Questions from Management Science


Q: You can calculate the risk index of an investment by taking the

You can calculate the risk index of an investment by taking the absolute values of percentage changes in the value of the investment for each year and averaging them. Suppose you are trying to determi...

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Q: Based on Magoulas and Marinos-Kouris (1988). An oil

Based on Magoulas and Marinos-Kouris (1988). An oil company produces two products: regular and premium gasoline. Each product contains 0.15 gram of lead per liter. The two products are produced from t...

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Q: Capsule Drugs manufactures two drugs. The drugs are produced by blending

Capsule Drugs manufactures two drugs. The drugs are produced by blending two chemicals. By weight, drug 1 must contain at least 75% chemical 1, and drug 2 must contain at least 45% chemical 1. Drug 1...

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Q: Molecular Products produces three chemicals: B, C, and D

Molecular Products produces three chemicals: B, C, and D. The company begins by purchasing chemical A for a cost of $650 per 100 liters. For an additional cost of $320 and the use of three hours of sk...

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Q: Bexter Labs produces three products: A, B, and C

Bexter Labs produces three products: A, B, and C. Bexter can sell up to 2000 units of product A, up to 3000 units of product B, and up to 5000 units of product C. Each unit of product C uses two units...

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Q: Georgia McBeal is trying to save for her retirement. She believes

Georgia McBeal is trying to save for her retirement. She believes she can earn 10% on average each year on her retirement fund. Assume that at the beginning of each of the next 40 years, Georgia will...

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Q: Mondo Motorcycles is determining its production schedule for the next four quarters

Mondo Motorcycles is determining its production schedule for the next four quarters. Demands for motorcycles are forecasted to be 400 in quarter 1; 700 in quarter 2; 500 in quarter 3; and 200 in quart...

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Q: An automobile manufacturing company has a $500,000 advertising budget

An automobile manufacturing company has a $500,000 advertising budget. To increase its automobile sales, the company is considering advertising in newspapers and on television. The more the company us...

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Q: Broker Sonya Wong is currently trying to maximize her profit in the

Broker Sonya Wong is currently trying to maximize her profit in the bond market. Four bonds are available for purchase and sale at the bid and ask prices shown in the file P04_97.xlsx. Sonya can buy u...

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Q: Budget Auto produces inexpensive cars. Each car is sold for $

Budget Auto produces inexpensive cars. Each car is sold for $12,500. The raw material in a car costs $8000. Labor time and robot time are needed to produce cars. A worker can do the needed labor on, a...

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