Social Science OPERATIONS RESEARCH

Quiz No.1

A model is a/n
A.
abstraction of reality
B.
idealized representation
C.
simple explanation
D.
A and B

2. Mathematical models usually contain

A.
Variables
B.
Constants
C.
Assumptions
D.
All of the above

3. The benefits of model building include

A.
focusing on small number of important details
B.
omitting non-quantitative information
C.
the need to quantify information
D.
A and C

4. The risks of model building include

A.
focusing on small number of important details
B.
omitting non-quantitative information
C.
Need to quantify information
 D.
A and C

5. Probabilistic model would be appropriate to use if the

A.
Data for the problem is known with high level of confidence
B.
Data follows a range, but the average is known with high level of confidence
C.
Data distribution is known with high level of confidence
D.
B or C

6. Two of the steps in the management science approach to problem solving are:
A.
Model construction, model interpretation
B.
Model construction and interpret & analyze the solution
C.
Finding a solution and testing the model
D.
Interpret & analyze the model and construct solution

7. A one-machine shop producing bolts has a fixed cost of $2000.00 and a variable cost of
$2.00 per bolt. The selling price is $6.00 per unit. The breakeven volume of production
is
A.
1000
B.
500
C.
333.33
D.
250

8. A one-machine shop producing bolts has a fixed cost of $2000.00 and a variable cost of
$2.00 per bolt. The selling price is $6.00 per unit. The total revenue corresponding to
the breakeven volume of production is
A.
6000
 B.
2000
C.
3000
D.
1500

9. All other things remaining the same, if the variable cost per unit increases by 10% then
the breakeven volume of production will
A.
go up by 10%
B.
go down by 10%
C.
cannot tell from the data
D.
can stay the same

10. A one person automobile oil change in rural Mississippi has a fixed overhead of
$900.00 per month. The variable cost per oil change $10.00. The price tag is $30.00 for
one oil change. The break even number of oil changes per month is
A.
30
B.
45
C.
90
D.
22.5

11. A one person automobile oil change in rural Mississippi has a fixed overhead of
$900.00 per month. The variable cost per oil change $10.00. The price tag is $30.00 for
one oil change. If the owner/worker Joe Smith desires to have a contribution per month
of $2100.00, the number of oil changes he should do per month is
A.
100
B.
300
C.
150
D.
75
1. Good forecasts usually result by using choosing a/n
A.
appropriate process involving several steps.
B.
correct mathematical technique.
C.
correct qualitative method.
D.
experienced forecaster.

2. Perfect forecasts can be obtained only by using

A.
the right techniques.
B.
personnel with the right experience.
C.
a right blend of software and experience.
D.
carefully controlled conditions, but never obtained in the real world.

3. As the number of periods used in a moving average forecast increases, the forecast
becomes
A.
increasingly sensitive
B.
much more responsive
C.
very aggressive
D.
less responsive

4. If responsiveness to recent data is important to the forecaster, then the number of

periods used in a moving average forecast should be
A.
small.
B.
large.
 C.
medium.
D.
either small or large.

5. As the number of periods used in a moving average forecast increases, the lag between
the forecast and the actual event
A.
increases.
B.
decreases.
C.
stays the same.
D.
may increase or decrease.

6. For the data (0,100), (1,200), (2,210), (3,220), (4,260), (5,330) where the first number in
the parenthesis is the period and the second number is the actual demand, 3 period
moving average forecast for period 6 will be equal to the
A.
270.
B.
220.
C.
275.
D.
170.

7. For the data (0,100), (1,200), (2,210), (3,220), (4,260), (5,330) where the first number in
the parenthesis is period and the second number is the actual demand, 4 period moving
average forecast for period 6 will be equal to the
A.
250.
B.
255.
C.
270.
D.
182.5.

8. For the data (0,100), (1,200), (2,210), (3,220), (4,260), (5,330) where the first number in
 the parenthesis is period and the second number is the actual demand, 4 period moving
average forecast for period 7 will be equal to the
A.
250.
B.
255.
C.
270.
D.
cannot find

9. In exponential smoothing the actual weight assigned to previous data

A.
decreases with the age of data.
B.
increases with the age of data.
C.
is independent of the age of data
D.
stays the same regardless of age

10. In exponential smoothing the sum of the weights assigned to previous data
A.
tends to equal 1.0.
B.
equals 1.0.
C.
may be less than 1.0.
D.
may be greater than 1.0.

