MGMT 355, Spring 2013
Homework problem in Decision Trees
(1) A customer has approached a bank for a $50,000 one-year loan at 12% interest rate. If the
bank does not approve the loan the $50,000 will be invested in bonds that earn a 6%
annual return. Witho
x
-2
0
p(x)
0.03
0.07
Homework assignment 1
1
2
4
5
0.1
0.15
0.3
0.15
7
11
12
0.1
0.08
0.02
1. The following is an arbitrary probability distribution:
(a) Is this a legal probability distribution? Show work to justify your answer.
(b) Find E(x) and for th
Class Exercise on Quality Mgmt
(1) A company manufactures products in batches of 10,000 units. The individual cost of each
product manufactured is $20; however, not all products undertaken can be sold. The
company has a mark-up policy of 40% on effective
Formulae
sp
p (1 p )
n
(x
i
x)2
N
; s
(x
x)2
i
n 1
;
UCL= p zs p ; LCL= p zs p
UCLX = X zs X ; LCLX = X zs X
UCLX = X A2 R ; LCLX = X A2 R
LCLR D3 R ; UCLR D4 R
b
x y
x
i
i
2
i
n x y
n x
2
; a y bx ; Yx Kx (log b / log 2) ; If W x1 x2 . xn then,
E