1) As a mathematical tool, determinants are of value in helping to solve a series of
simultaneous equations.
2) If a variable other than demand is random (price, fixed or variable cost, etc.) the
problem of break-even analysis becomes much more complex.
3) Frequently in queuing problems, the number of arrivals per unit of time can be
estimated by a probability distribution known as the Poisson distribution.
4) Simulation models may contain both deterministic and probabilistic variables.
5) A probability density function is a mathematical way of describing Bayes’ theorem.
6) We can solve a minimization problem by maximizing the negative of the
minimization problem’s objective function.
7) The rationality assumption implies that solutions need not be in whole numbers
(integers).
8) ABC analysis places inventory into 26 categories for computer analysis.
9) When using the multifactor evaluation process, it is helpful if the importance weights
for factors sum to 1.0.
10) In formulating the media selection linear programming model, we are unable to
take into account the effectiveness of a particular presentation (e.g., the fact that only 5
percent of the people exposed to a radio ad will respond as desired).
11) The value of a mixed strategy game is
A) the maximum outcome of the game.
B) the minimum outcome of the game.
C) the outcome of the game played once.
D) the average outcome of the game played an infinite number of times.
E) None of the above
12) There are four items (A, B, C, and D) that are to be shipped by truck. The weights
of these are 3, 7, 4, and 5 tons, respectively, and the plane can carry 13 tons. The profits
(in thousands of dollars) generated by these are 3 for A, 4 for B, 2 for C, and 5 for D.
There are three units of each available for shipment. The maximum possible profit for
this would be
A) $7.
B) $11.
C) $9.
D) $10.
E) None of these
13) Sensitivity analyses are used to examine the effects of changes in
A) contribution rates for each variable.
B) technological coefficients.
C) available resources.
D) All of the above
E) None of the above
14) The optimistic decision criterion is the criterion of
A) maximax.
B) maximin.
C) realism.
D) equally likely.
E) minimax regret.
15) Suppose that 10 golfers enter a tournament and that their respective skill levels are
approximately the same. Six of the entrants are female and two of those are older than
40 years old. Three of the men are older than 40 years old. What is the probability that
the winner will be either female or older than 40 years old?
A) 0.000
B) 1.100
C) 0.198
D) 0.200
E) 0.900
16) Which one of the following is not a step in computing a matrix of cofactors?
A) selecting an element in the original matrix
B) calculating the value of the determinant of the cofactor
C) returning to step 1 and continue until all elements in the original matrix have been
replaced by their cofactor values
D) interchanging the rows with the columns
E) None of the above
17) The Analytic Hierarchy Process is preferred to a multifactor evaluation process
when
A) there is high confidence in determining factor weights without pairwise
comparisons.
B) there is low confidence in determining factor weights without pairwise comparisons.
C) one desires a lesser level of computational analysis.
D) None of the above
18) Find the least amount of cable that will allow Jack’s Cable Company to connect the
following nodes (houses).
A) 250
B) 400
C) 350
D) 300
E) None of the above
19) Andre Candess manages an office supply store. One product in the store is
computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate
throughout the year. There are 250 working days per year and the lead-time is 3 days.
The cost of placing an order is $30, while the holding cost is $15 per box per year. How
many units should Andre order each time?
A) 200
B) 400
C) 500
D) 100
E) None of the above
20) 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 A
one year from now?
A) 1000
B) 1400
C) 1500
D) 800
E) 700
21) Consider the following payoff table.
How much should be paid for a perfect forecast of the state of nature?
A) 170
B) 30
C) 10
D) 100
E) 40
22) Which of the following is true regarding a regression model with multicollinearity,
a high r2 value, and a low F-test significance level?
A) The model is not a good prediction model.
B) The high value of r2 is due to the multicollinearity.
C) The interpretation of the coefficients is valuable.
D) The significance level tests for the coefficients are not valid.
E) The significance level for the F-test is not valid.
23) Mary states that the two factors critical to her having a successful vacation are golf
course availability and good weather. If Mary insists that golf course availability is
three times as important as the weather, what importance weights should be placed on
golf course availability and good weather to be used for a multifactor evaluation
process?
24) Determine the weighted sum vector for the indicated factor evaluation and its
original pairwise comparison matrix.
25) When a process is in control, only ________ variations exist in the process.
26) Shown below is a pairwise comparison matrix for coffee makers. What are the
priorities for the three coffee maker brands?
27) What is the formula for r2?
28) Write the dual of the following linear program:
29) Average daily sales of a product are 8 units. The actual number of sales each day is
either 7, 8, or 9, with probabilities 0.3, 0.4, and 0.3, respectively. The lead time for
delivery of this averages 4 days, although the time may be 3, 4, or 5 days, with
probabilities 0.2, 0.6, and 0.2. The company plans to place an order when the inventory
level drops to 32 units (based on the average demand and average lead time). The
following random numbers have been generated: 60, 87, 46, 63 (set 1) and 52, 78, 13,
06, 99, 98, 80, 09, 67, 89, 45 (set 2). Use set 1 of these to generate lead times and use
set 2 to simulate daily demand. Simulate 2 ordering periods with this and determine
how often the company runs out of stock before the shipment arrives. Assume 32 units
on-hand and an order was just placed.
