Follows a poisson distribution while the service time

Info icon This is a preview. Sign up to view the full content.

View Full Document Right Arrow Icon
follows a Poisson distribution, while the service time follows an exponentia distribution. The average arrival rate is 16 per hour and the average service time is three minutes. (a) What is the average number of cars in the line? (b) What is the average time spent waiting to get to the service window? (c) What percentage of time is the dry cleaner's drive - thru window idle? (d) What is the probability there are more than 2 cars at the drive - thru window? A-9
Image of page 9
4) The Saussy Lumber Company ships pine flooring to three building supply houses from its mills in Pineville, Oak Ridge, and Mapletown. Determine the best transportation schedule for the data given in the table using Vogel's Approximation method. To Supply House 1 Supply House 2 Supply House 3 Mill Capacity (Tons) F ROM Pineville $3 $3 $2 25 Oak Ridge $4 $2 $3 40 Maple town $3 $2 $3 30 Supply House Demand (Tons) 30 30 35 95 A-10
Image of page 10
5) The ABC Co. is considering a new consumer product. They believe there is a probability of 0.4 that the XYZ Co. will come out with a competitive product. If ABC adds an assembly line for the product and XYZ does not follow with a competitive product, their expected pro fi t is $40,000; if they add an assembly line and XYZ does follow, they still expect a $10,000 pro fi t. If ABC adds a new plant addition and XYZ does not produce a competitive product, they expect a pro fi t of $600,000; if XYZ does compete for this market, ABC expects a loss of $100,000. (a) Determine the expected monetary value (EMV) of each decision. (b) Determine the Expected opportunity loss (EOL) of each decision. (c) Compare the results of (a) and (b). (d) Calculate the Expected Value of Perfect Information (EVPI). A-11
Image of page 11
Answer Key Testname: FINAL EXAM 1) (a) Y = 110.47 + 16.83 X (b) $16.83 (c) Yes, because the p - value for the F - test is low. (d) 48.3% of the variation in medical expenses is explained by family size. (e) The null hypothesis can be rejected, the slope is not equal to zero based on the low p - value. (f) 0.695 2) 3) (a) L q = 3.2 (b) Wq = 0.2 hour (12 minutes) (c) P o = 0.20 (d) P n > k = 0.512 A-12
Image of page 12
Answer Key Testname: FINAL EXAM 4) (a) Let X 1 = number of liver - flavored biscuits in a package X 2 = number of chicken - flavored biscuits in a package Minimize X 1 + 2X 2 Subject to: X 1 + X 2 40 2X 1 + 4X 2 60 X 1 15 X 1 , X 2 0 (b) Corner points (0,40) and (15,25) Optimal solution is (15,25) with cost of 65. (c) 2X 1 + 4X 2 60 is redundant. (d) minimum cost = 65 cents 5) (a) (b) (c) The plant addition is best for both models. The maximum EMV alternative is always the same as the minimum EOL alternative. (d) EVPI = 44,000 A-13
Image of page 13
Part (I): MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Image of page 14
Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern