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 equations.
3) The coefficient of determination takes on values between -1 and + 1.
4) The linear programming model of the production scheduling process is usually used
when we have to schedule the production of a single product, requiring a mix of
resources, over time.
5) When there is no saddle point, the game is a mixed strategy game.
6) Multiple regression models use dummy variables to adjust for seasonal variations in
an additive TIME SERIES model.
7) In Markov analysis, initial-state probability values determine equilibrium conditions.
8) The equally likely decision criterion is also called the Laplace criterion.
9) A flow diagram is helpful in the logical coding procedures for programming a
simulation process.
10) In the matrix of transition probabilities, Pij is the conditional probability of being in
state i in the future, given the current state j.
11) The upper value of the game is selected as the minimum of the maximum numbers
in a column.
12) We cannot multiply an n x m matrix by a 1 x m matrix.
13) The Monte Carlo simulation is used with variables that are probabilistic.
14) Which of the following is not a common pitfall of regression?
A) If the assumptions are not met, the statistical tests may not be valid.
B) Nonlinear relationships cannot be incorporated.
C) Two variables may be highly correlated to one another but one is not causing the
other to change.
D) Concluding that a statistically significant relationship implies practical value.
E) Using a regression equation beyond the range of X is very questionable.
15) Which of the following characteristics is true for a normal probability distribution?
A) The area under the curve is 1.
B) It is symmetrical.
C) The midpoint is also the mean.
D) Sixty-eight percent of the area under the curve lies within one standard deviation of
the mean.
E) All of the above are true.
16) Table 11-3
According to Table 11-3, there are five activities in a PERT project. If the normal
distribution were used to find the probability of finishing this project in 24 weeks or
fewer, what mean and variance would be used?
A) 20 and 4.222
B) 30 and 5.222
C) 20 and 5.222
D) 30 and 4.222
E) 22.667 and 1.111
17) Find the shortest route from Node 1 to Node 5 using the shortest-route technique.
A) 350
B) 400
C) 450
D) 600
E) None of the above
18) Which distribution is helpful in testing hypotheses about variances?
A) binomial distribution
B) distribution
C) normal distribution
D) Poisson distribution
E) exponential distribution
19) A mathematical programming model that permits decision makers to set and
prioritize multiple objective functions is called a
A) pure-integer programming problem.
B) mixed-integer programming problem.
C) zero-one integer programming problem.
D) goal programming problem.
E) nonlinear programming problem.
20) In PERT analysis, the probability of the optimistic time occurring should be on the
order of
A) 1/2.
B) 1/3.
C) 1/6.
D) 1/10.
E) 1/100.
21) A call center receives calls from customers at a rate of 2 per min. The time between
customer calls follows an exponential distribution.
(a) What is the probability that it takes 1/3 of a minute or less between consecutive
customer calls?
(b) What is the probability that it takes 1/2 of a minute or more between consecutive
customer calls?
22) Table M2-5
The data below is a dynamic programming solution for a shortest route problem.
Using the data in Table M2-5, determine the optimal travel path from point 1 to point 7.
A) 1 – 2, 2 – 4, 4 – 5, 5 – 7
B) 1 – 2, 2 – 5, 5 – 7
C) 1 – 3, 3 – 4, 4 – 5, 5 – 7
D) 1 – 2, 2 – 4, 4 – 6, 6 – 7
E) None of the above
23) Figure 11-1
Given the network shown in Figure 11-1, assume that completion of A is delayed by
two days. What other activities are impacted?
A) B
B) D
C) E
D) C
E) None of the above
24) Suppose that we determine the probability of a warm winter based on the number of
warm winters experienced over the past 10 years. In this case, we have used
A) relative frequency.
B) the classical method.
C) the logical method.
D) subjective probability.
E) None of the above
25) If we want to use Markov analysis to study market shares for competitive
businesses,
A) it is an inappropriate study.
B) simply replace the probabilities with market shares.
C) it can only accommodate one new business each period.
D) only constant changes in the matrix of transition probabilities can be handled in the
simple model.
E) None of the above
26) Determine where the following two constraints intersect.
2X – 4Y = 800
X + 6Y>= -200
27) A computer start-up named Pear is considering entering the U.S. market with what
they believe to be a smaller and faster computer than some of the existing products on
the market. They want to get a feel for whether or not customers would be willing to
switch from some of the existing bigger brands to consider their product. They want to
collect a reasonable sample from across the U.S. representative of all age brackets.
They have split the United States into 2 regions: East and West. They want at least 65%
of their sample to cover the East and no fewer than 25% of the West. They also have
divided the age groups into 3 categories: 18-35, 36-69, and 70 and up. They want at
least 50% of their sample to be between 18-35 and at least 40% to be between 36-69.
The costs per person surveyed is given in the table below:
Assume that at least 1,000 people are to be surveyed. The problem is for Pear Company
to decide how many people to survey from each age bracket within each region in order
to minimize costs while meeting requirements. Formulate this problem as a linear
program.
28) ________ models do not involve risk or chance.
29) Find the inverse of .
30) Ivonne Callen sells beauty supplies. Her annual demand for a particular skin lotion
is 1,000 units. The cost of placing an order is $20, while the holding cost per unit per
year is 10 percent of the cost. This item currently costs $10 if the order quantity is less
than 300. For orders of 300 units or more, the cost falls to $9.80. To minimize total cost,
how many units should Ivonne order each time she places an order? What is the
minimum total cost?
31) ________ introduced control charts in 1924.