Part 2 of 8 – Part 2

The next two questions are based on

the following information.

Paul wants to choose one of the two investment opportunities over three

possible scenarios. Investment 1 will yield a return of $10,000 in Scenario 1,

$2,000 in Scenario 2, and a negative return of -$5,000 in Scenario 3.

Investment 2 will yield a return of $6,000 in Scenario 1, $4,000 in Scenario 2,

and zero in Scenario 3. The probability for Scenario 1 is 0.2, for Scenario 2

is 0.3, and for Scenario 3 is 0.5.

Question 1 of 2

If you were to choose the investment that maximizes

Paul’s Expected Money Value (EMV), then you should choose __________.

A.Investment 1

B.Investment 2

C.Indifferent

The next two questions are based on

the following information.

Paul wants to choose one of the two investment opportunities over three

possible scenarios. Investment 1 will yield a return of $10,000 in Scenario 1,

$2,000 in Scenario 2, and a negative return of -$5,000 in Scenario 3.

Investment 2 will yield a return of $6,000 in Scenario 1, $4,000 in Scenario 2,

and zero in Scenario 3. The probability for Scenario 1 is 0.2, for Scenario 2

is 0.3, and for Scenario 3 is 0.5.

Question 2 of 2

If Paul is

uncertain about the return for Investment 1 in Scenario 1, then this return has

to be dollars in order to make Paul

indifferent between these two investments (i.e. the two investments would have

the same EMV.) (Please only enter an integer and include no units.)

Part 4 of 8 – Part 4

The next three questions are based

on the following information.

A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The

sales is relatively constant throughout the month. The owner of this grocery

store purchases milk from a supplier 50 miles away for $2 per carton, and it

takes a day to restock. The holding cost per carton per month is $1.5, and

the ordering cost per order is about $18.5 including labor, gas and

depreciation. Consider a month of 30 days.

Question 1 of 3

The

optimal order quantity is about cartons of milk, and the

average inventory is about cartons. (Please round to the closest

integer and include no units.)

Part 4 of 8 – Part 4

The next three questions are based

on the following information.

A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The sales

is relatively constant throughout the month. The owner of this grocery store

purchases milk from a supplier 50 miles away for $2 per carton, and it takes a

day to restock. The holding cost per carton per month is $1.5, and the ordering

cost per order is about $18.5 including labor, gas and depreciation. Consider a

month of 30 days.

Question 2 of 3

Given the optimal order quantity

calculated above, if the average inventory is 136 cartons, then the monthly

holding cost is dollars, and the total cost

including the cost of supply or the total unit cost for all units, holding

and ordering is dollars. (Please round to two

decimal points and include no units.)

Part 4 of 8 – Part 4

The next three questions are based

on the following information.

A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The sales

is relatively constant throughout the month. The owner of this grocery store

purchases milk from a supplier 50 miles away for $2 per carton, and it takes a

day to restock. The holding cost per carton per month is $1.5, and the ordering

cost per order is about $18.5 including labor, gas and depreciation. Consider a

month of 30 days.

Question 3 of 3

The reorder point is cartons. (Please only enter an

integer and include no units.)

Part

5 of 8 – Part 5

The next two questions are based

on the following information.

A cafeteria wants to introduce a new burger, with bread and beef together

weighing at least 1 ounce. The cafeteria manage also wants the new burger to

meet a new nutrition standard, i.e. contains at least 7 units of Vitamin A

and 10 units of Vitamin B. Each ounce of beef contains 1 unit Vitamin A and 6

units of Vitamin B, while each ounce of bread contains 2 units Vitamin A and

1 units of Vitamin B. The price of beef is $0.5 per ounce and the price of

bread is $0.1 per ounce.

Question 1 of 2

5.0 Points

To

minimize the cost, the cafeteria should use ounces of beef and ounces of bread to make the

new burger. (Please round to two decimal points and include no

units.)

Part 5 of 8 – Part 5

The next two questions are based

on the following information.

A cafeteria wants to introduce a new burger, with bread and beef together

weighing at least 1 ounce. The cafeteria manage also wants the new burger to

meet a new nutrition standard, i.e. contains at least 7 units of Vitamin A

and 10 units of Vitamin B. Each ounce of beef contains 1 unit Vitamin A and 6

units of Vitamin B, while each ounce of bread contains 2 units Vitamin A and

1 units of Vitamin B. The price of beef is $0.5 per ounce and the price of

bread is $0.1 per ounce.

