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.
3) Dual variables represent the potential value of resources.
4) P-charts and c-charts are examples of control charts for variables.
5) The linear programming truck loading model always results in a practical solution.
6) The first step in planning and scheduling a project is to develop the work breakdown
structure.
7) In some instances, an infeasible solution may be the optimum found by the corner
point method.
8) A seasonal index of 1 means that the season is average.
9) Game theory is a way to consider the impact of games on business.
10) An objective function is necessary in a maximization problem but is not required in
a minimization problem.
11) The shortest-route technique is the same as the minimal-spanning tree technique.
12) The shortest-route model assumes that one is trying to connect two end points in the
shortest manner possible, rather than attempting to connect all the nodes in the model.
13) Who introduced control charts in 1924?
A) W. Edwards Deming
B) Philip Crosby
C) J.M. Juran
D) William Shewhart
E) Malcolm Baldrige
14) Table 10-3
A company has decided to use 01 integer programming to help make some investment
decisions. There are three possible investment alternatives from which to choose, but if
it is decided that a particular alternative is to be selected, the entire cost of that
alternative will be incurred (i.e., it is impossible to build one-half of a factory). The
integer programming model is as follows:
Solution x1 = 1, x2 = 0, x3 = 1, objective value = 14,000.
Table 10-3 presents an integer programming problem. Suppose you wish to add a
constraint that stipulates that both alternative 2 and alternative 3 must be selected, or
neither can be selected. How would this constraint be written?
A) X2 = X3
B) X2 =< X3
C) X2 >= X3
D) X2 + X3 = 1
E) None of the above
15) Daily high temperatures in the city of Houston for the last week have been: 93, 94,
93, 95, 92, 86, 98 (yesterday).
(a) Forecast the high temperature today using a three-day moving average.
(b) Forecast the high temperature today using a two-day moving average.
(c) Calculate the mean absolute deviation based on a two-day moving average, covering
all days in which you can have a forecast and an actual temperature.
16) Table 12-1
According to the information provided in Table 12-1, what proportion of time is at least
one server busy?
A) 0.563
B) 0.437
C) 0.720
D) 0.280
E) None of the above
17) The shortest-route technique would best be used to
A) plan the routes for a vacation driving tour.
B) plan the route for a school bus.
C) determine the path for a truck making frequent runs from a factory to a warehouse.
D) All of the above
E) None of the above
18) What is another name for blending problems?
A) diet problems
B) ingredient problems
C) feed mix problems
D) production mix problems
E) media selection problems
19) Which of the following methods produces a particularly stiff penalty in periods with
large forecast errors?
A) MAD
B) MSE
C) MAPE
D) decomposition
E) bias
20) The minimax criterion is to
A) minimize one’s maximum losses.
B) maximize one’s maximum losses.
C) maximize one’s minimum gains.
D) minimize one’s minimum gains.
E) Both A and C are correct
21) Which of the following equalities is correct?
A) SST = SSR + SSE
B) SSR = SST + SSE
C) SSE = SSR + SST
D) SST = SSC + SSR
E) SSE = Actual Value – Predicted Value
22) 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, which of the following constraints would be used?
A) 9T + 12B =< 12
B) 1T + 1B >=10
C) 1T + 2B =< 12
D) All of the above
E) None of the above
23) The concept of ‘satisficing” is affiliated with which of the following?
A) mixed integer programming
B) integer programming
C) linear programming
D) nonlinear programming
E) goal programming
24) Explain the purposes of regression models.
25) Briefly describe the structure of a scatter diagram for a time series.
26) Bastille College is going to purchase new computers for both faculty and staff.
There are a total of 50 people who need new machines 30 faculty and 20 staff. The cost
of the basic personal computer with monitor and disk drive is $2,000, while the deluxe
version with VGA and advanced processor is $3,500. Due to internal politics, the
number of deluxe computers assigned to staff must be less than half the number of
deluxe computers assigned to faculty. The College feels that it must purchase at least 5
deluxe computers for the faculty; if possible, it would like to purchase as many as 20
deluxe computers for the faculty. Staff members do feel somewhat “put upon” by
having a limit placed upon the number of deluxe machines purchased for their use, so
the College would like to purchase as many deluxe machines for the staff as possible
(up to 10). The budget is $100,000. Develop a goal programming formulation of this
problem that treats each of the requirements stated above as an equally weighted goal.
d7
27) Describe a multifactor evaluation process.
28) Consider the regression model Y = 389.10 – 14.6X. If the r2 value is 0.657, what is
the correlation coefficient?
29) The Handy Manufacturing Company manufactures small air conditioner
compressors. The estimated demand for the year is 12,000 units. The setup cost for the
production process is $200 per run, and the carrying cost is $10.00 per unit per year.
The daily production rate is 100 units per day, and demand has been 50 units per day.
Determine the number of units to produce in each batch. (The problem assumes 240
operating days.)
30) Two advertising media are being considered for promotion of a product. Radio ads
cost $400 each, while newspaper ads cost $600 each. The total budget is $7,200 per
week. The total number of ads should be at least 15, with at least 2 of each type, and
there should be no more than 19 ads in total. The company does not want the number of
newspaper ads to exceed the number of radio ads by more than 25 percent. Each
newspaper ad reaches 6,000 people, 50 percent of whom will respond; while each radio
ad reaches 2,000 people, 20 percent of whom will respond. The company wishes to
reach as many respondents as possible while meeting all the constraints stated. Develop
the appropriate LP model for determining the number of ads of each type that should be
placed.