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Management Chapter 01 1 Managers do not need to be familiar with the limitations, assumptions, and/or specific applicability of
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 1 Introduction to Quantitative Analysis 1) Interviews, statistical sampling, and company reports provide input data for quantitative analysis models. Answer: TRUE Diff: 2 […]
Management Chapter 01 Homework When using multifactor decision making, each factor receives an importance weight
Deciding to buy a house, for example, can involve the price, location, taxes, utilities, and so forth. determine factor weights and factor evaluations subjectively. In this case, pairwise comparisons are performed to assist in the decision-making process and determine the […]
Management Chapter 02 1 Saying that a set of events is mutually exclusive and collectively exhaustive implies that one
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 2 Probability Concepts and Applications 1) Subjective probability implies that we can measure the relative frequency of the values of the random variable. […]
Management Chapter 02 2 The construction company must pay a penalty if the project is not finished by the due date in the contract
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 79) Which distribution is helpful in testing hypotheses about variances? A) binomial distribution B) F distribution C) normal distribution D) Poisson distribution E) exponential distribution Answer: B Diff: 2 Topic: […]
Management Chapter 02 Homework The optimal policy is necessary for all dynamic programming problems to give
problems. The overall approach of breaking a larger problem into smaller stages is an important principle. In addition to being essential for the solution of a dynamic programming problem, this concept is a useful approach for general decision-making problems. route […]
Management Chapter 03 1 Expected monetary value (EMV) is the payoff you should expect to occur when you choose a particular alternative
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 3 Decision Analysis 1) Expected monetary value (EMV) is the average or expected monetary outcome of a decision if it can be repeated […]
Management Chapter 03 2 A utility curve showing utility increasing at an increasing rate as the monetary value increases represents
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 70) A market research survey is available for $10,000. Using a decision tree analysis, it is found that the expected monetary value with the survey is $75,000. The expected monetary […]
Management Chapter 03 Homework The purpose of break-even analysis is to help a manager determine at what point
revenue will equal overall cost. It can also help the manager to determine at a certain sales vol- ume what revenues will be generated. This knowledge can assist the manager in making deci- sions as to whether or not to […]
Management Chapter 04 1 A scatter diagram is a graphical depiction of the relationship between the dependent and independent variables.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 4 Regression Models 1) In regression, an independent variable is sometimes called a response variable. Answer: FALSE Diff: 2 Topic: INTRODUCTION 2) One […]
Management Chapter 04 2 An automated process to systematically add or delete independent variables from a regression model is known as
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 76) Which of the following statements provides the best guidance for model building? A) If the value of r2 increases as more variables are added to the model, the variables […]
Management Chapter 04 Homework A pure strategy is one in which a player will always play one strategy in the game
asked to discuss the use of conflict analysis and game theory in corporate and political settings. tives can be eliminated from consideration by carefully analyzing the situation. This is an im- portant concept that can be applied to many problems […]
Management Chapter 05 1 Time-series models rely on judgment in an attempt to incorporate qualitative or subjective factors into the forecasting model
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 5 Forecasting 1) A medium–term forecast typically covers a two– to four–year time horizon. Answer: FALSE Diff: 2 Topic: INTRODUCTION 2) Regression is […]
Management Chapter 05 2 Explain, briefly, why most forecasting error measures use either the absolute or the square of the error.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 15 Answer: (a) scatter diagram (b) Month Automobile Tire Sales 3–Month Tire Average Squared Error January 80 – – February 84 – – March 60 – – April 56 74.7 […]
Management Chapter 05 Homework The number just computed becomes an entry in the matrix of cofactors
M5-1. Matrices are used in Markov analysis and game theory. They may also be used to repre- sent a system of equations in linear programming. diagonals. The numbers in each diagonal are multiplied. Each of the products found on a […]
Management Chapter 06 1 The same ratio of marginal loss to the sum of marginal loss and marginal profit is used to solve one-period inventory models
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 6 Inventory Control Models 1) Inventory is such an expensive asset that it may account for as much as 50 percent of a […]
Management Chapter 06 2 A bakery must decide how many loaves of fresh bread to produce in a single day. Daily demand for fresh bread is normally distributed
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 65) Consider the material structure tree for item A below. If 20 units of A are needed, how many units of D are needed? A) 11 B) 30 C) 160 […]
Management Chapter 06 Homework The slope of a straight line is found by choosing any two points on the line
M6-1. The slope of a straight line is found by choosing any two points on the line and dividing the change in Y by the change in X. that is tangent at that point. To do this, we add a […]
Management Chapter 07 1 Resource mix problems use LP to decide how much of each product to make, given a series of resource restrictions
