
Find the optimal solution. What is the value of the objective
function at the optimal solution? Note: The answer will be an
integer. Please give your answer as an integer without any
decimal point. For example, 25.0 (twenty five) would be written
25

STRAYER MAT 540 Week 8 Assignment Linear Programming
Case Study You are a portfolio manager for the XYZ investment
fund NEW
540-week-8-assignment-linear-programming-case-study-
you-are-a-portfolio-manager-for-the-xyz-investment-fund-
recent
Week 8 Project
You are a portfolio manager for the XYZ investment fund. The
objective for the fund is to maximize your portfolio returns
from the investments on four alternatives. The investments
include (1) stocks, (2) real estate, (3) bonds, and (4) certificate
of deposit (CD). Your total investment portfolio is $1,000,000.
Investment Returns
Based on the returns from the past five years, you concluded
that the investment annual returns on stocks are 10%, on real
estates are 7% on bonds are 4% and on CD is 1%.
Risk Constraints
However, you also have to analyze the risks associate with each
investment category. A wildly used risk measurement

parameter is called Value at Risk (VaR). (Note: VaR measures
the risk of loss on a specific portfolio of financial assets.) For
example, given a million dollar stock investment, if a portfolio
of stocks has a one-day 4% VaR, there is a 5% probability that
the stock portfolio will fall in value by more than 1,000,000 *
0.004 = $4,000 over a one day period. In the portfolio, the VaR
for stock investments is 6%. Similarly, the VaR for real estate
investment is 2% and the VaR for bond investment is 1% and
the VaR for investment in CD is 0%. To manage the portfolio,
you decided that at 5% probability, your VaR for stocks cannot
exceed $25,000, VaR for real estate cannot exceed $15,000, VaR
for bonds cannot exceed $2,500 and the VaR for CD investment
is $0.
Diversification and Liquidity Constraints
As a diversified investment portfolio, you also decided that
each investment category must hold at least $50,000 of the
total investment assets. In addition, you must hold combined
CD and bond investment no less than $200,000 in order to meet
liquidity requirement.
The total amount of real estate holding shall not exceed 30% of
the portfolio assets.
A. As a portfolio manager, please formulate and solve the
investment portfolio problem using linear programming
technique. What are the amounts invest in (1) stocks, (2) real
estate, (3) bonds and (4) CD?
B. If $500,000 additional investments are available to you in
your portfolio, how would you invest the capital?
C. Would you maintain the portfolio investment if stock yields

lowered to 6%? How would you re-distribute your investment
portfolio?

STRAYER MAT 540 Week 8 Discussion Practice setting up linear
programming models for business applications NEW
540-week-8-discussion-practice-setting-up-linear-
programming-models-for-business-applications-recent
Practice setting up linear programming models for business
applications
Select an even-numbered LP problem from the text, excluding
14, 20, 22, 36 (which are part of your homework assignment).
Formulate a linear programming model for the problem you
select.

1. Betty Malloy, owner of the Eagle Tavern in Pittsburgh, is
preparing for Super Bowl Sunday, and she must determine how
much beer to stock. Betty stocks three brands of beer- Yodel,
Shotz, and Rainwater. The cost per gallon (to the tavern owner)
of each brand is as follows:
Brand....................Cost/Gallon
Yodel.....................$1.50
Shotz...................... 0.90
Rainwater............... 0.50
The tavern has a budget of $2,000 for beer for Super Bowl
Sunday. Betty sells Yodel at a rate of $3.00 per gallon, Shotz at
$2.50 per gallon, and Rainwater at $1.75 per gallon. Based on
past football games, Betty has determined the maximum
customer demand to be 400 gallons of Yodel, 500 gallons of
shotz, and 300 gallons of Rainwater. The tavern has the
capacity to stock 1,000 gallons of beer; Betty wants to stock up
completely. Betty wants to determine the number of gallons of
each brand of beer to order so as to maximize profit.
b. Solve the model by using the computer.