11. SUMPRODUCT function in excel can be used to

A.
sum two columns/rows and then multiply the sum.
B. multiply numbers of one column/row with the corresponding numbers of the
other column/row.
C.
multiply corresponding numbers of two columns/rows and add the products.
D.
either A or C since they will give the same result.
12. For the data (0,100), (1,200), (2,220), (3,220), (4,266), (5,318) where the first number
in the parenthesis is period and the second number is the actual demand, exponentially
smoothed forecast for period 6 (F6) with initial forecast (F0) = 100 and =0.2 is equal
to
A.
206.
B.
306
C.
318.
D.
305.7

Chapter 3

All linear programming problems may be solved using graphical method.

A.
True
B.
False

2. All linear programming problems with only two variables may be solved using
graphical method.
A.
True
B.
False

3. In any graphically solvable linear program, if two points are feasible, then any weighted
average of the two points where weights are non-negative and add up to 1.0 will also be
feasible.
A.
True
B.
False

4. If a graphically solvable linear program is unbounded, then it can always be converted

to a regular bounded problem by removing a constraint.
A.
True
 B.
False

5. Assumptions of linear programming include

A.
linearity
B.
additivity
C.
divisibility
D.
certainty
E.
all of the above

6. Divisibility assumption in linear programming implies

A.
resources can be divided among products.
B.
products can be divided among customers.
C.
decision variables may take on integer values.
D.
decision variables may take on fractional values.

7. XYZ Inc. produces two types of paper towels, called regular and super-soaker.
Marketing has imposed a constraint that the total monthly production of regular should
be no more than twice the monthly production of super-soakers. Letting be the
number of units of regular produced per month and represent the number of units
of super-soaker produced per month, the appropriate constraint/s will be
A.
.
B.
.
C.
.
D.
.
E.
.
8. XYZ Inc. produces two types of paper towels, called regular and super-soaker. Regular
uses 2 units of recycled paper per unit of production and super-soaker uses 3 units of
recycled paper per unit of production. The total amount of recycled paper available per
month is 10,000. Letting be the number of units of regular produced per month and
represent the number of units of super-soaker produced per month, the appropriate
constraint/s will be
A.
.
B.
.
C.
.
D.
.

9. XYZ Inc. produces two types of paper towels, called regular and super-soaker. Regular
uses 2 units of recycled paper per unit of production and super-soaker uses 3 units of
recycled paper per unit of production. The total amount of recycled paper available per
month is 10,000. They also have a binding contract to use at least 8000 units of recycled
paper per month with a local pollution control organization. Letting be the number
of units of regular produced per month and represent the number of units of super-
soaker produced per month, the appropriate constraint/s will be
A.
.
B.
.
C.
.
D.
A or B but not both.
E.
A and B.

10. XYZ Inc. produces two types of printers, called regular and high-speed. Regular uses 2
units of recycled plastic per unit and high-speed uses 1 unit of recycled plastic per unit
of production. The total amount of recycled plastic available per month is 5,000. A
critical machine is needed to manufacture the printers and each unit of Regular
requires 5 units of time in this machine and each unit of high-speed requires 3 units of
time in this machine. The total time available in this machine per month is 10000 units.
Letting be the number of units of regular produced per month and represent
the number of units of high-speed produced per month, the appropriate constraint/s
will be
 A.
.
B.
.
C.
.
D.
A and C.
E.
B and C.

11. XYZ Inc. produces two types of printers, called regular and high-speed. Regular uses 2
units of recycled plastic per unit and high-speed uses 1 unit of recycled plastic per unit
of production. XYZ is committed to using at least 5,000 units of recycled plastic per
month. A critical machine is needed to manufacture the printers and each unit of
Regular requires 5 units of time in this machine and each unit of high-speed requires 3
units of time in this machine. The total time available in this machine per month is
15000 units. Letting be the number of units of regular produced per month and
represent the number of units of high-speed produced per month, the appropriate
constraint/s will be
A.
.
B.
.
C.
.
D.
A and C.

12. XYZ Inc. produces two types of printers, called regular and high-speed. Regular uses 2
units of recycled plastic per unit and high-speed uses 1 unit of recycled plastic per unit
of production. XYZ is committed to using at least 5,000 units of recycled plastic per
month. A critical machine is needed to manufacture the printers and each unit of
Regular requires 5 units of time in this machine and each unit of high-speed requires 3
units of time in this machine. The total time available in this machine per month is
10000 units. Let be the number of units of regular produced per month and
represent the number of units of high-speed produced per month. Imposing both of
these constraints, and non-negativity constraints one of the feasible corner points is:
(assuming the first number in parenthesis is and the second number in the
parenthesis is ):
A.
(0,0).
 B.
(2000,0).
C.
None exists.
D.
(0,5000).
E.
2500,0).
----------------------

