This preview shows pages 1–4. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: MAT540 Midterm Review Chapters 1, 11, 12, 14, 15 Management Science Total Cost: v f vc c TC + = Total Revenue: vp TR = Total Profit: v f v f vc c vp vc c vp Z t total revenue total Z = + = = ) ( cos Breakeven Point: v f c p c v Z = = Where: volume v price p t iable c t fixed c v f = = = = cos var cos Example: Fixed cost = 8,000 Variable cost = 65 Price = 180 (a) volume = 300 TC (total cost) = 27,500 (Fixed cost + volume*variable cost) TR (total revenue) = 54,000 (volume*Price) Profit = 26,500 (TR  TC) (b) volume = 69.57 tables (fixed cost/(price  variable cost)) Probability and Statistics: P(A or B) = P(A) + P(B) P(AB) Where P(A or B) = probability event A or B or both will occur, P(A) = probability event A will occur, P(B) = probability event B will occur, P(AB) = probability that both event A and B will occur. 1 MAT540 Midterm Review Chapters 1, 11, 12, 14, 15 Example: P(Negative Test Result or Not Pregnant) = P(Negative Test Result) + P(Not Pregnant) P(Negative Test Result and Not Pregnant) = 16/99 + 14/99 11/99 = 19/99 Independent Events: A succession of events that do not affect each other. If A and B are independent, P(AB) = P(A)P(B) Example: Flip a coin twice, the probability of a head followed by a tail is: P(HT) = P(H)P(T) = (.5)(.5) = .25 Binomial Distribution: trials n in successes of number r trials of number n failure of y probabilit p q success of y probabilit p where q p r n r n r P r n r = = = = = = 1 )! ( ! ! ) ( Example: Assume n= 20, p=0.1 P(r 5) rejected. P(r < 5) accepted. P(r < 5) = P(r = 0) + P(r = 1) + P(r = 2) + P(r = 3) + P(r = 4) P(r < 5) = 4 20 4 3 20 3 2 20 2 1 20 1 20 9 . 1 . )! 4 20 ( ! 4 ! 20 9 . 1 . )! 3 20 ( ! 3 ! 20 9 . 1 . )! 2 20 ( ! 2 ! 20 9 . 1 . )! 1 20 ( ! 1 ! 20 9 . 1 . )! 20 ( ! ! 20 + + + + P(r < 5) = 0.1216 + 0.2702 + 0.2852 + 0.1901 + 0.0898 = 0.9569 (accepted) P(r 5) = 1 P(r < 5) = 1 0.9569 = 0.0431 (rejected) 2 MAT540 Midterm Review Chapters 1, 11, 12, 14, 15 Expected Value: E(x) = ) ( x P x Example: x P(x) xP(x) .10 1 .20 .20 2 .30 .60 3 .25 .75 4 .15 .60 xP(x) = 2.15 Normal Distribution:...
View
Full
Document
This note was uploaded on 06/17/2010 for the course MAT 540 taught by Professor Azad during the Spring '10 term at Strayer.
 Spring '10
 AZAD

Click to edit the document details