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 modeled by the normal
distribution.
3) The value of a two-person pure strategy game is equal to the lower value of the
game.
4) The term slack is associated with constraints.
5) The coefficient of determination gives the proportion of the variability in the
dependent variable that is explained by the regression equation.
6) The second step in solving a dynamic programming problem is to solve the last stage
of the problem for all conditions or states.
7) The multiple regression model includes multiple slope coefficients.
8) PERT is a network technique similar to CPM, but PERT allows for project crashing,
whereas CPM does not.
9) To ‘simulate” is to try to duplicate the features, appearance, and characteristics of a
real system.
10) The c-chart is useful when we
A) take a number of measurements and compute the average.
B) take a number of measurements and compute the ranges.
C) find the fraction of the production lot defective.
D) find the number of defective items in a production lot.
E) None of the above
11) If one changes the contribution rates in the objective function of an LP,
A) the feasible region will change.
B) the slope of the isoprofit or isocost line will change.
C) the optimal solution to the LP is sure to no longer be optimal.
D) All of the above
E) None of the above
12) In a production run of 300 units, there are exactly 20 defective items and 280 good
items.
(a) What is the probability that a randomly selected item is defective?
(b) If two items are sampled without replacement, what is the probability that both are
good?
(c) If two items are randomly sampled without replacement, what is the probability that
the first is good but the second is defective?
13) Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16,
15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next
day using a two-day weighted moving average where the weights are 3 and 1.
A) 14.5
B) 13.5
C) 14
D) 12.25
E) 12.75
14) Queuing theory had its beginning in the research work of
A) Albert Einstein.
B) A.K. Erlang.
C) J.K. Rowling.
D) P.K. Poisson.
E) A.K. Cox.
15) Table 14-3
The following data consists of a matrix of transition probabilities (P) of three office
locations (A,B,C) within a large company and how employees shift from one location
to the other from year to year. The company CEO would like to understand the
movement of employees over time and the long-run proportion of employees in each
location. Assume that there is always a total of 3000 employees.
Using the data given in Table 14-3, what is the long run number of employees expected
in location C?
A) 1400
B) 1000
C) 800
D) 750
E) 700
16) The following
represents a:
A) goal programming problem.
B) mixed integer programming problem.
C) nonlinear programming problem.
D) 0-1 integer programming problem.
E) pure integer programming problem.
17) Pipeline fluid flows are indicated below. Determine the maximum flow from Node
1 to Node 4.
A) 200
B) 300
C) 600
D) 700
E) None of the above
18) Loss/unit when sales are below the break-even point is equal to
A) (total revenue – total cost)/number of units.
B) selling price.
C) price/unit minus variable cost per unit.
D) EOL.
E) None of the above
19) Which of the following statements is false concerning the hypothesis testing
procedure for a regression model?
A) The F-test statistic is used.
B) The null hypothesis is that the true slope coefficient is equal to zero.
C) The null hypothesis is rejected if the adjusted r2 is above the critical value.
D) An level must be selected.
E) The alternative hypothesis is that the true slope coefficient is not equal to zero.
20) Arrivals in a university advising office during the week of registration are known to
follow a Poisson distribution with an average of 4 people arriving each hour.
(a) What is the probability that exactly 4 people will arrive in the next hour?
(b) What is the probability that exactly 5 people will arrive in the next hour?
21) If D = 1.00, then N(1.00) is approximately
A) 0.69000.
B) 1.00000.
C) 0.08332.
D) 0.35090.
E) None of the above
22) 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 average number of fax machines in the system?
A) .0142 fax machine
B) .1563 fax machine
C) .0249 fax machine
D) .2749 fax machine
E) None of the above
23) A dry cleaning business offers a pick-up and delivery service for a 10 percent
surcharge. Management believes 60 percent of customers will take advantage of this
service. They are also considering offering customers the option of opening an account
and receiving monthly bills. They believe 60 percent of their customers (regardless of
whether or not they use the pick-up service) will use the account service. If the two
services are introduced to the market, what is the probability a customer uses both
services?
A) 0.12
B) 0.60
C) 0.36
D) 0.24
E) None of the above
24) The Hurwicz criterion coefficient of realism measures the decision maker’s degree
of
A) utility.
B) pessimism.
C) certainty.
D) optimism.
E) regret.
25) Table M8-3
The following improvements are proved for Table M8-3:
The cell improvement indices for Table M8-3 suggest that the optimal solution has been
found. Based on this solution, how many units would actually be sent from source C?
A) 10
B) 170
C) 180
D) 250
E) None of the above
26) At a university with 1,000 business majors, there are 200 business students enrolled
in an introductory statistics course. Of these 200 students, 50 are also enrolled in an
introductory accounting course. There are an additional 250 business students enrolled
in accounting but not enrolled in statistics. If a business student is selected at random,
what is the probability that the student is either enrolled in accounting or statistics, but
not both?
A) 0.45
B) 0.50
C) 0.40
D) 0.05
E) None of the above
27) TIME SERIES models attempt to predict the future by using historical data.
28) Table 15-1
Refer to Table 15-1. The Pristine Paint Company produces paint in gallon cans. They
have found that in more than 10 samples of 8 cans each, the average gallon can contains
1.1 gallons of paint. The average range found over these samples is 0.15 gallons. What
is the upper control limit for the sample averages in this process?
A) 1.100
B) 1.150
C) 1.268
D) 1.156
E) None of the above
29) A bakery produces muffins and doughnuts. Let x1 be the number of doughnuts
produced and x2 be the number of muffins produced. The profit function for the bakery
is expressed by the following equation: profit = 4x1 + 2x2 + 0.3x1
2 + 0.4x2
2. The
bakery has the capacity to produce 800 units of muffins and doughnuts combined and it
takes 30 minutes to produce 100 muffins and 20 minutes to produce 100 doughnuts.
There is a total of 4 hours available for baking time. There must be at least 200 units of
muffins and at least 200 units of doughnuts produced. Formulate a nonlinear program
representing the profit maximization problem for the bakery.
30) Three types of fertilizer are manufactured by a company: Regular, Supergro, and
Jungle Feeder. Regular should have at least 10 percent nitrogen and 16 percent
phosphorous. Supergro should have at least 12 percent nitrogen and 20 percent
phosphorous, and Jungle Feeder should have at least 15 percent nitrogen and 18 percent
phosphorous. These are made by using two components: A and B. Component A costs
$0.30 per pound and is 14 percent nitrogen and 18 percent phosphorous. Component B
costs $0.50 per pound and is 20 percent nitrogen and 24 percent phosphorous. The
demand for Regular is projected to be 1,000 pounds, while each of the others has a
demand of 2,000 pounds. Formulate the appropriate linear program.
31) The regression line minimizes the sum of the ________.
32)
1> X >= 0
2> Y >= 0
3> X + Y =< 50
If the optimal corner point lies at the intersection of constraints (2) and (3), what is the
optimal solution (X, Y)?
33) Multiply the matrix by .