Question1)A bakery buys sugar in 15-pound bags

Question1)A bakery buys sugar in 15-pound bags. The bakery uses 5000 bags of sugar each year. Carrying costs are $20 per bag per year. Ordering costs are estimated at $5 per order. Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags. It takes 5 days for each order of sugar to be filled. What are the total annual holding costs?

In a scatter diagram, the dependent variable is typically plotted on the horizontal axis.

A plant manager is considering buying additional stamping machines to accommodate increasing demand. The alternatives are to buy 1 machine, 2 machines, or 3 machines. The profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. The payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager.
 
Alternative           Bid Accepted           Bid Rejected
Buy 1 machine              $10                           $5
Buy 2 machines            $30                           $4
Buy 3 machines            $40                           $2

Using the information above, which alternative should be chosen based on the minimax regret criterion?

A plant manager is considering buying additional stamping machines to accommodate increasing demand. The alternatives are to buy 1 machine, 2 machines, or 3 machines. The profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. The payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager.
 
Alternative           Bid Accepted           Bid Rejected
Buy 1 machine              $10                           $5
Buy 2 machines            $30                           $4
Buy 3 machines            $40                           $2

Using the information above, which alternative should be chosen based on the maximin criterion?

Stating that two events are statistically independent means that the probability of one event occurring is independent of the probability of the other event having occurred.

Consider the following gasoline data:
 

Referring to the information above, suppose we expect year 3 to have annual demand of 800. What is the forecast value for the second quarter in year 3?

A __________ is a numerical statement about the likelihood that an event will occur.

Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1, S2, and S3.
                  S1        S2        S3
       A         $60      $145     $120          
       B         $75      $125     $110
       C         $95      $85       $130
 
Refer to the payoff table. Using the maximax criterion, what would be the highest expected payoff?

Which of the following terms is interchangeable with quantitative analysis?

A bakery buys sugar in 15-pound bags. The bakery uses 5000 bags of sugar each year. Carrying costs are $20 per bag per year. Ordering costs are estimated at $5 per order. Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags. It takes 5 days for each order of sugar to be filled. What is the average inventory held in a given cycle?

A controllable variable is also called:

Arrivals in a university advising office during the week of registration are known to follow a Poisson distribution with an average of four people arriving each hour. What is the probability that exactly five people will arrive in the next hour?

If a bucket has three black balls and seven green balls, and we draw balls without replacement, the probability of drawing a green ball is independent of the number of balls previously drawn.

Assume that you have tried three different forecasting models. For the first, the MAD = 2.5, for the second, the MSE = 10.5, and for the third, the MAPE = 2.7. We can then say:

If the assumptions of regression have been met, errors plotted against the independent variable will typically show patterns.

Which of the following is not a common pitfall of regression?

A local ice cream shop sells 10,000 cones of vanilla-flavored ice cream each year. The cones are ordered from an outside supplier and it takes 5 days for each shipment of cones to arrive. Ordering costs are estimated at $15 per order. Carrying costs are $5 per cone per year. Assume that the ice cream shop is open 250 days a year. What is the optimal EOQ for ice cream cones?

A scatter diagram is useful to determine if a relationship exists between two variables.

Data for a particular subdivision near downtown Houston indicate that the average price per square foot for a home is $100 with a standard deviation of $5 (normally distributed). What is the probability that the average price per square foot for a home is less than $85?

Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1, S2, and S3.
                  S1        S2        S3
       A         $60      $145     $120          
       B         $75      $125     $110
       C         $95      $85       $130
 
Refer to the payoff table. Using the maximin criterion, what would be the highest expected payoff?

Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day weighted moving average where the weights are 3 and 1 are:

A bakery buys sugar in 15-pound bags. The bakery uses 5000 bags of sugar each year. Carrying costs are $20 per bag per year. Ordering costs are estimated at $5 per order. Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags. It takes 5 days for each order of sugar to be filled. What is the minimum inventory held in a given EOQ cycle?

The regression model assumes the errors are normally distributed.

An urn contains seven blue and three yellow chips. If the drawing of chips is done with replacement, what is the probability of drawing a blue chip on the second draw given that a yellow chip was drawn on the first draw?

Which of the following is not classified as a qualitative forecasting model?