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 7 Linear Programming Models: Graphical and Computer Methods 1) Management resources that need control include machinery usage, labor volume, money spent, time used, […]
Management Chapter 07 2 How does the case of alternate optimal solutions, as a special case in linear programming, compare to the two other special cases
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 63) Consider the following linear programming problem: Which of the following points (X,Y) is in the feasible region? A) (30,60) B) (105,5) C) (0,210) D) (100,10) E) None of the […]
Management Chapter 07 Homework Encourage students to also solve the assigned problem by computer
MODULE 7 Linear Programming: The Simplex Method TEACHING SUGGESTIONS Teaching Suggestion M7.1: Meaning of Slack Variables. Slack variables have an important physical interpretation and represent a valuable commodity, such as unused labor, machine time, money, space, and so forth. Teaching […]
Management Chapter 07 Homework The right-hand-side of this constraint could be decreased by 10 units
Initial tableau: Cj→ Solution Mix $20 $24 $0 $0 M M Quantity X1 X2 S1 S2 A1 A2 M A1 1 1 –1 0 1 0 30 M A2 1 2 0 –1 0 1 40 Zj 2M 3M […]
Management Chapter 08 1 In a production scheduling problem, the inventory at the end of this month is set equal to the inventory at the end of last month
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 8 Linear Programming Applications 1) In a production scheduling problem, the inventory at the end of this month is set equal to the […]
Management Chapter 08 2 The following table provides shipping costs from each of two regional warehouses to each of three destinations
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 70) Cedar Point amusement park management is preparing the park’s annual promotional plan for the coming season. Several advertising alternatives exist: newspaper, television, radio, and displays at recreational shows. The […]
Management Chapter 09 1 Transportation and assignment problems are really linear programming techniques called network flow problems
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 9 Transportation and Assignment Models 1) Transportation and assignment problems are really linear programming techniques called network flow problems. Answer: TRUE Diff: 2 […]
Management Chapter 09 2 Which of the following accurately describes steps of the northwest corner rule, after making the initial allocation of units in the northwest cell
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 49) Which of the following accurately describes steps of the northwest corner rule, after making the initial allocation of units in the northwest cell? A) Move down first, and then […]
Management Chapter 1 Homework Quantitative analysis involves the use of mathematical equations
viewpoints within the organization can help students understand this problem. For example, how many people should staff a registration desk at a university? Students will want more staff to reduce waiting time, while university administrators will want less staff to […]
Management Chapter 10 1 An integer programming solution can never produce a greater profit objective than the LP solution to the same problem
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 10 Integer Programming, Goal Programming, and Nonlinear Programming 1) If conditions require that all decision variables must have an integer solution, then the […]
Management Chapter 10 2 A model containing a linear objective function and requiring that one or more of the decision variables take on an integer
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Table 10–5 63) Table 10–5 represents a solution to a goal programming problem. There are three goals (each represented by a constraint). Which goals are only partly achieved? A) number […]
Management Chapter 10 Homework Ask students what other goals a company might have beyond maximizing profit
CHAPTER 10 Integer Programming, Goal Programming, and Nonlinear Programming TEACHING SUGGESTIONS Teaching Suggestion 10.1: Topics in This Chapter. The overall purpose of this chapter is to provide a framework for the topics of integer program- ming, nonlinear programming and goal […]
Management Chapter 10 Homework The first part of this case is an assignment problem that can be formulated
10-26. a. Let S = dollars invested in stocks; B = dollars invested in bonds; R = dollars invested in real estate Minimize d1– + d2– + d3+ Subject to 0.13S + 0.08B + 0.10R + Return is at least […]
Management Chapter 11 1 The maximal-flow technique would be helpful to city planners in determining how freeways should be expanded
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 11 Network Models 1) The minimal–spanning tree technique finds the shortest route to a series of destinations. Answer: FALSE Diff: 2 Topic: INTRODUCTION […]
Management Chapter 11 2 As part of the planning for a major office development project, it is necessary to install telephone lines to the buildings
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 61) Find the shortest route from Node 1 to Node 6. From Node To Node Distance 1 2 150 1 3 200 2 3 100 2 4 200 2 5 […]
Management Chapter 11 Homework Grey can make the necessary calculations using the minimal-spanning tree model
11-29. a. Given the problem data, Grey can use the minimal-spanning tree model to determine the least-cost approach to connect all houses to cable TV. As seen below, Grey should use branches 1, 2, 3, 4, 6, 8, 9, and […]
Management Chapter 11 Homework The shortest-route problem can be solved using several techniques
CHAPTER 11 Network Models TEACHING SUGGESTIONS Teaching Suggestion 11.1: The solution techniques for this chapter are easy and straightforward. Although they obtain an optimal solution, students should be told that other optimal solutions (alternate optimal solutions) may exist. Unlike linear […]
Management Chapter 12 1 Gantt charts contain information about the time taken by each activity, but not about the sequential dependencies of the activities.
