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- In Example 11.3, if a batch fails to pass inspection, the entire batch is unusable. Change the model so that if a batch fails to pass inspection, it is reworked, and at the end of the rework, its entire yield (the same yield determined in column C) is usable. However, the rework takes 3, 4, or 5 days with respective probabilities 0.2, 0.5, and 0.3. Run the simulation for the modified model and comment on how the results change.Suppose that Pizza King and Noble Greek stopadvertising but must determine the price they will chargefor each pizza sold. Pizza King believes that Noble Greek’sprice is a random variable D having the following massfunction: P(D $6) .25, P(D $8) .50, P(D $10) .25. If Pizza King charges a price p1 and NobleGreek charges a price p2, Pizza King will sell 10025( p2 p1) pizzas. It costs Pizza King $4 to make a pizza.Pizza King is considering charging $5, $6, $7, $8, or $9 fora pizza. Use each decision criterion of this section todetermine the price that Pizza King should charge.In the figure below, no probabilities are known for the occurrence of the nature states. For the matrix, solve every one of the subpoints with the respective formulas: Laplace Maximin(Minimax) Savage Hurwitz (assume that α=0.3)
- Which of the following is true? a)The maximin criterion is an approach in Optimization under uncertainty which finds a solution that has the best possible payoff. b)The maximin criterion is an approach in Optimization under uncertainty which finds a solution with the best worst possible payoff. c)A risk profile represents the probability distribution of uncertain inputs. d)Decision tree is a method to solve any optimization problem when the outcomes are subject to uncertainty.The person says that 2173 is a prime number because it ends in the number3, and since 3 is a prime number then that means that 2173 is a prime number. Is2173 a prime number? What can you conclude about this person’s reasoning? Explain your answer.Show that if ˆ is an unbiased estimator of θ andvar()ˆ Z 0, then ˆ 2 is not an unbiased estimator of θ 2.
- Appliances Unlimited (AU) sells refrigerators. Anyrefrigerator that fails before it is three years old isreplaced for free. Of all refrigerators, 3% fail duringtheir first year of operation; 5% of all one-year-oldrefrigerators fail during their second year of operation;and 7% of all two-year-old refrigerators fail duringtheir third year of operation.a. Use simulation to estimate the fraction of all refrigeratorsthat will have to be replaced.b. It costs $500 to replace a refrigerator, and AU sells10,000 refrigerators per year. If the warranty periodwere reduced to two years, how much per year inreplacement costs would be saved?A building contains 1000 lightbulbs. Each bulb lastsat most five months. The company maintaining thebuilding is trying to decide whether it is worthwhileto practice a “group replacement” policy. Under agroup replacement policy, all bulbs are replaced everyT months (where T is to be determined). Also, bulbsare replaced when they burn out. Assume that it costs$0.05 to replace each bulb during a group replacementand $0.20 to replace each burned-out bulb if it isreplaced individually. How would you use simulationto determine whether a group replacement policy isworthwhile?Which of the following statements is correct regarding the EMH form? Select one: None of the answers are correct If the market is weak-form efficient, then it is also semistrong and strong-form efficient. If the market is semistrong form efficient, then it is also strong form efficient If a market is strong-form efficient, it is also semistrong and weak form efficient If the market is strong-form efficient, it is also semistrong but not weak-form efficient
- This condition arises when there is a tie in the values used to determine which variable will enter the solution next. a. infeasibility b. unboundedness c. multiple optimal solutions d. degeneracyConsider the following problem: Maximize z = 2x1 + 2x2 + 4x3 subject to: 2x1 + x2 + x3 <= 2 3x1 + 4x2 + 2x3 >= 8 x1, x2, x3 >= 0 (a) Show that Phase I will terminate with an artificial basic variable at zero level (you may use TORA for convenience). (b) Remove the zero artificial variable prior to the start of Phase II, then carry out Phase II iterations.It has been suggested that at each iteration of the simplex algorithm, the entering variable should be (in a maximizationproblem) the variable that would bring about the greatest increase in the objective function. Although this usually results infewer pivots than the rule of entering the most negative row 0 entry, the greatest increase rule is hardly ever used. Why not?