Decision Model TEST

NO: 1
Favorable Market (RM) Moderate Market (RM) Unfavorable Market (RM)
Build Big 250000 150000 -100000
Build Medium 80000 30000 -60000
Build Small 40000 10000 -20000

A. Calculate
1. Maximin
2. Maximax
3. Hurwizc (0.70)
4. Equally Likely
5. Minimax Regret

B. If
Prob of Favorable 0.40
Prob of Moderate 0.30
Prob of Unfavorable 0.30

Calculate: EMV, EOL and EVPI

Follow the steps in notes or book.
NO: 2
Flair Furniture Company Data
The company wants to determine the best combination of tables and chairs to produce to reach the
maximum profit

Department (X) Tables (Y) Chairs Available

Hours Per
Week
Carpentry 20 40 4000
Painting and varnishing 100 50 8000
Laminating 1 60
Profit per unit RM60 RM30

Do the steps LP for the above question plus iso-profit line.

Do not use graph paper because the points can be estimated using simultaneous equation for the
point of intersection between 2 equation line. Actually there are 2 simultaneous equation here but
one of it is quite easy because we know X=60.
NO: 3
A new barber shop is manned by one person. It is believed that people will arrive at the barber shop
at the rate of 10 per hour. It takes an average of 4 minutes to complete the task of cutting the client’s
hair. It is assumed that arrivals are Poisson and answer times are exponentially distributed.
a. Find the probability that the barber shop is idle.
b. Find the proportion of time that the barber shop is busy
c. Find the average number of people receiving and waiting to receive the service
d. Find the average number of people waiting in line for the service
e. Find the average time a person seeking hair cut spends at the barber shop
f. Find the expected time a person spends waiting on the chair.
g. Find the probability more than 4 people in the system.

Use the formula below. Please do all by yourself. GOOD LUCK.