1)The operations manager for a local bus company wants to decide whether he should purchase a new small, medium, or large bus for his company. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, moderate, or high, as follows :
|
Small
|
50
|
60
|
70
|
|
Medium
|
40
|
80
|
90
|
|
Large
|
20
|
50
|
120
|
The manager believes the chances of low, moderate, and high demand are 30%, 30%, and 40% respectively. What is the expected annual profit for the bus that he will decide to purchase?
| A |
|
$61,000
|
| B |
|
$72,000
|
| C |
|
$15,000
|
| D |
|
$69,000
|
| E |
|
$87,000
|
2)The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:
|
Location
|
Fixed Costs
|
Variable Costs
|
|
Alpha Ave
|
$5,000
|
$200/person
|
|
Beta Blvd.
|
$8,000
|
$150/person
|
If it is estimated that thirty persons will be living in this new chapter house, which location should the Skulls select?
| A |
|
Alpha Ave
|
| B |
|
reject both Alpha Ave. nor Beta Blvd.
|
| C |
|
either Alpha Ave. or Beta Blvd.
|
| D |
|
Beta Blvd.
|
| E |
|
become a virtual organization
|
3)The expected (mean) life of a particular type of light bulb is 1,000 hours with a standard deviation of 50 hours. The life of this bulb is normally distributed. What is the probability that a randomly selected bulb would last longer than 1150 hours?
| A |
|
0.5013
|
| B |
|
0.4987
|
| C |
|
0.0013
|
| D |
|
0.9987
|
4)Abel Alonzo, Director of Human Resources, is exploring employee absenteeism at Batesville Bottling during the last operating year. A sample of six personnel records produced the following data: 0, 2, 4, 7, 2, 9. The standard deviation of the number absences per employee is _________________.
| A |
|
3.41
|
| B |
|
9.67
|
| C |
|
11.6
|
| D |
|
3.11
|