Archives: Quiz

A decrease in the unemployment rate which is accompanied by an decrease in the inflation rate is represented by a ________ the Phillips curve. A) movement down B) movement up C) upward shift of D) downward shift of An American […]

If the real interest rate is 3% and the expected inflation rate is 6%, then the nominal interest rate is A) 0.5%. B) 2%. C) 3%. D) 9%. Which of the following is a way to measure of real GDP […]

In the long run, an increase in the growth rate of the money supply causes the inflation rate to ________, which then causes the nominal interest rate to ________. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; […]

For the ________ inventory system, Q, the quantity ordered, can vary. In a ________ transportation model where supply equals demand, all constraints are equalities. Answer: balanced In a factory, machines breakdown at an average of 6 machines per hour according […]

Jim is considering pursuing an MS in Information Systems degree. He has applied to two different universities. The acceptance rate for applicants with similar qualifications is 20% for University X and 45% for University Y. What is the probability that […]

The arrival rate can generally be described by a(n) ________ distribution. Max Z = x1 + 6×2 Subject to: 17×1 + 8×2 ≤ 136 3×1 + 4×2 ≤ 36 x1, x2 ≥ 0 and integer Find the optimal solution. Answer: […]

The Wiethoff Company has a contract to produce 10,000 garden hoses for a customer. Wiethoff has four XOAXOAerent machines that can produce this kind of hose. Because these machines are from XOAXOAerent manufacturers and use XOAXOAering technologies, their specifications are […]

Canning Transport wants to move goods from three (3) factories to three (3) distribution centers. Information about the move is given below: Shipping costs are (in $): According to the Vogel’s Approximation Method, the initial solution would give to cell […]

A rendering plant wishes to use the data (sales records from a few local businesses and the month of the year) to help determine their supply level for the coming months. The records shown in the table provide an excellent […]

Comedy Pasture A horse and two llamas are discussing the key areas of their domain on a lazy summer afternoon. The llamas favor the pond and shade and like to browse the fruit trees and oaks on the property, making […]

The following data summarizes the historical demand for a product: If the forecasted demand for June, July, and August is 32, 38 and 42, respectively, what is MAD? Due to increased sales, a company is considering building three new distribution […]

The assistant manager had taken a management science class a few years before and while she knew enough to formulate the problem and implement it in Excel, the only sensitivity training she had ever received had to do with being […]

Billy Hill’s Still William J Hill runs a small batch artisnal bourbon distillery at a secluded location in the hills of Kentucky. He makes two products, known among his customers as Rotgut and White Lightning. The recipes for the two […]

The Cruise Their cruise would port out of New Orleans and promised seven days with a panoply of excursions in Jamaica, Cozumel, and Grand Cayman. A list of excursions at each site and key features of each appear in the […]

An investor is consider four different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. Economic ConditionPoor Average Good Excellent Investment (S1) (S2) (S3) (S4) A […]

Consider the following network, which shows the location of various facilities within a youth camp and the distances (in tens of yards) between each facility. Walking trails will be constructed to connect all the facilities. In order to preserve the […]

What are the differences between deterministic and probabilistic techniques? A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their […]

The objective function 3x + 2y + 4xy violates the assumption of ________. Use the following table to answer the question(s) below. What decision should be made by the optimistic decision maker? Answer: d2 The committee would like to assign […]

A script writer has received an advance against royalties of $10,000. The royalty rate is $2 for every performance in the U.S., and $3 for every performance outside the U.S. Write an expression that could be used to compute the […]

An investor has $80,000 to invest in three stocks, stock A costs $100, stock B costs $120 and stock C costs $80. Each stock A has a risk factor of 8, each stock B has a risk factor of 10 […]

A company distributes repair parts for high-end appliances. The annual demand is 81,000 and the company operates 300 days per year. The annual carrying cost is 20% of the item cost, which is $500. The ordering cost is estimated at […]

The ________ determines when an order should be placed for a continuous review inventory system. List the four properties of linear programming models and provide an example of a violation of each. Answer: Properties and brief discussions are contained in […]

A newsboy sells newspapers and his goal is to maximize profit. He kept a record of his sales for 125 days with the following result: His ordering policy is to order an amount each day that is equal to the […]

Knowledgeable individuals bring their opinions to bear in ________, a qualitative method of forecasting. The first step in solving a linear programming model manually with the simplex method is to convert the model into ________ form. Answer: standard The Excel […]

A single-channel queuing system has an average service time of 10 minutes and an average time between arrivals of 15 minutes. What is the arrival rate? The sensitivity range for a(n) ________ coefficient is the range of values over which […]

Use the following table to answer the question(s) below. What decision should be made under minimax regret? If one location for a warehouse can be selected only if a specific location for a manufacturing facility is also selected, this decision […]

