C207 Module 3
1.Linear Programming: A craftsman builds two kinds of
birdhouses. One for bluebirds and one for cardinals. He knows the amount of labor and the units of lumber that are needed for each birdhouse. The craftsman has available 60 hours of labor and 120 units of lumber. Which technique should the craftsman use to minimize cost?
2.Cross Over: Ski Boards, Inc. wants to enter the market quickly
with a new finish on its ski boards. It has three choices: refurbish the
old equipment, make major modifications or purchase new equipment. The company has estimated the fixed and variable cost for each option. Which technique should they use to select the least costly option?
3.Chi-square: Which analysis technique can be used with
hypothesis testing when nominal or categorical data is gathered?
4.Normal distribution: United Motors indicates that gas mileage
tests of one of their cars, the Starbird 300, under city driving conditions has a mean of 30 mph and a median of 29.9 mph. Which type of distribution would this testing represent?
5.ANOVA: North American Oil Company is attempting to
develop a reasonably priced gasoline that will deliver improved gasoline mileage. As part of its devel- opment process, the company would like to compare the effects of three types of gasoline. Which analysis technique should the company use to compare the performances of each gasoline type? 1 / 2
6.$8: Enterprise Industries produces Fresh, a brand of liquid
laundry detergent. In order to study the relationship between price and demand for the large bottle of Fresh, the company develops
the following relationship: Demand = 600 + 50X. What price is
needed to produce a demand of 1000?
7.Trend: A large manufacturer wants to forecast demand for a
piece of pollu- tion-control equipment. A review of the past 12 months of sales indicates that sales are increasing. What time series pattern does the sales likely exhibit?
8.Multiple Regression Analysis: A car dealership wishes to
forecast car sales based upon price discounts and television ads.What forecasting technique should the dealership use?
9.104,500: A city hospital wishes to evaluate the labor hours it
needs based upon monthly occupied bed days and average length of
patients' stay. The estimated regression is: y = 2000 + 75X1 +
65X2 What scenario would be predicted if X1 = 500 and X2 = 1000?
10.Autocorrelation: A company uses time series analysis to
develop its product forecast. The forecaster uses simple linear regression but notices that the past
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