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) The process of isolating linear trend and seasonal factors to develop more accurate
forecasts is called
A) regression.
B) decomposition.
C) smoothing.
D) monitoring.
E) None of the above
3) Table 8-2
Diamond Jeweler’s is trying to determine how to advertise in order to maximize their
exposure. Their weekly advertising budget is $10,000. They are considering three
possible media: tv, newspaper, and radio. Information regarding cost and exposure is
given in the table below:
Let T = the # of tv ads, N = the # of newspaper ads, and R = the # of radio ads
According to Table 8-2, what is the optimal solution?
A) T = 10; N = 7; R = 20
B) T = 10; N = 0; R = 0
C) T = 10; N = 2; R = 0
D) Solution is unbounded
E) Solution is infeasible
4) Which of the following functions is not linear?
A) 5X + 3Z
B) 3X + 4Y + Z – 3
C) 2X + 5YZ
D) Z
E) 2X – 5Y + 2Z
5) PERT/Cost allows a manager to do which of the following?
A) plan
B) schedule
C) monitor
D) control
E) All the above
6) A measurable quantity that is inherent in the problem is called a(n)
A) decision variable.
B) uncontrollable variable.
C) algorithm.
D) parameter.
E) enumeration variable.
7) What is said to exist when total demand equals total supply in a transportation
problem?
A) an equalized problem
B) an equilibrialized problem
C) a harmonized problem
D) a balanced problem
E) This situation can never occur.
8) Which of the following is not one of the steps in formulating a linear program?
A) Graph the constraints to determine the feasible region.
B) Define the decision variables.
C) Use the decision variables to write mathematical expressions for the objective
function and the constraints.
D) Identify the objective and the constraints.
E) Completely understand the managerial problem being faced.
9) Rolf Steps is the production manager for a local manufacturing firm. This company
produces staplers and other items. The holding cost is $2 per unit per year. The cost of
setting up the production line for this is $25. There are 200 working days per year. The
production rate for this product is 80 per day. If the production order quantity is 200
units, what was the daily demand (rounded to the nearest whole unit)?
A) 6 units
B) 7 units
C) 8 units
D) 9 units
E) None of the above
10) Given the following distances between destination nodes, what is the minimum
distance that connects all the nodes?
A) 900
B) 1200
C) 1100
D) 700
E) None of the above
11) If D = 1.01, s = 900, K = 10, and the selling price is $11, the EOL is
A) 10,000.
B) 9,100.
C) 736.
D) 810.
E) None of the above
12) A manager needs to hire short-term employees to meet production demands. The
manager would like to hire one of three possible short-term workers. Ten hours are
demanded with 50% probability, 20 hours are demanded with 30% probability, and 30
hours are demanded with 20% probability. The table below represents the alternatives
and possible states of nature.
a) Which alternative will minimize the expected monetary value?
b) What is the expected value of perfect information?
13) A consulting firm has received 2 Super Bowl playoff tickets from one of its clients.
To be fair, the firm is randomly selecting two different employee names to “win” the
tickets. There are 6 secretaries, 5 consultants, and 4 partners in the firm. Which of the
following statements is true?
A) The probability of two secretaries winning is the same as the probability of a
secretary winning on the second draw given that a consultant won on the first draw.
B) The probability of a secretary and a consultant winning is the same as the probability
of a secretary and secretary winning.
C) The probability of a secretary winning on the second draw given that a consultant
won on the first draw is the same as the probability of a consultant winning on the
second draw given that a secretary won on the first draw.
D) The probability that both tickets will be won by partners is the same as the
probability that a consultant and secretary will win.
E) None of the above are true.
14) Table 13-1
The table below represents the probability distribution for machine breakdowns in a day
of operation.
According to Table 13-1, what is the cumulative probability of 2 breakdowns?
A) 0.35
B) 0.50
C) 0.85
D) 0.15
E) 0.20
15) As one attempts to develop a model, which of the following problems might she
encounter?
A) The problem may not fit a textbook approach.
B) There will be no data available to test the model.
C) Not everyone will understand the problem in the same way.
D) All of the above
E) None of the above
16) Simulation models can be broken down into which of the following three
categories?
A) Monte Carlo, queuing, and inventory
B) queuing, inventory, and maintenance policy
C) Monte Carlo, operational gaming, systems simulation
D) inventory, systems simulation, and operational gaming
E) None of the above
17) Element 1,1 of the inverse of the matrix is
A) -5.
B) -4.
C) 3.
D) 7.
E) None of the above
18) Customers at a DMV arrive at a rate of 45 per hour. There are three servers that can
process customers at an average of 3 minutes.
(a) What is the average wait time?
(b) What is the average number of customers waiting?
(c) What is the average number of customers in the DMV?