Midterm MBAC 6031 Fall 2007

Midterm MBAC 6031 Fall 2007 - MBAC 6031 Fall 2007 Midterm...

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MBAC 6031 Fall 2007 Midterm Exam NAME ________________________________________ This exam is worth 40 points. Please write your answers legibly. Show your work when appropriate. If you performed calculations on Excel please state this. 1. A company is moving their offices to a new office park and the move requires extensive office build out in the new facility. Based on various factors, the moving team has assigned the following probabilities on completion time: the probability the move will be completed in 6 months is .5, the probability the move will be completed in 9 months is .3. There is a possibility that the move may take as long as a year. What probability does the team place on the completion time of 1 year? What is the expected time for the move completion? (3 pts) 2. Bike shops in a chain of retail shops receive shipments of bikes on a regular basis and the bikes require some assembly before they can be put on the showroom floor. Based on empirical data, the probability that a bike will be assembled correctly by a shop employee is .85. Suppose a shop receives a shipment of 20 bikes. Which probability distribution best describes the number of bikes that is assembled correctly out of the shipment of 20? Be sure to justify your choice by matching the characteristics of the distribution to the variable. (4 pts) 1
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3. After putting in place some training and process changes, the bike shop chain would like to know if they have actually seen an improvement in the proportion of bikes that will be assembled correctly. Set up the appropriate null and alternative hypotheses the chain would use to determine if the training and changes were effective. (3 pts) 4. The automated activation system for a campus parking facility is required to be 99% reliable. If 66 automobiles are admitted out of the next 68 that approach the gate, would you be concerned that the system is not meeting its reliability standard? Justify your response using a probability calculation. Hint: do not use a confidence interval. (5 pts) 5. The distribution on the dollar amount of an internet order placed with an online wine distributor is heavily skewed to the right with a mean μ = $330 and a standard deviation σ = $120. Explain how we are able to use a random sample of orders to determine if the average order amount has changed. (3 pts) 2
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6. Last year, the average time to place an order (including waiting in line) at a Noodles & Company was 5 minutes. The company is considering implementing some process changes to decrease the average ordering time. Before making major changes they will test them in one restaurant. To determine if the changes are effective or not, Noodles will conduct a hypothesis test using sample data from the test restaurant. State the hypotheses they should use. Define a Type I and Type II error for this hypothesis test. (4 pts) 7. Describe the common characteristics of a Normal distribution. (4 pts) 8. Define X to be the number of Snicker Doodle cookies ordered each week at a Noodles
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This note was uploaded on 06/01/2008 for the course MBAC 6030 taught by Professor Seward during the Fall '07 term at Colorado.

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Midterm MBAC 6031 Fall 2007 - MBAC 6031 Fall 2007 Midterm...

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