1) Simulation models are limited to using standard probability distributions such as
Poisson, exponential, normal, etc.
2) A new young executive is perplexed at the number of interruptions that occur due to
employee relations. She has decided to track the number of interruptions that occur
during each hour of her day. Over the last month, she has determined that between 0
and 3 interruptions occur during any given hour of her day. The data is shown below.
On average, she should expect 0.8 interruptions per hour.
3) The process of isolating linear trend and seasonal factors to develop a more accurate
forecast is called regression.
4) Limited calling populations are assumed for most queuing models.
5) If the assumptions of regression have been met, errors plotted against the
independent variable will typically show patterns.
6) One difficulty in waiting line analysis is that it is sometimes difficult to place a value
on customer waiting time.
7) An n x m matrix, when multiplied by an m x n matrix, yields an n x n matrix.
8) Sensitivity analysis may also be called
A) postoptimality analysis.
B) parametric programming.
C) optimality analysis.
D) All of the above
E) None of the above
9) Table 10-4
Table 10-4 represents a solution to a goal programming problem. There are three goals
(each represented by a constraint). Which of the goals is assigned the highest priority?
A) goal 1
B) goal 2
C) goal 3
D) goals 2 and 3
E) All goals have the same priority.
10) Another name for a decision table is a
A) payment table.
B) payout table.
C) payoff table.
D) pay-up table.
E) decision tree.
11) The value of the determinant is
A) 8.
B) 7.
C) 4.
D) -4.
E) None of the above
12) The maximal-flow technique might be used
A) to help design the moving sidewalks transporting passengers from one terminal to
another in a busy airport.
B) by someone designing the traffic approaches to an airport.
C) by someone attempting to design roads that would limit the flow of traffic through
an area.
D) All of the above
E) None of the above
13) Everett Mann’s Dream Store sells waterbeds and supplies. The best selling bed in
the store has an annual demand of 400 units. The ordering cost is $40, while the holding
cost is $5 per unit per year. There are 250 working days per year, and the lead-time is 6
days.
(a) To minimize total cost, how many units should be ordered each time an order is
placed?
(b) If the holding cost per unit was $6 instead of $5, what would the optimal order
quantity be?
14) Consider a project that has an expected completion time of 50 weeks and a standard
deviation of 9 weeks. What is the probability that the project is finished in 57 weeks or
fewer? (Round to two decimals.)
A) 0.68
B) 0.78
C) 0.22
D) 0.32
E) None of the above
15) The minimal-spanning tree technique would best be used
A) by a forest ranger seeking to minimize the risk of forest fires.
B) by a telephone company attempting to lay out wires in a new housing development.
C) by an airline laying out flight routes.
D) None of the above
E) All of the above
16) Which of the following is not considered a criteria for decision making under
uncertainty?
A) optimistic
B) pessimistic
C) equally likely
D) random selection
E) minimax regret
17) Table 8-7
Ivana Myrocle wishes to invest her inheritance of $200,000 so that her return on
investment is maximized, but she also wishes to keep her risk level relatively low. She
has decided to invest her money in any of three possible ways: CDs, which pay a
guaranteed 6 percent; stocks, which have an expected return of 13 percent; and a money
market mutual fund, which is expected to return 8 percent. She has decided that any or
all of the $200,000 may be invested, but any part (or all) of it may be put in any of the 3
alternatives. Thus, she may have some money invested in all three alternatives. In
formulating this as a linear programming problem, define the variables as follows:
C = dollars invested in CDs
S = dollars invested in stocks
M = dollars invested in the money market mutual fund
According to Table 8-7, which describes an investment problem, suppose that Ivana has
decided that the amount invested in stocks cannot exceed one-fourth of the total amount
invested. Which is the best way to write this constraint?
A) S =< 100,000/4
B) 0.13S =< 0.24C + 0.32M
C) -C + 4S – M =< 0
D) S =< (C + M) / 4
E) -C + 3S – M =< 0
18) A feasible solution to a linear programming problem
A) must be a corner point of the feasible region.
B) must satisfy all of the problem’s constraints simultaneously.
C) need not satisfy all of the constraints, only the non-negativity constraints.
D) must give the maximum possible profit.
E) must give the minimum possible cost.
19) A medium-term forecast is considered to cover what length of time?
A) 2-4 weeks
B) 1 month to 1 year
C) 2-4 years
D) 5-10 years
E) 20 years
20) A dry cleaning business offers a pick-up and delivery service for a 10 percent
surcharge. Management believes 60 percent of the existing customers will take
advantage of this service. They are also considering offering customers the option of
opening an account and receiving monthly bills. They believe 60 percent of customers
(regardless of whether or not they use the pick-up service) will use the account service.
If the two services are introduced to the market, what is the probability that a customer
uses only one of these services?
A) 0.40
B) 0.60
C) 0.48
D) 0.24
E) None of the above
21) In LP problems with more than two variables, the area of feasible solutions is
known as an
n-dimensional
A) pentagon.
B) cube.
C) octagon.
D) hydra.
E) polyhedron.
22) Construct an initial pairwise comparison matrix with the following information
regarding an Ease of Use factor about three different commercial student information
systems. System C, when compared to System A, is strongly preferred. When System C
is compared to System B, System C is only moderately preferred. When compared to
System A, System B is strongly preferred.
23) Column 1:
Column 2: Upper control limit for a range chart
24) Orders for clothing from a particular manufacturer for this year’s Christmas
shopping season must be placed in February. The cost per unit for a particular dress is
$20 while the anticipated selling price is $50. Demand is projected to be 50, 60, or 70
units. There is a 40 percent chance that demand will be 50 units, a 50 percent chance
that demand will be 60 units, and a 10 percent chance that demand will be 70 units. The
company believes that any leftover goods will have to be scrapped. How many units
should be ordered in February?
25) The following table provides shipping costs from each of two regional warehouses
to each of three destinations. The supplies available and the demands are also given in
the table.
Formulate this as a linear programming problem. Carefully define all decision
variables.
26) A manufacturer of microcomputers produces four models: Portable, Student, Office,
and Network. The profit per unit on each of these four models is $500, $350, $700, and
$1000, respectively. The models require the labor and materials per unit shown below.
Formulate this product mix problem using linear programming.
27) Explain the difference between an x-bar chart and a R-chart.
28) The following table represents the new members that have been acquired by a
fitness center.
Assuming α= 0.3, β= 0.4, an initial forecast of 40 for January, and an initial trend
adjustment of 0 for January, use exponential smoothing with trend adjustment to come
up with a forecast for May on new members.
29) Given the following matrix of transition probabilities, find the equilibrium states.