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 card is 7/13.
3) A queue system is in a transient state before the steady state is reached.
4) Assume that you have an urn containing 10 balls of the following description:
4 are white (W) and lettered (L)
2 are white (W) and numbered (N)
3 are yellow (Y) and lettered (L)
1 is yellow (Y) and numbered (N)
If you draw a numbered ball (N), the probability that this ball is white (W) is 0.60.
5) The U.S. government awards for quality achievement are called the Malcolm
Baldrige National Quality Awards.
6) It is possible to find an optimal solution to a transportation problem that is
degenerate.
7) In a single-channel, single-phase system, reducing the service time only reduces the
total amount of time spent in the system, not the time spent in the queue.
8) Multiple regression can be used to develop a multiplicative decomposition model.
9) Minimizing one’s maximum losses is identical to maximizing one’s minimum gains.
10) A typical transportation problem may ask the question, “How many of X should be
shipped to point E from source A?”
11) The best model is a statistically significant model with a high r-square and few
variables.
12) Suppose that you believe that a cubic relationship exists between the independent
variable (of time) and the dependent variable Y. Which of the following would represent
a valid linear regression model?
A) Y = b0 + b1 X, where X = time3
B) Y = b0 + b1 X3, where X = time
C) Y = b0 + 3b1 X, where X = time3
D) Y = b0 + 3b1 X, where X = time
E) Y = b0 + b1 X, where X = time1/3
13) Which of the following factors is (are) not included in ordering cost?
A) bill paying
B) obsolescence
C) purchasing department overhead costs
D) inspecting incoming inventory
E) developing and sending purchase orders
14) Using the data in Table 11-4, determine the latest time activity A can be started
without delaying the project completion.
A) 4
B) 3
C) 8
D) 6
E) None of the above
15) Given a consistency index of 0.2070, and an n of 5, use the following table to
calculate the consistency ratio.
A) 0.0414
B) 0.1848
C) 2.8019
D) 0.2300
E) None of the above
16) GATRA, the Greater Attleboro-Taunton Regional Transit Authority serves six cities
(City 1-City 6). While there are many restrictions (primarily roads on which they may
not travel), they do have some choice of routes. The distances between cities, along
permitted routes, are presented below.
What is the minimum distance that must be traveled to get from City 1 to City 6?
A) 26
B) 9
C) 11
D) 3
E) None of these
17) Bagles RUS is expanding into a high-growth suburban area. To promote business
and lure customers from the competing Wer Bagel store, they are considering offering a
free dozen bagels to the first 50 customers or radio advertisement. The payoff for
Bagels RUS is given in the table below. What is the saddle point, if any, for the bagel
stores?
A) 3
B) 6
C) 2
D) -2
E) There is no saddle point
18) If computing a causal linear regression model of Y = a + bX and the resultant r2 is
very near zero, then one would be able to conclude that
A) Y = a + bX is a good forecasting method.
B) Y = a + bX is not a good forecasting method.
C) a multiple linear regression model is a good forecasting method for the data.
D) a multiple linear regression model is not a good forecasting method for the data.
E) None of the above
19) Bob White is conducting research on monthly expenses for medical care, including
over the counter medicine. His dependent variable is monthly expenses for medical care
while his independent variables are number of family members and insurance type
(government funded, private insurance and other). He has coded insurance type as the
following:
X2 = 1 if government funded, X3 = 1 if private insurance
Below is his Excel output.
(a) What is the prediction equation?
(b) Based on the significance F-test, is this model a good prediction equation?
(c) What percent of the variation in medical expenses is explained by the independent
variables?
(d) Based on his model, what are the predicted monthly expenses for a family of four
with private insurance?
(e) Based on his model, what are the predicted monthly expenses for a family of two
with government funded insurance?
(f) Based on his model, what are the predicted monthly expenses for a family of five
with no insurance?
20) Table 8-6
The following is a linear programming formulation of a labor planning problem. There
are four overlapping shifts, and management must decide how many employees to
schedule to start work on each shift. The objective is to minimize the total number of
employees required while the constraints stipulate how many employees are required at
each time of day. The variables X1 – X4 represent the number of employees starting
work on each shift (shift 1 through shift 4).
According to Table 8-6, which describes a labor planning problem and its solution, how
many workers would actually be on duty during shift 1?
A) 12
B) 13
C) 0
D) 29
E) None of the above
21) The value of the determinant is
A) 128.
B) 96.
C) 8.
D) 232.
E) None of the above
22) Shown below is a pairwise comparison matrix for coffee makers. What are the
values of column one’s normalized matrix?
23) Describe the marketing research linear programming application.
24) Using a standard deck of 52 cards, explain why the situation of drawing a 7 and a
club is not collectively exhaustive.
25) The decomposition approach to forecasting (using trend and seasonal components)
may be helpful when attempting to forecast a TIME SERIES. Could an analogous
approach be used in multiple regression analysis? Explain briefly.
26) In regression, the X variable is known as the ________ variable.
27) A p-chart has been developed for a particular item. In the past, 4% of such items
have been found to be defective. If a sample of 100 is taken, and 9 of these are found to
be defective, should the process be considered out of control based on 99.7% control
limits? Explain.
28) Define unboundedness with respect to an LP solution.
29) A cable company must provide service for 7 houses in a particular neighborhood.
They would like to wire the neighborhood in a way to minimize the wiring costs (or
distance). How should the cable company wire the neighborhood and what would be
the minimal length of the network?
