1) Upon completion of an Analytic Hierarchy Process analysis, the CR = 0.23, thus
A) the decision makers’ answers are relatively consistent.
B) the decision makers’ should consider reevaluating their pairwise comparisons.
C) no conclusion is available for this value of the CR.
D) the decision maker has made near perfectly consistent pairwise comparisons.
E) None of the above
2) Using the table for finding the areas under normal curves, find the area under a
normal curve with a mean of 200 and a standard deviation of 10 between the values of:
(a) 200 to 205.
(b) 195 to 205.
(c) 200 to 215.
(d) 195 to 215.
(e) 186.5 to 217.
3) Goal programming is characterized by
A) all maximization problems.
B) setting of lower and upper bounds.
C) the deviation from a high-priority goal must be minimized before the
next-highest-priority goal may be considered.
D) All of the above
E) None of the above
4) Given the following consistency vector
7.369716
8.524687
7.446627
5.208015
5.459544
calculate the consistency index.
A) 0.8502
B) -0.0207
C) 0.4504
D) -0.7399
E) None of the above
5) What is the formula for the break-even point of a simple profit model?
A) Fixed Cost / Variable Cost Per Unit
B) (Selling Price Per Unit – Variable Cost Per Unit) / Fixed Cost
C) Fixed Cost / (Selling Price Per Unit – Variable Cost Per Unit)
D) Fixed Cost / (Variable Cost Per Unit – Selling Price Per Unit)
E) Selling Price Per Unit – (Fixed Cost / Variable Cost Per Unit)
6) Given an activity’s optimistic, most likely, and pessimistic time estimates of 4, 6, and
14 days respectively, compute the PERT expected activity time for this activity.
A) 8
B) 6
C) 7
D) 9
E) None of the above
7) Table 12-1
According to the information provided in Table 12-1, what percentage of the total
available service time is being used?
A) 72.0%
B) 28.0%
C) 56.3%
D) It could be any of the above, depending on other factors.
E) None of the above
8) A(n) ________ model is one that is accurate and correctly represents the problem or
system under investigation.
A) robust
B) valid
C) sensitive
D) optimal
E) feasible
9) The second step in the maximal-flow technique is to
A) pick the node with the maximum flow.
B) pick any path with some flow.
C) decrease the flow as much as possible.
D) add capacity to the path with minimum flow.
E) find the arc on the previously chosen path with the smallest flow capacity available.
10) The school of business has 3 fax machines. The toner in each machine needs to be
changed after about 5 hours of use. There is one unit secretary who is responsible for
the fax machine maintenance. It takes him 15 minutes to replace the toner cartridge.
What is the probability the system is empty?
A) 1.1500
B) 1.1658
C) .8578
D) .8696
E) None of the above
11) Dr. Mac, a surgeon, must decide what mode of treatment to use on Mr. Samuels.
There are three modes of treatment: Mode A, B, and C; and three possible states of
nature: 1. Treatment succeeds and patient leads a normal life, 2. Patient survives
treatment but is permanently disabled, and 3. Patient fails to survive treatment. Dr. Mac
has prepared the decision table below. What mode of treatment maximizes the expected
value?
A) Mode A
B) Mode B
C) Mode C
D) All three treatments are equally desirable.
E) Normal Life
12) In decision making under ________, there are several possible outcomes for each
alternative, and the decision maker knows the probability of occurrence of each
outcome.
A) risk
B) utility
C) certainty
D) probability
E) uncertainty
13) Which of the following factors is (are) not included in carrying cost?
A) spoilage
B) obsolescence
C) cost of capital
D) inspecting incoming inventory
E) warehousing overhead costs
14) The dual of a linear programming problem
A) always exists.
B) may be easier to solve.
C) may contain economic information useful to management.
D) while equivalent, is derived through an alternative procedure.
E) All of the above
15) Table 15-1
Refer to Table 15-1. The average range of a process for packaging cereal is 1.1 ounces.
If the sample size is 10, find the lower control chart limit for the range chart.
A) 0.245
B) 1.955
C) 1.777
D) 0.223
E) None of the above
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, suppose that this problem requires that you use all the varnish
for the week. How would the linear programming representation change?
A) 1B + 1T =< 10 will become 1B + 1T =< 12.
B) 1B + 1T =< 10 will be replaced by 1B + 1T >=10.
C) 1B + 1T =< 10 will become 1B + 1T = 10.
D) 2B + 1T =< 12 will become 2B + 1T = 12.
E) None of the above
17) The time required to complete a project is normally distributed with a mean of 80
weeks and a standard deviation of 10 weeks. The construction company must pay a
penalty if the project is not finished by the due date in the contract. If a construction
company bidding on this contract wishes to be 90 percent sure of finishing by the due
date, what due date (project week #) should be negotiated?
A) 81.28
B) 92.8
C) 81.82
D) .81954
E) None of the above
18) If the price/unit were doubled at the same time that the variable cost/unit doubled,
the break-even point would be
A) unaffected.
B) doubled.
C) halved.
D) increased by a factor of four.
E) None of the above
19) Consider the sensitivity report below for the problems which follow.
The optimal solution to this linear program is
A) x1 = 0, x2 = 0.
B) x1 = 34, x2 = 40.
C) x1 = 6, x2 = 11.
D) x1 = 7.33, x2 = 6.
E) x1 = 3, x2 = 6.