Introduction to Management Science and Business Analytics A Modeling and Case Studies Approach with by Ace Test Banks

Introduction to Management Science and Business Analytics A Modeling and Case Studies Approach with spreadsheets 7th Edition

By Mark S. Hillier, Frederick S Hillier

1) The discovery of the simplex method in 1947 was the beginning of management science as a

discipline. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-6 The discovery of the simplex method...

2) Once management makes its decisions, the management science team typically is finished

with its involvement in the problem. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe mathematical models and spreadsheet models Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-12 Once management makes its decisions,...

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3) A management science team will try to conduct a systematic investigation of a problem that

includes careful data gathering, developing and testing hypotheses, and then applying sound logic in the analysis. 3) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-9 A management science team will try...

4) Managers may base their decisions on which of the following? 4) ______ A) B) C) D) E)

All of the answer choices are correct. Their best judgment Quantitative factors Opinions from other managers Past experience

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > MC Qu. 1-22 Managers may base their decisions...

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5) Managers need to know the mathematical theory behind the techniques of management

science so that they can lead management science teams. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-1 Managers need to know the mathematical...

6) Prescriptive analytics uses analytical techniques to determine the best option for future

decisions. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > TF Qu. 1-19 Prescriptive analytics uses analytical...

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7) Descriptive analytics is the process of describing what may happen in the future. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > TF Qu. 1-18 Descriptive analytics is the process...

8) The mathematical model of a business problem is the system of equations and related

mathematical expressions that describes the essence of the problem. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe mathematical models and spreadsheet models Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-10 The mathematical model of a business...

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9) Business analytics refers to the process of transforming data into insight. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > TF Qu. 1-3 Business analytics refers to the...

10) Business analytics has developed completely new and unique techniques for analyzing data. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the relationship between management science and business analytics Topic : The Relationship between Management Science and Business Analytics Source : Chapter 01 Test Bank - Static > TF Qu. 1-15 Business analytics has developed...

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11) A decision variable is an algebraic variable that represents a quantifiable decision to be

made. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe mathematical models and spreadsheet models Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-14 A decision variable is an...

12) Descriptive, predictive, and prescriptive analytics have the same goal. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > TF Qu. 1-17 Descriptive, predictive, and prescriptive...

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13) The rapid growth of computing capability and power has led to a corresponding rapid growth

of the management science discipline. 13) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-7 The rapid growth of computing capability...

14) Management scientists use mathematical techniques to make and implement decisions. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-2 Management scientists use mathematical techniques to...

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15) Business analytics is a field which 15) ______ A) B) C) D) E)

uses predictive analytics to determine the best course of action. aids managerial decision making through the use of data. is the same as operations research. uses descriptive analytics to predict the future. uses prescriptive analytics to analyze trends.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Define the term management science Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > MC Qu. 1-26 Business analytics is a field...

16) Predictive analytics is the process of using data to 16) ______ A) B) C) D) E)

solve linear programming problems. determine the break-even point. analyze trends. determine the best course of action for the future. predict what will happen in the future.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the three categories of business analytics Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > MC Qu. 1-28 Predictive analytics is the process...

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17) Management science is based strongly on which of the following fields? 17) ______ A) B) C) D) E)

Computer science Mathematics All of the above Business administration Mathematics and Computer science

18) Business analytics draws upon a variety of quantitative decision sciences for techniques that

are useful for analyzing data. 18) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the relationship between management science and business analytics Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > TF Qu. 1-16 Business analytics draws upon a...

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19) A mathematical model of a business problem allows a manager to evaluate both quantitative

and qualitative aspects of the problem. 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe mathematical models and spreadsheet models Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-11 A mathematical model of a...

20) Descriptive analytics is the process of using data to 20) ______ A) B) C) D) E)

determine the best course of action for the future. solve linear programming problems. determine the break-even point. predict what will happen in the future. analyze trends.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the nature of management science Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > MC Qu. 1-27 Descriptive analytics is the process...

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21) Which of these statements about business analytics is FALSE? 21) ______ A) B) C) D) E)

Business analytics uses data analysis tools. Business analytics and data science are the same thing. Business analytics is a relatively new field (less than 20 years old). All of the above are true. Business analytics can be descriptive, predictive or prescriptive.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > MC Qu. 1-24 Which of the following are...

22) In general, business analysts are likely to use _____________ tools when performing

descriptive analytics, but are more likely to use _____________ tools when performing prescriptive analytics. 22) ______ A) forecasting, data visualization B) management science, data visualization C) business analytics, management science D) management science, business analytics E) business analytics, data visualization Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe the relationship between management science and business analytics Topic : The Relationship between Management Science and Business Analytics Source : Chapter 01 Test Bank - Static > MC Qu. 1-30 In general, business analysts...

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23) The term “big data” refers to the collection of large data sets from computer tracking of

activities such as sales, web traffic, and social network postings. 23) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the nature of management science Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > TF Qu. 1-13 The term &#8220;big data&#8221; refers to the...

24) Prescriptive analytics is the process of using data to 24) ______ A) B) C) D) E)

solve linear programming problems. determine the break-even point. predict what will happen in the future. analyze trends. determine the best course of action for the future.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the three categories of business analytics Topic : What is Business Analytics? Source : Chapter 01 Test Bank - Static > MC Qu. 1-29 Prescriptive analytics is the process...

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25) Managers must rely on management science experts to create and understand managerial

problems. 25) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-4 Managers must rely on management science...

26) The rapid development of the management science discipline can be credited in part to: 26) ______ A) World War I B) George Dantzig C) The computer revolution D) World War I, George Dantzig, and the computer revolution E) George Dantzig and the computer revolution Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > MC Qu. 1-21 The rapid development of the...

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27) Which of the following are steps in a typical management science study? 27) ______ A) B) C) D) E)

Help to implement the recommendations. All of the answer choices are correct. Define the problem and gather data. Test the model and refine it as needed. Formulate a model to represent the problem.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > MC Qu. 1-25 Which of the following are...

28) Management science is a discipline that attempts to aid managerial decision making by

applying a scientific approach to managerial problems that involve quantitative factors. 28) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-5 Management science is a discipline that...

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29) Managers make decisions based solely on the quantitative factors involved in the problem. 29) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the nature of management science Topic : The Nature of Management Science Source : Chapter 01 Test Bank - Static > TF Qu. 1-8 Managers make decisions based solely on...

30) Enlightened future managers should know which of the following? 30) ______ A) B) C) D) E)

All of the answer choices are correct. When management science can and cannot be applied The power and relevance of management science How to interpret the results of a management science study How to apply the major techniques of management science

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Answer Key Test name: Chapter 01 Test Bank 1) FALSE 2) FALSE 3) TRUE 4) A 5) FALSE 6) TRUE 7) FALSE 8) TRUE 9) TRUE 10) FALSE 11) TRUE 12) FALSE 13) TRUE 14) FALSE 15) B 16) E 17) E 18) TRUE 19) FALSE 20) E 21) B 22) C 23) TRUE 24) E 25) FALSE 26) E 27) B 28) TRUE 29) FALSE 30) A

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1) In predictive analytics, model testing may involve 1) ______ A) B) C) D) E)

analyzing historical data to evaluate model performance. comparing the problem definition with the model. All of the above. checking the plausibility of model output. reviewing the process and models for errors.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-86 In predictive analytics, model testing may involve

2) Which of the following is(are) primary objective(s) of descriptive analytics? 1. Data familiarization 2. Data gathering 3. Communication 2) ______ A) B) C) D) E)

I and II only II only I and III only III only I only

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-70 Which of the following is(are) primary objective(s)...

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3) Prescriptive analytics involves the use of decision models to recommend a course of action. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-41 Prescriptive analytics involves the use of decision...

4) A description of the variables in a collection of data is known as a data dictionary. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-14 A description of the variables in a collection...

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5) The final step in predictive analytics is implementation. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-40 The final step in predictive analytics is implementation.

