Ugba 104 - Exam 1 Questions And Answers With Complete Solutions

Flaw of Averages {Ans: mean of a function of random variables does not equal the function of the means of the random variables}Non-Binding Constraint {Ans: constraint's slack > 0 (LHS < RHS)}Random Variable X {Ans: value about which we are uncertain}Feasible Solutions {Ans: solutions that satisfy all problem constraints}Sales {Ans: minimum of supply/demand}Finding LP Optimal Solutions via Graphing {Ans: (1) graph all constraints to determine the feasible plane (2) graph isoquant lines (objective function) until you reach the point of tangency with the feasible region (2.5) system of equations where two constraint functions intersect}Custom Discrete RV {Ans: customized set of variables and corresponding probabilities}Bernoulli RV - Parameter {Ans: p (probability)}5 Steps in Formulating a Linear Program {Ans: (1) understand decision problem (2) define decision variables (3) express objective as a linear function of decision variables (4) express constraints as a linear inequality (5) identify upper or lower bounds of decision variables}Ending Inventory {Ans: supply - sales}Continuous Random Variable X {Ans: takes on infinite number of values}How are Continuous Random Variables represented? {Ans: probability density function}Bernoulli RV {Ans: an event with two outcomes (1) 1 with probability p