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1) ISO 9000 currently requires _____ of a certified organization.
A.quarterly reporting
B.product diversity
C.annual audits
D.a minimum of four supervisory levels
E.continuous improvement
2) It took exactly 10 hours to perform the first kidney transplant on a 100 percent
learning curve. The second kidney transplant will take how many hours to perform?
A.8 hours
B.10 hours
C.12 hours
D.A 100 percent learning curve cannot exist.
E.5 hours
3) There are four resources and four jobs to be done. The time required for each
resource to do each job is as follows:
After the row and column reductions, what is the minimum number of lines needed to
cover all of the zeroes?
A.0 lines
B.1 line
C.2 lines
D.3 lines
E.4 lines
4) One of these is not a characteristic of a well-designed service system:
A.user friendly
B.robust
C.distributed computer networks
D.cost effective
E.easy to sustain
5) For fixed costs of $2,000, revenue per unit of $2, and variable cost per unit of $1.60,
the break-even quantity is:
A.1,000
B.1,250
C.2,250
D.5,000
E.3,000
6) Business organizations consist of three major functions which, ideally:
A.support one another.
B.are mutually exclusive.
C.exist independently of each other.
D.function independently of each other.
E.do not interface with each other.
7) A design engineer wants to construct a sample mean chart for controlling the service
life of a halogen headlamp his company produces. He knows from numerous previous
samples that this service life is normally distributed with a mean of 500 hours and a
standard deviation of 20 hours. On three recent production batches, he tested service
life on random samples of four headlamps, with these results:
If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if
any) does service life appear to be out of control?
A.sample 1
B.sample 2
C.sample 3
D.both samples 2 and 3
E.all samples are in control
8) In doing aggregate planning for a firm producing paint, the aggregate planners would
most likely deal with:
A.just gallons of paint, without concern for the different colors and sizes.
B.gallons of paint, but be concerned with the different colors to be produced.
C.gallons, quarts, pints, and all the different sizes to be produced.
D.all the different sizes and all the different colors by size.
E. all of the different colors targeted for different markets.
9) The range chart (R-chart) is most likely to detect a change in:
A.proportion.
B.mean.
C.number defective.
D.variability.
E.sample size.
10) In which of the following managerial activities would learning curves probably be
the least useful?
A.negotiated purchasing
B.manpower planning
C.location analysis
D.budgeting
E.pricing new products
11) Which of the following is the most valuable piece of information the sales force can
bring into forecasting situations?
A.what customers are most likely to do in the future
B.what customers most want to do in the future
C.what customers' future plans are
D.whether customers are satisfied or dissatisfied with their performance in the past
E.what the salesperson's appropriate sales quota should be
12) In addition to correcting substandard work, employees have an ethical obligation to
__________ whatever led to the quality problem as well.
A.prevent
B.offset
C.report
D.standardize
E.redesign
