1) An identity matrix has 1’s in all positions of the matrix.
2) A set of simultaneous equations can be solved through the use of determinants by
setting up a proportion of two special determinants for each unknown variable.
3) Inventory is such an expensive asset that it may account for as much as 50 percent of
a firm’s invested capital.
4) If the isoprofit line is not parallel to a constraint, then the solution must be unique.
5) The multiple regression model includes several intercept terms.
6) When the smoothing constant = 1, the exponential smoothing model is equivalent to
the nave forecasting model.
7) How should the constraint, 5X – 2Y >= 6, be converted into simplex tableau form?
A) 5X – 2Y + S + A = 6
B) 5X – 2Y – S + A = 6
C) 5X – 2Y – S = 6
D) 5X – 2Y + A = 6
E) 5X – 2Y + S A = 6
8) The substitution rates give
A) the number of units of each basic variable that must be removed from the solution if
a new variable is entered.
B) the gross profit or loss given up by adding one unit of a variable into the solution.
C) the net profit or loss that will result from introducing one unit of the variable
indicated in that column into the solution.
D) the maximal value a variable can take on and still have all the constraints satisfied.
E) None of the above
9) Right-hand side ranging
A) tells us the number of units of a constraint that may be added or subtracted without
changing the profit (objective function value).
B) requires computation of the dual before being accomplished.
C) is a method to find the range over which shadow prices remain constant.
D) All of the above
E) None of the above
10) A conditional probability P(B|A) is equal to its marginal probability P(B) if
A) it is a joint probability.
B) statistical dependence exists.
C) statistical independence exists.
D) the events are mutually exclusive.
E) P(A) = P(B).
11) The following is an opportunity-loss table.
The probabilities for the states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively.
If a person were to use the expected opportunity loss criterion, what decision would be
made?
A) Alternative 1
B) Alternative 2
C) Alternative 3
D) State of Nature C
E) State of Nature B
12) Which of the following terms is interchangeable with quantitative analysis?
A) management science
B) economics
C) financial analysis
D) statistics
E) None of the above
13) Consider the material structure tree for item A below. Assume 15 units of A are
needed.
(a) How many units of B are needed?
(b) How many units of C are needed?
(c) How many units of D are needed?
(d) How many units of E are needed?
14) Demand for a particular type of battery fluctuates from one week to the next. A
study of the last six weeks provides the following demands (in dozens): 4, 5, 3, 2, 8, 10
(last week).
(a) Forecast demand for the next week using a two-week moving average.
(b) Forecast demand for the next week using a three-week moving average.
15) If input data are accurate to three significant digits, then the solution results can be
accurate to how many significant digits?
A) one
B) two
C) three
D) four
E) six
16) Table 8-1
A small furniture manufacturer produces tables and chairs. Each product must go
through three stages of the manufacturing process: assembly, finishing, and inspection.
Each table requires 3 hours of assembly, 2 hours of finishing, and 1 hour of inspection.
Each chair requires 2 hours of assembly, 2 hours of finishing, and 1 hour of inspection.
The profit per table is $120 while the profit per chair is $80. Currently, each week there
are 200 hours of assembly time available, 180 hours of finishing time, and 40 hours of
inspection time. Linear programming is to be used to develop a production schedule.
Define the variables as follows:
T = number of tables produced each week
C = number of chairs produced each week
According to Table 8-1, which describes a production problem, which of the following
would be a necessary constraint in the problem?
A) T + C >=40
B) 3T + 2C =< 200
C) 2T + 2C =< 40
D) 120T + 80C >=1000
E) None of the above
17) A person is using the normal distribution to determine the safety stock for a product.
The Z value of 2.33 would be associated with what service level?
A) 95 percent
B) 97.5 percent
C) 98 percent
D) 99 percent
E) None of the above
18) Managers use the network analysis of PERT and CPM to help them
A) derive flexibility by identifying noncritical activities.
B) replan, reschedule, and reallocate resources such as manpower and finances.
C) plan, schedule, monitor, and control large and complex projects.
D) All of the above
E) None of the above
19) Find the shortest route from Node 1 to each of the other nodes in the transportation
network represented below.
20) Solve the following linear programming problem using the corner point method:
21) The study of the consolidation of historical data to describe how a company has
performed in the past is called ________.
22) What is mixed integer programming?
23) What is the difference between simple linear regression models and multiple
regression models?
24) List the steps to develop a forecast using the decomposition method.
25) Identify two types of problems that can be solved by dynamic programming.
26) Find the inverse of .
27) Describe the concept of “collectively exhaustive” in the context of Markov analysis.