1) One purpose of regression is to predict the value of one variable based on the other
variable.
2) In a maximization problem, if a variable is to enter the solution, it must have a
negative coefficient in the Cj – Zj row.
3) The maximal-flow technique might be used by the U.S. Army Corps of Engineers to
study water run-off in an attempt to minimize the danger from floods.
4) If, in a simple queuing or waiting line problem, we wish to know the maximum
likely waiting time, or the maximum likely length of the line, we must use a simulation
model.
5) Simulation can use any probability distribution that the user defines; it does not
require standard distributions.
6) In the early 1900s, Henry Ford pioneered the principles of the scientific approach to
management.
7) As we are doing the ratio calculations for a simplex iteration, if there is a tie for the
smallest ratio, the problem is degenerate.
8) The probabilities in any column of the matrix of transition probabilities will always
sum to one.
9) One disadvantage of simulation is that it does not allow for “what-if?” types of
questions.
10) The identification of the project activities and their time, cost, resource
requirements, predecessors, and person(s) responsible is called PERT planning.
11) We can develop an n x m matrix by adding an n x p matrix and an n x r matrix
where p + r = m.
12) Consider the sensitivity report below for the problems which follow.
What is the increase in the objective value if 2 units of extrusion are added?
A) 3
B) 6
C) 48
D) 96
E) Not enough information provided
13) The number of cell phone minutes used by high school seniors follows a normal
distribution with a mean of 500 and a standard deviation of 50. What is the probability
that a student uses fewer than 400 minutes?
A) 0
B) 0.023
C) 0.159
D) 0.977
E) None of the above
14) Bank Boston has a branch at Bryant College. The branch is busiest at the beginning
of the college year when freshmen and transfer students open accounts. This year,
freshmen arrived at the office at a rate of 40 per day (8-hour day). On average, it takes
the Bank Boston staff person about ten minutes to process each account application.
The bank is considering having one or two tellers. Each teller is paid $12 per hour and
the cost of waiting in line is assumed to be $8 per hour.
(a) What is the total daily waiting cost for the single teller model?
(b) What is the total daily waiting cost for the two-teller model?
(c) What is the total daily service cost for the single teller model?
(d) What is the total daily service cost for the two-teller model?
(e) Which model is preferred?
15) Table 13-2
A new young mother has opened a cloth diaper service. She is interested in simulating
the number of diapers required for a one-year-old. She hopes to use this data to show
the cost effectiveness of cloth diapers. The table below shows the number of diapers
demanded daily and the probabilities associated with each level of demand.
According to Table 13-2, if the random number 96 were generated for a particular day,
what would the simulated demand be for that day?
A) 5
B) 6
C) 7
D) 8
E) None of the above
16) Find the shortest route from Node 1 to Node 6.
A) 300
B) 450
C) 550
D) 650
E) None of the above
17) The would be useful when we
A) took a number of measurements and computed the average.
B) took a number of measurements and computed the ranges.
C) found the fraction of the production lot defective.
D) found the number of defective items in a production lot.
E) None of the above
18) Using the data in Table 11-4, what is the latest possible time that C may be started
without delaying completion of the project?
A) 0
B) 4
C) 8
D) 10
E) None of the above
19) Which of the following is not an assumption of LP?
A) certainty
B) proportionality
C) divisibility
D) multiplicativity
E) additivity
20) Table 12-6
Customers arrive at coffee shop at a rate of 40 per hour. There are 2 servers available
and it takes an average of 1 minute to serve each customer.
Using Table 12-6, what is the probability of no customers in the system?
A) 0
B) 0.333
C) 0.5
D) 0.667
E) 1
21) Data for a particular subdivision near downtown Houston indicate that the average
price per square foot for a home is $100 with a standard deviation of $5 (normally
distributed). What is the probability that the average price per square foot for a home is
greater than $110?
A) 0
B) 0.023
C) 0.841
D) 0.977
E) None of the above
22) Table M8-1
What is the value of the improvement index for cell B1 shown in Table M8-1?
A) -50
B) +3
C) +2
D) +1
E) None of the above
23) Technically, to achieve Six Sigma quality, there would have to be fewer than
________ defects per million opportunities.
24) Discuss, briefly, the role of the transformation function.
25) Briefly describe decision making under certainty.
26) Describe the conditions when simulation is useful for queuing analysis.
27) Suppose that lead-time demand is normally distributed with a mean of 100 units
and a standard deviation of 20 units. If a firm wants to maintain a 97% service level,
what should the reorder point be?
28) Suppose that the payoff from an investment depends upon market conditions. A
great market has a payoff of $200,000, a normal market has a payoff of $100,000, and a
poor market has a payoff of $20,000. What is the Laplace criterion value?
29) The vector of state probabilities for period n is (0.4, 0.6). The accompanying matrix
of transition probabilities is:
Calculate the vector of state probabilities for period n+1.
30) Two advertising media are being considered for promotion of a product. Radio ads
cost $400 each, while newspaper ads cost $600 each. The total budget is $7,200 per
week. The total number of ads should be at least 15, with at least 2 of each type. Each
newspaper ad reaches 6,000 people, while each radio ad reaches 2,000 people. The
company wishes to reach as many people as possible while meeting all the constraints
stated. How many ads of each type should be placed?
31) In what way is the F distribution often used?
32) 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 3 hours of assembly, 2 hours of finishing, and 1 hour of inspection.
Each chair requires 2 hours of assembly, 2 hours of finishing, and 1 hour of inspection.
The profit per table is $120, while the profit per chair is $80. Currently, each week there
are 200 hours of assembly time available, 180 hours of finishing time, and 40 hours of
inspection time. To keep a balance, the number of chairs produced should be at least
twice the number of tables. Also, the number of chairs cannot exceed six times the
number of tables. Formulate this as a linear programming problem. Carefully define all
decision variables.