1) Once a Markov process is in equilibrium, it stays in equilibrium.
2) Assume you have a normal distribution representing the likelihood of completion
times. The mean of this distribution is 10, and the standard deviation is 3. The
probability of completing the project in 7 or fewer days is the same as the probability of
completing the project in 13 days or more.
3) The wider the variation among results produced by using different sets of random
numbers, the longer we need to run the simulation to obtain reliable results.
4) The solution to a linear programming problem must always lie on a constraint.
5) Busy highways are often analyzed with the maximal-flow technique.
6) Quadratic programming contains squared terms in the constraints.
7) If we are attempting to control the diameter of bowling bowls, we will find a p-chart
to be quite helpful.
8) A determinant has a single numerical value.
9) If we are using a Monte Carlo simulation model, we should expect the model to
produce the same results for each set of random numbers used.
10) The costs involved in a typical inventory model are order costs, management costs,
and holding costs.
11) The coefficients of each independent variable in a multiple regression model
represent slopes.
12) The maximal-flow technique would be helpful to city planners in determining how
freeways should be expanded.
13) The purpose of the EOQ model is to achieve a balance between the cost of holding
inventory and the cost of stockouts.
14) In many business break-even analyses, the normal distribution can be used to
estimate demand.
15) A company has been receiving complaints about the attitude of some sales clerks.
Over a 10-day period, the total number of complaints was 250. 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 2 sigma (95.5%) control chart?
A) 35
B) 40
C) 50
D) 200
E) None of the above
16) Table M2-5
The data below is a dynamic programming solution for a shortest route problem.
Using the data in Table M2-5, determine the optimal distance of stage 3.
A) 22
B) 17
C) 24
D) 7
E) None of the above
17) Activity D of a project has a budgeted cost of $45,000 and is 20% complete. What
is the value of work completed?
A) 450
B) 4500
C) 900
D) 9000
E) 36,000
18) Given an activity’s optimistic, most likely, and pessimistic time estimates of 1, 9,
and 23 days respectively, compute the PERT expected activity time for this activity.
A) 10
B) 12
C) 9
D) 11
E) None of the above
19) Table M2-5
The data below is a dynamic programming solution for a shortest route problem.
Using the data in Table M2-5, determine the optimal arc of stage 1.
A) 3 – 7
B) 6 – 7
C) 5 – 7
D) 4 – 7
E) None of the above
20) A stage is a(n)
A) alternative.
B) policy.
C) condition at the end of the problem.
D) subproblem.
E) None of the above
21) The work breakdown structure involves identifying the ________ for each activity.
A) time
B) cost
C) resource requirements
D) predecessors
E) All of the above
22) A company believes a process monitored by an x-bar chart to be in control. When
the most recent control point exceeded the UCL value by 20%, the company should
A) believe that a random bad luck chance occurred and proceed.
B) suspect that an assignable cause of variation now exists and can be found.
C) ignore the control point completely, as it is simply an outlier.
D) wait for the next four samples to be taken to see if a trend develops.
E) All of the above
23) The weather is becoming important to you since you would like to go on a picnic
today. If it was sunny yesterday, there is a 70% chance it will be sunny today. If it was
raining yesterday, there is a 30% chance it will be sunny today. If the probability that it
was raining yesterday is 0.25, what is the probability that it will rain today?
A) 0.1
B) 0.3
C) 0.4
D) 0.7
E) None of the above
24) In order for a linear programming problem to have a unique solution, the solution
must exist
A) at the intersection of the non-negativity constraints.
B) at the intersection of a non-negativity constraint and a resource constraint.
C) at the intersection of the objective function and a constraint.
D) at the intersection of two or more constraints.
E) None of the above
25) PERT is the acronym for what?
26) What are the four elements defining each stage in a dynamic programming
problem?
27) Allied Manufacturing has three factories located in Dallas, Houston, and New
Orleans. They each produce the same product and ship to three regional warehouses:
#1, #2, and #3. The cost of shipping one unit of each product to each of the three
destinations is given below.
There is no way to meet the demand for each warehouse. Therefore, the company has
decided to set the following goals: (1) the number shipped from each source should be
as close to 100 units as possible (overtime may be used if necessary), (2) the number
shipped to each destination should be as close to the demand as possible, (3) the total
cost should be close to $1,400. Formulate this as a goal programming problem.
d7
– – d7
+ = 1400
28) Table 10-7
29) Determine where the following two constraints intersect.
5X + 23Y =<1000
10X + 26Y =<1600
30) 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?
31) Explain how an unbounded solution is recognized when calculating the simplex
tableaus.
32) Use simple exponential smoothing with α= 0.33 to forecast the tire sales for
February through May. Assume that the forecast for January was for 22 sets of tires.