1) Dummy variables for regression analysis can take on a value of either -1 or +1.
2) The reorder point occurs during a stockout.
3) An F-test is used to determine if there is a relationship between the dependent and
independent variables.
4) In the multichannel model (M/M/m), we must assume that the average service time
for all channels is the same.
5) Management support and user involvement are not essential in the successful
implementation of quantitative analysis projects.
6) The Delphi method solicits input from customers or potential customers regarding
their future purchasing plans.
7) Transportation models may be used when a firm is trying to decide where to locate a
new facility.
8) In decision theory, we call the payoffs resulting from each possible combination of
alternatives and outcomes
A) marginal values.
B) conditional values.
C) conditional probabilities.
D) Bayesian values.
E) joint values.
9) When using the shortest-route technique, the first step is to
A) connect the nearest node that minimizes the total distance to the origin.
B) trace the path from the warehouse to the plant.
C) determine the average distance traveled from source to end.
D) find the nearest node to the origin and put a distance box by the node.
E) None of the above
10) 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 proportion of time are the servers busy?
A) 0
B) 0.333
C) 0.5
D) 0.6667
E) 1
11) The coefficient of determination resulting from a particular regression analysis was
0.85. What was the slope of the regression line?
A) 0.85
B) -0.85
C) 0.922
D) There is insufficient information to answer the question.
E) None of the above
12) When an independent variable is correlated with one other independent variable, the
variables are said to be
A) collinear.
B) pairwise.
C) independent.
D) mutually exclusive.
E) None of the above
13) In queuing theory, the calling population is another name for
A) the queue size.
B) the servers.
C) the arrivals.
D) the service rate.
E) the market researchers.
14) Rose Arena is the production manager for a manufacturing firm that produces
buggy whips and other items. The annual demand for a particular buggy whip is 1,600
units. The holding cost is $2 per unit per year. The cost of setting up the production line
is $25. There are 200 working days per year. Rose decided to produce 200 units each
time she started production of the buggy whips. If it took her 4 days to produce the 200
units, what was her production rate?
A) 80 units/day
B) 60 units/day
C) 50 units/day
D) 100 units/day
E) 40 units/day
15) Table 10-6
The profit function for a set of two electronics products can be expressed by the
following expression: X1
2 -2X1 -3X2 + 2X2
2 where X1 = the number of product 1 units
produced and X2 = the number of product 2 units produced. At least 10 units of X1 must
be produced and at least 20 units of X2 must be produced. No more than 50 units total
can be produced.
According to Table 10-6, how is the constraint expressed that no more than 50 units can
be produced?
A) X1 + X2 >= 50
B) X1 + X2 =< 50
C) X1
2 + X2
2 >= 50
D) X1
2 + X2
2 =< 50
E) X1 + X2 = 50
16) Which of the following statements is/are not true about regression models?
A) Estimates of the slope are found from sample data.
B) The regression line minimizes the sum of the squared errors.
C) The error is found by subtracting the actual data value from the predicted data value.
D) The dependent variable is the explanatory variable.
E) The intercept coefficient is not typically interpreted.
17) PERT
A) assumes that we do not know ahead of time what activities must be completed.
B) assumes that activity time estimates follow the normal probability distribution.
C) is a network technique that uses three time estimates for each activity in a project.
D) is a deterministic network technique that allows for project crashing.
E) None of the above
18) Given the following distances between destination nodes, what is the minimum
distance that connects all the nodes?
A) 100
B) 150
C) 550
D) 1225
E) None of the above
19) In the construction of decision trees, which of the following shapes represents a
decision node?
A) square
B) circle
C) diamond
D) triangle
E) None of the above
20) Given the following distances between destination nodes, what is the minimum
distance that connects all the nodes?
A) 300
B) 525
C) 675
D) 1925
E) None of the above
21) For the questions which follow, there are six cities (City 1-City 6) serviced by a
particular airline. Limited routes are available, and the distances for each of these routes
are presented in the table below.
What is the minimum distance that must be traveled to get from City 1 to City 6?
A) 1100 miles
B) 900 miles
C) 1,300 miles
D) 1,400 miles
E) None of the above
22) Given the following nodes and distances, determine the minimum length of cable
necessary to connect all six nodes.
A) 200
B) 300
C) 400
D) 500
E) None of the above
23) The opportunity loss function gives us information about
A) the variable costs we should expect to incur.
B) cost and revenues as a function of demand.
C) the number of products we should expect to sell.
D) profits lost if demand is less than the break-even point.
E) None of the above
24) To include qualitative data in regression analysis, you must first create a ________
variable.
25) Our department store is having a sale on personal computers, of which three are in
stock (no rain checks). There is a certain probability of selling none. The probability of
selling one is twice as great as the probability of selling none. The probability of selling
two is three times the probability of selling none. Finally, the probability of selling all
the personal computers is four times as great as the probability of selling none. In a
table, list the outcomes and their probabilities. Hint: Let the probability of selling none
equal x.
26) If the break-even point was estimated to be 500 units when fixed costs are estimated
at $1,200/month, what would the EMV be if average demand is estimated at 750?
27) Develop the shortest-route network for the problem below, and determine the
minimum distance from node 1 to node 7.
28) What size matrix is yielded when an n x m matrix is multiplied by an m x n matrix?
29) A logistics company is determining the shortest route to get to a selected final
destination. The information on possible paths and distances is given below:
30) Consider the interval of random numbers presented below. The following random
numbers have been generated: 99, 98, 26, 09, 49, 52, 33, 89, 21, 37. Simulate 10 hours
of arrivals at this gas station. What is the average number of arrivals during this period?