6) The process of correcting and reformatting data prior to data visualization is known as 6) ______ A) data cleaning. B) data washing. C) data processing. D) data management. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-65 The process of correcting and...

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7) Relationships among three or more variables are often explored using a single correlation

coefficient. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-20 Relationships among three or more variables are...

8) Possible objectives for a decision model project include which of the following? 8) ______ A) Increasing market share B) Achieving satisfactory profits while satisfying other goals C) All of the above D) Maintaining stable profits E) Maximizing long-run profits Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > MC Qu. 2-58 Possible objectives for a decision model...

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9) A decision model is successful only if it fully solves the problem without error or

simplification. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-48 A decision model is successful only if it fully...

10) Decision models determine the best values for the constraints to optimize the decision

variables. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-44 Decision models determine the best values...

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11) Categorical variables can only take on a small number of possible values. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-16 Categorical variables can only take on a...

12) Post-optimality analysis is used to identify and describe 12) ______ A) B) C) D) E)

conditions that are likely to change in the real world. satisficing solutions. possible changes to the optimal solution under different conditions. alternate optimal solutions. possible implementation difficulties.

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13) For a descriptive analytics project, a variable such as nationality would most likely be treated

as a(n) __________ variable. 13) ______ A) B) C) D)

decision unknown numerical categorical

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-64 For a descriptive analytics project, a variable...

14) Data cleaning is a manual task that can only be completed by a human operator. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-17 Data cleaning is a manual task that can...

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15) In predictive analytics, models are often tested and refined several times before being

deemed satisfactory. 15) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-39 In predictive analytics, models are often...

16) One common means of exploring the data is the 16) ______ A) B) C) D)

Data Flagging process. Knowledge Discovery in Databases process. Extract, Transform, and Load process. Data Cleansing process.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-67 One common means of exploring the data is the

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17) A data warehouse is the storage system used to display the results of a descriptive analytics

project. 17) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-9 A data warehouse is the storage system...

18) Once a predictive analytics model is tested, the model development step is complete. 18) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-37 Once a predictive analytics model...

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19) Model implementation may involve a training period where users learn how to use the model

and its outputs. 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-54 Model implementation may involve a training...

20) Descriptive analytics has the dual goals of data familiarization and communication. 20) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-22 Descriptive analytics has the dual goals of data...

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21) A study team generally expected to solve a problem and implement that solution. 21) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > TF Qu. 2-1 A study team generally expected to solve...

22) The k-nearest neighbors algorithm (KNN) predicts a customer’s actions based upon the

actions of those who live in the house next door. 22) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-27 The k-nearest neighbors algorithm...

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23) Sorting and filtering are two ways to conduct data exploration. 23) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-21 Sorting and filtering are two ways to conduct...

24) Because of standardization, it is rare for a project team to encounter problems with data

formatting. 24) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-11 Because of standardization, it is rare for...

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25) Data exploration often makes use of visual tools such as scatter plots and pie charts. 25) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-19 Data exploration often makes use of visual...

26) The first step in a descriptive analytics project is to 26) ______ A) B) C) D)

gather and organize relevant data. clean the data. explore the data. communicate performance information using visualization.

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27) In prescriptive analytics, a common goal is to identify an optimal solution, which is 27) ______ A) a solution that isn’t necessarily the best, but isn’t the worst. B) C) D) E)

the best infeasible solution. the best feasible solution. a solution that is easy to implement. the first solution identified.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-84 In prescriptive analytics, a common goal...

28) A decision model 28) ______ A) B) C) D) E)

is used in prescriptive analytics. describes the relationship between two variables. is used during the data cleaning process. is used to determine which type of data visualization to employ. is used in predictive analytics.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-80 A decision model

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29) In predictive analytics, the test and refine step 29) ______ A) B) C) D) E)

All of the above. makes use of tools such as confusion matrices and error reports. may be repeated several times. uses graphics such as lift charts. generates metrics such as specificity and sensitivity.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-79 In predictive analytics, the test and refine step

30) Predictive analytics attempts to generate a prediction for an outcome variable. 30) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-31 Predictive analytics attempts to generate...

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31) A study team normally 31) ______ A) B) C) D) E)

works in an advisory capacity. consists of top-level managers. evaluates the study and its recommendations. solves a problem in the way they determine is best. All of the above.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > MC Qu. 2-56 A study team normally

32) In predictive analytics, a more complex model is always preferred to a simpler model. 32) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-35 In predictive analytics, a more complex...

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33) Descriptive analytics is the process of analyzing data to increase understanding of what has

happened in the past. 33) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > TF Qu. 2-7 Descriptive analytics is the process of analyzing...

34) Model validation can only be performed using historical data. 34) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-52 Model validation can only be performed...

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35) The best analytics objectives are limited to a small portion of the organization to ensure

focus. 35) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > TF Qu. 2-6 The best analytics objectives are limited to...

36) One way to check if a model is overfitting is to partition the data into a training data set (to

build the model) and a validation data set (to test the model). 36) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-36 One way to check if a model is overfitting...

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37) What-if analysis is the process of determining how a decision model’s output might change if

certain inputs were different. 37) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-50 What-if analysis is the process of determining how...

38) Descriptive analytics is only applicable to a small subset of firms. 38) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-8 Descriptive analytics is only applicable...

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39) In predictive analytics, the term “model” refers to 39) ______ A) B) C) D) E)

a small, physical representation of the data. a data visualization technique. a subset of the data. All of the above. a systematic procedure for applying an algorithm.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-72 In predictive analytics, the term &#8220;model&#8221; refers to

40) A common method of data cleaning is the ETL process, where ETL is an acronym for 40) ______ A) Experience, Training and Logic. B) Enhanced Topic Linking. C) Extra Time Loading. D) Extract, Transform, and Load. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-66 A common method of data cleaning is the...

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41) For a descriptive analytics project, a variable such as profit would most likely be treated as

a(n) __________ variable. 41) ______ A) B) C) D)

unknown decision categorical numerical

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-63 For a descriptive analytics project, a variable...

42) Decision models often are developed as simple models, but become more complex as

additional factors are added. 42) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-47 Decision models often are developed as simple...

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43) Prescriptive analytics follows the same five-step process as predictive analytics. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-42 Prescriptive analytics follows the same five...

44) Predictive analytics makes use of preexisting data models, also known as algorithms. 44) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-26 Predictive analytics makes use of preexisting...

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45) Decision models are used to try to find the best values for the decision variables. 45) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-45 Decision models are used to try to find the...

46) A prediction model uses data to predict a yes-or-no outcome. 46) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-29 A prediction model uses data to predict...

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47) After model implementation, the project team should document the procedure management

will need to apply the model. 47) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-55 After model implementation, the project...

48) A data warehouse is most likely to be used during which step of descriptive analytics? 48) ______ A) Gather and organize relevant data. B) Explore the data. C) Clean the data. D) Communicate performance information using visualization. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-60 A data warehouse is most likely to be used...

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49) Predictive analytics is often referred to as data mining. 49) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-25 Predictive analytics is often referred...

50) Prescriptive analytics makes use of decision models. 50) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-43 Prescriptive analytics makes use of decision models.

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51) In prescriptive analytics, the most common approach is to 51) ______ A) B) C) D) E)

start with a simple model and add features if needed. start with an intermediate model and add or remove features as needed. start with a complex model and avoid changes. start with a simple model and avoid changes. start with a complex model and remove unneeded features later.

52) In the data exploring tasks, which of the following are commonly used techniques? 52) ______ A) Filtering of data B) Calculation of summary statistics C) All of the above D) Calculation of performance metrics E) Sorting of data Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-68 In the data exploring tasks, which of the following...

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53) In predictive analytics, it is important to use the same data for model development, model

testing and predictions. 53) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-33 In predictive analytics, it is important...

