Which of the following best describes the relationship between the iPads and the job fair? Select one: a. A + C = 2 b. A + C ≤ 1 c. A – C = 0 d. A – C ≤ 1 2. Which of the following represents the budget constraint? Assume that there are 20 MBA students. Select one: a. 20A + 20B + C + 20D + 20E ≤ $56,250 b. $750A + $25B + $15,000C + $10D + $5E ≤ $56,250 c. $15,000A + $500B + $15,000C + $200D + $100E ≤ $56,250 d. A + B + C + D + E ≤ 20
The Excessive Course Fees. The $75 per credit hour course fee tacked on to all the MBA classes has generated a windfall of $56,250 in its first semester. “Now we just need to make sure we spend it all on the MBA students,” the assistant dean said to the Graduate Curriculum Committee. Four months later, the chairman of the committee, Professor Lee, distributed the following shopping list and tried to figure out what items to get for all the MBA students. As an expert in management science, Professor Lee tended to think in terms of binary decision variables, so he added the left-most column for ease of use. For example, if iPads are purchased for all the MBA students, A = 1, and otherwise A = 0; if a job fair is organized for all the MBA students, C = 1, and otherwise C = 0.
| Decision Variable | Item | Cost | Note |
| A | iPads | $750/unit | Must get the cover if iPads are purchased |
| B | iPad covers with MBA logo | $25/unit | Not needed unless we buy iPads |
| C | Job fair | $15,000 | Can’t afford both this and the iPads |
| D | Subscriptions to the Wall Street Journal | $10/unit | Don’t need if we have the electronic version |
| E | Subscriptions to the electronic version of the Wall Street Journal | $5/unit | Worthless without the iPads |
1. Which of the following best describes the relationship between the iPads and the job fair?
Select one:
a. A + C = 2
b. A + C ≤ 1
c. A – C = 0
d. A – C ≤ 1
2. Which of the following represents the budget constraint? Assume that there are 20 MBA students.
Select one:
a. 20A + 20B + C + 20D + 20E ≤ $56,250
b. $750A + $25B + $15,000C + $10D + $5E ≤ $56,250
c. $15,000A + $500B + $15,000C + $200D + $100E ≤ $56,250
d. A + B + C + D + E ≤ 20
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