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 12 Project Management 1) PERT and CPM are quantitative analysis tools designed to schedule and control large projects. Answer: TRUE Diff: 1 Topic: […]
Management Chapter 12 2 Which of the following is not a decision variable when formulating the project crashing problem as a linear program
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Table 12–4 The following represents a project with known activity times. All times are in weeks. Activity Immediate Predecessor Time A — 4 B — 3 C A 2 D […]
Management Chapter 12 Homework Students should be given practice in this important aspect of network
CHAPTER 12 Project Management TEACHING SUGGESTIONS Teaching Suggestion 12.1: Importance of PERT. PERT has rebounded and, due to PC software such as Microsoft Project, become a highly used quantitative analysis technique. It can be useful for organizations of all sizes […]
Management Chapter 12 Homework Once this network has been constructed, activities, and time estimates
Project standard deviation = 1.003466 b. If Task 9 and 10 were not necessary, a time of 0 could be given for each and the critical path could be found again. However, these changes do not have any impact on […]
Management Chapter 12 Homework The case asks whether the effort can be carried out with the current staff
Activity Early Early Late Late Standard Activity time Start Finish Start Finish Slack Deviation A 30 0 30 0 30 0 3.33333 B 60 30 90 60 120 30 10 C 65 30 95 30 95 0 8.333333 D 55 […]
Management Chapter 13 1 A goal of many waiting line problems is to help a firm find the ideal level of services that minimize the cost of waiting and the cost of providing the service
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 13 Waiting Lines and Queuing Theory Models 1) A goal of many waiting line problems is to help a firm find the ideal […]
Management Chapter 13 2 which presents a queuing problem solution for a queuing problem with a constant service rate, on average, how many customers are in the system
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 82) Cars arrive at a local JLUBE franchise at the rate of 1 every 12 minutes. Service times are exponentially distributed with an average of 15 minutes. Jack Burns, the […]
Management Chapter 13 Homework the average number of trucks in the system and average time spent waiting
c. To decide whether or not to add the second clerk, we must (a) compute present total cost, (b) compute total cost with the second clerk, and (c) compare the two. Present total cost: Ct/hour = service cost + waiting […]
Management Chapter 13 Homework About half the students who tackle the case forget that time walking to
CHAPTER 13 Waiting Lines and Queuing Theory Models TEACHING SUGGESTIONS Teaching Suggestion 13.1: Topic of Queuing. Here is a chapter that all students can relate to. Ask about student experiences in lines. Stress that queues are a part of our […]
Management Chapter 14 1 Simulation of a business or process is generally performed by building a mathematical model to represent the process or system
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 14 Simulation Modeling 1) Simulation of a business or process is generally performed by building a mathematical model to represent the process or […]
Management Chapter 14 2 The process of determining that the computer model is internally consistent and following the logic of the conceptual model is called
12 49) Which of the following is not considered one of the 5 steps of Monte Carlo Simulation? A) establishing probability distributions for important input variables B) generating random number C) building a cumulative probability distribution for each input variable […]
Management Chapter 14 Homework Problems with conditions of certainty can be solved more easily by other QA techniques
CHAPTER 14 Simulation Modeling TEACHING SUGGESTIONS Teaching Suggestion 14.1: There Are Many Kinds of Simulations. This chapter teaches the concepts of Monte Carlo simulation, but it also notes that there are many physical kinds of simulation models as well. The […]
Management Chapter 14 Homework Relevant measures of performance have to be chosen and evaluated for each trial