54) Predictive analytics is also known as 54) ______ A) B) C) D) E)

data discovery. prescriptive analytics. data cleaning. data visualization. data mining.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-71 Predictive analytics is also known as

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55) Predictive analytics is focused on providing estimates of what is likely to happen in the

future. 55) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-23 Predictive analytics is focused on providing...

56) Predictive analytics is viewed as a three-step process. 56) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-24 Predictive analytics is viewed as a three-step process.

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57) The final decision about a solution to a problem is made by the study team. 57) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > TF Qu. 2-4 The final decision about a solution to a problem...

58) In addition to presenting one or more possible solutions to management, a study team should

also report the assumptions and trade-offs associated with each solution. 58) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > TF Qu. 2-3 In addition to presenting one or more possible...

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59) Predictive analytics attempts to generate a prediction for an outcome variable by using a set

of predictor variables as model inputs. 59) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-32 Predictive analytics attempts to generate...

60) After cleaning the data, the next step in descriptive analytics is to explore the data to see what

useful knowledge it may provide. 60) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-18 After cleaning the data, the next step in descriptive...

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61) Which of the following statements about predictive analytics models is FALSE? 61) ______ A) Predictive models are used to predict a numeric outcome B) A predictive model would be used to predict whether or not a student might fail a

course C) Predicting a customer’s negative response would require a classification model D) Estimating future sales would require a predictive model E) Classification models are used to predict a yes-or-no outcome Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-74 Which of the following statements about predictive...

62) The modeling goal for predictive analytics is to 62) ______ A) B) C) D) E)

provide visualization of the historical data. describe the noise in the data. effectively predict an outcome. perfectly fit the historical data. construct the simplest possible model.

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63) During data exploration, a wide variety of data visualization tools are available. Which of the

following is NOT a data visualization technique? 63) ______ A) B) C) D) E)

All of the above are data visualization techniques Histograms Pie charts Scatter plots Summary statistics

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-69 During data exploration, a wide variety of data...

64) All variables in a data set must be numbers. 64) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-15 All variables in a data set must be numbers.

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65) Which of the following is true about decision models used in prescriptive analytics? 1. Decision models are expressed mathematically 2. Decisions to be made are represented with decision variables 3. The performance measure is called a constraint 65) ______ A) II only B) I and III only C) I only D) III only E) I and II only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-81 Which of the following is true about decision models...

66) In predictive analytics, a model that fits the data too precisely is exhibiting the undesirable

trait known as overfitting. 66) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-34 In predictive analytics, a model that fits the...

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67) Once a model is validated it is ready for implementation. 67) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-53 Once a model is validated it is ready for...

68) A lift chart shows the improvement offered by a model when compared to the previously

determined best model. 68) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-38 A lift chart shows the improvement offered...

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69) Predictive analytics uses two major categories of models – prediction models and

classification models. 69) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-28 Predictive analytics uses two major...

70) Optimizing and satisficing are the same concept. 70) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-49 Optimizing and satisficing are the same concept.

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71) The predictive analytical technique that makes use of different datasets for model training

and model validation is known as 71) ______ A) B) C) D) E)

partitioning. randomness. data cleaning. regression analysis. overfitting.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-76 The predictive analytical technique that...

72) During the validation of a predictive analytics model, 72) ______ A) B) C) D) E)

None of the above. a training partition is used to test the model’s performance. a validation partition is used to train the model. a training partition is used to fine-tune the model. a validation partition is used to test the model’s performance.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-78 During the validation of a predictive analytics...

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73) A prediction model uses data to predict a numeric outcome. 73) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-30 A prediction model uses data to predict...

74) The data corresponding to an individual entity in a collection of data is known as a variable. 74) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-13 The data corresponding to an individual...

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75) The major categories of models in predictive analytics are 1. Classification models 2. Prediction models 3. Descriptive models 75) ______ A) B) C) D) E)

I only I and III only I and II only III only II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-73 The major categories of models in predictive...

76) A collection of data is referred to as a dataset. 76) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-12 A collection of data is referred to as a dataset.

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77) A collection of data gathered for a descriptive analytics project is known as a 77) ______ A) B) C) D)

dataset. variable. record. outcome.

78) Each entity (for example, a customer) in a dataset is represented with a 78) ______ A) B) C) D)

record. variable. model. outcome.

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79) The most common type of decision model is the 79) ______ A) B) C) D) E)

linear programming model. linear discussion model. classification model. multiple regression model. linear regression model.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-82 The most common type of decision model is the

80) Testing of decision models involves determining if the model can find a reasonably valid

solution to the original problem. 80) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-51 Testing of decision models involves determining...

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81) Before gathering data, a project team should have a clear definition of the study objectives

and evaluation criteria. 81) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Descriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-10 Before gathering data, a project team should...

82) A study team’s first task is usually to 82) ______ A) B) C) D)

study the relevant system. identify the key decision-makers. gather relevant data. present potential solutions to management.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > MC Qu. 2-57 A study team&#8217;s first task is usually to

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83) Prescriptive analytics projects involve more extensive problem definition than predictive

analytics projects. 83) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > TF Qu. 2-5 Prescriptive analytics projects involve more...

84) A predictive model uses _____________ to estimate future values of a(n) _____________

variable. 84) ______ A) B) C) D) E)

predictor variables, outcome numeric variables, categorical categorical variables, numeric outcome variables, predictor predictor variables, categorical

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Predictive Analytics Source : Chapter 02 Test Bank - Static > MC Qu. 2-75 A predictive model uses _____________ to estimate...

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85) Decision models represent reality in full detail, without the need for any assumptions or

simplifications. 85) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 - Medium Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Performing Prescriptive Analytics Source : Chapter 02 Test Bank - Static > TF Qu. 2-46 Decision models represent reality in full detail,...

86) In general, a study team presents recommendations to management. 86) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 - Easy Gradable : automatic Learning Objective : Describe the phases of a project. Topic : Define the Problem Source : Chapter 02 Test Bank - Static > TF Qu. 2-2 In general, a study team presents recommendations...

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Answer Key Test name: Chapter 02 Test Bank 1) C 2) C 3) TRUE 4) TRUE 5) TRUE 6) A 7) FALSE 8) C 9) FALSE 10) FALSE 11) TRUE 12) C 13) D 14) FALSE 15) TRUE 16) B 17) FALSE 18) FALSE 19) TRUE 20) TRUE 21) FALSE 22) FALSE 23) TRUE 24) FALSE 25) TRUE 26) A 27) C 28) A 29) A 30) TRUE 31) A 32) FALSE 33) TRUE 34) FALSE 35) FALSE 36) TRUE 37) TRUE

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38) FALSE 39) E 40) D 41) D 42) TRUE 43) FALSE 44) TRUE 45) TRUE 46) FALSE 47) FALSE 48) A 49) TRUE 50) TRUE 51) A 52) C 53) FALSE 54) E 55) TRUE 56) FALSE 57) FALSE 58) TRUE 59) TRUE 60) TRUE 61) E 62) C 63) E 64) FALSE 65) E 66) TRUE 67) FALSE 68) FALSE 69) TRUE 70) FALSE 71) A 72) E 73) TRUE 74) FALSE 75) C 76) TRUE 77) A

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78) A 79) A 80) TRUE 81) TRUE 82) A 83) TRUE 84) A 85) FALSE 86) TRUE

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1) The result of a multiple linear regression analysis is the following regression equation:

y ≈ 10x1 + 5x2 Which of the following statements is FALSE? 1) ______ A) B) C) D) E)

y is the outcome variable A change in x2 causes a the same change in y as an identical change in x1 A change in x1 causes a larger change in y than an identical change in x2 A change in x1 causes a smaller change in y than an identical change in x2 A change in x2 causes a the same change in y as an identical change in x1

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-55 Which of the following statements...

2) Logistic regression is useful for predicting outcomes for categorical variables. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > TF Qu. 03-27 Logistic regression is useful for predicting...

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3) The Gini Index has a minimum value of 0 (no homogeneity) and a maximum value of 1

(complete homogeneity). 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-15 The Gini Index has a minimum value...

