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QUESTION 1

1. Which of the following special cases does not require reformulation of the problem in order to obtain a solution?

   	a.	infeasibility
   	b.	alternate optimality
   	c.	each case requires a reformulation.
   	d.	unboundedness

2 points

QUESTION 2

1. The trend pattern is easy to identify by using

   	a.	a weighted moving average
   	b.	regression analysis
   	c.	a moving average
   	d.	exponential smoothing

2 points

QUESTION 3

1. Whenever a categorical variable such as season has k levels, the number of dummy variables required

   	a.	k
   	b.	k + 1
   	c.	2k
   	d.	k − 1

2 points

QUESTION 4

1. A posterior probability associated with sample information is of the form

   	a.	P(a state of nature | a sample outcome)
   	b.	P(a sample outcome | a state of nature)
   	c.	P(a sample outcome | a decision alternative)
   	d.	P(a decision alternative | a sample outcome)

2 points

QUESTION 5

1. If P(A|B) = .4, then

   	a.	P(B|A) = .6
   	b.	P(A)*P(B) = .4
   	c.	P(A) / P(B) = .4
   	d.	None of the alternatives is correct.

2 points

QUESTION 6

1. A(n) __________ is a graphical representation in which the sample space is represented by a rectangle and events are represented as circles.

   	a.	tree diagram
   	b.	frequency polygon
   	c.	Venn diagram
   	d.	histogram

2 points

QUESTION 7

1. A model that uses a system of symbols to represent a problem is called

   	a.	analog.
   	b.	iconic.
   	c.	constrained.
   	d.	mathematical.

2 points

QUESTION 8

1. States of nature

   	a.	can describe uncontrollable natural events such as floods or freezing temperatures.
   	b.	can be selected by the decision maker.
   	c.	cannot be enumerated by the decision maker.
   	d.	All of the alternatives are true.

2 points

QUESTION 9

1. A variable added to the left-hand side of a less-than-or-equal-to constraint to convert the constraint into an equality is

   	a.	a surplus variable
   	b.	a non-negative variable
   	c.	a slack variable
   	d.	a standard variable

2 points

QUESTION 10

1. The amount by which an objective function coefficient can change before a different set of values for the decision variables becomes optimal is the

   	a.	dual solution.
   	b.	range of feasibility.
   	c.	optimal solution.
   	d.	range of optimality.

2 points

QUESTION 11

1. Sensitivity analysis is often referred to as

   	a.	duality analysis.
   	b.	feasibility testing.
   	c.	postoptimality analysis.
   	d.	alternative analysis.

2 points

QUESTION 12

1. Decision variables

   	a.	tell how much or how many of something to produce, invest, purchase, hire, etc.
   	b.	must exist for each constraint.
   	c.	measure the objective function.
   	d.	represent the values of the constraints.

2 points

QUESTION 13

1. The probability of an event

   	a.	is the sum of the probabilities of the sample points in the event.
   	b.	is the product of the probabilities of the sample points in the event.
   	c.	is the minimum of the probabilities of the sample points in the event.
   	d.	is the maximum of the probabilities of the sample points in the event.

2 points

QUESTION 14

1. For a maximization problem, the conservative approach is often referred to as the

   	a.	maximax approach.
   	b.	minimax approach.
   	c.	minimin approach.
   	d.	maximin approach.

2 points

QUESTION 15

1. Which of the following is not one of the commonly used names for the body of knowledge involving quantitative approaches to decision-making?

   	a.	operations research
   	b.	efficiency studies
   	c.	business analytics
   	d.	management science

2 points

QUESTION 16

1. Which of the following is not a question answered by standard sensitivity analysis information?

   	a.	By how much will the objective function value change if the right-hand side value of a constraint changes beyond the range of feasibility?
   	b.	Over what range can a constraint’s right-hand side value without the constraint’s dual price possibly changing?
   	c.	By how much will the objective function value change if a decision variable’s coefficient in the objective function changes within the range of optimality?
   	d.	If the right-hand side value of a constraint changes, will the objective function value change?

2 points

QUESTION 17

1. Infeasibility means that the number of solutions to the linear programming models that satisfies all constraints is

   	a.	an infinite number.
   	b.	at least 2.
   	c.	at least 1.
   	d.	0.

