1) On a practical noteif we were to study the waiting lines in a hair salon that had only
five chairs for patrons waiting, we should use an infinite queue waiting line model.
2) Maximization assignment problems can easily be converted to minimization
problems by subtracting each rating from the largest rating in the table.
3) Two characteristics of arrivals are the line length and queue discipline.
4) In the minimal-spanning tree technique, it is necessary to start at the last node in the
network.
5) Optimistic decision makers tend to discount favorable outcomes.
6) The four disadvantages of simulation are cost, its trial-and-error nature, time
compression, and uniqueness.
7) Using a simulation model allows one to ignore the common assumptions required to
use analytical models.
8) From an Analytic Hierarchy Process analysis, » is computed to be 4.840, n = 3, RI =
0.58. Compute the consistency ratio.
A) 0.92
B) 1.5862
C) 1.092
D) 8.3448
E) None of the above
9) Which of the following statements concerning the transshipment problem are false?
A) The number of units shipped into a transshipment point should be equal to the
number of units shipped out.
B) There can be constraints on the number of units shipped out of an origin point.
C) There can be constraints on the number of units shipped into a destination point.
D) The transshipment problem can be solved with linear programming.
E) Any units shipped from one origin point must all go to the same destination point.
10) Table 14-3
The following data consists of a matrix of transition probabilities (P) of three office
locations (A,B,C) within a large company and how employees shift from one location
to the other from year to year. The company CEO would like to understand the
movement of employees over time and the long-run proportion of employees in each
location. Assume that there is always a total of 3000 employees.
Using the data given in Table 14-3, how many employees do we expect in location B
one year from now?
A) 1000
B) 1400
C) 1500
D) 800
E) 700
11) Table M2-1
The data below is a dynamic programming solution for a shortest route problem.
Using the data in Table M2-1, what is the optimal travel path from point 1 to 7?
A) 5, 7
B) 6, 7
C) 1, 2, 6, 7
D) 1, 2, 5, 7
E) 1, 3, 6, 7
12) Which of the following conditions can be detected from residual analysis?
A) Nonlinearity Nonconstant variance
B) Multicollinearity
C) A and B
D) A, B, and C
13) The two most common objectives for the assignment problem are the minimization
of
A) uncertainty or inexperience.
B) total costs or inexperience.
C) total costs or total time.
D) total time or inexperience.
E) total costs or uncertainty.
14) The sum of the squares total (SST)
A) measures the total variability in Y about the mean.
B) measures the total variability in X about the mean.
C) measures the variability in Y about the regression line.
D) measures the variability in X about the regression line.
E) indicates how much of the total variability in Y is explained by the regression model.
15) Table 10-1
A company has decided to use 0-1 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:
The optimal solution is X1 = 0, X2 = 1, X3 = 1
In Table 10-1, which presents an integer programming problem, using the optimal
solution means only two of the alternatives would be selected. How much slack is there
in the third constraint?
A) 0
B) 3
C) 33
D) 36
E) None of the above
16) If the break-even volume doubles, this suggests that
A) variable cost has increased.
B) fixed cost has increased.
C) selling price has decreased.
D) Any of the above
E) None of the above
17) The Fido Dog Food Company wishes to introduce a new brand of dog biscuits
(composed of chicken and liver-flavored biscuits) that meets certain nutritional
requirements. The liver-flavored biscuits contain 1 unit of nutrient A and 2 units of
nutrient B, while the chicken-flavored ones contain 1 unit of nutrient A and 4 units of
nutrient B. According to federal requirements, there must be at least 40 units of nutrient
A and 60 units of nutrient B in a package of the new biscuit mix. In addition, the
company has decided that there can be no more than 15 liver-flavored biscuits in a
package. If it costs 1 cent to make a liver-flavored biscuit and 2 cents to make a
chicken-flavored one, what is the optimal product mix for a package of the biscuits in
order to minimize the firm’s cost?
(a) Formulate this as a linear programming problem.
(b) Find the optimal solution for this problem graphically.
(c) Are any constraints redundant? If so, which one or ones?
(d) What is the total cost of a package of dog biscuits using the optimal mix?
18) 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 between 400 and 500 minutes?
A) 0.4773
B) 0.05228
C) 0.0228
D) 0.9773
E) None of the above
19) An n x n matrix, when multiplied by an n x n matrix, yields
A) an n x n matrix.
B) a 2n matrix.
C) an n2 + n2 matrix.
D) an (n x n)2 matrix.
E) None of the above
20) Given the following two-person game, what strategy should the players play?
21) How does the case of alternate optimal solutions, as a special case in linear
programming, compare to the two other special cases of infeasibility and
unboundedness?
22) Describe the portfolio selection linear programming application.
23) If two events (A,B) are independent, what is their joint probability?
24) The use of optimization methods to provide new and better ways to operate based
on specific business objectives is called ________.
25) The ABC Co. is considering a new consumer product. They believe that the XYZ
Co. may come out with a competing product. If ABC adds an assembly line for the
product and XYZ does not follow with a competitive product, their expected profit is
$40,000; if they add an assembly line and XYZ does follow, they still expect a $10,000
profit. If ABC adds a new plant addition and XYZ does not produce a competitive
product, they expect a profit of $600,000; if XYZ does compete for this market, ABC
expects a loss of $100,000. For what value of probability that XYZ will offer a
competing product will ABC be indifferent between the alternatives?