4) Affinity analysis is used to guide product placement and bundling. In this application, it is

often known as 4) ______ A) B) C) D) E)

market basket analysis. detailed analysis. sales analysis. regression analysis. None of the above.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Describe the kind of managerial guidance that the technique for affinity analysi Topic : Affinity Analysis and Recommendation Systems Source : Chapter 03 Test Bank - Static > MC QU. 03-58 Affinity analysis is used to...

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5) Which of the following statements is TRUE? 5) ______ A) B) C) D) E)

Classification trees and regression trees have few similarities. Classification trees and regression trees are exactly the same. Classification trees and regression trees are very similar. Classification trees are used with numerical outcome variables. Regression trees are used with categorical outcome variables.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of models based upon classification tree diagrams or pred Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > MC QU. 03-42 Which of the following...

6) A proposed classification tree region has a population of 10 historical records. For 8 of these

records, the categorical variable has the value “Blue”. For the remaining records, the categorical variable has the value “Red.” What is the Gini Index for this region? 6) ______ A) 0.24 B) 0 C) 0.28 D) 0.32 E) 0.5 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Source : Chapter 03 Test Bank - Static > MC QU. 03-39 A proposed classification tree region has a population...

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7) The k-nearest-neighbors algorithm can function as both a classification and prediction

algorithm. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-11 The k-nearest-neighbors algorithm can...

8) In the k-nearest-neighbors algorithm, k is a number that can be either an integer (e.g. 2) or a

fraction (e.g. ¾). 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-02 In the k-nearest-neighbors...

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9) What is the Euclidean (straight-line) distance between the points (7,2) and (1,10)? 9) ______ A) 9. B) 10. C) 12. D) 5. E) 20. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > MC Qu. 03-29 What is the Euclidean (straight-line) distance...

10) The Euclidean (straight-line) distance between the points (3,5) and (6,7) is 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-06 The Euclidean (straight-line) distance...

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11) What is the Euclidean (straight-line) distance between the points (6,9,1) and (5,2,8)? 11) ______ A) 5.25. B) 9.95. C) 19.74. D) 10.11. E) 15.38. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > MC Qu. 03-30 What is the Euclidean (straight-line) distance...

12) There are two major categories of predictive analytics models – prediction models and

classification models. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Perform predictive analytics on your own Topic : A Case Study: The Evergreen Solar Predictive Analytics Problem Source : Chapter 03 Test Bank - Static > TF Qu. 03-01 There are two major categories of predictive...

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13) When using the k-nearest-neighbors algorithm with k = 4, you find that three of the

neighbors have a predictor variable value of “yes” while one of the neighbors has a predictor variable value of “no”. What is your prediction for the new record’s outcome? 13) ______ A) It is impossible to predict unless all neighbors have the same value. B) “Yes”, because the majority of the neighbors had this value. C) “Yes”, because all the neighbors had this value. D) “No”, because a single negative outcome outweighs the positive. E) “No”, because the majority of the neighbors had this value. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > MC QU. 03-33 When using the k-nearest-neighbors algorithm...

14) The result of a multiple linear regression analysis is the following regression equation:

Sales ≈ 100 × Advertising − 50 × Price Which of the following interpretations is correct? 14) ______ A) B) C) D) E)

When advertising increases, price decreases and sales increase. When advertising increases, price increases and sales decrease. When sales increase, advertising is decreased and price is increased. When sales increase, advertising is increased and price is decreased. When advertising increases and price decreases, sales increase.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-53 The result of a multiple linear regression...

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15) When using the k-nearest-neighbors algorithm, why is it important to rescale the data? 15) ______ A) Rescaling is part of the data cleaning process. B) Rescaled data is easier to interpret. C) To prevent a variable with larger values from dominating the other variables. D) All of the above. E) To simplify the distance calculations. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > MC QU. 03-31 When using the k-nearest-neighbors...

16) Affinity analysis can be used to determine the types of customers that tend to purchase

similar items. 16) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Describe the kind of managerial guidance that the technique for affinity analysi Topic : Affinity Analysis and Recommendation Systems Source : Chapter 03 Test Bank - Static > TF Qu. 03-28 Affinity analysis can be used to...

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17) A regression tree typically measures homogeneity using the Regression Index. 17) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-21 A regression tree typically measures homogeneity...

18) The homogeneity of a region can be measured using the Gini Index. 18) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-14 The homogeneity of a region can...

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19) When using a regression tree, the predicted value for a record is the mean value of the output

variable within the region it matches. 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-23 When using a regression tree, the predicted...

20) Which of the following are commonly used methods to rescale data prior to k-nearest-

neighbors analysis? 1. Normalization 2. Standardization 3. Homogenization 20) ______ A) B) C) D) E)

I and III only II and III only I only None of the above I and II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > MC QU. 03-32 Which of the following are commonly used methods...

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21) The main problem with the complete Bayes algorithm is that it is unlikely that a(n)

_________ match for a _________ number of variables will actually exist in a dataset. 21) ______ A) imperfect, large B) imperfect, small C) close, small D) perfect, large E) perfect, small Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-49 The main problem with the complete Bayes...

22) A regression tree would be most appropriate in which of these situations? 22) ______ A) B) C) D) E)

All historical records are placed in a single region. The outcome variable in the records is a categorical variable (e.g. yes/no). The outcome variable in the records is a numerical variable (e.g. 100.25). None of the above. Each historical record has been placed in its own, unique region.

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23) The k-nearest-neighbors algorithm predicts the behavior of a predictor record based upon the

historical data for a small set of similar records. 23) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-03 The k-nearest-neighbors algorithm predicts the...

24) The k-nearest-neighbors algorithm is limited to two predictor variables. 24) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-04 The k-nearest-neighbors algorithm is...

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25) The regression tree algorithm usually measures homogeneity of a region using 25) ______ A) B) C) D) E)

the Gini index. the regression index. regression similarity. the outcome variable mean. the outcome variable variance.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > MC QU. 03-43 The regression tree algorithm usually...

26) Multiple linear regression utilizes _________ to predict the value of _________. 26) ______ A) a single predictor variable, multiple outcome variables B) a single predictor variable, a single outcome variable C) multiple predictor variables, multiple outcome variables D) multiple predictor variables, a single outcome variable E) multiple outcome variables, a single predictor variable Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-52 Multiple linear regression...

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27) One algorithm that can be used to perform predictive analytics for categorical outcome

variables is the _________ Bayes algorithm. 27) ______ A) Revised B) Naïve C) Simple D) Complex Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-47 One algorithm that can be used to perform...

28) The result of a multiple linear regression analysis is the following regression equation:

Sales ≈ 100 × Advertising − 50 × Price What will the estimated value of Sales be when Advertising is 10 and Price is 2? 28) ______ A) B) C) D) E)

950 1,050 900 1,100 1,000

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-54 The result of a multiple linear regression...

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29) The effectiveness with which categorical data is split into regions with high homogeneity can

be measured with 29) ______ A) B) C) D) E)

the overall regression index. the overall Gini Index. None of the above. the regression index. the Gini Index.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > MC QU. 03-38 The effectiveness with which categorical...

30) A classification tree algorithm divides the historical data into progressively smaller, more

homogeneous regions until a stopping rule is triggered. 30) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-13 A classification tree algorithm divides the...

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31) The goal when constructing a classification tree is to divide the historical records into regions

such that the regions have the highest possible overall homogeneity. 31) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-16 The goal when constructing a classification tree is to divide...

32) A dataset has been divided into three regions, with the following characteristics. Region Population Size Regression Index 1 10 8 2 12 9 3 6 4

What is the Overall Regression Index for this dataset when divided into these regions? 32) ______ A) 8.5 B) 5.5 C) 9.5 D) 7.6 E) 6.5 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > MC QU. 03-45 A dataset has been divided into three...