A two variable linear programming problem cannot be solved by the simplex method.
A.
True
B.
False

2. A two variable linear programming problem can only be solved by the simplex method.
A.
True
B.
False

3. If the sale of first 10 units of a product gives a profit of $10.00 per unit and every
additional unit sold gives a profit of $15.00 per unit, the situation can not be modeled
easily as a linear program.
A.
True
B.
False

4. SUMPRODUCT command of excel can be used for multiplying elements of two arrays
of unequal lengths, though it is usually used for arrays of equal length.
A.
True
B.
False

5. In using Solver package for solving a linear programming problem, the decision
variables are assigned to ____ cells.
 A.
target
B.
changing
C.
constraint
D.
variable

6. In using Solver package for solving a linear programming problem, the objective
function expression and its value is defined in ____ cells.
A.
target
B.
changing
C.
constraint
D.
variable

7. Problem A is a given formulation of a linear program with an optimal solution. Problem

B is a formulation obtained by multiplying the objective function of Problem A by a
positive constant and leaving all other things unchanged. Problems A and B will have
A.
the same optimal solution and same objective function value.
B.
the same optimal solution but different objective function values.
C.
different optimal solutions but same objective function value.
D.
different optimal solutions and different objective function values.

8. Problem A is a given formulation of a linear program with an optimal solution. Problem

B is a formulation obtained by adding a constant to the objective function of Problem A
and leaving all other things unchanged. Problems A and B will have
A.
the same optimal solution and same objective function value.
B.
the same optimal solution but different objective function values.
C.
different optimal solutions but same objective function value.
 D.
different optimal solutions and different objective function values.

9. Problem A is a given formulation of a linear program with an optimal solution and its
constraint 1 is type. Problem B is a formulation obtained from Problem A by replacing
the constraint by an equality constraint and leaving all other things unchanged.
Problems A and B will have
A.
the same optimal solution and same objective function value.
B.
the same optimal solution but different objective function values.
C.
different optimal solutions but same objective function value.
D. same or different solution profile depending on the role of the constraints in the
solutions.

10. In formulating a coffee blending problem, where there are three types of coffee beans
and the objective is to find a recipe to make 1 pound of blended coffee that satisfies a
set of properties at least cost. The decision variables are , and
representing pounds (actually fractional pounds) of coffee beans used per pound of
blended coffee. One of the constraints of the problem will be
A.
.
B.
.
C.
.
D.
no such constraint is required

11. In formulating a coffee blending problem, where there are three types of coffee beans
and the objective is to find a recipe to make 1 pound of blended coffee that satisfies a
set of properties at least cost. The decision variables are , and
representing pounds (actually fractional pounds) of coffee beans used per pound of
blended coffee. Suppose that bitterness is a property measured as an index from 1 to 6,
and that the bitterness of a blend is given by the weighted average (using the weight
fraction of each beans in the blend as the weight) of the bitterness of individual beans
going into the blend. Suppose that the bitterness indexes for the three beans are
respectively 2, 4 and 5. It is desired to have blend with bitterness in the range 3 to 4.5.
The appropriate constraint/s will be:
A.
.
 B.
.
C.
and
D.
The constraints are not correct since weights are not correctly represented.

12. In formulating a coffee blending problem, where there are three types of coffee beans
and the objective is to find a recipe to make 1 pound of blended coffee that satisfies a
set of properties at least cost. The decision variables are , and
representing pounds (actually fractional pounds) of coffee beans used per pound of
blended coffee. Suppose that it is required to produce 200 pounds of coffee using this
formulation. the appropriate constraint/s given the definition of the problem and
decision variables will be:
A.
.
B.
.
C.

D.
and multiply the answer by 200 to blend 200 pounds.

Chapter 5

Sensitivity analysis answers what if questions to help the decision maker.

A.
True
B.
False

2. In a two variable graphical linear program, if the coefficient of one of the variables in
the objective function is changed (while the other remains fixed), then slope of the
objective function expression will change.
A.
True
B.
False

3. In a two variable graphical linear program, if the RHS of one of the constraints is
changed (keeping all other things fixed) then the plot of the corresponding constraint
 will move in parallel to its old plot.
A.
True
B.
False

4. The value of 0 will always be included in any range produced by sensitivity analysis.
A.
True
B.
False

5. The value of 8 will always be included in any range produced by sensitivity analysis.
A.
True
B.
False

6. Shadow price of a resource corresponding to a binding constraint may be positive.

A.
True
B.
False

7. In a two variable linear programming problem a nonbinding constraint cannot become a

binding constraint even of the RHS of the nonbinding constraint is changed
dramatically.
A.
True
B.
False

8. Dual of a linear programming problem with maximize objective function, all =

constraints and non-negative variables has minimize objective function, all = constraints
and non-negative decision variables.
A.
True
B.
False
9. Given the following linear programming problem with two non-negative variables X1
and X2 and 3 constraints all of which are = type, and a maximize objective function and
assuming Yi, i=1,2,3 as the dual variables associated with constraints 1,2 and 3
respectively, one of the constraints in the dual problem is:

Max:
Constraints:

Variables are non-negative.

