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1) Consider the sensitivity report below for the problems which follow. What is the increase in the objective value if 2 units of additive is added? A) 0 B) 4 C) 12 D) 16 E) Not enough information provided 2) […]

1) Little’s Flow Equations are applicable for single-channel systems only. 2) The correlation coefficient has values between 1 and +1. Answer: TRUE 3) A model is a representation of a situation. Answer: TRUE 4) A hospital ward with only 30 […]

1) A Markov process could be used as a model of how a disease progresses from one set of symptoms to another. 2) Consider a standard 52-card deck of cards. The probability of drawing either a seven or a black […]

1) An infeasible solution is indicated when all the Cj – Zj row entries are of the proper sign to imply optimality, but an artificial variable remains in the solution. 2) Determinants are useful in solving a set of simultaneous […]

1) PERT stands for Probabilistic Evaluation and Review Technique. 2) CPM stands for Comprehensive Project Method. Answer: FALSE 3) An integer programming solution can never produce a greater profit objective than the LP solution to the same problem. Answer: TRUE […]

1) A solution to the transportation problem can become degenerate at any iteration. 2) Inventory is any stored resource that is used to satisfy a current or future need. Answer: TRUE 3) In a competitive business market, one company’s strategy […]

1) The two fundamental decisions that you have to make when controlling inventory are: (1) how much to order, and (2) how much money to spend. 2) The optimistic time is the greatest amount of time that could be required […]

1) The existence of non-negativity constraints in a two-variable linear program implies that we are always working in the northwest quadrant of a graph. 2) The SSE measures the total variability in the independent variable about the regression line. Answer: […]

1) One problem in using a quantitative model is that the necessary data may be unavailable. 2) In regression, a binary variable is also called an indicator variable. Answer: TRUE 3) In determining the EOL with the normal distribution, as […]

1) The transportation algorithm can be used to solve both minimization problems and maximization problems. 2) If, at an optimal solution, the Cj – Zj value for a real variable that is not in the solution mix has a value […]

1) A risk avoider is a person for whom the utility of an outcome A) decreases as the monetary value increases. B) stays the same as monetary value increases. C) increases at an increasing rate as the monetary value increases. […]

1) On a practical noteif we are using waiting line analysis to study cars passing through a single tollbooth, reneging is probably not an issue. 2) One of the major advantages of simulation is “time compression,” i.e., the ability to […]

1) The most common quantitative causal model is regression analysis. 2) A series of steps or procedures that are repeated is known as an algorithm. Answer: TRUE 3) The Monte Carlo simulation was developed as a quantitative technique by the […]

1) The linear programming ingredient or blending problem model allows one to include not only the cost of the resource, but also the differences in composition. 2) The underlying distribution for a p-chart is binomial. Answer: TRUE 3) The mean […]

1) In using the stepping-stone method, the path can turn at any box or cell that is unoccupied. 2) One of the assumptions of the basic EOQ model is that the receipt of inventory is instantaneous. Answer: TRUE 3) If […]

1) The maximal-flow model might be of use to an engineer looking for spare capacity in an oil pipeline system. 2) The variance of the project completion time is equal to the sum of the variances of all the activities. […]

1) There is no general method for solving all nonlinear problems. 2) In a maximization problem, the Cj – Zj row gives the net loss from introducing one unit of each variable into the solution. Answer: FALSE 3) In goal […]

1) Consider the tasks, durations, and predecessor relationships in the following network. Draw the network and answer the questions that follow. (a) What is the expected duration of the project? (b) What is the probability of completion of the project […]

1) Any time that we have an isoprofit line that is parallel to a constraint, we have the possibility of multiple solutions. 2) EVPI and minimum EOL are equivalent. Answer: TRUE 3) Qualitative models attempt to incorporate judgmental or subjective […]

1) ERP systems are expensive to buy and costly to customize. 2) Sensitivity testing of basic variables involves reworking the initial simplex tableau. Answer: FALSE 3) The activity crash cost is equal to the incremental cost of shortening the project. […]

1) An identity matrix has 1’s in all positions of the matrix. 2) A set of simultaneous equations can be solved through the use of determinants by setting up a proportion of two special determinants for each unknown variable. Answer: […]