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33) The classification tree algorithm is useful when 33) ______ A) B) C) D) E)

prediction of a categorical outcome variable is necessary. a category is discontinued. a new category is observed. historical records are not available. prediction of a numerical outcome variable is necessary.

34) The naïve Bayes algorithm works well unless 34) ______ A) B) C) D) E)

the predictor variables are independent. the outcome variables are uncorrelated. the outcome variables are highly correlated. the predictor variables are highly correlated. the predictor variables are uncorrelated.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-51 The na&#239;ve Bayes algorithm...

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35) When using the k-nearest-neighbors algorithm, what values of k are allowed? 35) ______ A) B) C) D) E)

None of the above Any integer value Any integer greater than 5 Any integer or fraction less than the number of historical records Any integer from 1 up to the number of historical records

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > MC QU. 03-34 When using the k-nearest-neighbors...

36) In the k-nearest-neighbors algorithm, distance is usually measured as the Euclidean (straight-

line) distance between points. 36) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-05 In the k-nearest-neighbors algorithm, distance...

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37) An algorithm that determines association among a large group of entities (such as which

products are commonly purchased together) is known as 37) ______ A) B) C) D) E)

association analysis. None of the above. infinity analysis. regression analysis. affinity analysis.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Describe the kind of managerial guidance that the technique for affinity analysi Topic : Affinity Analysis and Recommendation Systems Source : Chapter 03 Test Bank - Static > MC QU. 03-57 An algorithm that determines association among a large...

38) When utilizing the classification tree algorithm, the data is 38) ______ A) B) C) D) E)

not processed until a new predictor record requires classification. split into regions of relatively low homogeneity. randomly divided into classes. transformed into numerical variables prior to processing. split into regions of relatively high homogeneity.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > MC QU. 03-37 When utilizing the classification...

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39) A classification tree uses circular nodes to represent regions that have been split and square

nodes to represent regions that have not yet been split. 39) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-17 A classification tree uses circular nodes to...

40) A regression tree is used to predict numerical values. 40) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of models based upon classification tree diagrams or pred Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-19 A regression tree is used to...

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41) A proposed classification tree region has two regions. Region 1 has a population of 10

historical records and a Gini Index of 0.4. Region 2 has a population of 20 historical records and a Gini Index of 0.2. What is the overall Gini index for the combination of these two regions? 41) ______ A) 0.4 B) 0.5 C) 0.2 D) 0.267 E) 0 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > MC QU. 03-40 A proposed classification tree region has two...

42) In the k-nearest-neighbors algorithm, a large value of k makes the analysis more sensitive to

random variation in similar records. 42) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-10 In the k-nearest-neighbors algorithm, a large...

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43) A classification tree predicts an outcome based upon the most common outcome in the region

matching the predictor record. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-18 A classification tree predicts an outcome...

44) Which of the following statements about the k-nearest-neighbor algorithm is(are) true? 1. A k value of 1 may result in overfitting the data 2. As the value of k increases, the model may lose predictive power 3. Large values of k may result in overfitting the data 44) ______ A) I and II only B) I and III only C) None of the above D) II and III only E) I only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > MC QU. 03-35 Which of the following statements about...

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45) The Naïve Bayes Algorithm requires that predictor variables be categorical. 45) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > TF Qu. 03-24 The Na&#239;ve Bayes Algorithm requires...

46) The Naïve Bayes approach works well when predictor variables are closely correlated with

each other. 46) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > TF Qu. 03-25 The Na&#239;ve Bayes approach works well...

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47) The Regression Index is the sum of the squared deviations of the output variables from the

mean within the region. 47) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-22 The Regression Index is the sum of...

48) In the k-nearest-neighbors algorithm, differences in the scale of the variables don’t have an

impact on the result. 48) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-07 In the k-nearest-neighbors algorithm, differences...

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49) The naïve Bayes algorithm solves the problem of incomplete datasets by assuming that each

of the joint probabilities is _________ the _________ of the individual probabilities. 49) ______ A) greater than, sum B) greater than, product C) equal to, sum D) less than, product E) equal to, product Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-50 The na&#239;ve Bayes algorithm solves the...

50) For a particular region, the outcome variables of the historical records are 8, 6, 9 and 9. What

is the regression index for this region? 50) ______ A) B) C) D) E)

4 5 8 7 6

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-44 For a particular region, the outcome variables...

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51) After classification, the regression tree algorithm predicts the value of a predictor record’s

outcome variable to be the _________ of the outcome variables in the region. 51) ______ A) B) C) D) E)

maximum mean mode minimum variance

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of how classification and regression trees are created a Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > MC QU. 03-46 After classification, the regression tree...

52) While the k-nearest-neighbors algorithm completes most of the classification work before

being implemented, the classification tree algorithm postpones classification until after implementation. 52) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of models based upon classification tree diagrams or pred Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-12 While the k-nearest-neighbors algorithm completes...

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53) In the k-nearest-neighbors algorithm, the value of k is determined by the size of the data set. 53) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-08 In the k-nearest-neighbors algorithm, the...

54) Multiple linear regression uses more than one predictor variable to estimate the value of an

outcome variable. 54) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > TF Qu. 03-26 Multiple linear regression uses more...

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55) Logistic regression is similar to multiple regression except? 55) ______ A) B) C) D) E)

Logistic regression provides more precise predictions. Logistic regression is easier to calculate. Logistic regression is used when multiple outcome variables must be predicted. Logistic regression predicts probabilities for categorical variables. Logistic regression requires a larger dataset.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-56 Logistic regression is similar to...

56) Although the naïve Bayes algorithm is designed for use with categorical predictor variables,

it can be used for numerical data if the numerical data is preprocessed into groups. This process is known as 56) ______ A) compacting. B) extending. C) binning. D) sampling. E) categorizing. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the kind of problem that would fit using a model based on the naive Bay Topic : Other Models Based on Algorithms for Classification and Prediction Source : Chapter 03 Test Bank - Static > MC QU. 03-48 Although the na&#239;ve Bayes algorithm is designed...

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57) In the k-nearest-neighbors algorithm, a small value of k makes the analysis more sensitive to

random variation in similar records. 57) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the concept of the model based upon the KNN algorithm for classificat Topic : Models Based on the k-Nearest-Neighbors (KNN) Algorithm Source : Chapter 03 Test Bank - Static > TF Qu. 03-09 In the k-nearest-neighbors algorithm, a small...

58) Classification trees and regression trees measure homogeneity in the same way. 58) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the concept of models based upon classification tree diagrams or pred Topic : Models Based on Classification Tree and Regression Tree Algorithms Source : Chapter 03 Test Bank - Static > TF Qu. 03-20 Classification trees and regression trees...

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Answer Key Test name: Chapter 03 Test Bank 1) D 2) TRUE 3) FALSE

The Gini Index ranges from 0 (completely homogenous) to 0.5 (completely lacking in homogeneity). 4) A 5) C 6) D

7) TRUE 8) FALSE 9) B

10) TRUE

11) B

12) TRUE 13) B 14) E 15) C 16) FALSE 17) TRUE 18) TRUE 19) TRUE 20) E 21) D 22) C 23) TRUE 24) FALSE

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25) B 26) D 27) B 28) C

Sales ≈ 100 × Advertising − 50 × Price = 100 × 10 − 50 × 2 = 900 29) B 30) TRUE 31) TRUE 32) D

33) A 34) D 35) E 36) TRUE 37) E 38) E 39) TRUE 40) TRUE 41) D

42) FALSE 43) TRUE 44) A 45) TRUE 46) FALSE 47) TRUE 48) FALSE 49) E 50) E

51) B 52) FALSE 53) FALSE 54) TRUE

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55) D 56) C 57) TRUE 58) FALSE

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1) The averaging method uses all of the data points in the time-series. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-12 The averaging method uses all of the...

2) A time-series is said to be smooth if its underlying probability distribution usually remains

the same from one period to the next. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : The Time-Series Forecasting Methods in Perspective Source : Chapter 04 Test Bank - Static > TF Qu. 04-25 A time-series is said to be...

