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.
3) If multicollinearity exists, then individual interpretation of the variables is
questionable, but the overall model is still good for prediction purposes.
4) In a transportation problem, each destination must be supplied by one and only one
source.
5) The EMV approach and Utility theory always result in the same choice of
alternatives.
6) An n x m matrix, when multiplied by an m x p matrix, yields an n x p matrix.
7) In PERT, the earliest start time for an activity is equal to the latest of the earliest
finish times of all of its immediate predecessors.
8) Safety stock is ignored when computing the reorder point.
9) The nave forecast for the next period is the actual value observed in the current
period.
10) Both the p-value for the F-test and r2 can be interpreted the same with multiple
regression models as they are with simple linear models.
11) If we are studying the arrival of automobiles at a highway toll station, we can
assume an infinite calling population.
12) The linear programming model of the production mix problem only includes
constraints of the less than or equal form.
13) A cofactor of a matrix is the set of numbers that remains after a given row and
column have been removed from a matrix.
14) The shadow price is the same as the dual price in maximization problems.
15) A large school district is reevaluating its teachers’ salaries. They have decided to use
regression analysis to predict mean teacher salaries at each elementary school. The
research has come up with the following prediction equation:
Y = $18012.24 + 1432.37X1 – 4.07 X2 where X1 = Yrs Exp and X2 = Yrs Exp2
(a) If a teacher has 7 years of experience, what is the expected salary?
(b) If teacher has 10 years of experience, what is the expected salary?
16) Variations that usually occur in a process are called
A) process variations.
B) natural variations.
C) control variations.
D) assignable variations.
E) None of the above
17) Consider the following two-person game, and determine the saddle point if it exists.
A) -3
B) 2
C) 4
D) 6
E) There is no saddle point
18) ( Avoid the requirement for more product A.
Formulate this as a goal programming problem.
d1
+ = overachievement of Zag goal
19) The critical path of a network is the
A) shortest time path through the network.
B) path with the fewest activities.
C) path with the most activities.
D) longest time path through the network.
E) None of the above
20) What is the objective in the diet problem?
A) maximize nutrition
B) minimize number of ingredients
C) minimize calories
D) minimize cost
E) None of the above
21) Transportation models can be used for which of the following decisions?
A) facility location
B) production mix
C) media selection
D) portfolio selection
E) employee shift scheduling
22) A company has been receiving complaints about the attitude of some sales clerks.
Over a 10-day period, the total number of complaints was 360. The company wishes to
develop a control chart for the number of complaints. What would the upper control
limit on the number of complaints per day be for a 3 sigma (99.7%) control chart?
A) 18
B) 36
C) 42
D) 54
E) None of the above
23) Table 13-4
A pawn shop in Arlington, Texas, has a drive-through window to better serve
customers. The following tables provide information about the time between arrivals
and the service times required at the window on a particularly busy day of the week. All
times are in minutes.
The first random number generated for arrivals is used to tell when the first customer
arrives after opening.
According to Table 13-4, the time between successive arrivals is 1, 2, 3, or 4 minutes.
The store opens at 8:00 a.m., and random numbers are used to generate arrivals and
service times. The first 3 random numbers to generate arrivals are 09, 89, and 26. What
time does the third customer arrive?
A) 8:07
B) 8:08
C) 8:09
D) 8:10
E) None of the above
24) Game theory is the study of
A) how optimal strategies are formulated in conflict.
B) decisions and their consequences.
C) pure probability.
D) conditional probability.
E) None of the above
25) PERT assumes that the total completion time of a project follows which of the
following probability distributions?
A) normal
B) exponential
C) binomial
D) Poisson
E) None of the above
26) A company is considering producing some new Gameboy electronic games. Based
on past records, management believes that there is a 70 percent chance that each of
these will be successful and a 30 percent chance of failure. Market research may be
used to revise these probabilities. In the past, the successful products were predicted to
be successful based on market research 90 percent of the time. However, for products
that failed, the market research predicted these would be successes 20 percent of the
time. If market research is performed for a new product, what is the probability that the
results indicate a successful market for the product and the product is actually not
successful?
A) 0.63
B) 0.06
C) 0.07
D) 0.24
E) 0.27
27) Considering the following two-person game, the value of the game (if played many
times) is
A) 19.00.
B) 4.75.
C) 4.67.
D) Unable to be computed, as the ± was not given.
28) The shipping problem in LP is also called the
A) production mix problem.
B) freight train problem.
C) transportation problem.
D) land and sea problem.
E) None of the above
29) In decision making under ________, there are several possible outcomes for each
alternative, and the decision maker does not know the probabilities of the various
outcomes.
A) risk
B) utility
C) certainty
D) probability
E) uncertainty
30) The shortest-route technique would best be used to
A) plan the routes for a vacation driving tour.
B) plan the route for a school bus.
C) determine the path for a truck making frequent runs from a factory to a warehouse.
D) All of the above
E) None of the above
31) When the independent variables are correlated with each other, ________ is said to
exist.
32) SST = SSR + ________.
33) List the major advantages of simulation techniques.
34) What is the value of the following two-person game?
35) Explain how inventory can act as a buffer in the production process.
36) Describe the production mix linear programming application.
37) Consider a single-server queuing system with Poisson arrivals of 10 units per hour
and a constant service time of 2 minutes per unit. How long will the customer waiting
time be in seconds, on average?