1) The null hypothesis in the F-test is that there is a linear relationship between the X and Y variables. 2) The economic order quantity helps one estimate the optimal number of units to purchase with each order. Answer: TRUE […]

1) Mutually exclusive events exist if only one of the events can occur on any one trial. 2) The shortest-route technique might be used by someone planning a vacation in order to minimize the required amount of driving. Answer: TRUE […]

1) The Department of Motor Vehicles (DMV) can service customers at a rate of 20 per hour (or 1/3 per minute) when it comes to license renewals. The service time follows an exponential distribution. What is the probability that it […]

1) Consider the following linear programming problem: The maximum possible value for the objective function is A) 360. B) 480. C) 1520. D) 1560. E) None of the above 2) When does P(A|B) = P(A)? A) when A and B […]

1) There is no relationship between variables unless the data points lie in a straight line. 2) The expected completion time and variance of an activity is approximated by the normal distribution in a PERT analysis. Answer: FALSE 3) A […]

1) The maximal-flow technique would be helpful to city planners in determining how freeways should be expanded. 2) A scatter diagram is a graphical depiction of the relationship between the dependent and independent variables. Answer: TRUE 3) Saying that a […]

1) There are three categories of simulation models: Monte Carlo, operational gaming, and systems simulation. 2) A PERT/CPM network is a graphical display of a project that connects activities. Answer: TRUE 3) Both dynamic programming and linear programming take a […]

1) Table 12-6 Customers arrive at coffee shop at a rate of 40 per hour. There are 2 servers available and it takes an average of 1 minute to serve each customer. Using Table 12-6, what is the average number […]

1) If we flip a coin three times, the probability of getting three heads is 0.125. 2) A finite population model differs from an infinite population model because there is a random relationship between the length of the queue and […]

1) Mean absolute deviation (MAD) is simply the sum of forecast errors. 2) A stockout is a situation that occurs when there is no inventory on hand. Answer: TRUE 3) The binomial distribution can be used when there are a […]

1) A suburban specialty restaurant has developed a single drive-thru window. Customers order, pay, and pick up their food at the same window. Arrivals follow a Poisson distribution while service times follow an exponential distribution. If the average number of […]

1) A typical transportation problem may ask the question, “How many of X should be shipped to point E from source A?” 2) Blending problems arise when one must decide which of two or more ingredients is to be chosen […]

1) For the questions which follow, there are six cities (City 1-City 6) serviced by a particular airline. Limited routes are available, and the distances for each of these routes are presented in the table below. Which routes should be […]

1) Once a Markov process is in equilibrium, it stays in equilibrium. 2) Assume you have a normal distribution representing the likelihood of completion times. The mean of this distribution is 10, and the standard deviation is 3. The probability […]

1) Extra inventory that is used to avoid stockouts is known as A) planned shortages. B) quantity discounts. C) safety stock. D) service level. E) ABC analysis. 2) Bags of pretzels are sampled to ensure proper weight. The overall average […]

1) Add the matrices + . A) B) C) D) E) None of the above 2) At an automatic car wash, cars arrive randomly at a rate of 7 every 30 minutes. The car wash takes exactly 4 minutes (this […]

1) The difference between the left-hand side and right-hand side of a greater-than-or-equal-to constraint is referred to as A) surplus. B) constraint. C) slack. D) shadow price. E) None of the above 2) A southwestern tourist city has records indicating […]

1) Simulation is very flexible. Thus, its solutions and inferences are usually transferable to other problems. 2) The F statistic is the ratio of two sample standard deviations from independent normal distributions. Answer: FALSE 3) In a constant service time […]

1) Transformations may be used when nonlinear relationships exist between variables. 2) Errors are also called residuals. Answer: TRUE 3) All decisions that result in a favorable outcome are considered to be good decisions. Answer: FALSE 4) Despite the power […]

1) Nonlinear programming is the case in which objectives and/or constraints are nonlinear. 2) The regression line minimizes the sum of the squared errors. Answer: TRUE 3) If you can determine with confidence and accuracy the factor weights and factor […]

