BADM Exam 1 Review Summer 2017
True/False
Indicate whether the statement is true or false.
_
1. Stating that two events are statistically independent means that the probability of one event occurring
BADM 3963 Chapter 4 Glossary
Binary variable: See Dummy variable
Coefficient of correlation (r): A measure of the strength of the relationship between two variables.
Coefficient of determination (r2):
BADM 3963 Chapter 3 Glossary
Alternative: A course of action or a strategy that may be chosen by a decision maker.
Coefficient of realism: A number from 0 to 1. When the coefficient is close to 1, the
BADM 3963 Glossary Chapter 1
Break-even point (BEP): The quantity of sales that results in zero profit.
Deterministic model: A model in which all values used in the model are known with complete certa
States of Nature
Alternative Fav Mkt
Lg Plant
Small Plant
Do Nothing
Probability
Maximax
Maximin
Criterion of Realisim
Equally Likely
Minimax Regret
EMV
Alpha =
Criterion Equally
UnFav Mkt Row Max Row
Thompson Lumber Example
Decision Making Under Uncertainity
Minimax Regret Using
Opprotunity Loss
States of Nature
Alternative
Lg Plant
Sm Plant
Do Nothing
Maximax:
Minimax:
Criterion of
Realism:
Equal
BADM 3963 CRN 21089
Real World Experience Example 1
Student
Delta Hardware Stores is seeking a shipping policy for paint from its Phoenix plant and an
ordering policy of paint from its subcontractor t
1
Chapter 3 Decision Tree Handout (Revised 6/18/13):
Using Treeplan to Solve Decision Tree Problems with Excel
TreePlan is an add-in to Excel spreadsheets that greatly simplifies the process of
constr
BADM 3963 Linear Programming Formulation homework #2
Summer 2017
Write the LP formulations for the following problems in a Word document.
Submit Word document in BB Assignments - review comments & not
Summer 2017
July 10, 2017
Nick Rowlett
BADM 3963 Linear Programming Formulation homework #2
1. Management at the Riverside Diner is trying to decide how to allocate a monthly advertising budget of
$18
Marketing / Merchandise Display:
The upscale toy store August Kids has a picture window with 100 linear feet of display space. The theme
this month is bicycles and tricycles. At least ten tricycles an
BADM 3963 Linear Programming homework 3
Summer 2017
Due 7/17, 9pm
Write the LP formulations for problems 1, 2 and 3 in a Word document
Set up and solve problems 4, 5, and 6 in Excel using Excel SOLV
To: Dale Schrimschaw
From:
Subject: RWE #1
Southwestern Universitys president, Dr. Marty Starr was concerned not only about the
cost of expanding the existing stadium versus building a new stadium but
Breakeven Analysis
A Scatter Chart of the Data in A26:C28; at BE
Data
Fixed Cost
Variable Cost
Revenue
Volume (Optional)
Results
Breakeven points
Units
Dollars $
Volume Analysis @
Cost
Revenue
Profits
To:
Hal Barnes, Production Manager
Galaxy Industries
From: Student Consulting Group
Subj: Optimal Production Quantities for Space Rays and Zappers
Galaxy Industries wishes to determine production leve
BADM 3963 HW 2 Ch. 2 Solutions
2-14.
Grade
Probability
A
80
0.27 =
300
B
75
0.25 =
300
C
90
0.30 =
300
D
30
0.10 =
300
F
25
0.08 =
300
1.0
Thus, the probability of a student receiv
HW 3, Ch. 3 Solutions
3-17. a. Decision making under uncertainty.
b. Maximax criterion.
c. Sub 100 because the maximum payoff for this is $300,000.
Equipment
Favorable
Sub 100
Oiler J
Texan
Unfavorabl
Farris Billard Supply - BEP and Profit Analysis
Selling Price
Variable Cost
Fixed Cost
BEP
$
$
$
You can start the one- or two-variable table anywhere on the sheet. In our assign
column value will be
BADM 3963 CRN 30043
Real World Experience 1
Southwestern University is contemplating building a new stadium and needs a breakdown of
what each ancillary activity contributes to cover its own expenses.
Galaxy Industries
Galaxy Industries is an emerging toy manufacturing company that produces two space age water guns
that are marketed nationwide, primarily to discount toy stores. Although many parent
BADM 3963 Glossary Chapter 2
Collectively exhaustive events: A collection of all possible outcomes of an experiment.
Conditional probability: The probability of one event occurring given that another
TreePlan Student License
0.8
For Education Only
Good Demand
45000
50000
45000
Open Site 1
0
33000
0.2
Poor demand
-15000
-10000
0.8
Good demand
0.6
Favorable Study
75000
2
0
-15000
Open Site 2
80000
7
Real World Experience Report Guidelines
BADM 3963
Last Revised 12/27/15
Follow the seven step quantitative analysis (QA) approach as depicted in Figure 1.1, page 3 of the course
textbook for each real