1) We can find only the inverse of square matrices.
2) Unfortunately, multiple goals in goal programming are not able to be prioritized and
solved.
3) In the optimal decision rule using marginal analysis for the single period model, we
will stock an additional unit as long as the probability of selling one or less unit is less
than the ratio ML/(ML + MP) where ML is marginal loss and MP is marginal profit.
4) If you are in an absorbing state, you cannot go to another state in the future.
5) The number of bad checks written at a local store is an example of a discrete random
variable.
6) AHP gives the factor weights and factor evaluations from which the final decision
can be made.
7) Four components of time series are trend, moving average, exponential smoothing,
and seasonality.
8) In the multifactor evaluation process, we always select the alternative that has the
highest total weighted evaluation.
9) The expected value of a binomial distribution is expressed as np, where n equals the
number of trials and p equals the probability of success of any individual trial.
10) A traveling salesperson might use the shortest route technique to minimize the
distance traveled to reach one of his/her customers.
11) Although one revision of prior probabilities can provide useful posterior probability
estimates, additional information can be gained from performing the experiment a
second time.
12) CPM was developed for use in managing projects about which we have good
information about activity or task completion times.
13) Occasionally, a state is entered that will not allow going to any other state in the
future. This is called
A) status quo.
B) stability dependency.
C) market saturation.
D) incidental mobility.
E) an absorbing state.
14) Column 1:
Column 2: Lower control limit for a range chart
15) The matrix that is needed to compute equilibrium conditions when absorbing states
are involved is called a(n)
A) transition matrix.
B) fundamental matrix.
C) identity matrix.
D) equilibrium matrix.
E) absorbing matrix.
16) Table 8-5
Each coffee table produced by Timothy Kent Designers nets the firm a profit of $9.
Each bookcase yields a $12 profit. Kent’s firm is small and its resources limited. During
any given production period (of 1 week), 10 gallons of varnish and 12 lengths of high
quality redwood are available. Each coffee table requires approximately 1 gallon of
varnish and 1 length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths
of wood.
T = number of tables produced each week
B = number of bookcases produced each week
Referring to Table 8-5, which of the following constraints would be used?
A) maximize 9T + 12B
B) 9T + 12B >=12
C) 12T + 9B =< 10
D) 10T + 10B >=10
E) None of the above
17) There are three items (A, B, and C) that are to be shipped by air. The weights of
these are 4, 5, and 3 tons, respectively. The profits (in thousands of dollars) generated
by these are 6 for A, 7 for B, and 5 for C. A total of 14 tons may be carried by the plane.
There are four units of each available for shipment. What is the maximum possible
profit for this situation?
A) 14
B) 20
C) 21
D) 22
E) None of these
18) 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 both are defective (assuming that they are
independent)?
A) 0.0100
B) 0.1000
C) 0.2000
D) 0.0025
E) 0.0250
19) Which of the following is an assumption of the regression model?
A) The errors are independent.
B) The errors are not normally distributed.
C) The errors have a standard deviation of zero.
D) The errors have an irregular variance.
E) The errors follow a cone pattern.
20) Pipeline fluid flows are indicated below. Determine the maximum flow from Node
1 to Node 4.
A) 200
B) 300
C) 600
D) 700
E) None of the above
21) Expected monetary value (EMV) is
A) the average or expected monetary outcome of a decision if it can be repeated a large
number of times.
B) the average or expected value of the decision, if you know what would happen ahead
of time.
C) the average or expected value of information if it were completely accurate.
D) the amount you would lose by not picking the best alternative.
E) a decision criterion that places an equal weight on all states of nature.
22) Control charts that are used to monitor processes that are measured in continuous
units are classified as which of the following?
A) Control charts for attributes
B) Control charts for variables
C) Control charts for defects
D) Control charts for quality
E) Control charts for sigma
23) If your goal was to construct a network in which all points were connected and the
distance between them was as short as possible, the technique that you would use is
A) shortest-route.
B) maximal-flow.
C) shortest-spanning tree.
D) minimal-flow.
E) minimal-spanning tree.
24) At a university with 1,000 business majors, there are 200 business students enrolled
in an introductory statistics course. Of these 200 students, 50 are also enrolled in an
introductory accounting course. There are an additional 250 business students enrolled
in accounting but not enrolled in statistics. If a business student is selected at random,
what is the probability that the student is enrolled in accounting?
A) 0.20
B) 0.25
C) 0.30
D) 0.50
E) None of the above
25) Referring to Table 8-5, which of the following constraints would be used?
A) 10T + 12B =< 12
B) 1T + 1B =< 10
C) 1T + 2B >=12
D) All of the above
E) None of the above
26) A company uses 1,500 per year of a certain subassembly that has an annual holding
cost of $45 per unit. Each order placed costs $150. The company operates 300 days per
year and it has found that an order must be placed with the supplier 6 working days
before it can expect to receive that order. For this subassembly, find:
(a) the economic order quantity.
(b) the annual holding cost.
(c) the annual ordering cost.
(d) the reorder point.
27) Table 9-2
Given Table 9-2, the final table for an assignment problem, who should be assigned to
job 2?
A) worker A
B) worker C
C) either worker A or worker C
D) neither worker A nor worker C
E) worker D
28) For volumes greater than the break-even point, the opportunity loss function is
A) a function of K, the loss per unit.
B) 0.
C) dependent on how much the volume is greater than the break-even point.
D) halved.
E) None of the above
29) Which of the following is not true about slack variables in a simplex tableau?
A) They are used to convert ¤ constraint inequalities to equations.
B) They represent unused resources.
C) They require the addition of an artificial variable.
D) They may represent machine time, labor hours, or warehouse space.
E) They yield no profit.
30) A rational decision maker must choose between two alternatives. Alternative 1 has a
higher EMV than Alternative 2, but the decision maker chooses Alternative 2. What
might explain why this occurs?
A) Alternative 2 may have a higher expected utility.
B) Alternative 1 may have a lower expected opportunity loss.
C) The probabilities are not known.
D) A rational decision maker could not possibly choose alternative 2.
E) None of the above
31) In exponential smoothing, discuss the difference between and .
32) Briefly describe decision tree analysis.
33) Add all necessary slack, surplus, and artificial variables to the following linear
programming problem. Be sure to include these in the objective function with the
appropriate coefficients.
34) Allied Manufacturing has three factories located in Dallas, Houston, and New
Orleans. They each produce the same 281 products and ship to three regional
warehouses – #1, #2, and #3. The cost of shipping one unit of each product to each of
the three destinations is given in the table below:
There is no way to meet the demand for each warehouse. Therefore, the company has
decided to set the following equally weighted goals: (1) each source should ship as
much of its capacity as possible, (2) the number shipped to each destination should be
as close to the demand as possible, (3) the capacity of New Orleans should be divided
as evenly as possible between warehouses #1 and #2, and (4) the total cost should be
less than $1,400. Formulate this as a goal program, which includes a strict requirement
that capacities cannot be violated.
d5
+ = overachievement of target to ship to warehouse #2 close to its demand
35) A(n) ________ chart is appropriate to monitor the number of needle sticks incurred
inadvertently by nurses who are administering medications.