Strayer University, Washington ACC 557  Quantitative Methods Week 1: Modeling in Low Uncertainty Quiz

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Week 1: Modeling in Low Uncertainty Quiz 1. This question relates to the Hudson Readers Example discussed in Sessions 1 and 2, and assumes that the value of the advertising budget is equal to $195 m... illion. You may use the file Hudson Readers.xlsx developed in Session 2 to answer this question. Consider the following spending allocation of the advertising budget: ASI = 60, ASC = 20, AEI = 0, AEC = 115. What is the total net sales increase (in $ millions) corresponding to this budget allocation? Choose the closest value among the ones presented below. 6.80 6.85 5.70 7.25 6.25 2. This question relates to the Hudson Readers Example discussed in Sessions 1 and 2, and assumes that the value of the advertising budget is equal to $195 million. You may use the file Hudson Readers.xlsx developed in Session 2 to answer this question. Consider the following two ways to allocate the advertising budget: (S1) ASI = 60, ASC = 22, AEI = 3, AEC = 110 (S2) ASI = 55, ASC = 10, AEI = 15, AEC = 115 Which of the following statements is correct: Both S1 and S2 are feasible Both S1 and S2 are infeasible S1 is infeasible, and S2 is feasible S1 is feasible, and S2 is infeasible 3. This question relates to the Hudson Readers Example discussed in Sessions 1 and 2, and assumes that the value of the advertising budget is equal to $195 million. You may use the file Hudson Readers.xlsx developed in Session 2 to answer this question. Consider a version of the Hudson Readers Problem where the only constraints are the advertising budget constraint and the non-negativity constraints on the decision variables (in other words, ignore the constraints for net sales increase in India and China and on the net sales increase of the enhanced version). What is the optimal value of the total net sales increase (in $ millions) for such a problem? Choose the closest value among the ones presented below. 7.80 9.75 3.90 5.85 9.25 4. This question relates to the Hudson Readers Example discussed in Sessions 1 and 2, and assumes that the value of the advertising budget is equal to $195 million. You may use the file Hudson Readers.xlsx developed in Session 2 to answer this question. Ignore the setting of Q3 and consider the original problem formulation. One of the senior managers at the Hudson Readers believes that the constraint on the net sales increase for the enhanced version severely limits company’s ability to generate the total net sales increase. Suppose that this constraint is ignored, while all other constraints in the original problem formulation remain unchanged. Which of the following statements describes the optimal advertising spending plan in the absence of this constraint? The total amount of advertising spending on the standard product is The total optimal amount of advertising spending in India is 0 The total optimal amount of advertising spending on the enhanced product is 0 The total optimal amount of advertising spending in China is 0 5. This question relates to the Hudson Readers Example discussed in Sessions 1 and 2, and assumes that the value of the advertising budget is equal to $195 million. You may use the file Hudson Readers.xlsx developed in Session 2 to answer this question. Ignore the settings of Q3 and Q4 and consider the original problem formulation. Suppose that the company decides to change the requirement on the minimum net sales increase in China from the current value of $4 million to $3 million. The other constraints remain unchanged. What is the new value of the optimal total net sales increase, in $ millions? Choose the closest value among the ones below. 7.52 7.38 9.15 3.00 3.14 9.56 6. This question relates to the Hudson Readers Example discussed in Sessions 1 and 2, and assumes that the value of the advertising budget is equal to $195 million. This question tests your understanding of the algebraic model formulation and does not require Excel. The Hudson Readers is considering imposing the following additional requirement: the total amount of advertising spending in India must be at least 55 percent of the total amount of advertising spending in China. In terms of the problem’s decision variables, which algebraic expression represents this requirement? Aci + Acc >= 0.55*(Asi + Asc) Asc + Acc >= 0.55*(Asi + Aci) Asi + Aci >= 0.55*(Asc + Acc) Asi + Asc >= 0.55*(Aci + Acc) 7. This question relates to the Epsilon Delta Capital example introduced in Session 3, and assumes that the value of the investment budget is equal to $125 million. You may use the file Epsilon Delta Capital.xlsx developed in Session 3 to answer this question. Suppose that the Epsilon Delta Capital invests equal amount, $31.25 million, into each of the four groups of financial products. What is weighted quality score of such investment? Choose the closest among the values below. 2.00 2.75 2.50 1.75 2.25 3.00 8. This question relates to the Epsilon Delta Capital example introduced in Session 3, and assumes that the value of the investment budget is equal to $125 million. You may use the file Epsilon Delta Capital.xlsx developed in Session 3 to answer this question. Is the equal-amount investment of Q7 feasible for the Epsilon Delta Capital problem? No Yes Impossible to say 9. This question relates to the Epsilon Delta Capital example introduced in Session 3, and assumes that the value of the investment budget is equal to $125 million. You may use the file Epsilon Delta Capital.xlsx developed in Session 3 to answer this question. For the equal-amount investment of Q7, what is the expected annual return, in $ millions? Choose the closest among the values below. 5.31 6.23 5.23 4.25 6.76 4.03 10. This question relates to the Epsilon Delta Capital example introduced in Session 3, and assumes that the value of the investment budget is equal to $125 million. You may use the file Epsilon Delta Capital.xlsx developed in Session 3 to answer this question. The Epsilon Delta Capital considers dropping the minimum investment requirement of $20 million on all product groups. If this requirement is removed from the Epsilon Delta Capital model, and the rest of the model remains unchanged, what is the new optimal expected return, in $ millions? Choose the closest among the values below. 6.56 6.66 6.16 6.26 6.46 6.36 [Show More]

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