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 of one, there are multiple optimal solutions.
3) Using EOL requires one to identify the loss per unit when sales are below the
break-even point.
4) Stating that two events are statistically independent means that the probability of one
event occurring is independent of the probability of the other event having occurred.
5) The subtraction of an n x m matrix from an n x m matrix yields an n x m matrix.
6) In the simplex process, the new pivot row is found by dividing each number in the
row by the pivot number.
7) The arrivals or inputs to the system are sometimes referred to as the calling
population.
8) The regression model assumes the error terms are dependent.
9) If we are tracking quality of performance for a class of students, we should plot the
individual grades on an x-bar chart, and the pass/fail result on a p-chart.
10) Game models are classified by the number of players, the maximum payoffs, and
the likelihood of each outcome.
11) The transshipment problem is a maximization problem.
12) In dynamic programming, the decision rules defining an optimal policy give
optimal decisions for any entering condition at any stage.
13) Which of the following accurately describes steps of the northwest corner rule, after
making the initial allocation of units in the northwest cell?
A) Move down first, and then move right.
B) Move right first, and then move down.
C) Move right or down first, depending on whether the demand requirement or the
supply capacity, respectively, is exhausted first.
D) Move right or down first, depending on whether the supply capacity or the demand
requirement, respectively, is exhausted first.
E) Move diagonally first.
14) Considering the following two-person game, what percentage of the time should Y
play strategy Y1?
A) 1/3
B) 2/3
C) 4/9
D) 5/9
E) None of the above
15) If everything else remains constant, including the mean arrival rate and service rate,
except that the service time becomes constant instead of exponential,
A) the average queue length will be halved.
B) the average waiting time will be doubled.
C) the average queue length will be doubled.
D) There is not enough information to know what will happen to the queue length and
waiting time.
E) None of the above
16) Table M2-1
The data below is a dynamic programming solution for a shortest route problem.
Using the data in Table M2-1, determine the optimal arc of stage 2.
A) 4 – 6
B) 3 – 6
C) 3 – 5
D) 2 – 6
E) 2 – 5
17) A company is considering producing two new electronic games designed for the
popular Gameboy toy. Based on market data, management believes that there is a 60
percent chance that a “cops and robbers” game will be successful and a 40 percent
chance that a “let’s play house” game will be successful. As these products are
completely different, it may be assumed that the success of one is totally independent of
the success of the other. If two products are introduced to the market, what is the
probability that both are failures?
A) 0.16
B) 0.24
C) 0.80
D) 0.36
E) None of the above
18) The final node or destination in a network is called a(n)
A) arc.
B) branch.
C) source.
D) mouth.
E) sink.
19) The following problem type is such a special case of linear programming that a
special algorithm has been developed to solve it.
A) the production mix problem
B) the diet problem
C) the ingredient mix problem
D) the transportation problem
E) None of the above
20) The copy machine in an office is very unreliable. If it was working yesterday, there
is an 80% chance it will work today. If it was not working yesterday, there is a 10%
chance it will work today. If it is not working today, what is the probability that it will
be working 2 days from now?
A) 0.16
B) 0.17
C) 0.34
D) 0.66
E) None of the above
21) 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
22) Table M7-1
According to Table M7-1, all of the resources are being used. If the amount of resource
B were changed from 96 to 97, then the maximum possible total profit would be
A) 416.
B) 417.
C) 419.
D) 420.
E) None of the above
23) There are seven cities (City 1-City 7) served by Acme Trucking. Route availability
is limited. The distances, in hundreds of miles, are given in the table below for each
route.
What is the minimum distance a load being moved from City 1 to City 7 must travel?
A) 3000 miles
B) 2900 miles
C) 1500 miles
D) 2700 miles
E) None of the above
24) A dry cleaning business offers a pick-up and delivery service for a 10 percent
surcharge. Management believes 60 percent of the existing customers will take
advantage of this service. They are also considering offering customers the option of
opening an account and receiving monthly bills. They believe 60 percent of customers
(regardless of whether or not they use the pick-up service) will use the account service.
If the two services are introduced to the market, what is the probability a customer uses
neither of these services?
A) 0.16
B) 0.24
C) 0.80
D) 0.36
E) None of the above
25) A certain utility firm has noticed that a residential customer’s bill for one month is
dependent on the previous month’s bill. The observations are summarized in the
following transition matrix.
The utility company would like to know the long-run probability that a customer’s bill
will increase, the probability the bill will stay the same, and the probability the bill will
decrease.
26) If every point lies on the regression line, r2 = ________.
27) List major carrying cost factors.
28) Cedar Point amusement park management is preparing the park’s annual
promotional plan for the coming season. Several advertising alternatives exist:
newspaper, television, radio, and displays at recreational shows. The information below
shows the characteristics associated with each of the advertising alternatives, as well as
the maximum number of placements available in each medium. Given an advertising
budget of $250,000, how many placements should be made in each medium to
maximize total audience exposure? Formulate this as a linear programming problem.
29) Convert the following linear program into a simplex model form:
30) The ________ measures the variability in Y about the regression line.