1) 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.
2) On a practical noteif we are using waiting line analysis to study customers calling a
telephone number for service, balking is probably not an issue.
3) Lines connecting nodes on a network are called links.
4) Service times often follow a Poisson distribution.
5) Simulation of maintenance problems can help management analyze various staffing
strategies based on machine downtime and labor cost.
6) The maximin decision criterion is used by pessimistic decision makers and
minimizes the maximum outcome for every alternative.
7) Saying that a set of events is collectively exhaustive implies that one of the events
must occur.
8) The probability of obtaining specific outcomes in a Bernoulli process is described by
the binomial probability distribution.
9) In a linear program, the constraints must be linear, but the objective function may be
nonlinear.
10) Trying various approaches and picking the one resulting in the best decision is
called incomplete enumeration.
11) If all of a resource represented by a slack variable is used, that slack variable will
not be in the production mix column of a linear programming simplex tableau.
12) The value of the determinant of the following matrix is 7.
13) Find the shortest route from Node 6 to Node 1.
A) branches 9, 7, and 2
B) branches 8, 6, and 2
C) branches 8, 6, 7, and 1
D) branches 9, 5, and 1
E) None of the above
14) The following table represents the actual vs. forecasted amount of new customers
acquired by a major credit card company:
(a) What is the tracking signal?
(b) Based on the answer in part (a), comment on the accuracy of this forecast.
15) The following is a payoff table giving profits for various situations.
What decision would a pessimist make?
A) Alternative 1
B) Alternative 2
C) Alternative 3
D) Do Nothing
E) State of Nature A
16) Table 8-5
Each coffee table produced by Timothy Kent Designers nets the firm a profit of $9.
Each bookcase yields a $12 profit. Kent’s firm is small and its resources limited. During
any given production period (of 1 week), 10 gallons of varnish and 12 lengths of high
quality redwood are available. Each coffee table requires approximately 1 gallon of
varnish and 1 length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths
of wood.
T = number of tables produced each week
B = number of bookcases produced each week
Referring to Table 8-5, the solution to the problem is
A) T = 10, B = 0.
B) T = 0, B = 10.
C) T = 0, B = 6.
D) T = 8, B = 2.
E) None of the above
17) An inventory model that can handle dependent demand is called a(n)
A) MRP system.
B) JIT system.
C) ERP system.
D) Kanban system.
E) VMI system.
18) Table 10-2
Final Integer Solution: Z = 208
According to Table 10-2, which presents a solution for an integer programming
problem, at the optimal solution, how much slack exists in the third constraint?
A) 0
B) 9
C) 5
D) 6
E) -1
19) The following is a payoff table giving profits for various situations.
The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a
perfect forecast of the future were available, what is the expected value of perfect
information (EVPI)?
A) 166
B) 0
C) 36
D) 40
E) None of the above
20) The value of the determinant is
A) 2.
B) 14.
C) -42.
D) 42.
E) None of the above
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
less than $85?
A) 0.001
B) 0.999
C) 0.618
D) 0.382
E) None of the above
22) An organization hosting a 5K race is looking to sell t-shirts at the event. Demand
for t-shirts is believed to be normally distributed with a mean of 100 and standard
deviation of 15. With a marginal loss of $4 and marginal profit of $5, how many t-shirts
should the organization stock for the 5K race?
A) 98
B) 85
C) 103
D) 115
E) 113
23) An analytic and systematic approach to the study of decision making is referred to
as
A) decision making under risk.
B) decision making under uncertainty.
C) decision theory.
D) decision analysis.
E) decision making under certainty.
24) Fresh First grocery store faces demand for freshly squeezed orange juice. The daily
demand for freshly squeezed pomegranate juice ranges from 0 to 5 gallons. The grocery
store offers the juice in a special 1 gallon bottle that will be discarded after a day. Each
gallon costs $2 to make and is sold for $5. The daily demand for pomegranate juice
varies according to the following distribution:
How many gallons of juice should the store make each day?
25) Table 10-7
26) Column 1:
Column 2: Control limits for a c-chart
27) How is the consistency index computed?
28) Why does the matrix have no definable inverse?
29) The standard deviation of the regression is also called ________.
30) Smalltime Investments Inc. is going to purchase new computers for most of the
employees. There are ten employees, and at least eight computers must be purchased.
The cost of the basic personal computer with monitor and disk drive is $2,000, while
the deluxe version with VGA and advanced processor is $3,500. Due to internal
politics, the number of deluxe computers must be no more than half the number of
regular computers, but at least three deluxe computers must be purchased. The budget is
$27,000. Formulate this as an integer programming problem to maximize the number of
computers purchased.
31) Determine the inverse of the matrix .
32) List four measures of historical forecasting errors.