2. As result of a recently passed bill, a congressman’s district
has been allocated $3 million for programs and projects. It is up
to the congressman to decide how to distribute the money. The
congressman has decide to allocate the money to four ongoing
programs because of their importance to his district- a job
training program, a parks project, a sanitation project, and a
mobile library. However, the congressman wants to distribute
the money in a manner that will please the most voters, or, in
other words, gain him the most votes in the upcoming election.
His staff’s estimates of the number of votes gained per dollar
spent for the various programs are as follows.
Program....................Votes/Dollar
Job training................0.03
Parks.............................0.08
Sanitation....................0.05
Mobile library.............0.03
In order also to satisfy several local influential citizens who
financed his election, he is obligated to observe the following
guidelines:
• None of the programs can receive more than 30% of the total
allocation
• The amount allocated to parks cannot exceed the total
allocated to both the sanitation project and the mobile library.
• The amount allocated to job training must at least equal the
amount spent on the sanitation project. Any money not spent in
the district will be returned to the government; therefore, the
congressman wants to spend it all. Thee congressman wants to
know the amount to allocate to each program to maximize his
votes.
3. Anna Broderick is the dietician for the State University
football team, and she is attempting to determine a nutritious

lunch menu for the team. She has set the following nutritional
guidelines for each lunch serving:
• Between 1,300 and 2,100 calories
• At least 4 mg of iron
• At least 15 but no more than 55g of fat
• At least 30g of protein
• At least 60g of carbohydrates
• No more than 35 mg of cholesterol
She selects the menu from seven basic food items, as follows,
with the nutritional contributions per pound and the cost as
given:
............ Calories......Iron....Protein
...Carbohydrates....Fat....Cholesterol......Cost
............. (Per
lb).......(mg/lb).....(g/lb)........(g/lb)..............(g/lb).........(mg/lb)..........
($/lb)
Chicken 500 4.2 17 0 30 180 0.85
Fish 480 3.1 85 0 5 90 3.35
Ground beef 840 0.25 82 0 75 350 2.45
Dried beans 590 3.2 10 30 3 0 0.85
Lettuce 40 0.4 6 0 0 0 0.70
Potatoes 450 2.25 10 70 0 0 0.45
Milk (2%) 220 0.2 16 22 10 20 0.82
The dietician wants to select a menu to meet the nutritional
guidelines while minimizing the total cost per serving.
a. Formulate a linear programming model for this problem and
solve.
b. If a serving of each of the food items (other than milk) was
limited to no more than a half pound, what effect would this
have on the solution?
4. Dr. Maureen Becker, the head administrator at Jefferson
County Regional Hospital, must determine a schedule for
nurses to make sure there are enough of them on duty

throughout the day. During the day, the demand for nurses
varies. Maureen has broken the day in to twelve 2- hour
periods. The slowest time of the day encompasses the three
periods from 12:00 A.M. to 6:00 A.M., which beginning at
midnight; require a minimum of 30, 20, and 40 nurses,
respectively. The demand for nurses steadily increases during
the next four daytime periods. Beginning with the 6:00 A.M.-
8:00 A.M. period, a minimum of 50, 60, 80, and 80 nurses are
required for these four periods, respectively. After 2:00 P.M.
the demand for nurses decreases during the afternoon and
evening hours. For the five 2-hour periods beginning at 2:00
P.M. and ending midnight, 70, 70, 60, 50, and 50 nurses are
required, respectively. A nurse reports for duty at the
beginning of one of the 2-hour periods and works 8 consecutive
hours (which is required in the nurses’ contract). Dr. Becker
wants to determine a nursing schedule that will meet the
hospital’s minimum requirement throughout the day while
using the minimum number of nurses.
5. The production manager of Videotechnics Company is
attempting to determine the upcoming 5-month production
schedule for video recorders. Past production records indicate
that 2,000 recorders can be produced per month. An additional
600 recorders can be produced monthly on an overtime basis.
Unit cost is $10 for recorders produced during regular working
hours and $15 for those produced on an overtime basis.
Contracted sales per month are as follows: Month Contracted
Sales (units) 1 1200 2 2100 3 4 5 2400 3000 4000 Inventory
carrying costs are $2 per recorder per month. The manager
does not want any inventory carried over past the fifth month.
The manager wants to know the monthly production that will
minimize total production and inventory costs. a. Formulate a

linear programming model for this problem. b. Solve the model
by using the computer.

STRAYER MAT 540 Week 9 Discussion Application of Integer
Programming NEW
540-week-9-discussion-application-of-integer-
programming-recent
Explain how the applications of Integer programming differ
from those of linear programming. Give specific instances in
which you would use an integer programming model rather
than an LP model. Provide real-world examples.

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