1) When the smoothing constant = 0, the exponential smoothing model is equivalent to
the nave forecasting model.
2) Expected monetary value (EMV) is the payoff you should expect to occur when you
choose a particular alternative.
3) The percent idle time is equal to 1 minus the utilization factor.
4) A decision table is sometimes called a payout table.
5) The constraint , when converted to an = constraint for use in the
simplex algorithm, will be .
6) Determining the mixture of ingredients for a most economical feed or diet
combination would be described as a production mix type of linear program.
7) Markov analysis assumes that there are a limited number of states in the system.
8) The errors in a regression model are assumed to have an increasing mean.
9) Suppose that you enter a drawing by obtaining one of 20 tickets that have been
distributed. By using the classical method, you can determine that the probability of
your winning the drawing is 0.05.
10) A major advantage of using simulation techniques is to be able to study the
interactive effect of individual components/variables.
11) The consistency ratio (CR) is an indicator of the equality of factors.
12) Your local paper carrier could make use of the shortest-route technique.
13) A medium-term forecast typically covers a two- to four-year time horizon.
14) The value of work completed is computed by multiplying budgeted cost by the
percent completion.
15) If we want to quickly arrive at a “feasible,” but not necessarily “optimal” solution to
the transportation problem, we will use the
A) stepping-stone method.
B) northwest corner rule.
C) Vogel’s approximation method.
D) MODI method.
E) Any of the above
16) The annual demand for a product has been projected at 2,000 units. This demand is
assumed to be constant throughout the year. The ordering cost is $20 per order, and the
holding cost is 20 percent of the purchase cost. Currently, the purchase cost is $40 per
unit. There are 250 working days per year. Whenever an order is placed, it is known that
the entire order will arrive on a truck in 6 days. How many units should the company
order each time an order is placed if the company wishes to minimize total inventory
cost?
A) 100
B) 200
C) 250
D) 500
E) None of the above
17) Sales for boxes of Girl Scout cookies over a 4-month period were forecasted as
follows: 100, 120, 115, and 123. The actual results over the 4-month period were as
follows: 110, 114, 119, 115. What was the MAD of the 4-month forecast?
A) 0
B) 5
C) 7
D) 108
E) None of the above
18) A slack variable
A) is added to each ¤ constraint to facilitate the simplex process.
B) is added to each >= constraint to facilitate the simplex process.
C) is added to each ¤ or = constraint to facilitate the simplex process.
D) is added to each = constraint to facilitate the simplex process.
E) None of the above
19) Table 15-1
Refer to Table 15-1. Bags of chocolate candy are sampled to ensure proper weight. The
overall average for the samples is 36 ounces. Each sample contains eight bags. The
average range is 1.3 ounces. The lower control chart limit for the sample averages
would be
A) 36.3730.
B) 36.4849.
C) 35.6270.
D) 35.5150.
E) None of the above
20) Hard D. Head has decided that he wants to climb one of the world’s tallest
mountains. He has mapped out a number of routes between various points on the
mountain, and rated each route as to difficulty. His rating scale considers a 1 as being
particularly easy, and a 10 as being almost impossible.
(a) Given the information below, identify the route that would provide the easiest climb.
(b) What would be the average rating of the route?
(c) What is wrong with this approach to Mr. Head’s problem?
21) A healthcare executive is using regression to predict total revenues. She has decided
to include both patient length of stay and insurance type in her model. Insurance type
can be grouped into three categories: Government-Funded, Private-Pay, and Other. Her
model is
A) Y = b0.
B) Y = b0 + b1 X1.
C) Y = b0 + b1 X1 + b2 X2.
D) Y = b0 + b1 X1 + b2 X2 + b3 X3.
E) Y = b0 + b1 X1 + b2 X2 + b3 X3 + b4 X4.
22) Cars arrive at a local JLUBE franchise at the rate of 1 every 12 minutes. Service
times are exactly 15 minutes. Jack Burns, the JLUBE owner, has decided to open a
second work bay, i.e., make the shop into a two-channel system. Under this new
scheme, the average customer will wait in an ________ line.
A) M/M/1
B) M/M/2
C) M/D/2
D) M/D/1
E) M/G/2
23) The following is an opportunity loss table.
What decision should be made based on the minimax regret criterion?
A) Alternative 1
B) Alternative 2
C) Alternative 3
D) State of Nature C
E) Does not matter
24) Given the following traffic flows, in hundreds of cars per hour, what is the
maximum traffic flow from Town 1 to Town 7?
A) max flow = 4 units
B) max flow = 6 units
C) max flow = 3 units
D) max flow = 9 units
E) None of the above
25) A discrete random variable has a mean of 400 and a variance of 64. What is the
standard deviation?
A) 64
B) 8
C) 20
D) 400
E) None of the above
26) Compute the F value based on the following:
(a) df1 = 2, df2 = 4, α= 0.01
(b) df1 = 3 df2 = 6, α= 0.05
27) Briefly describe the consumer market survey forecasting method.
28) Describe a residual plot.
29) Discuss the relationship between r2 and adjusted r2.
30) Evaluate the determinant .
31) The number of machine breakdowns in a day is 0, 1, or 2, with probabilities 0.6,
0.3, and 0.1, respectively. The following random numbers have been generated: 13, 10,
02, 18, 31, 19, 32, 85, 31, 94. Use these numbers to generate the number of breakdowns
for 10 consecutive days. What proportion of these days had at least one breakdown?
32) What is meant by a balanced transportation problem?
33) Customer arrivals occur at a rate of 1.2 per minute. The time between customer
arrivals follows an exponential distribution. What is the probability that it takes
between 1 and 2 minutes between customer arrivals?
34) Given the following two-person game, what strategy should the players play?
35) Discuss the use of a tracking signal.
36) Identify the steps of the quantitative analysis approach.