Archives: Quiz

1) The assignment of a utility value of 1 to an alternative implies that alternative is preferred to all others. 2) One PERT/COST assumption is that money is spent at a constant rate over the time taken to complete an […]

1) A solution to the transportation problem can become degenerate at any iteration. 2) Inventory is any stored resource that is used to satisfy a current or future need. Answer: TRUE 3) In a competitive business market, one company’s strategy […]

1) There is no general method for solving all nonlinear problems. 2) In a maximization problem, the Cj – Zj row gives the net loss from introducing one unit of each variable into the solution. Answer: FALSE 3) In goal […]

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. Answer: TRUE 3) An equivalent name for the […]

1) A media selection LP application describes a method in which media producers select customers. 2) The simplex method begins with an initial feasible solution in which all real variables are set equal to 0. Answer: TRUE 3) Assignment problems […]

1) The transportation algorithm can be used to solve both minimization problems and maximization problems. 2) If, at an optimal solution, the Cj – Zj value for a real variable that is not in the solution mix has a value […]

1) Simulation models are limited to using standard probability distributions such as Poisson, exponential, normal, etc. 2) A new young executive is perplexed at the number of interruptions that occur due to employee relations. She has decided to track the […]

1) Decision variables may also be called parameters. 2) Utility values typically range from -1 to +1. Answer: FALSE 3) Arrivals are random when they are dependent on one another and can be predicted. Answer: FALSE 4) A scatter diagram […]

1) If all of the control points on a control chart lie between the UCL and the LCL, the process is always in control. 2) Each item in a knapsack problem will be a stage of the dynamic programming problem. […]

1) On a practical noteif we were to study the waiting lines in a hair salon that had only five chairs for patrons waiting, we should use an infinite queue waiting line model. 2) Maximization assignment problems can easily be […]

1) Model variables can be controllable or uncontrollable. 2) Since the production mix linear program applications are a special situation, the number of decision variables is limited to two. Answer: FALSE 3) In PERT, the variance in completion time is […]

1) PERT stands for Probabilistic Evaluation and Review Technique. 2) CPM stands for Comprehensive Project Method. Answer: FALSE 3) An integer programming solution can never produce a greater profit objective than the LP solution to the same problem. Answer: TRUE […]

1) In a quantity discount model, the purchase cost or material cost must be included in the total cost calculation. 2) Simulation models are designed to generate optimal solutions, which can then be applied to real-world situations. Answer: FALSE 3) […]

1) Little’s Flow Equations are applicable for single-channel systems only. 2) The correlation coefficient has values between 1 and +1. Answer: TRUE 3) A model is a representation of a situation. Answer: TRUE 4) A hospital ward with only 30 […]

1) In using the stepping-stone method, the path can turn at any box or cell that is unoccupied. 2) One of the assumptions of the basic EOQ model is that the receipt of inventory is instantaneous. Answer: TRUE 3) If […]

1) There are three categories of simulation models: Monte Carlo, operational gaming, and systems simulation. 2) A PERT/CPM network is a graphical display of a project that connects activities. Answer: TRUE 3) Both dynamic programming and linear programming take a […]

1) For a maximization problem, the Zj values in the body of the simplex table represent the gross profit given up by adding one unit of this variable into the current solution. 2) PERT had its beginnings in a military […]

1) Any time that we have an isoprofit line that is parallel to a constraint, we have the possibility of multiple solutions. 2) EVPI and minimum EOL are equivalent. Answer: TRUE 3) Qualitative models attempt to incorporate judgmental or subjective […]

1) Simulation is very flexible. Thus, its solutions and inferences are usually transferable to other problems. 2) The F statistic is the ratio of two sample standard deviations from independent normal distributions. Answer: FALSE 3) In a constant service time […]

1) In a scatter diagram, the dependent variable is typically plotted on the horizontal axis. 2) The minimax criterion is equivalent to maximizing one’s minimum gains. Answer: TRUE 3) During World War II, many new scientific and quantitative techniques were […]

1) A Markov process could be used as a model of how a disease progresses from one set of symptoms to another. 2) Consider a standard 52-card deck of cards. The probability of drawing either a seven or a black […]

1) An infeasible solution is indicated when all the Cj – Zj row entries are of the proper sign to imply optimality, but an artificial variable remains in the solution. 2) Determinants are useful in solving a set of simultaneous […]

1) If we flip a coin three times, the probability of getting three heads is 0.125. 2) A finite population model differs from an infinite population model because there is a random relationship between the length of the queue and […]

1) The standard error of the estimate is also called the variance of the regression. 2) Error is the difference in the actual value and the predicted value. Answer: TRUE 3) Transporting goods from several origins to several destinations efficiently […]

1) The EOQ model is relatively insensitive to minor violations of the basic assumptions. 2) Cost volume analysis deals only with costs while break-even analysis deals with both costs and revenues. Answer: FALSE 3) The decision maker can control states […]