A.

B.

C.

D.

10. Given the following linear programming problem with two non-negative variables X1
and X2 and 3 constraints all of which are = type, and a maximize objective function and
assuming Yi, i=1,2,3 as the dual variables associated with constraints 1,2 and 3
respectively, the objective function of the dual problem is:
Max:
Constraints:

Variables are non-negative.

A.

B.

C.

D.

11. Given the following linear programming problem with two non-negative variables X1
and X2 and 3 constraints all of which are = type, and a maximize objective function and
assuming Yi, i=1,2,3 as the dual variables associated with constraints 1,2 and 3
 respectively, the variables of the dual problem are required to be :
Max:
Constraints:

Variables are non-negative.

A.
Strictly negative.
B.
non-negative.
C.
strictly positive.
D.
Non-positive.

12. Given the following linear programming problem with two non-negative variables X1
and X2 find the range of values for the objective function coefficient of X2 that will
leave the current solution optimal (that is range of optimality or range of insignificance
as the case may be) (Hint: both constraints are binding.):
Max:
Constraints:

Variables are non-negative.

A.
[20,250]
B.
[-8,250]
C.
[0,250]
D.
[20, 8]

Chapter 6

Transportation and assignment problems can be solved by simplex method though special
purpose algorithms offer an easier solution procedure.
A.
True
 B.
False

2. The total supply must equal total demand in a transportation problem in order to solve it
by the transportation algorithm.
A.
True
B.
False

3. XYZ Inc. manufactures desks and chairs in all its four furniture manufacturing plants. It
has 5 warehouses across the country. One transportation problem can be used to
determine how to ship desks and chairs.
A.
True
B.
False

4. Transshipment problem can be solved using the transportation formulation, as long as

we are assured that no material stays in the intermediate points permanently.
A.
True
B.
False

5. Transshipment problem formulation may be used in place of transportation formulation

when there are two products that are being shipped, each having its own per unit cost of
shipping.
A.
True
B.
False

6. In a linear programming formulation of the assignment problem, the RHS of all

constraints is greater than 1.
A.
True
B.
False
7. In the transportation problem model for production planning discussed in your text, if
there are 3 periods and 4 methods of manufacture in each period, how many rows will
be needed?
A.
12.
B.
7.
C.
13.
D.
8.

8. In the linear programming formulation of the transportation problem, cost of

transporting one unit of the material from a supply point to a demand point appears in
A.
the objective function only.
B.
the constraints only.
C.
both objective function and constraints.
D.
neither objective function nor constraints.

9. Data on cost, demand and supply for a balanced (total supply equals total demand)
transportation problem is given in the table below. In the linear programming
formulation of this transportation problem, with Xij denoting the amount shipped from
supply point i (1 or 2) to demand point j (1,2 or 3) the correct constraint to make sure
that supply available in supply point # 2 will be fully used is:

A.

B.

C.
 D.

10. In a transportation problem with total demand equal to 1200 and total supply equal to
900, we should add a _______________ _____________ with a quantity equal to
___________ to convert it to a balanced problem.
A.
Dummy supply 300.
B.
Dummy supply 2100.
C.
Dummy demand 300.
D.
Dummy demand 2100.

11. In the linear programming formulation of the transshipment problem, demand at the
destination points are required to be satisfied from shipment from
A.
origins.
B.
intermediate points.
C.
either origins or intermediated points.
D.
origins or external sources.

12. A transshipment problem has 3 origins, 2 intermediate points and 4 destinations. The
number of decision variables in the linear programming formulation of this problem
will be
A.
24.
B.
9.
C.
48.
D.
14.

