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1) The cornerstone of game theory is Harsanui equilibrium and Harsanui bargaining
problems.
2) Artificial variables can be used in both maximization and minimization problems but
are most often used in minimization problems.
3) The fewer the periods over which one takes a moving average, the more accurately
the resulting forecast mirrors the actual data of the most recent time periods.
4) The following objective function is nonlinear: Max 5X - 8YZ.
5) All matrices have the same number of rows as columns.
6) Table 12-5
According to the information provided in Table 12-5, which presents the solution for a
queuing problem with a constant service rate, on average, how many customers are in
the system?
A) 0.893
B) 0.714
C) 1.607
D) 0.375
E) None of the above
7) Table 11-3
According to Table 11-3, there are five activities in a PERT project. Which activities are
on the critical path?
A) A-B-C-D-E
B) A-C-E
C) B-D
D) A-B-C-D
E) B-E
8) Which of the following is not a concept associated with CPM?
A) normal time
B) probability
C) normal cost
D) crash cost
E) deterministic network
9) In many business decisions, there are numerous states of nature and/or alternatives.
These problems are best handled by
A) constructing a large decision table and using Excel.
B) constructing a large decision tree.
C) using the normal distribution.
D) using the integral loss distribution.
E) None of the above
10) Add the matrices +
A)
B)
C)
D)
E) cannot be added
11) ( Use all of the product B available.
Let X1 = number of Zigs, X2 = number of Zags.
d1
- = underachievement of Zig goal
d1
+ = overachievement of Zig goal
d2
- = underachievement of profit target
d2
+ = overachievement of profit target
d3
- = unused product B
d3
+ = additional amount of product B needed
In the goal programming problem described in Table 10-7, how is the goal of producing
exactly 50 Zigs expressed?
A) X1 + d1
+ = 50
B) X1 - d1
+ = 50
C) X1 + d1
- = 50
D) X1 - d1
- = 50
E) X1 + d1
- - d1
+ = 50
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
results indicate a successful market for the product and the product actually is
successful?
A) 0.90
B) 0.54
C) 0.60
D) 0.63
E) None of the above
13) Find the shortest route from Node 1 to Node 6.
A) total distance = 350
B) total distance = 410
C) total distance = 270
D) total distance = 520
E) None of the above
14) Nick has plans to open some pizza restaurants, but he is not sure how many to open.
He has prepared a payoff table to help analyze the situation.
As Nick does not know how his product will be received, he assumes that all three
states of nature are equally likely to occur. If he uses the equally likely criterion, what
decision would he make?
A) Open 1
B) Open 2
C) Good market
D) Fair market
E) Do nothing
15) Which of the following distributions is most often used to estimate service times?
A) negative exponential
B) normal
C) Poisson
D) Erlang
E) beta
16) What can be said about an r2 value of 0.96?
17) Define infeasibility with respect to an LP solution.
18) Dr. Malcomb Heizer wishes to invest his retirement fund of $2,000,000 so that his
return on investment is maximized, but he also wishes to keep the risk level relatively
low. He has decided to invest his money in any of three possible ways: CDs that pay a
guaranteed 4 percent; stocks that have an expected return of 14 percent; and a money
market mutual fund that is expected to return 18 percent. He has decided that the total
$2,000,000 will be invested, but any part (or all) of it may be put in any of the three
alternatives. Thus, he may have some money invested in all three alternatives. He has
also decided to invest, at most, 30 percent of this in stocks and at least 20 percent of this
in money market funds. Formulate this as a linear programming problem and carefully
define all the decision variables.
19) 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. If the dry cleaner wants to accommodate (have enough room for) all of the
waiting cars at least 96 percent of the time, how many car-lengths should they make the
driveway leading to the window?
20) Solve the following linear programming problem using the simplex method.
