QUESTION #1:

Pablo is contemplating four institutions of higher learning in the U.S. as options for a Masters in Business Administration. Each university has strong and weak points and the demand for MBA graduates is uncertain. The availability of jobs, student loans, and financial support will have a significant impact on Pablo's ultimate decision. A and B universities have comparatively high tuition, which would necessitate Pablo take out student loans resulting in possibly substantial student loan debt. In a tight market, degrees with that cachet might spell the difference between a hefty paycheck and a piddling unemployment check. C and D universities hold the advantage of comparatively low tuition but a more regional appeal in a tight job market. Pablo gathers his advisory council of Magda and Pedro to assist with the decision. Together they forecast three possible scenarios for the job market and institutional success and predict annual cash flows associated with an MBA from each institution. All cash flows in the table are in thousands of dollars.

University	Scenario 1	Scenario 2	Scenario 3
A	95	20	-10
B	55	60	60
C	90	10	80
D	65	50	60

Under which decision-making criterion is A university the optimal choice?

Seleccione una:

a. maximin

b. minimax regret

c. Bayes criteria

d. minimim

e. maximax

QUESTION #2

Pablo is contemplating four institutions of higher learning in the U.S. as options for a Masters in Business Administration. Each university has strong and weak points and the demand for MBA graduates is uncertain. The availability of jobs, student loans, and financial support will have a significant impact on Pablo's ultimate decision. A and B universities have comparatively high tuition, which would necessitate Pablo take out student loans resulting in possibly substantial student loan debt. In a tight market, degrees with that cachet might spell the difference between a hefty paycheck and a piddling unemployment check. C and D universities hold the advantage of comparatively low tuition but a more regional appeal in a tight job market. Pablo gathers his advisory council of Magda and Pedro to assist with the decision. Together they forecast three possible scenarios for the job market and institutional success and predict annual cash flows associated with an MBA from each institution. All cash flows in the table are in thousands of dollars.

University	Scenario 1	Scenario 2	Scenario 3
A	95	20	-10
B	55	60	60
C	90	10	80
D	65	50	60

Under which decision-making criterion is B University the optimal choice?

Seleccione una:

a. maximax

b. Bayes criteria

c. minimax regret

d. maximin

e. minimim

QUESTION #3

Pablo is contemplating four institutions of higher learning in the U.S. as options for a Masters in Business Administration. Each university has strong and weak points and the demand for MBA graduates is uncertain. The availability of jobs, student loans, and financial support will have a significant impact on Pablo's ultimate decision. A and B universities have comparatively high tuition, which would necessitate Pablo take out student loans resulting in possibly substantial student loan debt. In a tight market, degrees with that cachet might spell the difference between a hefty paycheck and a piddling unemployment check. C and D universities hold the advantage of comparatively low tuition but a more regional appeal in a tight job market. Pablo gathers his advisory council of Magda and Pedro to assist with the decision. Together they forecast three possible scenarios for the job market and institutional success and predict annual cash flows associated with an MBA from each institution. All cash flows in the table are in thousands of dollars.

University	Scenario 1	Scenario 2	Scenario 3
A	95	20	-10
B	55	60	60
C	90	10	80
D	65	50	60

Suppose that the likelihood for each of the scenarios 1 through 3 is 0.3, 0.4, and 0.3, respectively. What is the optimal decision under the expected opportunity loss criterion?

Seleccione una:

a. D

b. A

c. C

d. B

e. minimim

QUESTION #4

Vacationers enter Giovanni's Gelateria that prides itself on its bizarre variety of flavors. The owner, Giovanni, is the only employee, so if customer #2 arrives while customer #1 is being served, customer #2 must wait patiently until customer #1 leaves the cash register, gelato in hand. The gelato at Giovanni's is so delightful that customers are willing to wait regardless of how long the line is. The interarrival and service times are distributed as shown in the table.

Range	Interarrival Time (minutes)	Service Time (minutes)
0.000-0.200	3	6
0.201-0.400	6	7
0.401-0.600	9	8
0.601-0.800	12	9
0.801-1.000	15	10

The stream of random numbers for a Monte Carlo simulation appears in this table:

Interarrival	Service
.114	.979
.899	.297
.925	.162
.085	.574
.824	.235
.151	.593
.223	.956
.477	.845

What is the average service time for the first four customers?

Seleccione una:

a. 6.5 minutes

b. 8.5 minutes

c. 7.5 minutes

d. 6 minutes

e. 8 minutes

QUESTION #5

Vacationers enter Giovanni's Gelateria that prides itself on its bizarre variety of flavors. The owner, Giovanni, is the only employee, so if customer #2 arrives while customer #1 is being served, customer #2 must wait patiently until customer #1 leaves the cash register, gelato in hand. The gelato at Giovanni's is so delightful that customers are willing to wait regardless of how long the line is. The interarrival and service times are distributed as shown in the table.

Range	Interarrival Time (minutes)	Service Time (minutes)
0.000-0.200	3	6
0.201-0.400	6	7
0.401-0.600	9	8
0.601-0.800	12	9
0.801-1.000	15	10

The stream of random numbers for a Monte Carlo simulation appears in this table:

Interarrival	Service
.114	.979
.899	.297
.925	.162
.085	.574
.824	.235
.151	.593
.223	.956
.477	.845

What is the average interarrival time for the first four customers?

Seleccione una:

a. 11 minutes

b. 7 minutes

c. 9 minutes

d. 8 minutes

e. 10 minutes

QUESTION #6

Vacationers enter Giovanni's Gelateria that prides itself on its bizarre variety of flavors. The owner, Giovanni, is the only employee, so if customer #2 arrives while customer #1 is being served, customer #2 must wait patiently until customer #1 leaves the cash register, gelato in hand. The gelato at Giovanni's is so delightful that customers are willing to wait regardless of how long the line is. The interarrival and service times are distributed as shown in the table.

Range	Interarrival Time (minutes)	Service Time (minutes)
0.000-0.200	3	6
0.201-0.400	6	7
0.401-0.600	9	8
0.601-0.800	12	9
0.801-1.000	15	10

The stream of random numbers for a Monte Carlo simulation appears in this table:

Interarrival	Service
.114	.979
.899	.297
.925	.162
.085	.574
.824	.235
.151	.593
.223	.956
.477	.845

What time does the fifth customer exit the gelateria if Giovanni opens his business at 8:00 am to serve the morning gelato crowd?

Seleccione una:

a. 8:58am

b. 8:48am

c. 8:38am

d. 9:08amnutes

e. 9:18am