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3) An advantage of the exponential smoothing forecasting method is that more recent

experience is given more weight than less recent experience. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-16 An advantage of the exponential smoothing...

4) The mean absolute deviation (MAD) is the sum of the absolute value of forecasting errors

divided by the number of forecasts. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify two common measures of the accuracy of forecasting methods. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > TF Qu. 04-05 The mean absolute deviation (MAD) is...

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5) Removing the seasonal component from a time-series can be accomplished by dividing each

value by its appropriate seasonal factor. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Adjust forecasting data to consider seasonal patterns. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-09 Removing the seasonal component from a...

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6) Given the following historical data, what is the moving-average forecast for period 6 based

on the last three periods? Period 1 2 3 4 5

Value 73 68 65 72 67 6) ______

A) B) C) D) E)

115 68 67 69 100

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-52 Given the following historical data, what...

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7) The following table shows the quarterly sales of widgets over the past two years. Calculate

the seasonal factor for Quarter 2. Quarter Q1 last year Q2 last year Q3 last year Q4 last year Q1 this year Q2 this year Q3 this year Q4 this year

Sales 10,000 11,000 7,500 8,000 15,000 17,000 10,500 11,500 7) ______

A) B) C) D) E)

1.24 1.29 1.14 0.74 0.99

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Adjust forecasting data to consider seasonal patterns. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-77 The following table shows the quarterly...

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8) Given an actual latest demand of 105, a previous forecast of 97, and α = 0.4, what would be

the forecast for the next period using the exponential smoothing method? 8) ______ A) B) C) D) E)

108.2 80.8 101.8 93.8 100.2

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9) An operations analyst is forecasting this year's demand for one of his company's products

based on the following historical data: Year 4 years ago 3 years ago 2 years ago Last year

Number Sold 10,000 12,000 18,000 20,000

What is the forecast for this year using the last-value forecasting method? 9) ______ A) B) C) D) E)

20,000 18,000 12,000 22,000 15,000

10) Judgmental forecasting methods have been developed to interpret statistical data. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use expert judgment. Topic : Judgmental Forecasting Methods Source : Chapter 04 Test Bank - Static > TF Qu. 04-28 Judgmental forecasting methods have been developed...

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11) Time-series data may exhibit which of the following behaviors? 11) ______ A) B) C) D) E)

All of the answer choices are correct. Irregularities Seasonality Cycles Trend

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > MC Qu. 04-35 Time-series data may exhibit which of...

12) The mean absolute deviation is more sensitive to large deviations than the mean square error. 12) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify two common measures of the accuracy of forecasting methods. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > TF Qu. 04-07 The mean absolute deviation is more...

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13) Once accepted by managers, forecasts should not be overridden. 13) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some important types of forecasting applications. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > TF Qu. 04-02 Once accepted by managers, forecasts should...

14) When statistical forecasting methods are used, it is no longer necessary to use judgmental

methods as well. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use expert judgment. Topic : Judgmental Forecasting Methods Source : Chapter 04 Test Bank - Static > TF Qu. 04-31 When statistical forecasting methods are...

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15) Given forecast errors of 4, 8, and −3, what is the mean absolute deviation? 15) ______ A) B) C) D) E)

3 5 9 4 6

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify two common measures of the accuracy of forecasting methods. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-48 Given forecast errors of 4, 8, and...

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16) Refer to the following data: Period Demand 1 58 2 59 3 60 4 61

What is the last-value forecast for the next period? 16) ______ A) B) C) D) E)

60 58 62 61 None of the answer choices is correct.

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17) Which of the following are costs of an inaccurate forecast? 17) ______ A) B) C) D) E)

All of the answer choices are correct. Lower profits An understaffed office Inventory Lost sales

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some important types of forecasting applications. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > MC Qu. 04-34 Which of the following are costs...

18) The moving-average forecasting method assigns equal weights to each value that is

represented in the average. 18) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-14 The moving-average forecasting method assigns equal...

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19) The president of State University wants to forecast student enrollment for this academic year

based on the following historical data: Year 5 years ago 4 years ago 3 years ago 2 years ago Last year

Enrollments 15,000 16,000 18,000 20,000 21,000

What is the forecast for this year using exponential smoothing with α = 0.5, if the forecast for two years ago was 16,000? 19) ______ A) 22,650 B) 21,000 C) 19,500 D) 22,800 E) 18,750 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-57 The president of State University wants...

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20) The business analyst for Ace Business Machines, Incorporated wants to forecast this year's

demand for manual typewriters based on the following historical data: Time Period 5 years ago 4 years ago 3 years ago 2 years ago Last year

Demand 900 700 600 500 300

What is the forecast for this year using the last-value forecasting method? 20) ______ A) B) C) D) E)

180 163 510 300 467

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21) Professor Z needs to allocate time among several tasks next week to include time for

students' appointments. Thus, he needs to forecast the number of students who will seek appointments. He has gathered the following data: Week 6 weeks ago 5 weeks ago 4 weeks ago 3 weeks ago 2 weeks ago Last week

Number of students 83 110 95 80 65 50

What is the forecast for this year using exponential smoothing with α = 0.2, if the forecast for two weeks ago was 90? 21) ______ A) 49 B) 50 C) 78 D) 52 E) 65 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-64 Professor Z needs to allocate time...

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22) Which of the following smoothing constants would make an exponential smoothing forecast

equivalent to a last-value forecast? 22) ______ A) B) C) D) E)

0.01 0 0.1 0.5 1

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : The Time-Series Forecasting Methods in Perspective Source : Chapter 04 Test Bank - Static > MC Qu. 04-42 Which of the following smoothing constants...

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23) The business analyst for Ace Business Machines wants to forecast this year's demand for

manual typewriters based on the following historical data: Time Period 5 years ago 4 years ago 3 years ago 2 years ago Last year

Demand 900 700 600 500 300

What is the forecast for this year using a moving-average forecast based on the last three years? 23) ______ A) 163 B) 300 C) 510 D) 467 E) 180 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-60 The business analyst for Ace Business...

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24) The Delphi method involves the use of a series of questionnaires to achieve a consensus

forecast. 24) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use expert judgment. Topic : Judgmental Forecasting Methods Source : Chapter 04 Test Bank - Static > TF Qu. 04-30 The Delphi method involves the use...

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25) The president of State University wants to forecast student enrollment for this academic year

based on the following historical data: Year 5 years ago 4 years ago 3 years ago 2 years ago Last year

Enrollments 15,000 16,000 18,000 20,000 21,000

What is the forecast for this year using the last-value forecasting method? 25) ______ A) B) C) D) E)

22,800 21,000 18,750 22,650 19,500

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26) Which of the following would be considered a possible drawback of using executive

opinions to develop a forecast? 26) ______ A) B) C) D) E)

It is difficult to interpret the results. Responsibility is diffused for the forecast. Forecasters are sometimes overly influenced by recent events. Extensive use of computers is needed. It brings together the knowledge of top managers.

Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use expert judgment. Topic : Judgmental Forecasting Methods Source : Chapter 04 Test Bank - Static > MC Qu. 04-74 Which of the following would be...

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27) The president of State University wants to forecast student enrollment for this academic year

based on the following historical data: Year 5 years ago 4 years ago 3 years ago 2 years ago Last year

Enrollments 15,000 16,000 18,000 20,000 21,000

What is the forecast for this year using exponential smoothing with trend if α = 0.5 and β = 0.3? Assume the forecast for last year was 20,000 and the forecast for two years ago was 19,000, and that the trend estimate for last year’s forecast was 2,000. 27) ______ A) 22,800 B) 22,200 C) 19,500 D) 21,800 E) 19,000 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-58 The president of State University wants...

