1) The value of r2 can never decrease when more variables are added to the model.
2) » is the average of the consistency ratios.
3) Simulation of a business or process is generally performed by building a
mathematical model to represent the process or system.
4) In Markov analysis it is assumed that states are both mutually exclusive and
collectively exhaustive.
5) Markov analysis assumes that while a member of one state may move to a different
state over time, the overall makeup of the system will remain the same.
6) Managers do not need to be familiar with the limitations, assumptions, and/or
specific applicability of the quantitative analysis technique to use it for accurate
decision making.
7) The SSR indicates how much of the total variability in the dependent variable is
explained by the regression model.
8) The matrix multiplication (AB), where A and B are any matrix, is equal to the matrix
multiplication (BA).
9) The objective of a transportation problem solution is to schedule shipments from
sources to destinations while minimizing total transportation and production costs.
10) Slack is the time an activity can be delayed without impacting the completion time
of the project.
11) 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
results indicate an unsuccessful market for the product and the product is actually
unsuccessful?
A) 0.63
B) 0.06
C) 0.07
D) 0.24
E) 0.21
12) The substitution rates
A) decrease with each iteration of the simplex method.
B) tell us the number of units of a basic variable that must be removed from the solution
for another variable to enter the basis.
C) tell the amount of one resource that can be substituted for another.
D) tell us the amount of a resource that must be used to gain another unit of profit.
E) None of the above
13) The coefficient of determination resulting from a particular regression analysis was
0.85. What was the correlation coefficient, assuming a positive linear relationship?
A) 0.5
B) -0.5
C) 0.922
D) There is insufficient information to answer the question.
E) None of the above
14) The process of comparing a model to the real system that it represents to make sure
it is accurate is called
A) validation.
B) verification.
C) simulation.
D) experimentation.
E) None of the above
15) A constraint with positive slack or surplus is called a
A) nonbinding constraint.
B) resource constraint.
C) binding constraint.
D) nonlinear constraint.
E) linear constraint.
16) A post office has a single line for customers waiting for the next available postal
clerk. There are two postal clerks who work at the same rate. The arrival rate of
customers follows a Poisson distribution, while the service time follows an exponential
distribution. The average arrival rate is three per minute and the average service rate is
two per minute for each of the two clerks. How long does the average person spend
waiting for a clerk?
A) 3.429 minutes
B) 1.929 minutes
C) 1.143 minutes
D) 0.643 minute
E) None of the above
17) If the Q1 demand for a particular year is 200 and the seasonal index is 0.85, what is
the deseasonalized demand value for Q1?
A) 170
B) 185
C) 215
D) 235.29
E) 250
18) The value of work completed for an activity is determined by which of the
following?
A) budgeted cost – actual cost
B) actual cost divided by budgeted cost
C) percentage of work completed multiplied by actual activity cost
D) percentage of work completed multiplied by budgeted activity cost
E) activity difference divided by budgeted cost
19) Which of the following is not an assumption of Markov processes?
A) The state variable is discrete.
B) There are a limited number of possible states.
C) The probability of changing states remains the same over time.
D) We can predict any future state from the previous state and the matrix of transition
probabilities.
E) The size and the makeup of the system do not change during the analysis.
20) Which of the following problems can be solved as a linear program using integer
decision variables?
A) maximal-flow problem
B) shortest-route problem
C) minimal-spanning tree problem
D) A and B
E) A, B, and C
21) Consider the following linear programming problem:
The feasible corner points are (48,84), (0,120), (0,0), (90,0). What is the maximum
possible value for the objective function?
A) 1032
B) 1200
C) 360
D) 1600
E) None of the above
22) A coffee company is attempting to make certain that all its packaged coffee beans
contain the same amount of coffee bean by weight. Over the last few days, it has taken
several samples. The overall average weight of the sampled packages is 16 ounces, with
an average range of 4 ounces. Each sample was of five packages. What would be the
99.7 upper and lower control limits for an -chart?
23) What size matrix is yielded when an n x m matrix is multiplied by an m x p matrix,
the result of which is multiplied by a p x r matrix?
24) The ________ indicates how much total variability in Y is explained by the
regression model.
25) A firm currently has a 20% market share for its product, lint pickers. It has
identified 2 plans to improve its market share. The transition matrices for both plans are
listed below. Plan 1 costs $1 million and Plan 2 costs $1.5 million. The company’s goal
is to determine what its demand will be in the long-term.
A single percentage point of market share translates into an annual demand of 1,000
units per year. Also, each percentage point of market share means $100,000 of profit for
the firm. Choose the plan that maximizes the firm’s net income.
26) The ________ measures the total variability in Y about the mean.
27) What can be said about a correlation coefficient of -1?
28) A computer software manufacturer has a toll-free telephone number that customers
may use if they have problems or questions about the software. In the past, the company
has averaged four calls per hour on a particular product. If a 95.5% c-chart is developed
for this, what would the limits be?
29) Explain the principle of dominance as used in game theory.
30) Given the following vector of state probabilities and the accompanying matrix of
transition probabilities, find the next period vector of state probabilities.