1) The SST measures the total variability in the dependent variable about the regression
line.
2) Inventory is the common thread that ties all the functions and departments of the
organization together.
3) An equivalent name for the Multifactor Evaluation Process (MFEP) is the Analytic
Hierarchy Process (AHP).
4) In PERT, the most likely completion time of an activity is used to represent that
activity’s time within a project.
5) Linear programming variable names such as X11, X12, X13, could possibly be used
to represent production of a product (X1j) over several months.
6) Gantt charts and PERT diagrams provide the same information, just in different
formats.
7) One of the advantages of the stepping-stone method is that if, at a particular iteration,
we accidentally choose a route that is not the best, the only penalty is to perform
additional iterations.
8) Subproblems in a dynamic programming problem are called stages.
9) When using a random number generator, one should never start in the middle of the
table of random numbers.
10) Resource mix problems use LP to decide how much of each product to make, given
a series of resource restrictions.
11) As one increases the number of periods used in the calculation of a moving average,
A) greater emphasis is placed on more recent data.
B) less emphasis is placed on more recent data.
C) the emphasis placed on more recent data remains the same.
D) it requires a computer to automate the calculations.
E) one is usually looking for a long-term prediction.
12) Which of the following is not an assumption of the regression model?
A) The errors are independent.
B) The errors are normally distributed.
C) The errors have constant variance.
D) The mean of the errors is zero.
E) The errors should have a standard deviation equal to one.
13) Find the shortest route from Node 1 to Node 4 using the shortest-route technique.
A) 650
B) 450
C) 550
D) 500
E) 800
14) 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
According to Table 10-1, which presents an integer programming problem, if the
optimal solution is used, what would the value of the objective function be?
A) 21,000
B) 12,000
C) 16,000
D) 2
E) None of the above
15) Which of the following is not a decision variable when formulating the project
crashing problem as a linear program?
A) the early finish times of critical activities
B) the early finish times of noncritical activities
C) the start time of the project
D) the finish time of the project
E) the early start times of all activities
16) A manager needs to hire short-term employees to meet production demands. The
manager would like to hire one of three possible short-term workers.
(a) Which alternative is most optimistic?
(b) Which alternative is most pessimistic?
(c) Using the Hurwicz criterion with a coefficient of realism, α= 0.70, what is the best
alternative?
17) The errors in a particular forecast are as follows: 4, -3, 2, 5, -1. What is the tracking
signal of the forecast?
A) 0.4286
B) 2.3333
C) 5
D) 1.4
E) 2.5
18) In a transportation problem, degeneracy occurs when
A) the number of used (or full) cells does not equal the number of rows plus columns
minus one.
B) in an initial solution, both a row total and a column total are satisfied simultaneously.
C) during an improvement, two negative cells contain the same smallest amount.
D) All of the above
E) None of the above
19) Which of the following statement(s) are true regarding the advantages of
mathematical modeling?
A) Models accurately represent reality.
B) Models can help decision makers formulate problems.
C) Models can save time.
D) Models may be the only way to solve some large and complex problems in a timely
manner.
E) All of the above
20) Descriptive Analytics is aimed at forecasting future outcomes based on patterns in
the past data.
21) In an assignment problem
A) the number of rows and columns must be equal.
B) the number of rows must exceed the number of columns.
C) the number of rows must equal or exceed the number of columns.
D) the number of columns must equal or exceed the number of rows.
E) None of the above
22) A method to measure how well predictions fit actual data is
A) decomposition
B) smoothing
C) tracking signal
D) regression
E) moving average
23) A queuing system with a normally distributed arrival pattern, exponential service
times, and three servers would be described as
A) G/G/3.
B) M/M/3.
C) G/M/3.
D) M/G/3.
E) N/E/3.
24) The shortest-route technique would best be used to
A) assign workers to jobs in the cheapest manner.
B) determine the number of units to ship from each source to each destination.
C) determine the amount of LAN network wiring within a building.
D) minimize the amount of traffic flow on a busy highway.
E) determine the path for a truck making frequent but repeatable drops.
25) Which of the following statements about project crashing is false?
A) The crash cost is greater than or equal to the normal cost of an activity.
B) The crash time is less than or equal to the normal time to complete an activity.
C) Reducing the time of an activity on the critical path automatically reduces total
project duration.
D) It may not be possible to crash a particular activity.
E) Crashing may not lead to an overall reduction in costs for the project.
26) The two common techniques for drawing PERT networks are
A) NOA and NRA.
B) AON and AOA.
C) GANTT and NOA.
D) ONA and OAO.
E) CAN and CAA.
27) A ________ is a numerical statement about the likelihood that an event will occur.
A) mutually exclusive construct
B) collectively exhaustive construct
C) variance
D) probability
E) standard deviation
28) A suburban specialty restaurant has developed a single drive-thru window.
Customers order, pay, and pick up their food at the same window. Arrivals follow a
Poisson distribution while service times follow an exponential distribution. If the
average number of arrivals is 6 per hour and the service rate is 2 every 15 minutes, how
much time will elapse (in hours) from the time a customer enters the line until he/she
leaves the restaurant?
A) 0.50
B) 0.25
C) 0.75
D) 2.25
E) 3.00
29) Which of the following is not a use of inventory?
A) the decoupling function
B) quantity discounts
C) irregular supply and demand
D) the translucent function
E) to avoid stockouts and shortages
30) A coffee company is attempting to make certain that all its packaged coffee beans
contain the same amount of coffee bean by weight. Over the last few days, it has taken
several samples. The overall average weight of the sampled packages is 16 ounces, with
an average range of 3 ounces. Each sample was of four packages. What would be the
99.7 upper and lower control limits for an R chart?
31) Four projects must be completed, and each of four employees will be assigned to
work on exactly one of the four projects. The table below presents an estimate of the
cost that each employee would incur if working on the respective projects. What is the
minimum-cost assignment of workers to projects?
32) Mark M. Upp has just been fired as the university bookstore manager for setting
prices too low (only 20 percent above suggested retail). He is considering opening a
competing bookstore near the campus, and he has begun an analysis of the situation.
There are two possible sites under consideration. One is relatively small, while the other
is large. If he opens at Site 1 and demand is good, he will generate a profit of $50,000.
If demand is low, he will lose $10,000. If he opens at Site 2 and demand is high, he will
generate a profit of $80,000, but he will lose $30,000 if demand is low. He also has the
option of not opening either. He believes that there is a 50 percent chance that demand
will be high. Mark can purchase a market research study. The probability of a good
demand given a favorable study is 0.8. The probability of a good demand given an
unfavorable study is 0.1. There is a 60 percent chance that the study will be favorable.
Should Mark use the study? Why? What is the maximum amount Mark should be
willing to pay for this study? What is the maximum amount he should pay for any
study?
33) If we wish to monitor the average diameter of the hula hoops we are producing, the
distribution we base our statistics on is the ________ distribution.
34) ________ models are uncertain.
35) A(n) ________ chart is appropriate to monitor the percent defective of a production
process.
36) A picture, drawing, or chart of reality is a ________ model
37) Quantitative analysis is ________.
38) When a process is out of control, ________ variations exist in the process.
39) Complete this mathematical statement: ________ = P(demand > break-even).