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1) Decision variables may also be called parameters.
2) Utility values typically range from -1 to +1.
3) Arrivals are random when they are dependent on one another and can be predicted.
4) A scatter diagram for a time series may be plotted on a two-dimensional graph with
the horizontal axis representing the variable to be forecast (such as sales).
5) W. Edwards Deming introduced control charts in the 1920s.
6) In goal programming, our goal is to drive the deviational variables in the objective
function as close to zero as possible.
7) By studying a person's Utility Curve, one can determine whether the individual is a
risk seeker, risk avoider, or is indifferent to risk.
8) Table 15-1
Refer to Table 15-1. To guarantee that cans of soda are properly filled, some cans are
sampled and the amounts measured. The overall average for the samples is 12 ounces.
Each sample contains 10 cans. The average range is 0.4 ounces. The lower control chart
limit for the sample averages would be
A) 12.1232.
B) 11.8768.
C) 13.2.
D) 12.308.
E) None of the above
9) Find the shortest route from Node 1 to Node 6.
A) 300
B) 450
C) 550
D) 650
E) None of the above
10) Given the following distances between destination nodes, what is the minimum
distance that connects all the nodes?
A) 100
B) 750
C) 850
D) 900
E) None of the above
11) The project described by:
has a critical path of length of
A) 21 days.
B) 14 days.
C) 23 days.
D) 32 days.
E) None of the above
12) Which of the following is not considered one of the 5 steps of Monte Carlo
Simulation?
A) establishing probability distributions for important input variables
B) generating random number
C) building a cumulative probability distribution for each input variable
D) establishing an objective function
E) simulating a series of trials
13) A production process is known to produce a particular item in such a way that 5
percent of these are defective. If two items are randomly selected as they come off the
production line, what is the probability that the second item will be defective?
A) 0.05
B) 0.005
C) 0.18
D) 0.20
E) None of the above
14) Find the shortest route from Node 1 to Node 5 using the shortest-route technique.
A) 350
B) 400
C) 450
D) 600
E) None of the above
15) A constraint with zero slack or surplus is called a
A) nonbinding constraint.
B) resource constraint.
C) binding constraint.
D) nonlinear constraint.
E) linear constraint.
16) Using linear programming to maximize audience exposure in an advertising
campaign is an example of the type of linear programming application known as
A) media selection.
B) marketing research.
C) portfolio assessment.
D) media budgeting.
E) All of the above
17) Consider the sensitivity report below:
(a) Which constraints are binding?
(b) Which constraints are non-binding?
(c) What is the increase in the objective value if 10 blades are added?
18) 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. What is the meaning of
Constraint 2?
A) Both alternatives 1 and 2 must be selected.
B) If alternative 2 is selected, alternative 1 must also be selected.
C) Either alternative 1 or alternative 2 must be selected.
D) No more than one alternative may be selected.
E) None of the above
19) Customers enter the waiting line at a cafeteria on a first-come, first-served basis.
The arrival rate follows a Poisson distribution, while service times follow an
exponential distribution. If the average number of arrivals is four per minute and the
average service rate of a single server is seven per minute, what is the average number
of customers in the system?
A) 0.43
B) 1.67
C) 0.57
D) 1.33
E) None of the above
20) The coefficients of the variables in the constraint equations that represent the
amount of resources needed to produce one unit of the variable are called
A) technological coefficients.
B) objective coefficients.
C) shadow prices.
D) dual prices.
E) None of the above
21) Describe the structure of a payoff table.
22) List four pitfalls of regression.
23) Describe the utility curve of a risk avoider.
24) Solve the following linear programming problem using the corner point method:
25) Column 1:
Column 2: Control limits for a p-chart
26) A fast food restaurant uses full-time and part-time help to meet fluctuating demand
during the day. The following table presents projected need for workers at different
times of the day:
There is a maximum of four full-time workers and the other workers are part-time
workers. Each full-time worker is there from 9:00 until 5:00, while the part-time
workers will work for 4 consecutive hours at a cost of $4.00 per hour. The cost of the
full-time worker is $50 per day. The company wishes to minimize total cost while
meeting the demands. Formulate this as a linear programming problem. Carefully
define all decision variables.
