1) Mutually exclusive events exist if only one of the events can occur on any one trial.
2) The shortest-route technique might be used by someone planning a vacation in order
to minimize the required amount of driving.
3) We can develop an n x m matrix by the addition of an n x m matrix and an n x p
matrix, where p < n.
4) Scatter diagrams can be useful in spotting trends or cycles in data over time.
5) The goal of most waiting line problems is to identify the service level that minimizes
service cost.
6) In the maximal-flow technique, a zero (0) means no flow or a one-way arc.
7) A utility curve that shows utility increasing at a decreasing rate as the monetary value
increases represents the utility curve of a risk seeker.
8) One of the problems with using the Markov model to study population shifts is that
we must assume that the reasons for moving from one state to another remain the same
over time.
9) Sensitivity analysis enables us to look at the effects of changing the coefficients in
the objective function, one at a time.
10) With PERT, we are able to calculate the probability of finishing the project within a
specified time.
11) Technically, to achieve Six Sigma quality, there would have to be fewer than 3.4
defects per million opportunities.
12) 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 be assigned to shift 4?
A) 1
B) 0
C) 14
D) 16
E) None of the above
13) Consider the sensitivity report below for the problems which follow.
Which of the following constraints are binding?
A) Extrusion only
B) Packing only
C) Additive only
D) Extrusion and Packaging
E) All constraints are binding
14) At an automatic car wash, cars arrive randomly at a rate of 7 every 30 minutes. The
car wash takes exactly 4 minutes (this is constant). On average, how many customers
would be at the car wash (waiting in line or being serviced)?
A) 8.17
B) 7.46
C) 6.53
D) 0.46
E) None of the above
15) Consider the following linear programming problem:
This is a special case of a linear programming problem in which
A) there is no feasible solution.
B) there is a redundant constraint.
C) there are multiple optimal solutions.
D) this cannot be solved graphically.
E) None of the above
16) At a university with 1,000 business majors, there are 200 business students enrolled
in an introductory statistics course. Of these 200 students, 50 are also enrolled in an
introductory accounting course. There are an additional 250 business students enrolled
in accounting but not enrolled in statistics. If a business student is selected at random,
what is the probability that the student is not enrolled in statistics?
A) 0.05
B) 0.20
C) 0.25
D) 0.80
E) None of the above
17) Which of the following is not true about arrivals?
A) Random arrivals are independent of each other.
B) Random arrivals cannot be predicted exactly.
C) The Poisson distribution is often used to represent the arrival pattern.
D) Service times often follow the negative exponential distribution.
E) The exponential distribution is often used to represent the arrival pattern.
18) The value of the following game is 2.5. Therefore,
A) X1 will gain 2.5 points.
B) X2 will gain 2.5 points.
C) X will gain 2.5 points.
D) Y will gain 2.5 points.
E) None of the above
19) What is the F value associated with = 0.05, numerator degrees of freedom (df1)
equal to 4, and denominator degrees of freedom (df2) equal to 9?
A) 3.63
B) 1.80
C) 6.0
D) 0.11
E) 0.18
20) 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 two random numbers for arrivals are 95 and 08. The first two
random numbers for service times are 92 and 18. At what time does the second
customer finish transacting business?
A) 8:07
B) 8:08
C) 8:09
D) 8:10
E) None of the above
21) The problem of nonconstant error variance is detected in residual analysis by which
of the following?
A) a cone pattern
B) an arched pattern
C) a random pattern
D) an increasing pattern
E) a decreasing pattern
22) Which of the following is true about the expected value of perfect information?
A) It is the amount you would pay for any sample study.
B) It is calculated as EMV minus EOL.
C) It is calculated as expected value with perfect information minus maximum EMV.
D) It is the amount charged for marketing research.
E) None of the above
23) The ABC Co. is considering a new consumer product. They have no idea whether or
not the XYZ Co. will come out with a competitive product. If ABC adds an assembly
line for the product and XYZ does not follow with a competitive product, their expected
profit is $40,000; if they add an assembly line and XYZ does follow, they still expect a
$10,000 profit. If ABC adds a new plant addition and XYZ does not produce a
competitive product, they expect a profit of $600,000; if XYZ does compete for this
market, ABC expects a loss of $100,000.
Calculate Hurwicz’s criterion of realism using s of a. 0.7, b. 0.3, and c. 0.1.
24) Element 1,2 of the inverse of the matrix is
A) -5.
B) -4.
C) 3.
D) 7.
E) None of the above
25) At a university with 1,000 business majors, there are 200 business students enrolled
in an introductory statistics course. Of these 200 students, 50 are also enrolled in an
introductory accounting course. There are an additional 250 business students enrolled
in accounting but not enrolled in statistics. If a business student is selected at random,
what is the probability that the student is enrolled in both statistics and accounting?
A) 0.05
B) 0.06
C) 0.20
D) 0.25
E) None of the above
26) Given two statistically independent events (A,B), the conditional probability P(A|B)
= P(A).
27) The simultaneous equation method is
A) an alternative to the corner point method.
B) useful only in minimization methods.
C) an algebraic means for solving the intersection of two or more constraint equations.
D) useful only when more than two product variables exist in a product mix problem.
E) None of the above
28) A suburban specialty restaurant has developed a single drive-thru window.
Customers order, pay, and pick up their food at the same window. Arrivals follow a
Poisson distribution, while service times follow an exponential distribution. If the
average number of arrivals is 6 per hour and the service rate is 2 every 15 minutes, what
is the average number of customers in the system?
A) 0.50
B) 4.00
C) 2.25
D) 3.00
E) None of the above
29) An artificial variable has no physical interpretation but
A) is added to each ¤ constraint to facilitate the simplex process.
B) is added to each >= constraint to facilitate the simplex process.
C) is added to each ¤ or = constraint to facilitate the simplex process.
D) is merely another manner of introducing a negative slack.
E) None of the above
30) List the major disadvantages of simulation techniques.
31) Suppose that the payoff from an investment depends upon market conditions. A
great market has a payoff of $200,000, a normal market has a payoff of $100,000, and a
poor market has a payoff of $20,000. Using an -value of 0.3, what is the criterion of
realism value?
32) ( cost of the items (purchase cost or material cost), (2) cost of ordering, (3) cost of
carrying, or holding, inventory, and (4) cost of stockouts
33) A study was done to determine the relationship between GPA and starting salaries
for college graduates. The data is shown in the table below:
Use model building to determine the best fit based on highest adjusted r2.
34) Multiply the matrix by .