A two variable pure integer programming problem cannot be solved by the graphical
method.
A.
True
B.
False

2. A feasible solution to a two variable pure integer programming problem can always be
found by first solving the corresponding linear programming problem (i.e. problem
obtained by ignoring the integrality constraints) and by rounding to the nearest integer
all fractional values in the optimal solution to the linear programming problem.
A.
True
B.
False

3. Since the number of feasible solutions to a pure integer programming problem is lot less
than the number of feasible solutions to the corresponding linear programming problem
(i.e. problem obtained by ignoring the integrality constraints), pure integer
programming problem must be easier to solve.
A.
True
B.
False

4. Problem A is a two variable linear programming problem with a maximization objective

function. Problem B is a two variable pure integer programming problem obtained from
Problem A by requiring the variables to be integers and leaving other things unchanged.
If Problem A has an optimal solution, then Problem B must have an optimal solution.
A.
True
B.
False

5. Problem A is a two variable linear programming problem with a maximization objective

function. Problem B is a two variable pure integer programming problem obtained from
Problem A by requiring the variables to be integers and leaving other things unchanged.
If Problem A has an optimal solution with integer objective function value, then
Problem B must have an optimal solution.
A.
True
B.
False
6. For a typical integer programming problem, the number of feasible solutions
________________________ as the number of variables in the problem increases.
A.
increases linearly
B.
increases exponentially
C.
decreases exponentially
D.
decreases linearly

7. For a pure 0-1 integer programming problem with 3 variables, the maximum number of
potential solutions is:
A.
9
B.
27
C.
16
D.
8

8. Branching in the branch and bound method refers to:

A.
adding a constraint
B.
removing a constraint
C.
either adding or removing a constraint
D.
removing a constraint and extending the feasible set.

9. In modeling a shopping mall construction problem, there are four potential locations
giving rise to four 0-1 decision variables denoted as X1 , X2 , X3 , X4 which takes a value
of 1 if a mall is constructed and 0 otherwise. Identify the correct set of constraints to
satisfy the following conditions: At most only one mall may be constructed among
locations 1 and 3.
A.
X1 + X3 = 1
 B.
X1 + X3 = 1
C.
X1 + X3 < 1
D.
X1 + X3 = 1

10. In modeling a shopping mall construction problem, there are four potential locations
giving rise to four 0-1 decision variables denoted as X1 , X2 , X3 , X4 which takes a
value of 1 if a mall is constructed and 0 otherwise. Identify the correct set of
constraint/s to satisfy the following conditions: If a mall is constructed in location 2,
then a mall should be constructed in location 4.
A.
X2 - X4 = 0
B.
-X2 + X4 = 0
C.
X2 - X4 = 0
D.
-X2 + X4 = 0

11. An airport limousine service which parks all its limos at the airport can minimize its
cost by using a proper order to pick up passengers from their houses and return to the
airport using
A.
set covering problem
B.
traveling salesman problem
C.
knapsack problem
D.
fixed charge problem

12. An Avon lady carrying her tote containing makeup materials can maximize her profit
from one trip to the rural Mississippi hinterland if she models the process of loading
her bag (with the right materials having maximum profitability per unit volume) by
using
A.
set covering problem
B.
traveling salesman problem
 C.
knapsack problem
D.
fixed charge problem

Chapter 8

In the shortest route problem, the objective is to find the shortest route from an origin to a
destination through a network.
A.
True
B.
False

2. Shortest path algorithm given in the text will work even if the costs (distances) of the
arcs are negative.
A.
True
B.
False

3. In the linear programming formulation of the shortest path problem, the constraint
corresponding to the origin will have 1 on its RHS.
A.
True
B.
False

4. Flow conservation is assumed in the spanning tree problem.

A.
True
B.
False

5. In flows in network, the optimal solution to the maximal flow problem cannot have
flows simultaneously in both directions of an arc.
A.
True
B.
False
6. In the spanning tree algorithm, we try to find the shortest arc from the connected nodes
to any nodes of the rest of the graph.
A.
True
B.
False

7. In the spanning tree problem, one is trying to find the longest tree from the origin to the
destination.
A.
True
B.
False

8. In the shortest route problem, the algorithm will find all shortest paths from any node to
any node.
A.
True
B.
False

9.

In Figure 1, using the shortest route algorithm presented in the text, the node that would
be labeled with a permanent label next will be
A.
1.
 B.
2.
C.
3.
D.
5.

10.

In Figure 2, using the shortest route algorithm presented in the text book, the label and
the node that would get the permanent label will be
A.
3 and [5,2].
B.
4 and [8,2].
C.
5 and [7,1]
D.
2 and [3,1]
11.

In Figure 3, bold arc and all nodes attached to it is the connected node. Using the
algorithm in the text for finding the minimal spanning tree which will be the next node
that will be added to the set of connected nodes?
A.
3.
B.
6.
C.
4.
D.
5.

12.

