1) If we flip a coin three times, the probability of getting three heads is 0.125.
2) A finite population model differs from an infinite population model because there is a
random relationship between the length of the queue and the arrival rate.
3) Under the assumptions made to develop the EOQ model, average inventory is
one-half of the maximum inventory.
4) In ABC inventory analysis, items in the “A” group should have the lowest dollar
value to the firm.
5) Service level is the chance, measured in percent, that there will be a stockout.
6) Game theory has been used to plan warfare strategies.
7) Transportation companies would definitely be interested in the shortest-route
technique to optimize travel.
8) The three time estimates employed in PERT are optimistic time, average time, and
pessimistic time.
9) Little’s Flow Equations are advantageous because if one characteristic of the
operating system is known, the other characteristics can be easily found.
10) TIME SERIES models rely on judgment in an attempt to incorporate qualitative or
subjective factors into the forecasting model.
11) CPM stands for
A) critical path management.
B) critical project management.
C) critical project method.
D) critical path method.
E) centralized project management.
12) What makes the difference between good decisions and bad decisions?
A) A good decision is based on logic.
B) A good decision considers all available data.
C) A good decision considers all alternatives.
D) A good decision applies quantitative approaches.
E) All of the above
13) Use the sales data given below to determine:
(a) The least squares trend line.
(b) The predicted value for 2002 sales.
(c) The MAD.
(d) The unadjusted forecasting MSE.
14) Before a marketing research study was done, John Colorado believed there was a
50/50 chance that his music store would be a success. The research team determined
that there is a 0.9 probability that the marketing research will be favorable given a
successful music store. There is also a 0.8 probability that the marketing research will
be unfavorable given an unsuccessful music store.
(a) If the marketing research is favorable, what is the revised probability of an
unsuccessful music store?
(b) If the marketing research is unfavorable, what is the revised probability of an
unsuccessful music store?
15) A tracking signal was calculated for a particular set of demand forecasts. This
tracking signal was positive. This would indicate that
A) demand is greater than the forecast.
B) demand is less than the forecast.
C) demand is equal to the forecast.
D) the MAD is negative.
E) None of the above
16) Given an activity’s optimistic, most likely, and pessimistic time estimates of 3, 6,
and 9 days respectively, compute the PERT variance for this activity.
A) 3
B) 1
C) 9
D) 6
E) None of the above
17) Sensitivity analysis may be used to
A) experiment with possible future changes in the firm that may affect profits.
B) determine whether a corner point of the feasible region actually yields optimal
profit.
C) replace the simplex method.
D) reduce the number of variables in a complex LP problem.
E) solve LP problems that require solutions only in whole numbers.
18) In production scheduling LP problems, inventory at the end of this month is set
equal to
A) inventory at the end of last month + this month’s production – this month’s sales.
B) inventory at the beginning of last month + this month’s production – this month’s
sales.
C) inventory at the end of last month + last month’s production – this month’s sales.
D) inventory at the beginning of last month + last month’s production – last month’s
sales.
E) inventory at the end of last month – this month’s production + this month’s sales.
19) The “utilization factor” is defined as the
A) percent of time the system is idle.
B) average percent of time the customers wait in line.
C) average time the service system is open.
D) percent of time that a single customer is in the system.
E) None of the above
20) If the addition of a constraint to a linear programming problem does not change the
solution, the constraint is said to be
A) unbounded.
B) non-negative.
C) infeasible.
D) redundant.
E) bounded.
21) There are four items (A, B, C, and D) that are to be shipped by truck. The weights
of these are 3, 7, 4, and 5 tons, respectively, and the plane can carry 13 tons. The profits
(in thousands of dollars) generated by these are 3 for A, 4 for B, 2 for C, and 5 for D.
There are four units of each available for shipment. If this were to be solved as a
dynamic programming problem, how many stages would there be?
A) 1
B) 2
C) 3
D) 4
E) None of these
22) Which of the following statements is true regarding the labor planning problem?
A) It is typically a maximization problem.
B) Required labor hours translate into less-than-or-equal-to constraints.
C) The decision variables can include how many full- and part-time workers to use.
D) The problem is only unique to banks.
E) None of the above
23) Which of the following is not one of the steps in the quantitative analysis approach?
A) Defining the Problem
B) Developing a Solution
C) Observing a hypothesis
D) Testing a Solution
E) Implementing the Results
24) Table M1-1
Jason Rule has developed the following table to represent his research into the decision
as to which college he would like to attend after graduation:
Table M1-1 portrays Jason’s initial evaluation of the colleges of interest. Jason has now
decided that (a) Social Life is more important than he first implied, and (b) that the
student body at MSU is so large that he may feel lost-just a small fish in a big, big
pond. He decides to change the weight for Social Life to 0.2, and change his rating of
the Social Life at MSU to 0.4. He will compensate for the increase in the weight of
Social Life by reducing the weight of Yearly Cost. Given these changes, what will be
his second choice college?
A) MSU
B) PC
C) UM
D) UNH
E) None of the above
25) Table 10-7
26) The west-to-east air traffic system passing through the United States can handle
aircraft flows with capacities in hundreds of planes per hour as shown. What is the peak
air traffic load (From City 1 to City 5) in aircraft per hour that this system can handle?
27) Evaluate the determinant below.
.
28) What is meant by a mixed strategy game?
29) The mean of a distribution locates the ________ of the distribution.