1) Table M2-3 For the shortest route problem described in Table M2-3, which arcs comprise the shortest route? A) 1-2, 2-6, 6-8 B) 1-5, 5-8 C) 1-2, 2-5, 5-8 D) 1-3, 3-5, 5-8 E) None of the above 2) Which […]

1) Simulation models are limited to using standard probability distributions such as Poisson, exponential, normal, etc. 2) A new young executive is perplexed at the number of interruptions that occur due to employee relations. She has decided to track the […]

1) Which of the following is not a property of all linear programming problems? A) the presence of restrictions B) optimization of some objective C) a computer program D) alternate courses of action to choose from E) usage of only […]

1) The customer who arrives at a bank, enters a line, and decides to leave is A) balking. B) cropping. C) reneging. D) blithering. E) None of the above 2) Table M8-6 In Table M8-6, if cell A3 is filled […]

1) In a scatter diagram, the dependent variable is typically plotted on the horizontal axis. 2) The minimax criterion is equivalent to maximizing one’s minimum gains. Answer: TRUE 3) During World War II, many new scientific and quantitative techniques were […]

1) Which of the following statements is true about r2? A) It is also called the coefficient of correlation. B) It is also called the coefficient of determination. C) It represents the percent of variation in X that is explained […]

1) Which of the following statements concerning the F distribution is true? A) The F distribution is discrete. B) The F distribution is symmetrical. C) The F distribution is useful in modeling customer arrivals. D) The F distribution is useful […]

1) The value of r2 can never decrease when more variables are added to the model. 2) » is the average of the consistency ratios. Answer: FALSE 3) Simulation of a business or process is generally performed by building a […]

1) One purpose of regression is to predict the value of one variable based on the other variable. 2) In a maximization problem, if a variable is to enter the solution, it must have a negative coefficient in the Cj […]

1) The cornerstone of game theory is Harsanui equilibrium and Harsanui bargaining problems. 2) Artificial variables can be used in both maximization and minimization problems but are most often used in minimization problems. Answer: TRUE 3) The fewer the periods […]

1) Dummy variables for regression analysis can take on a value of either -1 or +1. 2) The reorder point occurs during a stockout. Answer: FALSE 3) An F-test is used to determine if there is a relationship between the […]

1) In the term linear programming, the word programming comes from the phrase “computer programming.” 2) In a second order exponential smoothing, a low gives less weight to more recent trends. Answer: TRUE 3) In Markov analysis, the transition probability […]

1) The standard error of the estimate is also called the variance of the regression. 2) Error is the difference in the actual value and the predicted value. Answer: TRUE 3) Transporting goods from several origins to several destinations efficiently […]

1) There are six cities (City 1-City 6) serviced by a particular airline. Limited routes are available, and the distances for each of these routes are presented in the table below. What is the minimum distance that must be traveled […]

1) In a quantity discount model, the purchase cost or material cost must be included in the total cost calculation. 2) Simulation models are designed to generate optimal solutions, which can then be applied to real-world situations. Answer: FALSE 3) […]

1) Model variables can be controllable or uncontrollable. 2) Since the production mix linear program applications are a special situation, the number of decision variables is limited to two. Answer: FALSE 3) In PERT, the variance in completion time is […]

1) The maximal-flow technique might be used by the U.S. Army Corps of Engineers to study water run-off in an attempt to minimize the danger from floods. 2) On a practical noteif we are using waiting line analysis to study […]

1) Table 10-3 A company has decided to use 01 integer programming to help make some investment decisions. There are three possible investment alternatives from which to choose, but if it is decided that a particular alternative is to be […]

1) Budgets are computed using only ES times. 2) PERT is a deterministic analysis tool allowing for precise times of activities within a project. Answer: FALSE 3) A correctly formulated linear program, when solved with the simplex algorithm, will always […]

1) A surplus variable is added to a constraint in order to create an equality, and represents a quantity of unused resource. 2) Operational gaming involves a single player competing with the computer simulated game. Answer: FALSE 3) An automatic […]

1) On a practical noteif we were to study the waiting lines in a hair salon that had only five chairs for patrons waiting, we should use an infinite queue waiting line model. 2) Maximization assignment problems can easily be […]

