Consulting income at Kate Walsh Associates for the period FebruaryJune has been as follows:

Month	Income
February	120
March	115
April	135
May	112
June	140
July	?

What is the approximate forecast for year July using a weighted moving average of 20%/ 30% / 50%?

a.

155

b.

149

c.

150

d.

131

Consulting income at Kate Walsh Associates for the period FebruaryJune has been as follows:

Month	Income
February	120
March	115
April	135
May	112
June	140
July	?

Use exponential smoothing to forecast July income. The smoothing constant selected is = 0.2

a.

125

b.

146

c.

130

d.

148

Mohamed is a financial advisor who has recommended two possible mutual funds for investment: Fund A and Fund B. The return that will be achieved by each of these depends on whether the economy is good, fair, or poor. A payoff table has been constructed to illustrate this situation:

Alternative:	Good Economy (BD)	Fair Economy (BD)	Poor Economy (BD)
Fund A	15,000	75,000	(40,000)
Fund B	45,000	50,000	(80,000)
No Investment	0	0	0
Probabilities	0.2	0.3	0.5

Calculate the Best EMV criterion

a.

5500

b.

0

c.

16,000

d.

6300

Each coffee table produced by Robert West Designers nets the firm a profit of $9. Each bookcase yields a $12 profit. Wests firm is small and its resources limited. During any given production period, 10 gallons of varnish and 12 lengths of high-quality redwood are available. Each coffee table requires approximately 1 gallon of varnish and 1 length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths of wood.

Formulate Wests production-mix decision as a linear programming problem, and solve. How many tables and bookcases should be produced each week? What will the maximum profit be?

Use:

x = number of coffee tables to be produced y = number of bookcases to be produced

Which objective function best represents the problem?

a.

P= X + Y

b.

P= 10 X + 12 Y

c.

P= X + 2 Y

d.

P= 9 X + 12 Y

Each coffee table produced by Robert West Designers nets the firm a profit of $9. Each bookcase yields a $12 profit. Wests firm is small and its resources limited. During any given production period, 10 gallons of varnish and 12 lengths of high-quality redwood are available. Each coffee table requires approximately 1 gallon of varnish and 1 length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths of wood.

Formulate Wests production-mix decision as a linear programming problem, and solve. How many tables and bookcases should be produced each week? What will the maximum profit be?

Use:

x = number of coffee tables to be produced y = number of bookcases to be produced

For the problem above, what is the optimal solution?

a.

96

b.

98

c.

72

d.

90

Consulting income at Kate Walsh Associates for the period FebruaryJune has been as follows:

Month	Income
February	120
March	115
April	135
May	112
June	140
July	?

Calculate the simple average for the period.

a.

124

b.

149

c.

150

d.

155

A second hand car dealer has 7 cars for sale. She decides to investigate the link between the age of the cars, x years, and the mileage, y thousand miles. The date collected from the cars is shown in the table below.

Age, x Year	2	3	7	6	4	5	8
Mileage, y thousand	20	18	15	24	29	21	20

Find the least square regression line in the form y = a + bx.

a.

Y= 10 + 53 X

b.

Y= 43 + 10 X

c.

Y= 23- 0.4 X

d.

Y= 23 + 4 X

Each coffee table produced by Robert West Designers nets the firm a profit of $9. Each bookcase yields a $12 profit. Wests firm is small and its resources limited. During any given production period, 10 gallons of varnish and 12 lengths of high-quality redwood are available. Each coffee table requires approximately 1 gallon of varnish and 1 length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths of wood.

Formulate Wests production-mix decision as a linear programming problem, and solve. How many tables and bookcases should be produced each week? What will the maximum profit be?

Use:

x = number of coffee tables to be produced y = number of bookcases to be produced

Determine the possible two constraints of the problem

a.

X+Y 12, X+ 2 Y 10

b.

2X+ Y 12, X+Y 10

c.

X+Y 9, X+ 2 Y 12

d.

X+Y 10, X+ 2 Y 12

A second hand car dealer has 7 cars for sale. She decides to investigate the link between the age of the cars, x years, and the mileage, y thousand miles. The date collected from the cars is shown in the table below.

Age, x Year	2	3	7	6	4	5	8
Mileage, y thousand	20	18	15	24	29	21	20

Calculate the b value in the form y= a+ bx

a.

2.1

b.

(0.4)

c.

23

d.

10