1) Table 10-3
A company has decided to use 01 integer programming to help make some investment
decisions. There are three possible investment alternatives from which to choose, but if
it is decided that a particular alternative is to be selected, the entire cost of that
alternative will be incurred (i.e., it is impossible to build one-half of a factory). The
integer programming model is as follows:
Solution x1 = 1, x2 = 0, x3 = 1, objective value = 14,000.
Table 10-3 presents an integer programming problem. If the optimal solution is used,
then only two of the alternatives would be selected. How much slack would there be in
the third constraint?
A) 1000
B) 5000
C) 3300
D) 8000
E) None of the above
2) Activity B of a project has a budgeted cost of $50,000 and is 30% complete. The
actual cost of the activity is $12,000. What is the activity difference?
A) -15,000
B) -3,000
C) 0
D) 3,000
E) 15,000
3) The H.A.L. Computer Store sells a printer for $200. Demand for this is constant
during the year, and annual demand is forecasted to be 600 units. The holding cost is
$20 per unit per year, while the cost of ordering is $60 per order. Currently, the
company is ordering 12 times per year (50 units each time). There are 250 working days
per year and the lead-time is 10 days.
(a) Given the current policy of ordering 50 units at a time, what is the total of the annual
ordering cost and the annual holding cost?
(b) If the company used the absolute best inventory policy, what would the total of the
ordering and holding cost be?
(c) What is the reorder point?
4) Bob White is conducting research on monthly expenses for medical care, including
over-the-counter medicine. His dependent variable is monthly expenses for medical
care while his independent variable is number of family members. Below is his Excel
output.
(a) What is the prediction equation?
(b) Based on his model, each additional family member increases the predicted costs by
how much?
(c) Based on the significance F-test, is this model a good prediction equation?
(d) What percent of the variation in medical expenses is explained by the size of the
family?
(e) Can the null hypothesis that the slope is zero be rejected? Why or why not?
(f) What is the value of the correlation coefficient?
5) The probability that we will be in a future state, given a current or existing state, is
called
A) state probability.
B) prior probability.
C) steady state probability.
D) joint probability.
E) transition probability.
6) Sensitivity analysis cannot be used to examine the effects of
A) changes in the contribution rates for each variable.
B) changes in the technological coefficients.
C) changes in the available resources.
D) the addition or deletion of a constraint.
E) None of the above
7) A large school district is reevaluating its teachers’ salaries. They have decided to use
regression analysis to predict mean teacher salaries at each elementary school. The
researcher would like to examine the significance of the following quadratic model for
predicting salary based on years of experience.
Y = 0 + 1X1 + 2X2 + where X1 = Yrs Exp and X2 = Yrs Exp2
(a) What is the adjusted r2?
(b) What is the prediction equation?
8) Element 1,1 of the inverse of the matrix is
A) -5.
B) -4.
C) 4.
D) 5.
E) None of the above
9) Which of the following statements is not true about Matrix(ces)?
A) A matrix is a display of numbers arranged in rows and columns.
B) Matrices are usually enclosed in parentheses or brackets.
C) Matrices are used as an effective means of presenting or summarizing business data.
D) Matrices cannot be considered as a quantitative tool.
E) None of the above
10) =
A) 0
B) 3
C) -5
D) -3
E) None of the above
11) To find the equilibrium state in Markov analysis,
A) it is necessary to know both the vector of state probabilities and the matrix of
transition probabilities.
B) it is necessary only to know the matrix of transition probabilities.
C) it is necessary only to know the vector of state probabilities for the initial period.
D) one should develop a table of state probabilities over time and then determine the
equilibrium conditions empirically.
E) None of the above