Question 2 of 2

If

the cafeteria uses 1.18 ounces of beef and 2.91 ounces of bread to make the

new burger, the total cost of the new burger (excluding other ingredients)

is dollars, (Please round

to two decimal points and include no units.) and the content of

Vitamin A is while that for Vitamin B is . (Please round to the closest

integer and include no units for the last two answers.)

Mark for Review What’s This?

Part 6 of 8 – Part 6

The next three

questions are based on the following information.

The Low Knock

Oil Company produces two grades of cut-rate gasoline for industrial

distribution. The grades, regular and economy, are produced by refining a blend

of two types of crude oil, type X100 and type X220. Each crude oil differs not

only in cost per barrel, but in composition as well. The following table

indicates the percentage of crucial ingredients found in each of the crude oils

and the cost per barrel for each:

CRUDE

OIL TYPE

INGREDIENT

A (%)

INGREDIENT

B (%)

COST/BARREL

($)

X100

35

55

30.00

X220

60

25

34.80

Weekly demand

for the regular grade of Low Knock gasoline is at least 25,000 barrels, and

demand for the economy is at least 32,000 barrels per week. At least 45% of

each barrel of regular must be ingredient A. At most 50% of each barrel of

economy should contain ingredient B. While the gasoline yield from one barrel

of crude depends on the type of crude and the type of processing used, we will

assume for the sake of this example that one barrel of crude oil will yield

0.46 barrel of gasoline.

Hint: You may

refer to the Low Knock Oil Company example analyzed on page 326-327 in the

textbook (Program 8.9), and simply adjust your constraints for the demands

accordingly.

Question 1 of 3

3.0 Points

At the optimal production, does

the company just make enough regular gasoline to meet the demand? Does

the company just make enough economy gasoline to meet the demand?

A.Yes, yes

B.Yes, no

C.No, yes

D.No, no

Part 6 of 8 – Part 6

The next three

questions are based on the following information.

The Low Knock

Oil Company produces two grades of cut-rate gasoline for industrial

distribution. The grades, regular and economy, are produced by refining a blend

of two types of crude oil, type X100 and type X220. Each crude oil differs not

only in cost per barrel, but in composition as well. The following table

indicates the percentage of crucial ingredients found in each of the crude oils

and the cost per barrel for each:

CRUDE

OIL TYPE

INGREDIENT

A (%)

INGREDIENT

B (%)

COST/BARREL

($)

X100

35

55

30.00

X220

60

25

34.80

Weekly demand

for the regular grade of Low Knock gasoline is at least 25,000 barrels, and

demand for the economy is at least 32,000 barrels per week. At least 45% of

each barrel of regular must be ingredient A. At most 50% of each barrel of economy

should contain ingredient B. While the gasoline yield from one barrel of crude

depends on the type of crude and the type of processing used, we will assume

for the sake of this example that one barrel of crude oil will yield 0.46

barrel of gasoline.

Hint: You may

refer to the Low Knock Oil Company example analyzed on page 326-327 in the

textbook (Program 8.9), and simply adjust your constraints for the demands

accordingly.

Question 2 of 3

3.0 Points

To minimize the production

cost, the optimal amount of X100 crude oil used in producing regular

gasoline is barrels, and the optimal amount

of X220 crude oil used in producing regular gasoline is barrel. (Please round to the closest

integer and include no units.)

Part

6 of 8 – Part 6

The next

three questions are based on the following information.

The Low Knock

Oil Company produces two grades of cut-rate gasoline for industrial

distribution. The grades, regular and economy, are produced by refining a

blend of two types of crude oil, type X100 and type X220. Each crude oil

differs not only in cost per barrel, but in composition as well. The

following table indicates the percentage of crucial ingredients found in each

of the crude oils and the cost per barrel for each:

CRUDE OIL TYPE

INGREDIENT A (%)

INGREDIENT B (%)

COST/BARREL ($)

X100

35

55

30.00

X220

60

25

34.80

Weekly demand

for the regular grade of Low Knock gasoline is at least 25,000 barrels, and

demand for the economy is at least 32,000 barrels per week. At least 45% of

each barrel of regular must be ingredient A. At most 50% of each barrel of

economy should contain ingredient B. While the gasoline yield from one barrel

of crude depends on the type of crude and the type of processing used, we

will assume for the sake of this example that one barrel of crude oil will

yield 0.46 barrel of gasoline.