2 points

QUESTION 18

1. To find the optimal solution to a linear programming problem using the graphical method

   	a.	find the feasible point that is the farthest away from the origin.
   	b.	find the feasible point that is at the highest location.
   	c.	find the feasible point that is closest to the origin.
   	d.	None of the alternatives is correct.

2 points

QUESTION 19

1. If there is a maximum of 4,000 hours of labor available per month and 300 ping-pong balls (x₁) or 125 wiffle balls (x₂) can be produced per hour of labor, which of the following constraints reflects this situation?

   	a.	300x1 + 125x2 = 4,000
   	b.	300x1 + 125x2 > 4,000
   	c.	300x1 + 125x2 < 4,000
   	d.	425(x1 + x2) < 4,000

2 points

QUESTION 20

1. All of the following are true about a cyclical pattern except

   	a.	It is often due to multiyear business cycles.
   	b.	It is an alternating sequence of data points above and below the trend line.
   	c.	It is often combined with long-term trend patterns and called trend-cycle patterns.
   	d.	It usually is easier to forecast than a seasonal pattern due to less variability.

2 points

QUESTION 21

1. Inputs to a quantitative model

   	a.	are a trivial part of the problem solving process.
   	b.	are uncertain for a stochastic model.
   	c.	must all be deterministic if the problem is to have a solution.
   	d.	are uncontrollable for the decision variables.

2 points

QUESTION 22

1. Posterior probabilities are computed using

   	a.	the classical method
   	b.	the empirical rule
   	c.	Chebyshev’s theorem
   	d.	Bayes’ theorem

2 points

QUESTION 23

1. In the set of all past due accounts, let the event A mean the account is between 31 and 60 days past due and the event B mean the account is that of a new customer. The complement of A is

   	a.	all accounts fewer than 31 or more than 60 days past due.
   	b.	all accounts from new customers and all accounts that are from 31 to 60 days past due.
   	c.	all new customers whose accounts are between 31 and 60 days past due.
   	d.	all new customers.

2 points

QUESTION 24

1. Sensitivity analysis is concerned with how certain changes affect

   	a.	the unconstrained solution.
   	b.	the feasible solution.
   	c.	the degenerative solution.
   	d.	the optimal solution.

2 points

QUESTION 25

1. All of the following are true about qualitative forecasting methods except

   	a.	They generally involve the use of expert judgment to develop forecasts.
   	b.	They assume the pattern of the past will continue into the future.
   	c.	They are appropriate when past data on the variable being forecast are not applicable.
   	d.	They are appropriate when past data on the variable being forecast are not available.

2 points

QUESTION 26

1. Which of the following is not a valid representation of a probability?

   	a.	35%
   	b.	0
   	c.	3/8
   	d.	1.04

2 points

QUESTION 27

1. A solution that satisfies all the constraints of a linear programming problem except the nonnegativity constraints is called

   	a.	infeasible.
   	b.	semi-feasible.
   	c.	optimal.
   	d.	feasible.

2 points

QUESTION 28

1. All linear programming problems have all of the following properties EXCEPT

   	a.	variables that are all restricted to nonnegative values.
   	b.	alternative optimal solutions.
   	c.	a set of linear constraints.
   	d.	a linear objective function that is to be maximized or minimized.

2 points

QUESTION 29

1. Which of the methods for decision making best protects the decision maker from undesirable results?

   	a.	the conservative approach
   	b.	the optimistic approach
   	c.	minimax regret
   	d.	minimum regret

2 points

QUESTION 30

1. A constraint with a positive slack value

   	a.	has no restrictions for its dual price.
   	b.	will have a positive dual price.
   	c.	will have a dual price of zero.
   	d.	will have a negative dual price.

2 points

QUESTION 31

1. Which of the following approaches to decision making requires knowledge of the probabilities of the states of nature?

   	a.	maximin
   	b.	expected value
   	c.	conservative
   	d.	minimax regret

2 points

QUESTION 32

1. All of the following are true about a stationary time series except

   	a.	The process generating the data has a constant mean
   	b.	There is no variability in the time series over time.
   	c.	A plot of the series will always exhibit a horizontal pattern.
   	d.	Its statistical properties are independent of time.

