1) Nonlinear programming is the case in which objectives and/or constraints are
nonlinear.
2) The regression line minimizes the sum of the squared errors.
3) If you can determine with confidence and accuracy the factor weights and factor
evaluations, AHP is preferred.
4) EVPI (expected value of perfect information) is a measure of the maximum EMV as
a result of additional information.
5) The linear programming approach to media selection problems is typically to either
maximize the number of ads placed per week or to minimize advertising costs.
6) An LP formulation typically requires finding the maximum value of an objective
while simultaneously maximizing usage of the resource constraints.
7) Given the variability of the activity completion times, the original critical path we
identify in our PERT analysis may not always be the actual critical path as the project
takes place.
8) A-1A = A A-1 = I
9) A variable should be added to the model regardless of the impact (increase or
decrease) on the adjusted r2 value.
10) In dynamic programming, there is a state variable defined for every stage.
11) Transportation models may be used when a firm is trying to decide where to locate
a new facility.
12) The same ratio of marginal loss to the sum of marginal loss and marginal profit is
used to solve one-period inventory models for both discrete and continuous probability
distributions.
13) The errors in a regression model are assumed to have zero variance.
14) Testing the data and model should be done before the results have been analyzed.
15) In a maximization problem, if a variable is to enter the solution, it must have a
positive coefficient in the Cj – Zj row.
16) In applying the simplex solution procedure to a maximization problem to determine
which variable enters the solution mix,
A) pick the one with the largest positive Cj – Zj.
B) pick the one with the smallest Cj – Zj.
C) pick the one with the largest Cj.
D) pick the one with the smallest Zj.
E) pick the smallest nonnegative number formed by dividing each amount in the
quantity column by the appropriate column at the exiting variable.
17) Table M1-3
The normalized matrix for Table M1-3 is:
A)
B)
C)
D)
E) None of the above
18) Table 11-5
What is the minimum possible time required for completing the Table 11-5 project?
A) 14
B) 18
C) 17
D) 20
E) None of the above
19) A transportation problem is an example of
A) a pure-integer programming problem.
B) a mixed-integer programming problem.
C) a zero-one integer programming problem.
D) a goal programming problem.
E) a nonlinear programming problem.
20) The copy machine in an office is very unreliable. If it was working yesterday, there
is an 80% chance it will work today. If it was not working yesterday, there is a 10%
chance it will work today. If it is working today, what is the probability that it will be
working 2 days from now?
A) 0.16
B) 0.64
C) 0.66
D) 0.80
E) None of the above
21) Consider the material structure tree for item A below. If 10 units of A are needed,
how many units of E are needed?
A) 60
B) 6
C) 240
D) 24
E) 480
22) Which of the following is not a step in the Hungarian method of assignment?
A) find the opportunity-cost table
B) test for an optimal assignment
C) enumerate all possible solutions
D) revise the opportunity-cost table
E) None of the above
23) A company has been receiving complaints about the attitude of some sales clerks.
Over a 10-day period, the total number of complaints was 360. 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) 12
B) 42
C) 48
D) 54
E) None of the above
24) An integer programming (maximization) problem was first solved as a linear
programming problem, and the objective function value (profit) was $253.67. The two
decision variables (X, Y) in the problem had values of X = 12.45 and Y = 32.75. If there
is a single optimal solution, which of the following must be true for the optimal integer
solution to this problem?
A) X = 12 Y = 32
B) X = 12 Y = 33
C) The objective function value must be less than $253.67.
D) The objective function value will be greater than $253.67.
E) None of the above
25) The process of smoothing out the utilization of resources in a project is called
A) CPM.
B) PERT.
C) project crashing.
D) work breakdown structure.
E) resource leveling.
26) Your company is considering submitting a bid on a major project. You determine
that the expected completion time is 150 weeks and the standard deviation is 10 weeks.
It is assumed that the normal distribution applies. You wish to set the due date for the
project such that there is a 95 percent chance that the project will be finished by this
time. What due date should be set?
A) 108.0
B) 160.4
C) 166.5
D) 135.0
E) None of the above
27) The following is a payoff table giving profits for various situations.
The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a
perfect forecast of the future were available, what is the expected value with this perfect
information?
A) 130
B) 160
C) 166
D) 36
E) None of the above
28) Given the following small project, the critical path is ________ days.
A) 4
B) 10
C) 12
D) 22
E) None of the above
29) The consistency ratio is
A) the average value of the consistency vector.
B) CR/CI.
C) RI/CI.
D) (» – n ) / ( n – 1 ).
E) None of the above
30) Table 14-2
The following data consists of a matrix of transition probabilities (P) of three competing
retailers, the initial market share (0). Assume that each state represents a retailer
(Retailer 1, Retailer 2, Retailer 3, respectively) and the transition probabilities represent
changes from one month to the next.
Using the data given in Table 14-2, what is the equilibrium market share?
A) (0.30, 0.60, 0.10)
B) (0.55, 0.33, 0.12)
C) (0.44, 0.43, 0.12
D) (0.55, 0.12, 0.33)
E) (0.47, 0.40, 0.13)
31) 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:
Based on Table M1-1, what should be Jason’s second choice?
A) MSU
B) BC
C) PC
D) UM
E) None of the above
32) Add the matrices .
33) Explain how no feasible solution is recognized when using the simplex algorithm.
34) Explain the difference between a p-chart and a c-chart.
35) Discuss, briefly, the difference between a decision variable and a state variable.
36) Convert the following linear program into the simplex form:
37) Another name for the “Multiple R” that is given in Excel is ________.
38) Multiply matrix [1 2 3] by .
39) One basic assumption of linear programming is divisibility. Explain its need.