1 - Each coffee table produced by Robert West Designers nets the firm a profit of $9. Each bookcase yields a $12 profit. Wests firm is small and its resources limited. During any given production period, 10 gallons of varnish and 12 lengths of high-quality redwood are available. Each coffee table requires approximately 1 gallon of varnish and 1 length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths of wood.

Formulate Wests production-mix decision as a linear programming problem, and solve. How many tables and bookcases should be produced each week? What will the maximum profit be?

Use:

x = number of coffee tables to be produced y = number of bookcases to be produced

For the problem above, which of the following could be a corner point for the feasible region?

a.(12, 0) b.(6,0) c.(0, 10) d.(10,0)

2 - Mohamed is a financial advisor who has recommended two possible mutual funds for investment: Fund A and Fund B. The return that will be achieved by each of these depends on whether the economy is good, fair, or poor. A payoff table has been constructed to illustrate this situation:

Alternative:	Good Economy (BD)	Fair Economy (BD)	Poor Economy (BD)
Fund A	40000	6000	-7000
Fund B	8000	9000	-2000
No Investment	0	0	0
Probabilities	0.2	0.3	0.5

What decisions would be made the minimum EOL criterion?

a.No investment b.Fund A & B c.Fund A d.Fund B

3 - Consulting income at Kate Walsh Associates for the period FebruaryJuly has been as follows:

Month	Income
February	125
March	142
April	126
May	178
June	189
July	136
August	?

Use exponential smoothing to forecast Augusts income. The smoothing constant selected is = 0.2

a.127 b.148 c.137 d.146