1) An ingredient or blending problem is a special case of the more general problem known as diet and feed mix problems. 2) For knapsack problems, sn-1 = an sn + bn dn + cn is a typical transformation expression. […]

1) Nonlinear programming is the case in which objectives and/or constraints are nonlinear. 2) The regression line minimizes the sum of the squared errors. Answer: TRUE 3) If you can determine with confidence and accuracy the factor weights and factor […]

1) A surplus variable is added to a constraint in order to create an equality, and represents a quantity of unused resource. 2) Operational gaming involves a single player competing with the computer simulated game. Answer: FALSE 3) An automatic […]

1) The most common quantitative causal model is regression analysis. 2) A series of steps or procedures that are repeated is known as an algorithm. Answer: TRUE 3) The Monte Carlo simulation was developed as a quantitative technique by the […]

1) The two fundamental decisions that you have to make when controlling inventory are: (1) how much to order, and (2) how much money to spend. 2) The optimistic time is the greatest amount of time that could be required […]

1) The existence of non-negativity constraints in a two-variable linear program implies that we are always working in the northwest quadrant of a graph. 2) The SSE measures the total variability in the independent variable about the regression line. Answer: […]

1) A typical transportation problem may ask the question, “How many of X should be shipped to point E from source A?” 2) Blending problems arise when one must decide which of two or more ingredients is to be chosen […]

1) In the term linear programming, the word programming comes from the phrase “computer programming.” 2) In a second order exponential smoothing, a low gives less weight to more recent trends. Answer: TRUE 3) In Markov analysis, the transition probability […]

1) One problem in using a quantitative model is that the necessary data may be unavailable. 2) In regression, a binary variable is also called an indicator variable. Answer: TRUE 3) In determining the EOL with the normal distribution, as […]

1) There is no relationship between variables unless the data points lie in a straight line. 2) The expected completion time and variance of an activity is approximated by the normal distribution in a PERT analysis. Answer: FALSE 3) A […]

1) As a mathematical tool, determinants are of value in helping to solve a series of simultaneous equations. 2) If a variable other than demand is random (price, fixed or variable cost, etc.) the problem of break-even analysis becomes much […]

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. Answer: FALSE[/cpmembership] 3) In the optimal decision rule using marginal analysis for the single period […]

1) The maximal-flow technique would be helpful to city planners in determining how freeways should be expanded. 2) A scatter diagram is a graphical depiction of the relationship between the dependent and independent variables. Answer: TRUE 3) Saying that a […]

1) A transportation problem with intermediate points is called a transshipment problem. 2) A high correlation always implies that one variable is causing a change in the other variable. Answer: FALSE 3) Markov analysis is a technique that deals with […]

1) On a practical noteif we are using waiting line analysis to study cars passing through a single tollbooth, reneging is probably not an issue. 2) One of the major advantages of simulation is “time compression,” i.e., the ability to […]

1) Dummy variables for regression analysis can take on a value of either -1 or +1. 2) The reorder point occurs during a stockout. Answer: FALSE 3) An F-test is used to determine if there is a relationship between the […]

1) The numbers in the body of the simplex tableau can be thought of as substitution rates. 2) In the assignment problem, the costs for a dummy row will be equal to the lowest cost of the column for each […]

1) In the assignment problem, the costs for a dummy row will be equal to the lowest cost of the column for each respective cell in that row. 2) In PERT, we assume that the project completion time can be […]

1) The maximal-flow technique might be used by the U.S. Army Corps of Engineers to study water run-off in an attempt to minimize the danger from floods. 2) On a practical noteif we are using waiting line analysis to study […]

1) An identity matrix has 1’s in all positions of the matrix. 2) A set of simultaneous equations can be solved through the use of determinants by setting up a proportion of two special determinants for each unknown variable. Answer: […]

1) Subjective probability implies that we can measure the relative frequency of the values of the random variable. 2) The objective of a transportation problem solution is to schedule shipments from sources to destinations while minimizing total transportation and production […]

1) The cornerstone of game theory is Harsanui equilibrium and Harsanui bargaining problems. 2) Artificial variables can be used in both maximization and minimization problems but are most often used in minimization problems. Answer: TRUE 3) The fewer the periods […]

1) Once a Markov process is in equilibrium, it stays in equilibrium. 2) Assume you have a normal distribution representing the likelihood of completion times. The mean of this distribution is 10, and the standard deviation is 3. The probability […]

1) Budgets are computed using only ES times. 2) PERT is a deterministic analysis tool allowing for precise times of activities within a project. Answer: FALSE 3) A correctly formulated linear program, when solved with the simplex algorithm, will always […]

1) One purpose of regression is to predict the value of one variable based on the other variable. 2) In a maximization problem, if a variable is to enter the solution, it must have a negative coefficient in the Cj […]