Hint: You may

refer to the Low Knock Oil Company example analyzed on page 326-327 in the

textbook (Program 8.9), and simply adjust your constraints for the demands

accordingly.

Question 3 of 3

To

minimize the production cost, the optimal amount of X100

crude oil used in producing economy gasoline is barrels, and the optimal

amount of X220 crude oil used in producing economygasoline

is barrel. (Please round to the closest

integer and include no units.)

Part 7 of 8 – Part 7

The next four questions are based

on the following information. At a car wash station, on average, there are 4

cars coming in for the service every 10 minutes. The average wash time is 2

minutes. The Poisson distribution is appropriate for the arrival rate and

service times are exponentially distributed. Please convert all rates into

cars per hour and answer the following questions.

Question 1 of 4

The

average time a car spent in the waiting line is hours, and the total time a

car spent in this car wash station is hour. (Please round to two

decimal points and include no units.)

Part 7 of 8 – Part 7

The next four questions are based on

the following information. At a car wash station, on average, there are 4 cars

coming in for the service every 10 minutes. The average wash time is 2 minutes.

The Poisson distribution is appropriate for the arrival rate and service times

are exponentially distributed. Please convert all rates into cars per hour

and answer the following questions.

Question 2 of 4

s

The average number of cars in this

car wash station is . (Please round to the closest

integer and include no units.)

Part

7 of 8 – Part 7

The next four questions are based

on the following information. At a car wash station, on average, there are 4

cars coming in for the service every 10 minutes. The average wash time is 2

minutes. The Poisson distribution is appropriate for the arrival rate and

service times are exponentially distributed. Please convert all rates into

cars per hour and answer the following questions.

Question 3 of 4

The

probability that there are no cars in this station is . (Please round to one

decimal points and include no units.)

Part

7 of 8 – Part 7

on the following information. At a car wash station, on average, there are 4

cars coming in for the service every 10 minutes. The average wash time is 2

minutes. The Poisson distribution is appropriate for the arrival rate and

service times are exponentially distributed. Please convert all rates into

cars per hour and answer the following questions.

Question 4 of 4

The

probability that there are exactly two cars in this station is . (Please round to three

decimal points and include no units.)

Part

8 of 8 – Part 8

The next three questions are based

on the following information.

To study the weight accuracy of a 50lb fertilizer bag, 12 samples of 12 bags

of fertilizer in each sample were taken and the results are as follows.

Mean

Range

Sample

1

47

1.1

Sample

2

46

1.31

Sample

3

46

0.91

Sample

4

47

1.1

Sample

5

48

1.21

Sample

6

50

0.82

Sample

7

49

0.86

Sample

8

49

1.11

Sample

9

51

1.12

Sample

10

52

0.99

Sample

11

50

0.86

Sample

12

51

1.2

Question 1 of 3

The

overall average weight of a bag of fertilizer is pound, and the average range

is pound. (Please round to two

decimal points and include no units.)

Part 8 of 8 – Part 8

The next three questions are based

on the following information.

To study the weight accuracy of a 50lb fertilizer bag, 12 samples of 12 bags of

fertilizer in each sample were taken and the results are as follows.

Mean

Range

Sample 1

47

1.1

Sample 2

46

1.31

Sample 3

46

0.91

Sample 4

47

1.1

Sample 5

48

1.21

Sample 6

50

0.82

Sample 7

49

0.86

Sample 8

49

1.11

Sample 9

51

1.12

Sample 10

52

0.99

Sample 11

50

0.86

Sample 12

51

1.2

Question 2 of 3

The upper control limit for

a 99.7% control chart for the mean is pound, and the lower

control limit is pound. (Please round to two

decimal points and include no units. Please enter the upper limit first.)

Part 8 of 8 – Part 8

The next three questions are based

on the following information.

To study the weight accuracy of a 50lb fertilizer bag, 12 samples of 12 bags of

fertilizer in each sample were taken and the results are as follows.

Mean

Range

Sample 1

47

1.1

Sample 2

46

1.31

Sample 3

46

0.91

Sample 4

47

1.1

Sample 5

48

1.21

Sample 6

50

0.82

Sample 7

49

0.86

Sample 8

49

1.11

Sample 9

51

1.12

Sample 10

52

0.99

Sample 11

50

0.86

Sample 12

51

1.2

Question 3 of 3

The upper control limit for

a 99.7% control chart for the range is pound, and the lower

control limit is pound. (Please round to two

decimal points and include no units. Please enter the upper limit first.)