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28) In order to increase the responsiveness of a forecast made using the moving-average method,

the number of values in the average should be: 28) ______ A) B) C) D)

None of the answer choices is correct. decreased. increased. multiplied by a larger α. E) multiplied by a smaller α. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : The Time-Series Forecasting Methods in Perspective Source : Chapter 04 Test Bank - Static > MC Qu. 04-41 In order to increase the responsiveness...

29) Given forecast errors of 5, 0, −4, and 3, what is the mean square error? 29) ______ A) B) C) D) E)

50 3 4 12.5 12

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30) Professor Z needs to allocate time among several tasks next week to include time for

Number of students 83 110 95 80 65 50

What is the forecast for this year using exponential smoothing with trend if α = 0.5 and β = 0.1? Assume the forecast for last week was 65 and the forecast for two weeks ago was 75, and that the trend estimate for last year’s forecast was −5. 30) ______ A) 50.25 B) 65.0 C) 78.5 D) 51.75 E) 49.5 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-65 Professor Z needs to allocate time...

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31) Exponential smoothing with trend was designed for time-series that have great variability

both up and down. 31) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-20 Exponential smoothing with trend was designed...

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32) The business analyst for Ace Business Machines wants to forecast this year's demand for

manual typewriters based on the following historical data: Time Period 5 years ago 4 years ago 3 years ago 2 years ago Last year

Demand 900 700 600 500 300

What is the forecast for this year using exponential smoothing with α = 0.4, if the forecast for two years ago was 750? 32) ______ A) 467 B) 510 C) 300 D) 180 E) 163 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-61 The business analyst for Ace Business...

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33) Which of the following would be an advantage of using a sales force composite to develop a

demand forecast? 33) ______ A) B) C) D) E)

The sales staff is often aware of customer’s future plans. The sales force can easily distinguish between customer desires and probable actions. The sales staff is least affected by changing customer needs. Salespeople are least likely to be biased by sales quotas. None of the answer choices is correct.

34) If significant changes in conditions are occurring relatively frequently, then a smaller

smoothing constant is needed. 34) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-18 If significant changes in conditions are...

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35) Given the following historical data, what is the moving-average forecast for period 6 based

on the last three periods? Period 1 2 3 4 5

Value 19 20 18 19 17 35) ______

A) B) C) D) E)

17 18.5 19 20 18

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36) Gradual, long-term movement in time-series values is called: 36) ______ A) B) C) D) E)

trend. cycles. seasonal variation. irregular variation. random variation.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > MC Qu. 04-36 Gradual, long-term movement in time-series values...

37) The primary method for causal forecasting is: 37) ______ A) B) C) D) E)

sensitivity analysis. the Delphi method. moving-average. linear regression. exponential smoothing.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and apply an approach to forecasting that relates the quantity of inter Topic : Causal Forecasting With Linear Regression Source : Chapter 04 Test Bank - Static > MC Qu. 04-72 The primary method for causal forecasting...

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38) Refer to the following data: Period Demand 1 58 2 59 3 60 4 61

What is the moving-average forecast for the next period based on the last three periods? 38) ______ A) 60 B) None of the answer choices is correct. C) 62 D) 58 E) 61 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-40 Refer to the following...

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39) Forecasts can help a manager to: 39) ______ A) B) C) D) E)

All of the answer choices are correct. None of the answer choices is correct. make staffing decisions. anticipate the future. develop strategies.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some important types of forecasting applications. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > MC Qu. 04-32 Forecasts can help a manager...

40) Given forecast errors of −5, -10, and 15, what is the mean absolute deviation? 40) ______ A) B) C) D) E)

5 10 30 None of the answer choices is correct. 0

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41) The president of State University wants to forecast student enrollment for this academic year

based on the following historical data: Year 5 years ago 4 years ago 3 years ago 2 years ago Last year

Enrollments 15,000 16,000 18,000 20,000 21,000

What is the forecast for this year using a moving-average forecast based on the last four years? 41) ______ A) 18,750 B) 19,500 C) 22,800 D) 22,650 E) 21,000 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-56 The president of State University wants...

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42) Professor Z needs to allocate time among several tasks next week to include time for

Number of students 83 110 95 80 65 50

What is the forecast for this year using the last-value forecasting method? 42) ______ A) B) C) D) E)

52 49 65 50 78

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-62 Professor Z needs to allocate time...

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43) The moving-average forecasting method is a very good one when conditions remain pretty

much the same over the time period being considered. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-15 The moving-average forecasting method is a...

44) The goal of time-series forecasting methods is to estimate the mean of the underlying

probability distribution of the next value of the time-series as closely as possible. 44) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : The Time-Series Forecasting Methods in Perspective Source : Chapter 04 Test Bank - Static > TF Qu. 04-23 The goal of time-series forecasting methods...

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45) The seasonal factor for any period of a year measures how that period compares to the same

period last year. 45) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Adjust forecasting data to consider seasonal patterns. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-08 The seasonal factor for any period...

46) Forecasting techniques such as moving-average, exponential smoothing, and the last-value

method all represent averaged values of time-series data. 46) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-21 Forecasting techniques such as moving-average, exponential...

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47) The mean square error is the square of the mean of the absolute deviations. 47) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify two common measures of the accuracy of forecasting methods. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > TF Qu. 04-06 The mean square error is the...

48) The mean absolute deviation is used to: 48) ______ A) B) C) D) E)

measure forecast accuracy. All of the answer choices are correct. eliminate forecast errors. seasonally adjust the forecast. estimate the trend line.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify two common measures of the accuracy of forecasting methods. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > MC Qu. 04-47 The mean absolute deviation is used...

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49) In exponential smoothing, an α of 0.3 will cause a forecast to react more quickly to a large

error than will an α of 0.2. 49) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-22 In exponential smoothing, an...

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50) An operations analyst is forecasting this year's demand for one of his company's products

based on the following historical data: Year 4 years ago 3 years ago 2 years ago Last year

Number Sold 10,000 12,000 18,000 20,000

The previous trend line has predicted 18,500 for two years ago, and 19,700 for last year. What was the mean absolute deviation for these forecasts? 50) ______ A) 800 B) 100 C) 200 D) 500 E) 400 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-69 An operations analyst is forecasting this...

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51) Given forecast errors of 4, 8, and −3, what is the mean square error? 51) ______ A) B) C) D) E)

5 25 9 29.67 89

52) The forecasting method which uses anonymous questionnaires to achieve a consensus

forecast is: 52) ______ A) B) C) D) E)

consumer surveys. executive opinions. time-series analysis. sales force composites. the Delphi method.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use expert judgment. Topic : Judgmental Forecasting Methods Source : Chapter 04 Test Bank - Static > MC Qu. 04-76 The forecasting method which uses anonymous...

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53) The difference between a forecast and what turns out to be the true value is called the mean

absolute deviation. 53) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify two common measures of the accuracy of forecasting methods. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > TF Qu. 04-04 The difference between a forecast and...

54) Linear regression can be used to approximate the relationship between independent and

dependent variables. 54) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and apply an approach to forecasting that relates the quantity of inter Topic : Causal Forecasting With Linear Regression Source : Chapter 04 Test Bank - Static > TF Qu. 04-27 Linear regression can be used to...

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55) A moving-average forecast tends to be more responsive to changes in the time-series data

when more values are included in the average. 55) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-13 A moving-average forecast tends to be...

56) The last-value forecasting method: 56) ______ A) B) C) D) E)

is quick and easy to prepare. All of the answer choices are correct. ignores all values except one. is easy for users to understand. None of the answer choices is correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > MC Qu. 04-37 The last-value forecasting...

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57) The sales force composite method is a top-down approach to forecasting. 57) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use expert judgment. Topic : Judgmental Forecasting Methods Source : Chapter 04 Test Bank - Static > TF Qu. 04-29 The sales force composite method is...

