BUS517 MIDTERM EXAM PART 1 SOLUTION 25 25
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1. Allen Machines specializes in developing weed-harvesting equipment that is used to clear small lakes of weeds. Allen Machines is contemplating the construction of a machine that would harvest weeds on narrow rivers and waterways. The activities and time in weeks necessary to build one of these experimental machines are shown in the table below.
Activity | Immediate Predecessors | Time in Weeks |
A | none | 6 |
B | none | 5 |
C | A | 3 |
D | A | 2 |
E | B | 4 |
F | B | 6 |
G | C,E | 10 |
H | D,F | 7 |
2. The following is the activity and associated costs for the renovation of the local high school football stadium. The times are in weeks.
Activity | Immediate Predecessor | Time | Cost ($) |
A | - | 4 | 25,000 |
B | - | 5 | 30,000 |
C | A | 3 | 15,000 |
D | B | 8 | 50,000 |
E | B | 2 | 12,000 |
F | C, D | 3 | 15,000 |
G | C, D | 7 | 46,000 |
H | E, F | 2 | 20,000 |
3. Precision Manufacturing has a government contract to produce stainless steel rods for use in military aircraft. Each rod is required to be 20 millimeters in diameter. Each hour, random samples of size n = 4 rods are measured to check process control. Five hours of observations yielded the following:
| Diameter | |||
Time | Rod 1 | Rod 2 | Rod 3 | Rod 4 |
9 A.M. | 19.8 | 20.4 | 19.9 | 20.3 |
10 A.M. | 20.1 | 20.2 | 19.9 | 19.8 |
11 A.M. | 19.9 | 20.5 | 20.3 | 20.1 |
Noon | 19.7 | 19.8 | 20.3 | 20.2 |
1 P.M. | 19.7 | 20.1 | 19.9 | 19.9 |
4. Modern Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Modern Electronics is considering building a new facility but the estimated profits would be impacted by the type of market that develops. The probability for a strong market is 0.3; for a fair market is 0.5; and for a poor market is 0.2. You are responsible for advising the president of Modern Electronics on the type facility that should be built or to not build a facility at all. The table shows the estimated profits under each market and for each size facility.
| Estimated Profits | ||
| Strong Market | Fair Market | Poor Market |
Build a large facility | 550,000 | 110,000 | -310,000 |
Build a medium-size facility | 300,000 | 129,000 | -100,000 |
Build a small facility | 200,000 | 100,000 | -32,000 |
Do not build a facility | 0 | 0 | 0 |
5. Consulting income at Kaplan Associates for the period February – July is shown in the table below. Assume that the initial forecast for February is $65,000. Use Exponential smoothing to forecast August’s income.
Month | Income ($1,000) |
February | 70.0 |
March | 68.5 |
April | 64.8 |
May | 71.7 |
June | 71.3 |
July | 72.8 |
6. Johnson Construction Company is in the process of installing power lines to a large housing development. The company wants to minimize the total length of wire used, which would minimize the company’s cost. The housing development is shown below. Each house has been numbered, and the distances between houses are given in hundreds of feet.
7. The storm drains in the Cedar Rapids, Iowa, have been upgraded following the devastating floods of 2008. The network of storm drains and the capacities are shown below. Determine the maximum flow (in hundreds of gallons of water per minute) from node 1 to node 5. Remember that the arc has both capacity and reverse capacity.
From Node | To Node | Fluid Flow |
1 | 2 | 250 |
2 | 1 | 100 |
1 | 3 | 100 |
3 | 1 | 150 |
1 | 4 | 400 |
4 | 1 | 400 |
1 | 5 | 150 |
5 | 1 | 200 |
2 | 4 | 300 |
4 | 2 | 200 |
3 | 4 | 250 |
4 | 3 | 300 |
3 | 5 | 300 |
5 | 3 | 250 |
4 | 5 | 300 |
5 | 4 | 0 |
8. From the States Data Set the following output for the Income in 2000 and for the Income in 2010 was created.
9. You are a consultant working for Kaplan Consulting. The U.S. Department of Labor has requested assistance in evaluating the impact of economic stimulus on the unemployment rate. From the States Data Set the following t test was conducted to answer the question:
“Has there been a significant reduction in the national unemployment rate between January and June?”
10. The Governor of a southern state has asked Kaplan Consulting to determine if the state were able to increase the percentage of its population with a Bachelor’s Degree to 50%, what might be the expected median household income based on 2010 data? Here is the output from the Regression procedure from Excel.
Submitting Your Project
BUS517 Project Management MIDTERM EXAM PART 1 (SOLUTION 25/25)
Question 1
The advent of project management has been most profound in
Answer
Automobile manufacturing
Construction
Information technology
The U.S. Department of Defense
Film making
Question 2
Which of the following is the number one characteristic that is looked for in management candidates?
Answer
Overall intelligence
Works well with others
Experience
Past successes
Good reference
Question 3
In which of the following stages are project objectives established, teams formed, and major responsibilities assigned?
Answer
Conceptualizing
Defining
Planning
Executing
Delivering
Question 4
Project management is ideally suited for a business environment requiring all of the following except
Answer
Accountability
Flexibility
Innovation
Speed
Repeatability
Question 5
A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a loss of product revenue share of ___ percent. The waste on failed projects and cost overruns is estimated in the neighborhood of
Answer
10
20
33
45
50
Question 6
Which of these is not part of the "technical dimension" of project management?
Answer
WBS
Budgets
Problem solving
Schedules
Status reports
Question 7
From among the following activities, which is the best example of a project?
Answer
Processing insurance claims
Producing autom...
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