What is the maximum flow possible from source to sink in the network given in Figure
4?
A.
9
 B.
8
C.
7
D.
10

Chapter 9

Like linear programs, nonlinear programs will have a maximization or minimization

objective function.
A.
True
B.
False

2. A necessary condition for a one variable decision problem with an objective function,
which is continuous, is that the first derivative of the function be 0 at a local maximum
or minimum point.
A.
True
B.
False

3. Necessary and sufficient conditions for the existence of a local maximum in a single
variable unconstrained nonlinear optimization problem is that the first derivative be 0 at
a point and the second derivative be negative at the same point.
A.
True
B.
False

4. Necessary and sufficient conditions for the existence of a local minimum in a single
variable unconstrained nonlinear optimization problem is the second derivative be
negative at a point and at the same point the slope of the function be 0.
A.
True
B.
False
5. In general global maximums value of the objective function of unconstrained nonlinear
optimization problems will be greater than all local maximums.
A.
True
B.
False

6. The local minimum of a convex function will also be the global minimum.
A.
True
B.
False

7. Partial derivatives are used to find extreme values of decision variables in a nonlinear
model with 2 or more variables.
A.
True
B.
False

8. The local minimum for the function 2 X2 4 X 3 is obtained when x is equal to:
A.
1
B.
2
C.
3
D.
4

9. The local maximum for the function f(X) = 8 X3 + 2 X2 4 X 3 is obtained when X is

equal to:
A.
1.
B.
1.
C.

D.
10. The value of the function f(X) = 4 X3 + 2 X2 4 X 10 at its local maximum is:
A.
8.
B.
8.
C.
1
D.
1.

11. For the function f(X) = 6 X2 +12 X + 30, the slope of the function is 0 at X equal to:
A.
6.
B.
12.
C.
3.
D.
1.

12. If the slope of the function f(X) = 4 X2 -24 X + 32, is 0 at X=3, then it follows that x=3
is a
A.
local maximum.
B.
local minimum.
C.
global maximum.
D.
saddle point.

Chapter 10

Goal programming differs from linear programming in the nature of constraints and the
objective function.
A.
True
B.
False
2. Constraints in linear programming maybe considered as soft constraints and the
constraints in goal programming may be considered as hard constraints.
A.
True
B.
False

3. In goal programming, hard constraints are satisfied and soft constraints are brought to
acceptable levels (satisficing).
A.
True
B.
False

4. Goal constraints have deviation variables and are expressed as equations.

A.
True
B.
False

5. While solving goal programming problems using graphical method, deviations from the
constraints can be found directly from the graph.
A.
True
B.
False

6. Analytical hierarchy process answers the question of which alternative to select based
on multiple criteria.
A.
True
B.
False

7. In analytical hierarchy process, the normalized pairwise comparison matrix have rows
adding up to 1.0.
A.
True
B.
False
8. In the analytical hierarchy process, one multiplies the pair wise comparison matrix by
criteria % to get weighted sum priority vector.
A.
True
B.
False

9. The primary objective of goal programming is to

A.
optimize each goal or objective.
B.
minimize all goal deviations.
C.
satisfy all constraints (goal and non-goal).
D.
satisfy non-goal constraints and satisfice goal constraints

10. In goal programming models

A.
Deviation variables appear only in goal constraints.
B.
Goal constraints can be expressed as inequalities.
C.
Conflicting goals are not allowed.
D.
Zero one variables are used to represent goal variations.

11. Which of the following phrases best describes deviation variables in goal
programming?
A.
The acceptable level of goal achievement
B.
The gap between actual achievement and target performance.
C.
The variability of resource availability.
D. The difference between maximum and minimum achievement levels of goal
achievement.

12. Goal constraints are referred to as soft constraints because they

 A.
are easy to achieve.
B.
have no real physical interpretation.
C.
are easily satisfied by any solution.
D.
are not strict requirements for feasibility.

Chapter 11

Decision theory always guarantees optimal solution.

A.
True
B.
False

2. Decision theory provides a rational and logical way of making decisions.

A.
True
B.
False

3. In pruning (evaluating) a decision tree, you write the expected payoff at a random
outcome node inside the circle or square representing that node.
A.
True
B.
False

4. Which of the following is not a part of decision tree problem specification.

A.
A list of alternatives.
 B.
A list of possible states of nature.
C.
Expected value of perfect information.
D.
Payoffs associated with alternative/state of nature combination.

5. If a decision theory problem has 3 decision alternatives and 4 states of nature, the
number of payoffs in that problem will be
A.
3
B.
4
C.
12
D.
64

6. In a decision theory problem under complete uncertainty, which one of the following
approaches will not be possible?
A.
Expected monetary value.
B.
Maximin.
C.
Minimax.
D.
Hurwicz.