One Sample Trial TIME TIME TIME CUSTOMER RANDOM ARRIVAL RANDOM SERVICE ARRIVAL SERVICE SERVICE IN ON SERVER PERCENT NUMBER NUMBER GAP NUMBER TIME TIME START END SYSTEM HOLD IDLE UTILIZATION Summary for This Trial Run (averages): 15.5 12.0 0.15 95.9 […]
Management Chapter 14 Homework But you must repeat this simulation several times and consider the average schedule
Random Exam Time Cumulative Number Distribution Probability Probability Interval 20% faster than expected 0.15 0.15 01–15 In expected time 0.50 0.65 16–65 20% later than expected 0.25 0.90 66–90 40% later than expected 0.10 1.00 91–00 Table for 14-27. Arrival […]
Management Chapter 15 1 Markov analysis is a technique that deals with the probabilities of future occurrences by analyzing currently known probabilities
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 15 Markov Analysis 1) Markov analysis is a technique that deals with the probabilities of future occurrences by analyzing currently known probabilities. Answer: […]
Management Chapter 15 Homework Absorbing state analysis requires more complex matrix algebra
CHAPTER 15 Markov Analysis TEACHING SUGGESTIONS Teaching Suggestion 15.1: Use of Matrix Algebra. Markov analysis requires the use of matrix algebra, primarily matrix multiplication. You may want to have students review basic concepts in matrix algebra before the material in […]
Management Chapter 15 Homework We make the same types of changes for Chris that we did for Sandy
15-28. a. By using the Markov process, Sandy can determine market shares for each of the quick-oil-change operations for next period. The results are summarized below. State Value 1 0.36 2 0.14 3 0.13 4 0.16 5 0.07 6 0.04 […]
Management Chapter 16 1 When receiving a shipment from a supplier, inspection must be done to check the fraction of defective products
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Quantitative Analysis for Management, 11e (Render) Chapter 16 Statistical Quality Control 1) W. Edwards Deming introduced control charts in the 1920s. Answer: FALSE Diff: 2 Topic: DEFINING QUALITY AND TQM […]
Management Chapter 16 Homework There have been complaints that the sports page of the Dubuque
2. “There is absolutely no reason for having errors or defects in any product or service.” 3. “If quality isn’t ingrained in the organization, it will never happen.” 4. “It is much less expensive to prevent errors than to rework, […]
Management Chapter 2 Homework It was assumed that the events are independent. This assumption seems to be justified
CHAPTER 2 Probability Concepts and Applications TEACHING SUGGESTIONS Teaching Suggestion 2.1: Concept of Probabilities Ranging From 0 to 1. People often misuse probabilities by such statements as, “I’m 110% sure we’re going to win the big game.” The two basic […]
Management Chapter 2 Homework To determine the probability of the oven temperature being between
2-30. X P(X) X · P(X) 0 0.05 0.00 1 0.15 0.15 2 0.2 0.40 3 0.25 0.75 4 0.20 0.80 5 0.15 0.75 2.85 Hence, 2.85 loaves will be sold on average. 2-31. X P(X) X · P(X) X […]
Management Chapter 3 Homework Clearly defining the problem and listing the possible alternatives
CHAPTER 3 Decision Analysis TEACHING SUGGESTIONS Teaching Suggestion 3.1: Using the Steps of the Decision-Making Process. The six steps used in decision theory are discussed in this chapter. Students can be asked to describe a decision they made in the […]
Management Chapter 3 Homework Sue can determine the impact of the change by changing the probabilities
b. The suggested changes would be reflected in Branches 3 and 4. The decision stays the same, but the EMV increases to $37,400. The results are provided in the tables that follow. In these tables, BR = Branch; Prob. = […]
Management Chapter 3 Homework If it is favorable, produce the razor. If it is unfavorable
b. P(successful store | unfavorable research) = P(S1 | I2) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) 2 1 1 12 2 1 1 2 […]
Management Chapter 4 Homework Explain that skirt lengths and stock market prices may be correlated
and which is Y. Emphasize that the dependent variable (Y) is what we are trying to predict based on the value of the independent (X) variable. Use examples such as the time required to drive to a store and the […]
