1) The difference between the left-hand side and right-hand side of a
greater-than-or-equal-to constraint is referred to as
A) surplus.
B) constraint.
C) slack.
D) shadow price.
E) None of the above
2) A southwestern tourist city has records indicating that the average daily temperature
in the summer is 82 degrees F, which is normally distributed with a standard deviation
of 3 degrees F. Based on these records, determine:
(a) the probability of a daily temperature between 79 degrees F and 85 degrees F.
(b) the probability that the daily temperature exceeds 90 degrees F.
(c) the probability that the daily temperature is below 76 degrees F.
3) An electronics company is looking to develop a regression model to predict the
number of units sold for a special running watch. Data is provided below:
A) Define the dummy variable(s) for the regression model.
B) What is the correlation between the Holiday categorical variable and sales?
4) A collection of all state probabilities for a given system at any given period of time is
called the
A) transition probabilities.
B) vector of state probabilities.
C) fundamental matrix.
D) equilibrium condition.
E) None of the above
5) A pairwise comparison rating of 7 means that, relative to alternative 2, alternative 1
is
A) equally preferred.
B) moderately preferred.
C) strongly preferred.
D) very strongly preferred.
E) extremely preferred.
6) Which of the following is not an assumption for the basic EOQ model?
A) Only an integer number of orders can be made each year.
B) Quantity discounts are not possible.
C) Inventory receipt is instantaneous (all at once).
D) With orders placed at the correct time, there will be no shortages.
E) Demand is known.
7) Given an activity’s optimistic, most likely, and pessimistic time estimates of 3, 5, and
13 days respectively, compute the expected time for this activity.
A) 3
B) 4
C) 5
D) 6
E) None of the above
8) Which of the following control charts is/are for attributes?
A) x-bar chart only
B) R-chart only
C) p-chart only
D) A and B
E) A, B, and C
9) Given the following opportunity loss function, determine the loss when 600 units are
sold.
Opportunity loss = 2 (600 – X) for X ¤ 600, otherwise 0.
A) 2
B) 600
C) 1,200
D) 0
E) 300
10) The first step in planning and scheduling a project is to develop the
A) employee scheduling plan.
B) PERT/CPM network diagram.
C) critical path.
D) work breakdown structure.
E) variance calculations for each activity.
11) 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 3?
A) 13
B) 14
C) 16
D) 0
E) None of the above
12) Markov analysis might be effectively used for
A) market share analysis.
B) university enrollment predictions.
C) machine breakdowns.
D) bad debt prediction.
E) All of the above
13) Table 8-4
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 4 hours of assembly, 3 hours of finishing, and 1 hour of inspection.
Each chair requires 3 hours of assembly, 2 hours of finishing, and 2 hours of inspection.
The selling price per table is $140 while the selling price per chair is $90. Currently,
each week there are 220 hours of assembly time available, 160 hours of finishing time,
and 45 hours of inspection time. Assume that one hour of assembly time costs $5.00;
one hour of finishing time costs $6.00; one hour of inspection time costs $4.50; and that
whatever labor hours are not required for the table and chairs can be applied to another
product. 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 8-4, which describes a production problem, what would the
objective function be?
A) maximize T + C
B) maximize 140T + 90C
C) minimize 42.5T + 36C
D) maximize 97.5T + 54C
E) maximize 124.5T + 74.5C