Questions from Management Science

Q: In PC Tech’s product mix problem, assume there is another PC

In PC Tech’s product mix problem, assume there is another PC model, the VXP, that the company can produce in addition to Basics and XPs. Each VXP requires eight hours for assembling, three hours for t...

Q: Repeat problem 23, but make the correlation between the two inputs

Repeat problem 23, but make the correlation between the two inputs equal to –0.7. Explain how the results change. Data from Problem 23: When you use @RISK’s correlation feature to generate correlated...

Q: Repeat Problem 23, but now make the second input variable triangularly

Repeat Problem 23, but now make the second input variable triangularly distributed with parameters 50, 100, and 500. This time, verify not only that the correlation between the two inputs is approxima...

Q: Suppose you are going to invest equal amounts in three stocks.

Suppose you are going to invest equal amounts in three stocks. The annual return from each stock is normally distributed with mean 0.01 (1%) and standard deviation 0.06. The annual return on your port...

Q: The effect of the shapes of input distributions on the distribution of

The effect of the shapes of input distributions on the distribution of an output can depend on the output function. For this problem, assume there are 10 input variables. The goal is to compare the ca...

Q: The Business School at State University currently has three parking lots,

The Business School at State University currently has three parking lots, each containing 155 spaces. Two hundred faculty members have been assigned to each lot. On a peak day, an average of 70% of al...

Q: Six months before its annual convention, the American Medical Association must

Six months before its annual convention, the American Medical Association must determine how many rooms to reserve. At this time, the AMA can reserve rooms at a cost of $150 per room. The AMA believes...

Q: Use @RISK to draw a uniform distribution from 400 to 750

Use @RISK to draw a uniform distribution from 400 to 750. Then answer the following questions. a. What are the mean and standard deviation of this distribution? b. What are the 5th and 95th percentile...

Q: You have made it to the final round of the show Let’s

You have made it to the final round of the show Let’s Make a Deal. You know that there is a $1 million prize behind either door 1, door 2, or door 3. It is equally likely that the prize is behind any...

Q: A new edition of a very popular textbook will be published a

A new edition of a very popular textbook will be published a year from now. The publisher currently has 1000 copies on hand and is deciding whether to do another printing before the new edition comes...