7. Projected payoff corresponding to various levels of business expansion and economic

conditions faced by Ramcast Cable Inc. is given in the table below. Using Hurwicz
criterion with =0.7, identify the correct decision for Ramcast Cable Inc.
 A.
d1
B.
d2
C.
d3
D.
d4

8. Expected payoff corresponding to various levels of business expansion and economic

conditions faced by Ramcast Cable Inc. is given in the table below. The probabilities of
the events are also given. Using expected monetary value criterion, identify the correct
decision for Ramcast Cable Inc.

A.
d1
B.
d2
C.
d3
D.
d4

9. Projected payoff corresponding to various levels of business expansion and economic

conditions faced by Ramcast Cable Inc. is given in the table below. Using minimizing
opportunity loss criterion, identify the correct decision for Ramcast Cable Inc.
 A.
d1
B.
d2
C.
d3
D.
d4

10. Expected payoff corresponding to various levels of business expansion and economic
conditions faced by Ramcast Cable Inc. is given in the table below. The probabilities of
the events are also given. What is the minimum expected opportunity loss in the payoff
matrix given below.

A.
180000
B.
435000
C.
390000
D.
149000
11. Prior probabilities for economic boom, moderate growth and recession in the
Land_of_the_bipeds is given below. There is a Land_of_Mortals where there are only
two states Boost or Roast. Conditional probability of Boost or Roast given various
states of economic conditions in the Land_of_the_bipeds is also known and presented
below.

The P(Boost) is
A.
0.16
B.
0.15
C.
0.46
D.
0.54

12. Prior probabilities for economic boom, moderate growth and recession in the
Land_of_the_bipeds is given below. There is a Land_of_Mortals where there are only
two states Boost or Roast. Conditional probability of Boost or Roast given various
states of economic conditions in the Land_of_the_bipeds is also known and presented
below.

The P(Roast) is
A.
0.16
B.
0.54
C.
0.46
D.
0.04
Chapter 12

Markov Analysis has many business applications such as accounts receivables analysis and
machine maintenance.
A.
True
B.
False

2. In Markov systems, the probability of going from one state in period n to another state
in period (n+1) depends on what states the system traveled in periods 1,2,,n.
A.
True
B.
False

3. The states in a Markov system are mutually exclusive and collectively exhaustive.
A.
True
B.
False

4. If matrix A is multiplied by matrix B, (A.B), then the number of rows in A should equal
the number of columns in B.
A.
True
B.
False

5. Judy Jones purchases groceries and pop exactly once each week on Sunday evenings.
She buys either Coke or Pepsi only and switches from Coke to Pepsi and vice-versa
sort of regularly. Her purchasing behavior of these two drinks is modeled as a Markov
system. Querying Judy, a novice student came up with the following transition matrix
be. Does this matrix satisfy all the conditions for being a transition matrix?

A.
True
 B.
False

6. Expected value of perfect information (EVPI) will be greater than expected opportunity
loss associated with the EMV maximizing decision.
A.
True
B.
False

7. Which of the following is not a part of the characteristics of a Markov system?

A.
In each period the system can assume one of a number of states.
B. Transition probabilities describing the system changes from period to period
remain constant.
C.
The states of the system overlap.
D. The probability of going from a state in period n to another state in period (n+1)
depends only on the current state of the system.

8. Judy Jones purchases groceries and pop exactly once each week on Sunday evenings.
She buys either Coke or Pepsi only and switches from Coke to Pepsi and vice-versa
sort of regularly. Her purchasing behavior of these two drinks is modeled as a Markov
system. Let the transition matrix be:

If in Week #7, Judy has purchased Coke, what is the probability that she would purchase
Pepsi in Week #8?
A.
0.7
B.
0.6
C.
0.3
D.
cannot tell without her purchase behavior in Weeks 1-6.

9. Judy Jones purchases groceries and pop exactly once each week on Sunday evenings.
She buys either Coke or Pepsi only and switches from Coke to Pepsi and vice-versa
sort of regularly. Her purchasing behavior of these two drinks is modeled as a Markov
 system. Let the transition matrix be:

If in Week #7, Judy has purchased Coke, what is the probability that she would purchase
Pepsi in Week #9?
A.
0.21
B.
0.39
C.
0.18
D.
cannot tell without her purchase behavior in Weeks 1-6.

