1) Which of the following statements is true about r2?
A) It is also called the coefficient of correlation.
B) It is also called the coefficient of determination.
C) It represents the percent of variation in X that is explained by Y.
D) It represents the percent of variation in the error that is explained by Y.
E) It ranges in value from -1 to + 1.
2) Over any given month, Hammond Market loses 10% of its customers to Otro Plaza
and 20% to Tres Place. Otro Plaza loses 5% to Hammond and 10% to Tres Place. Tres
Place loses 5% of its customers to each of the two competitors. At the present time,
Hammond Market has 40% of the market, while the others have 30% each.
(a) Next month, what will the market shares be for the three firms?
(b) In two months, what will the market shares be for the three firms?
3) Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15,
12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day
using a two-day moving average.
A) 14
B) 13
C) 15
D) 28
E) 12.5
4) Table 8-2
Diamond Jeweler’s is trying to determine how to advertise in order to maximize their
exposure. Their weekly advertising budget is $10,000. They are considering three
possible media: tv, newspaper, and radio. Information regarding cost and exposure is
given in the table below:
Let T = the # of tv ads, N = the # of newspaper ads, and R = the # of radio ads
According to Table 8-2, which describes a media selection problem, what would the
objective function be?
A) Maximize 10T + 7N + 20R
B) Minimize 10T + 7N + 20R
C) Minimize 800T + 1000N + 400R
D) Minimize 7000T + 8500N + 3000R
E) Maximize 7000T + 8500N + 3000R
5) A type of integer programming is
A) pure.
B) mixed.
C) zero-one.
D) All of the above
E) None of the above
6) Table M2-2
According to Table M2-2, which gives a solution to a shortest route problem solved
with dynamic programming, which cities would be included in the best route?
A) 1, 2, 3, 4, 5, 6
B) 1, 4, 6, 7
C) 1, 2, 5, 6, 7
D) 6, 7
E) None of the above
7) Given an activity’s optimistic, most likely, and pessimistic time estimates of 2, 10,
and 20 days respectively, compute the PERT variance for this activity.
A) 3
B) 6
C) 9
D) 18
E) None of the above
8) Find the shortest route from Node 1 to Node 6.
A) 300
B) 450
C) 550
D) 650
E) None of the above
9) Upon retirement, Mr. Klaws started to make two types of children’s wooden toys in
his shopWuns and Toos. Wuns yield a variable profit of $9 each and Toos have a
contribution margin of $8 each. Even though his electric saw overheats, he can make 7
Wuns or 14 Toos each day. Since he doesn’t have equipment for drying the lacquer
finish he puts on the toys, the drying operation limits him to 16 Wuns or 8 Toos per day.
(a) Solve this problem using the corner point method.
(b) For what profit ratios would the optimum solution remain the optimum solution?
10) A dry cleaner has a single drive-thru window for customers. The arrival rate of cars
follows a Poisson distribution, while the service time follows an exponential
distribution. The average arrival rate is 16 per hour and the average service time is three
minutes.
(a) What is the average number of cars in the line?
(b) What is the average time spent waiting to get to the service window?
(c) What percentage of time is the dry cleaner’s drive-thru window idle?
(d) What is the probability there are more than 2 cars at the drive-thru window?
11) The minimal-spanning technique would best be used
A) to assign workers to jobs in the cheapest manner.
B) to determine LAN network wiring within a building.
C) to minimize traffic flow on a busy highway.
D) by a trucking company making frequent but repeatable drops.
E) to determine the number of units to ship from each source to each destination.
12) A company is considering producing some new Gameboy electronic games. Based
on past records, management believes that there is a 70 percent chance that each of
these will be successful and a 30 percent chance of failure. Market research may be
used to revise these probabilities. In the past, the successful products were predicted to
be successful based on market research 90 percent of the time. However, for products
that failed, the market research predicted these would be successes 20 percent of the
time. If market research is performed for a new product, what is the probability that the
product will be successful if the market research indicates a failure?
A) 0.20
B) 0.90
C) 0.91
D) 0.63
E) 0.23
13) To solve the following set of simultaneous equations, the determinant solution for Y
would be
4X + 3Y = 7
2X – 2Y = 5
A) X = /
B) X = /
C) X = /
D) X = /
E) None of the above
14) In Markov analysis, to find the vector of state probabilities for any period,
A) one should find them empirically.
B) subtract the product of the numbers on the primary diagonal from the product of the
numbers on the secondary diagonal.
C) find the product of the vector of state probabilities for the preceding period and the
matrix of transition probabilities.
D) find the product of the vectors of state probabilities for the two preceding periods.
E) take the inverse of the fundamental matrix.
15) Given:
Determine:
(a) the critical path.
(b) the probability that the project will be completed in 22 weeks.
16) The saddle point in a payoff matrix is always the
A) largest number in its column and the largest number in its row.
B) largest number in its column and the smallest number in its row.
C) smallest number in its column and the largest number in its row.
D) smallest number in its column and the smallest number in its row.
E) None of the above
17) The number of cars passing through an intersection in the next five minutes can
usually be described by the
A) normal distribution.
B) uniform distribution.
C) exponential distribution.
D) Poisson distribution.
E) None of the above
18) In a matrix of transition probabilities,
A) the probabilities for any column will sum to 1.
B) the probabilities for any row will sum to 1.
C) the probabilities for any column are mutually exclusive and collectively exhaustive.
D) All of the above
E) None of the above
19) Practically speaking, multiple optimal solutions
A) are infeasible.
B) are unbounded.
C) are degenerate.
D) are unbalanced.
E) provide management with greater flexibility in selecting and using resources.
20) Customers enter the waiting line at a cafeteria on a first-come, first-served basis.
The arrival rate follows a Poisson distribution, while service times follow an
exponential distribution. If the average number of arrivals is four per minute and the
average service rate of a single server is seven per minute, what is the average number
of customers waiting in line behind the person being served?
A) 0.76
B) 0.19
C) 1.33
D) 1.67
E) None of the above