2 points

QUESTION 33

1. Using exponential smoothing, the demand forecast for time period 10 equals the demand forecast for time period 9 plus

   	a.	α times (the error in the demand forecast for time period 9)
   	b.	α times (the demand forecast for time period 9)
   	c.	α times (the demand forecast for time period 8)
   	d.	α times (the observed demand in time period 9)

2 points

QUESTION 34

1. If P(A) = 0.38, P(B) = 0.83, and P(A B) = 0.27; then P(A B) =

   	a.	0.94
   	b.	1.21
   	c.	1.48
   	d.	0.72

2 points

QUESTION 35

1. A method of assigning probabilities that assumes the experimental outcomes are equally likely is referred to as the

   	a.	subjective method
   	b.	objective method
   	c.	experimental method
   	d.	classical method

2 points

QUESTION 36

1. Problem definition

   	a.	includes specific objectives and operating constraints.
   	b.	must occur prior to the quantitative analysis process.
   	c.	must involve the analyst and the user of the results.
   	d.	each of these choices are true.

2 points

QUESTION 37

1. The volume that results in total revenue being equal to total cost is the

   	a.	profit mix.
   	b.	break-even point.
   	c.	marginal volume.
   	d.	marginal cost.

2 points

QUESTION 38

1. A constraint that does not affect the feasible region is a

   	a.	slack constraint.
   	b.	non-negativity constraint.
   	c.	redundant constraint.
   	d.	standard constraint.

2 points

QUESTION 39

1. For a minimization problem, the conservative approach is often referred to as the

   	a.	maximax approach
   	b.	minimax approach
   	c.	minimin approach
   	d.	maximin approach

2 points

QUESTION 40

1. Which of the following is not a proper sample space when all undergraduates at a university are considered?

   	a.	S = {age under 21, age 21 or over}
   	b.	S = {in-state, out-of-state}
   	c.	S = {freshmen, sophomores}
   	d.	S = {a major within business, no business major}

2 points

QUESTION 41

1. A list of all possible outcomes of an experiment is called

   	a.	the experimental outcome.
   	b.	the sample point.
   	c.	the likelihood set.
   	d.	the sample space.

2 points

QUESTION 42

1. An experiment consists of tossing 4 coins successively. The number of sample points in this experiment is

   	a.	4
   	b.	16
   	c.	2
   	d.	8

2 points

QUESTION 43

1. If a decision variable is not positive in the optimal solution, its reduced cost is

   	a.	the amount its objective function value would need to improve before it could become positive.
   	b.	its dual price.
   	c.	what its objective function value would need to be before it could become positive.
   	d.	zero.

2 points

QUESTION 44

1. In what part(s) of a linear programming formulation would the decision variables be stated?

   	a.	objective function and the left-hand side of each constraint
   	b.	the left-hand side of each constraint only
   	c.	the objective function only
   	d.	objective function and the right-hand side of each constraint

2 points

QUESTION 45

1. To solve a linear programming problem with thousands of variables and constraints

   	a.	a mainframe computer is required.
   	b.	a personal computer can be used.
   	c.	the problem must be partitioned into subparts.
   	d.	unique software would need to be developed.

2 points

QUESTION 46

1. The complement of P(A | B) is

   	a.	P(AC | B)
   	b.	P(A | BC)
   	c.	P(B | A)
   	d.	P(A I B)

2 points

QUESTION 47

1. In situations where you need to compare forecasting methods for different time periods, the most appropriate accuracy measure is

   	a.	ME
   	b.	MAPE
   	c.	MSE
   	d.	MAE

2 points

QUESTION 48

1. Which of the following is not an advantage of using decision tree analysis?

   	a.	the ability to see clearly the future outcome of a decision
   	b.	the ability to see clearly the interdependence of decisions
   	c.	the ability to see clearly what decisions must be made
   	d.	the ability to see clearly in what sequence the decisions must occur

2 points

QUESTION 49

1. To select a value for α for exponential smoothing

   	a.	use a small α when the series varies substantially.
   	b.	use a large α when the series has little random variability.
   	c.	use a value between 0 and 1
   	d.	All of the alternatives are true.

2 points

QUESTION 50

1. Management science and operations research both involve

   	a.	qualitative managerial skills.
   	b.	quantitative approaches to decision making.
   	c.	operational management skills.
   	d.	scientific research as opposed to applications.

2 points

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