10. Judy Jones purchases groceries and pop exactly once each week on Sunday evenings.
She buys either Coke or Pepsi only and switches from Coke to Pepsi and vice-versa
sort of regularly. Her purchasing behavior of these two drinks is modeled as a Markov
system. Let the transition matrix be:

Let P(Coke) and P(Pepsi) respectively denote the steady state probability that Judy will
buy Coke or Pepsi in the very long run on any week. Which of the following is the
correct system of equations to find these steady state probabilities?
A. P(Coke)*0.7+P(Pepsi)*0.4 = P(Coke) and P(Coke)*0.3+P(Pepsi)*0.6 =
P(Pepsi)
B. P(Coke)*0.7+P(Pepsi)*0.3 = P(Coke) and P(Coke)*0.4+P(Pepsi)*0.6 =
P(Pepsi)
C. P(Coke)*0.7+P(Pepsi)*0.4 = P(Pepsi) and P(Coke)*0.3+P(Pepsi)*0.6 =
P(Coke)
D.
P(Coke)*0.7+P(Pepsi)*0.4 = P(Coke) and P(Coke)+P(Pepsi) = 1.0

11. Judy Jones purchases groceries and pop exactly once each week on Sunday evenings.
She buys either Coke or Pepsi only and switches from Coke to Pepsi and vice-versa
sort of regularly. Her purchasing behavior of these two drinks is modeled as a Markov
system. Let the transition matrix be:

If in Week #7, Judy is equally likely to be purchasing Coke or Pepsi (0.5 each), what is
the probability that she would purchase Pepsi in Week #8?
A.
0.45
 B.
0.55
C.
0.5
D.
0.3

12. Judy Jones purchases groceries and pop exactly once each week on Sunday evenings.
She buys either Coke or Pepsi only and switches from Coke to Pepsi and vice-versa
sort of regularly. Her purchasing behavior of these two drinks is modeled as a Markov
system. Let the transition matrix be:

Let P(Coke) and P(Pepsi) respectively denote the steady state probability that Judy will
buy Coke or Pepsi in the very long run on any week. P(Coke) for this data will be:
A.
0.7
B.
0.6
C.
3/7
D.
4/7

Chapter 13-----------------

Chapter 14

Using simulation, one should be able to find the optimal solution in a

reasonable amount of computation time.
A.
True
B.
False

2. For simple waiting line systems, the use of simulation makes it easier to
find the operating characteristics than the use of waiting line theory.
A.
True
 B.
False

3. An advantage of simulation is that decision makers can see the effects of

a policy over several years before making a decision.
A.
True
B.
False

4. In simulation several alternatives are evaluated and one chooses the best
among the alternatives evaluated.
A.
True
B.
False

5. Using simulation, one can exhaust all possible options for a problem and
thus find the optimal solution, though it may take a little longer
computation time.
A.
True
B.
False

6. Two properties of random number tables are:

A.
Uniformity and randomness.
B.
Normality and order.
C.
Independence and normality.
D.
Independence and uniformity.

7. Natural logarithms is used in simulating a

A.
Binomial distribution.
 B.
Negative exponential distribution.
C.
Normal distribution.
D.
Uniform distribution.

8. An important benefit of simulation is that it

A.
can handle problems that cannot be solved analytically.
B.
can always find the optimal solution.
C.
is relatively fast and cheap in terms of calculations.
D.
evaluates and finds an exact solution for the problem at hand.

9. Which of the following is not true about simulation?

A.
The process involves significant effort.
B.
It should not be the first choice to solve problems.
C.
It is generally a non-optimizing technique.
D.
It has limited practical application.

10. An analyst is simulating demand, which is hypothesized to follow a

uniform distribution in the range of [20,39]. Allowing only integer
values, picking 2 digit random numbers and associating 00-04 with 20,
05-09 with 21, etc., what will be the simulated demand corresponding to
a random number choice of 43?
A.
28
B.
27
C.
26
D.
29.
11. Time between failures of a critical machine follow normal distribution
with a mean of 30 hours and a standard deviation of 5 hours. If the
random normal deviate chosen is 2.5, the number of simulated hours
before the next failure will be:
A.
17.5
B.
32.5
C.
27.5
D.
42.5

12. Simulating a discrete distribution with two events H with probability

0.35 and T with probability 0.65, using two digit random numbers, is
usually done by associating random number from 00 to 34, with H and
35 to 99 with T. A new analyst wants to associate 00 to 09 and 75 to 99
with H and the remaining random numbers with T. Which of the
following is true?
A. The new method will not work properly since it will create a
tails bias.
B. The new method will work most of the times, but not in
relatively smaller simulations.
C.
The new method is as good as the old method.
D. The new method should only be used if we have an enormous
number of runs to offset bias.