Management Chapter 5 Homework One of the strengths of exponential smoothing is that it allows decision
CHAPTER 5 Forecasting TEACHING SUGGESTIONS Teaching Suggestion 5.1: Wide Use of Forecasting. Forecasting is one of the most important tools a student can master because every firm needs to conduct forecasts. It’s useful to motivate students with the idea that […]
Management Chapter 5 Homework a three-period moving average and a three-period weighted moving average
5-25. To answer the discussion questions, two forecasting models are required: a three-period moving average and a three-period weighted moving average. Once the actual forecasts have been made, their accuracy can be compared using the mean absolute differences (MAD). a., […]
Management Chapter 6 Homework A comparison of the traditional EOQ model and this model can be made
CHAPTER 6 Inventory Control Models TEACHING SUGGESTIONS Teaching Suggestion 6.1: Importance of Inventory Control. Inventory control is important to most organizations. This chapter on inventory control can be introduced to students by a discussion of the consequences of too much […]
Management Chapter 6 Homework The solution below shows the impact of an increase in annual demand
6-62. 1 2 3 4 Lead time SL72 Required Date 800 1 On-Hand 0 Net 800 Order Re- ceipt 800 Order Re- lease 800 A Required Date 800 SL72 1 On-Hand 150 Net 650 Order Re- ceipt 650 Order Re- […]
Management Chapter 6 Homework Using the normal distribution table, the z-value associated with the lower
6-49. Demand Probability P(Demand _____) 50 0.05 1.00 75 0.10 0.95 100 0.20 0.85 125 0.30 0.65 150 0.20 0.35 175 0.10 0.15 200 0.05 0.05 a. ML = 20; MP = 80 – 20 = 60 ML/(ML + […]
Management Chapter 7 Homework Students often question the open area to the right of the constraints
CHAPTER 7 Linear Programming Models: Graphical and Computer Methods TEACHING SUGGESTIONS Teaching Suggestion 7.1: Draw Constraints for a Graphical LP Solution. Explain constraints of the three types (, = , ) carefully the first time you present an example. Show […]
Management Chapter 7 Homework The first and second constraints are non-binding constraints since they have non-zero
Formulation 3: Formulation 4: Formulation 4 appears to be proper as is. Note that the constraint 4X1 + 6X2 48 is redundant. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 7-21 7-28. Using the isoprofit line or corner […]
Management Chapter 8 Homework Amalgamated’s blending problem will have eight variables and 11 constraints
b. The computer-generated results are: Trained Technicians Trainees Month Available Beginning Aug. 350 13.7 (actually 14) Sept. 346.2 0 Oct. 328.8 72.2 (actually 72) Nov. 384.6 0 Dec. 365.4 0 Total salaries paid over the five-month period = $3,627,279. 8-15. […]
Management Chapter 8 Homework Three points can be made about the two blending examples in this chapter
CHAPTER 8 Linear Programming Applications TEACHING SUGGESTIONS Teaching Suggestion 8.1: Importance of Formulating Large LP Problems. Since computers are used to solve virtually all business LP problems, the most important thing a student can do is to get experience in […]
Management Chapter 9 Homework One weakness is that astronaut preferences are initially included
Arlington 460 810 1020 1270 Oakland 1500 1850 2080 10000 Baltimore 960 610 400 330 The optimal solution found using the QM for Windows assignment module is: The Seattle crew will go to Detroit. The Arlington crew will go to […]
Management Chapter 9 Homework Hall Real Estate Corporation and models it as a transportation problem
9-25. The initial solution using the northwest corner rule shows that degeneracy exists. The number of rows plus the number of columns minus 1 is equal to 4 + 3 − 1 = 6, but the number of occupied squares […]
Management Chapter 9 Homework you may wish to first provide some background information on how to structure
CHAPTER 9 Transportation and Assignment Models TEACHING SUGGESTIONS Teaching Suggestion 9.1: Transportation Models in the Chapter. The linear programming approaches and the algorithmic approaches are used for bot the trans- portation problem and the assignment problem. The instructor can choose […]