1) Which of the following is not a characteristic of a good decision? A) based on logic B) considers all available data C) considers all possible alternatives D) employs appropriate quantitative techniques E) always results in a favorable outcome 2) […]

1) In a maximization problem, when one or more of the solution variables and the profit can be made infinitely large without violating any constraints, the linear program has A) an infeasible solution. B) an unbounded solution. C) a redundant […]

1) A media selection LP application describes a method in which media producers select customers. 2) The simplex method begins with an initial feasible solution in which all real variables are set equal to 0. Answer: TRUE 3) Assignment problems […]

1) CPM A) assumes we do not know ahead of time what activities must be completed. B) assumes that activity time estimates follow the normal probability distribution. C) is a deterministic network technique that allows for project crashing. D) is […]

1) Table 10-4 Table 10-4 represents a solution to a goal programming problem. There are three goals (each represented by a constraint). Goal number 3 represents a resource usage goal. How much of this resource would be used by this […]

1) An ingredient or blending problem is a special case of the more general problem known as diet and feed mix problems. 2) For knapsack problems, sn-1 = an sn + bn dn + cn is a typical transformation expression. […]

1) Decision variables may also be called parameters. 2) Utility values typically range from -1 to +1. Answer: FALSE 3) Arrivals are random when they are dependent on one another and can be predicted. Answer: FALSE 4) A scatter diagram […]

1) For a maximization problem, the Zj values in the body of the simplex table represent the gross profit given up by adding one unit of this variable into the current solution. 2) PERT had its beginnings in a military […]

1) The EOQ model is relatively insensitive to minor violations of the basic assumptions. 2) Cost volume analysis deals only with costs while break-even analysis deals with both costs and revenues. Answer: FALSE 3) The decision maker can control states […]

1) As a mathematical tool, determinants are of value in helping to solve a series of simultaneous equations. 2) If a variable other than demand is random (price, fixed or variable cost, etc.) the problem of break-even analysis becomes much […]

1) We can find only the inverse of square matrices. 2) Unfortunately, multiple goals in goal programming are not able to be prioritized and solved. Answer: FALSE[/cpmembership] 3) In the optimal decision rule using marginal analysis for the single period […]

1) The SST measures the total variability in the dependent variable about the regression line. 2) Inventory is the common thread that ties all the functions and departments of the organization together. Answer: TRUE 3) An equivalent name for the […]

1) Subjective probability implies that we can measure the relative frequency of the values of the random variable. 2) The objective of a transportation problem solution is to schedule shipments from sources to destinations while minimizing total transportation and production […]

1) A transportation problem with intermediate points is called a transshipment problem. 2) A high correlation always implies that one variable is causing a change in the other variable. Answer: FALSE 3) Markov analysis is a technique that deals with […]

1) Upon completion of an Analytic Hierarchy Process analysis, the CR = 0.23, thus A) the decision makers’ answers are relatively consistent. B) the decision makers’ should consider reevaluating their pairwise comparisons. C) no conclusion is available for this value […]

1) Enrollment in a particular class for the last four semesters has been 120, 126, 110, and 130 (listed from oldest to most recent). Develop a forecast of enrollment next semester using exponential smoothing with an alpha = 0.2. Assume […]

1) The numbers in the body of the simplex tableau can be thought of as substitution rates. 2) In the assignment problem, the costs for a dummy row will be equal to the lowest cost of the column for each […]

1) When the smoothing constant = 0, the exponential smoothing model is equivalent to the nave forecasting model. 2) Expected monetary value (EMV) is the payoff you should expect to occur when you choose a particular alternative. Answer: FALSE 3) […]

1) In the assignment problem, the costs for a dummy row will be equal to the lowest cost of the column for each respective cell in that row. 2) In PERT, we assume that the project completion time can be […]

1) If all of the control points on a control chart lie between the UCL and the LCL, the process is always in control. 2) Each item in a knapsack problem will be a stage of the dynamic programming problem. […]

1) The assignment of a utility value of 1 to an alternative implies that alternative is preferred to all others. 2) One PERT/COST assumption is that money is spent at a constant rate over the time taken to complete an […]