The analytics gurus at Zevon realize that they had misformulated their demand curves. They now believe that demand for X1 is given by 1000 – 2.25p1, demand for X2 is given by 2000 – 3p2, and demand for X3 is […]

The model was entered into an Excel spreadsheet and the table below shows part of the sensitivity report. Calculate the expected per unit profit for the three services. Formulate the goal programming model. Answer: Minimize P1d1 +,P2d2 –-,P3d3 +,P4d4 + […]

Spring is right around the corner and that can mean only one thing: it’s time to incubate some eggs for a fresh crop of chickens to supplement the existing flock for the year. There are three breeds that are popular: […]

The daily demand for a product is normally distributed with a mean of 80 and a standard deviation of 8. Constant lead time is 4 days. The cost of placing an order is $20. The item costs $8 and the […]

The Lagrange multiplier, λ, reflects a change in the objective function from a unit change in the ________ value of a constraint. The ________ normal distribution has a mean of 0 and a standard deviation of 1. Answer: standard Write […]

Dinnertime A professor is planning an informal gathering for 100 or so of his closest friends. The project breaks down as follows: What is the early start time for the Hire valets activity? A) 31 B) 27 C) 23 D) […]

A retired operations management professor moves to New Orleans, joins the Krewe of Orpheus and convinces krewe leadership to buy their own swizzle stick production equipment. They invest in a medium-scale machine called the Swizzo 2025, which is capable of […]

A single-server queuing system has average time between arrivals of 20 minutes and a service time of 10 minutes each. Assuming Poisson arrivals and exponential service times, the utilization factor is approximately: A) 0.25. B) 0.33. C) 0.50. D) 2.0. […]

Experiments with repeated independent trials will be described by the binomial distribution if: A) each trial result influences the next. B) each trial has exactly two outcomes whose probabilities do not change. C) the trials are continuous. D) the time […]

Jolt – K The soda machine outside the lecture hall sees a steady stream of customers throughout the day. The machine takes 4 seconds to deliver a can of carbonated sugar water once the button is pressed and students generally […]

Semester Prep The department chair reviewed last year’s schedule, the degree requirements for the ever popular Operations and Supply Chain major, and the emails that had drifted into her mailbox over the last week. Naturally, every professor in the department […]

The ________ problem deals with the distribution of goods from several sources to several destinations. A) network B) assignment C) transportation D) transshipment The local grocery store consists of two cashiers. The customers arrive at the checkout according to the […]

An automotive center keeps tracks of customer complaints received each week. The probability distribution for complaints can be represented as the table shown below. The random variable xi represents the number of complaints, and p(xi) is the probability of receiving […]

In a given experiment the probabilities of mutually exclusive events sum to: A) o B) 0.5 C) 1 D) This cannot be answered without knowing the probability values of the events. The ________ criterion results in the maximum of the […]

Cumulative probabilities are analogous to the discrete ranges of random numbers used in the Monte Carlo process. A two-person game encompasses two players. Answer: TRUE In a weighted moving average, weights must sum to 1. Answer: TRUE Row operations are […]

The value of the game is the defensive player’s gain and the offensive player’s loss in a zero-sum game. One aspect of project control is team building. Answer: FALSE In a transportation problem, a demand constraint for a specific destination […]

Manual simulation is limited because of the amount of real time required to simulate even one trial. Shorter-period moving averages react more slowly to recent demand changes than do longer-period moving averages. Answer: FALSE An opportunity cost table is developed […]

Project teams are made up of individuals from various areas and departments within a company. The basic single-server queuing model assumes an infinite calling population. Answer: TRUE The minimal spanning tree allows the visitation of each node without backtracking. Answer: […]

The derivative of a function equals the slope of the curve defined by that function. The first step in formulating a linear programming model is to define the objective function. Answer: FALSE The branch and bound method is a solution […]

Nodes represent junction points connecting branches. Events are mutually exclusive if one, and only one, can occur at a time. Answer: TRUE If the number of unique assignments is less than the number of rows or columns, a line test […]

A point of equilibrium is a value that is simultaneously the minimum of a row and the maximum of a column. A posterior probability is the likelihood that an event has occurred after the decision maker has reached a decision. […]

Expected opportunity loss is the expected value of the regret for each decision. There is exactly one optimal solution point to a linear program. Answer: FALSE Constraints for nonlinear programs are usually nonlinear. Answer: FALSE The mathematical steps in the […]

In general, an increase in price increases the break-even point if all costs are held constant. In the regression equation y=a+bx, the slope of the equation is x. Answer: FALSE If variable costs increase, but price and fixed costs are […]

Validation of a simulation model occurs when the true steady state average results have been reached. Branches connect nodes and show flow from one point to another. Answer: TRUE A key element of a decision support system (DSS) is the […]