Colorado Technical University
MATH 451
Unit 4 IP MATH 451
Unit 4 IP MATH 451
What is the value of expected monetary value (EMV)?
o Median plant
o High demand, moderate demand, and low demand
o Small plant
o Large
...
Colorado Technical University
MATH 451
Unit 4 IP MATH 451
Unit 4 IP MATH 451
What is the value of expected monetary value (EMV)?
o Median plant
o High demand, moderate demand, and low demand
o Small plant
o Larger plant
Which of the following can be said about the probabilities in the given tree?
o prob a2 – prob b1 + prob c3 = .5
o prob a1 + prob b1 + prob c1 = 1
o prob a1 might be different from prob a2
o prob c3 × prob b2 × prob a1 = 1
A company is considering using a survey company that offers some sample information which may not
be very accurate for better decision making for a value of $3,000 in this example. They have provided the
following data for all alternatives that are consider here.
What is the probability of having a negative response (NS)?
o P(PS) = 0
o P(PS) = 52.90%
o P(NS) = 47.10%
o P(PS) = 1
A company is considering using a survey company that offers some sample information which may not
be very accurate for better decision making for a value of $3,000 in this example. They have provided the
following data for all alternatives that are consider here.
What is the revised probability of having the median demand (MD) for a positive response (PS)?
o P(MD|PS) = 0.1588
o P(MD|PS) = 60%
o P(MD|PS) = 0.2830
o P(MD|PS) = 0.0473
Suppose that your friend has a loaded coin that comes up heads 70% of the time and another coin that
looks just like the weighted one but is fair. Your friend pulls a coin at random out of his pocket and offers
you a bet where he gets $1 if the heads side appears. How much must you get for a tail for this bet to be
fair?
o $0.90
o $1.15
o $1.50
o $1.25
A company is considering using a survey company that offers some sample information which may not
be very accurate for better decision making for a value of $3,000 in this example. They have provided the
following data for all alternatives that are consider here.
What is the probability of having a negative response (NS) for the low demand (LD)?
o P(NS|LD) = 0.125
o P(NS|LD) = 87.5%
o P(NS|LD) = 0.16
o P(NS|LD) = 12.5%
A company is considering using a survey company that offers some sample information which may not
be very accurate for better decision making for a value of $3,000 in this example. They have provided the
following data for all alternatives that are consider here.
What is the probability of having a positive response (PS) for the low demand (LD)?
o P(PS|LD) = 0.84
o P(PS|LD) = 87.5%
o P(PS|LD) = 12.5%
o P(PS|LD) = 0.60
A company is considering using a survey company that offers some sample information which may not
be very accurate for better decision making for a value of $3,000 in this example. They have provided the
following data for all alternatives that are consider here.
What is the probability of having a positive response (PS)?
o P(PS) = 0.5290
o P(PS) = 0
o P(PS) = 1
o P(PS) = 47.10%
Suppose that you have 3 factories, F_1, F_2, and F_3, 3 trans-shipment points, W_1, W_2, and W_3,
along with 4 destinations, D_1 through D_4. To create this example, random costs have been generated
because that is easier than getting data from a real example. It is easier to fill the entire table with these
numbers than it is to pick only those that might be useful. Processors these days are very fast and there
is not much of a downside to generating extra random numbers. The costs for shipping are shown in the
following extract from an Excel spreadsheet:
The following table shows the flow constraints:
What is the total cost?
o 4,273
o 10,139
o 9,326
o 9,599
Suppose that there is an outbreak of a dangerous disease and that the capacity at Factory 3 is reduced to
237 units. The disease has spread, and the manager of Factory 1 has decreed that no more than 150
units may be shipped to any of the warehouses. How many units are shipped from Warehouse 3 to
Destination 1?
o 37
o 0
o 113
o 144
Which factories are idle?
o Factory 2 is idle.
o Factory 1 is idle.
o Factories 1 and 2 are idle.
o Factories 2 and 3 are idle.
Suppose that you have 3 factories, F_1, F_2, and F_3, 3 trans-shipment points, W_1, W_2, and W_3,
along with 4 destinations, D_1 through D_4. The given figure shows the possible flows from any node to
another. How many possible flows are there? How many of those can be meaningfully part of the
solution?
o 90 total, 22 useful
o 81 total, 9 useful
o 100 total, 21 useful
o 81 total, 21 useful
Although there are exceptions, a utility function will be __________ in general.
o decreasing and concave
o decreasing and convex
o increasing and convex
o increasing and concave
What is the value of risk premium for a risk avoider person?
o 0
o Undefined
o Less than 0
o Greater than 0
You have started a business, and if you can make the current payroll of $200,000, you think that the
future looks bright. Sadly, you only have $50,000, and no one will lend you any money. If you cannot
make the payroll, you will be bankrupt.
Sky Masterson, a famous gambler, offers you the following bet: Flip 3 coins. If all 3 come up heads, Sky
will pay you $200,000, allowing you to make the current payroll and have $50,000 in working capital.
Otherwise, you give Sky the $50,000 that you have.
Which of the following actions seem reasonable?
a. Take the bet because it gives some chance of the business surviving.
b. Reject the bet because a partial payroll is better than none.
c. Reject the bet in the hopes that after a partial payroll payment, something will come along.
d. Reject the bet because gambling has no place in business.
e. Reject the bet and try to delay in the hopes of getting a loan.
f. Take the bet because you are feeling lucky.
o d and e
o c and d
o b and f
o a and b
A transportation company pays its drivers according to the following chart using its buses.
How many more drivers does the transportation company need to hire to make the application a balance
assignment model?
o 4
o 1
o 3
o None
A new agent has been added, so you have a total of six agents and five tasks. The costs are listed in the
following:
If the optimal assignment is made to reduce the total cost, which of the following agents is not assigned?
o A5
o A1
o A3
o A6
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