Final Exam, 48 points total
不确定性决策代写 Please write answers into the Word document, and create an Excel workbook for the problems solved in Excel. To plan your effort on each problem,
Please write answers into the Word document, and create an Excel workbook for the problems solved in Excel. To plan your effort on each problem, the points awarded are listed. The points sum to 48.
When writing your answers in the Word document, you can use either subscripts or underline punctuation.
For example, these notations are all acceptable and equivalent: Xi, j, X_i_j, and Xij.
Note in some fonts lower case letter i looks very much like lower case letter j. Please choose a font where these letters are clearly distinct, if you write notation using both lower case letters. You could also use other letters that do not look as similar, such as using a and b. 不确定性决策代写
You are not expected to write sigma notations or algebraic summations in this exam, nor are you required to. However, do please write all terms in mathematical programs. The problems are chosen to be of sufficiently compact size to enable you to write them completely. Please feel free to use additional space in the Word document for your answers, and remember to explicitly state the answers to the questions.
When you are asked to write an answer in plain English, please write it in the Word document. Writing your answer in Excel is also ok, but not sufficient.
It is ok to refer to course materials to answer your questions, but not permissible to contact any other person during the exam period with respect to the exam or course material.
Please save the Word and Excel documents with your last then first name in the file name, such as Resnick_Adam_exam2023.
Please upload your two exam documents to Canvas when you are finished. We wish you good luck.
Multiple Choice (4 questions, 2 points per question): 不确定性决策代写
Write your answer to the following questions on the line provided. Each question has only one correct answer.
_______1. A road map is an example of
a. a mathematical model.
b. a mental model.
c. a physical model.
d. a visual model.
_______2. A mathematical model is considered to be “valid” when
a. it accurately represents the relevant characteristics of the object or decision.
b. it has passed a validation test.
c. it replicates all aspects of the object or decision.
d. the left-hand and right-hand sides of expressions are equal.
______3. All of the following are benefits of modeling except:
a. Modeling delivers needed information on a more timely basis.
b. Modeling finds the right answers to incorrect or flawed problem statement.
c. Modeling is helpful in examining things that would be impossible to do in reality.
d. Modeling is less expensive than implementing several alternative solutions.
______4. The three key components of an optimization model are:
a. Decision variables, objective function, and constraints
b. Decision variables, inequalities, and constraints
c. Objective function, constraints, and lower bounds
d. Decision variables, lower bounds, and upper bounds
Question 5 (8 points): 不确定性决策代写
A financial planner wants to design a portfolio of investments for a client. The client has $400,000 to invest and the planner has identified four investment options for the money. The following requirements have been placed on the planner. No more than 30% of the money in any one investment, at least one half should be invested in long-term bonds which mature in six or more years, and no more than 40% of the total money should be invested in B and C since they are riskier investments. The planner has developed the following LP model based on the data in this table and the requirements of the client. The objective is to maximize the annual return of the portfolio.
| Investment | Annual Return | Years to Maturity | Rating |
| A | 6.45% | 6 | 1 – Excellent |
| B | 8.50% | 5 | 3 – Good |
| C | 9.00% | 8 | 4 – Fair |
| D | 7.75% | 4 | 2 – Very Good |
Formulate the LP for this problem. Include all standard elements of the algebraic formulation, and label your model.
Question 6 (12 points): 不确定性决策代写
The following questions use the information below.
The owner of Fix-a dent Auto Repair wants to study the revenue of his business using simulation. He is interested in simulating the monthly revenue from repairing damaged cars. He repairs 10 cars per month. The dollar value of the damage to each of the cars is a normally distributed random variable with a mean of $3,000 and a standard deviation of $500. Use the provided spreadsheet of random variates to set up and run a 100-iteration simulation model of the business’ monthly revenue.
Use the RVs in the provided spreadsheet to perform the simulation study.
What are the 5th, 50th, 75th, and 95th percentile predictions for the business’ monthly revenue?
Question 7 (20 points) 不确定性决策代写
Clifton Auto Manufacturing has three plants and four distribution The plants, their supply, the distribution centers, their demands, and the distance between each location is summarized in the following table:
| Distance | Distribution
Center 1 |
Distribution
Center 2 |
Distribution
Center 3 |
Distribution
Center 4 |
Supply |
| Plant A | 45 | 60 | 53 | 75 | 500 |
| Plant B | 81 | 27 | 49 | 62 | 700 |
| Plant C | 55 | 40 | 35 | 60 | 650 |
| Demand | 350 | 325 | 400 | 375 |
Clifton Auto Manufacturing must decide how it will ship its autos from plants to distribution centers. Clifton Auto Manufacturing wants to ship the maximum amount of autos at the minimum cost. Cost is proportionate to distance traveled. Clifton Auto Manufacturing cannot ship more autos from its plants than its available supply, nor ship more autos to its distribution centers than their demand.
Create a linear programming model of the business’ distribution decision. Include all standard elements of the algebraic formulation, and label your model.
Set up the LP and solve in Excel. Describe the optimal decision.