58) Causal forecasting obtains a forecast for a dependent variable by relating it directly to one or

more independent variables. 58) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and apply an approach to forecasting that relates the quantity of inter Topic : Causal Forecasting With Linear Regression Source : Chapter 04 Test Bank - Static > TF Qu. 04-26 Causal forecasting obtains a forecast for...

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59) Using the latest value in a sequence of data to forecast the next period is: 59) ______ A) B) C) D) E)

a moving-average forecast. None of the answer choices is correct. a last-value forecast. an exponentially smoothed forecast. a causal forecast.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > MC Qu. 04-38 Using the latest value in a...

60) Exponential smoothing with trend requires the selection of two smoothing constants. 60) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-19 Exponential smoothing with trend requires the selection...

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61) An operations analyst is forecasting this year's demand for one of his company's products

based on the following historical data: Year 4 years ago 3 years ago 2 years ago Last year

Number Sold 10,000 12,000 18,000 20,000

What is the forecast for this year using exponential smoothing with α = 0.2, if the forecast for last year was 15,000? 61) ______ A) 20,000 B) 16,000 C) 17,500 D) 19,000 E) 15,000 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-68 An operations analyst is forecasting this...

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62) Given an actual latest demand of 59, a previous forecast of 64, and α = 0.3, what would be

the forecast for the next period using the exponential smoothing method? 62) ______ A) B) C) D) E)

57.5 62.5 36.9 60.5 65.5

63) The last-value forecasting method is most useful when conditions are stable over time. 63) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-11 The last-value forecasting method is most...

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64) In business, forecasts are the basis for: 64) ______ A) B) C) D) E)

All of the answer choices are correct. sales planning. production planning. inventory planning. budgeting.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some important types of forecasting applications. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > MC Qu. 04-33 In business, forecasts are the basis...

65) The last-value forecasting method requires a linear trend line. 65) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-10 The last-value forecasting method requires a...

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66) Given forecast errors of 5, 0, −4, and 3, what is the mean absolute deviation? 66) ______ A) B) C) D) E)

3 1 2.5 2 12

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67) An operations analyst is forecasting this year's demand for one of his company's products

based on the following historical data: Year 4 years ago 3 years ago 2 years ago Last year

Number Sold 10,000 12,000 18,000 20,000

What is the forecast for this year using a moving-average forecast based on the last four years? 67) ______ A) 12,000 B) 20,000 C) 18,000 D) 15,000 E) 22,000 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-67 An operations analyst is forecasting this...

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68) Which of the following possible values of α would cause exponential smoothing to respond

the most quickly to forecast errors? 68) ______ A) B) C) D) E)

0.05 0.1 0.15 0 0.01

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : The Time-Series Forecasting Methods in Perspective Source : Chapter 04 Test Bank - Static > MC Qu. 04-45 Which of the following possible values...

69) A smoothing constant of 0.1 will cause an exponential smoothing forecast to react more

quickly to a sudden change than a value of 0.3 will. 69) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > TF Qu. 04-17 A smoothing constant of 0.1 will...

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70) Professor Z needs to allocate time among several tasks next week to include time for

Number of students 83 110 95 80 65 50

What is the forecast for this year using a moving-average forecast based on the last three weeks? 70) ______ A) 52 B) 49 C) 78 D) 65 E) 50 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply these methods either by hand or with the software provided. Topic : Applying Time-Series Forecasting Methods to the Case Study Source : Chapter 04 Test Bank - Static > MC Qu. 04-63 Professor Z needs to allocate time...

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71) The equation y = 350 − 2.5x is used to predict quarterly demand, where x represented the

quarter, and where x = 0 in the second quarter of last year. Quarterly seasonal factors are Q1 = 1.5, Q2 = 0.8, Q3 = 1.1, and Q4 = 0.6. What is the forecast for the last quarter of this year? 71) ______ A) 199.5 B) 268 C) 266 D) 335 E) 201 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe and apply an approach to forecasting that relates the quantity of inter Topic : Causal Forecasting With Linear Regression Source : Chapter 04 Test Bank - Static > MC Qu. 04-71 The equation y = 350 - 2.5x...

72) When no historical sales data are available, it is best to use statistical forecasting methods. 72) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some important types of forecasting applications. Source : Chapter 04 Test Bank - Static > TF Qu. 04-03 When no historical sales data are...

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73) Forecasts are rarely perfect. 73) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify two common measures of the accuracy of forecasting methods. Topic : An Overview of the Techniques of Time Series Forecasting Source : Chapter 04 Test Bank - Static > TF Qu. 04-01 Forecasts are rarely...

74) A manager uses the equation y = 40,000 + 150x to predict monthly receipts. What is the

forecast for July if x represents the month, and x = 0 in April? 74) ______ A) B) C) D) E)

40,600 42,250 40,450 42,100 42,400

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and apply an approach to forecasting that relates the quantity of inter Topic : Causal Forecasting With Linear Regression Source : Chapter 04 Test Bank - Static > MC Qu. 04-70 A manager uses the equation y...

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75) If a time-series has exactly the same distribution for each and every time period, then the

averaging forecasting method provides the best estimate of the mean. 75) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : The Time-Series Forecasting Methods in Perspective Source : Chapter 04 Test Bank - Static > TF Qu. 04-24 If a time-series has exactly the...

76) In exponential smoothing with trend, the forecast consists of: 76) ______ A) B) C) D) E)

a moving-average and a trend factor. None of the answer choices is correct. the old forecast adjusted by a trend factor. an exponentially smoothed forecast and a smoothed trend factor. the old forecast and a smoothed trend factor.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe several forecasting methods that use the pattern of historical data to Topic : The Time-Series Forecasting Methods in Perspective Source : Chapter 04 Test Bank - Static > MC Qu. 04-46 In exponential smoothing with trend, the...

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77) Which of the following is not a type of judgmental forecasting? 77) ______ A) B) C) D) E)

The Delphi method Consumer market survey Sales force composite Time-series analysis Managerial opinion

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe several forecasting methods that use expert judgment. Topic : Judgmental Forecasting Methods Source : Chapter 04 Test Bank - Static > MC Qu. 04-73 Which of the following is not...

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Answer Key Test name: Chapter 04 Test Bank 1) 2) 3) 4) 5) 6)

TRUE FALSE TRUE TRUE TRUE B

7) A

8) E

Forecast = α(Last Value) + (1 - α)(Last Forecast) = 0.4(105) + (1 - 0.4)(97)= 100.2. 9) A

The last-value forecast assumes that the next period will be the same as the previous. In this case, the forecast for this year is the same as last year, 20,000. 10) FALSE 11) A 12) FALSE 13) FALSE 14) FALSE 15) B

Mean absolute deviation is the average of the absolute values of the forecasting errors.

16) D

The last historical value was observed in period 4. 17) B 18) TRUE

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19) C

Forecast for one year ago= α (Last value) + (1-α) (Last Forecast) = 0.5 (20,000) + (1-0.5) (16,000) = 18,000. Forecast for this year= α (Last value) + (1-α) (Last Forecast) = 0.5 (21,000) + (1-0.5) (18,000) = 19,500. 20) D

The last-value forecast assumes that the next period will be the same as the previous. In this case, the forecast for this year is the same as last year, 300. 21) C

Forecast for one week ago = α (Last value) + (1−α) (Last Forecast) = 0.2(65) + (1−0.2) (90) = 85. Forecast for this week = α (Last value) + (1−α) (Last Forecast) = 0.2 (50) + (1−0.2) (85) = 78 22) E 23) D

24) TRUE 25) B

The last-value forecast assumes that the next period will be the same as the previous. In this case, the forecast for this year is the same as last year, 21,000. 26) B 27) B

Latest trend = α(Last value − Next-to-last value) + (1 − α)(Last forecast − Next-to-last forecast) = 0.5(21,000−20,000)+(1−0.5)(20,000−19,000)=1,000 Estimated trend = β(Latest trend) + (1 − β)(Last estimate of trend) = 0.3(1,000)+(1−0.3)(2,000)=1,700 Forecast = α(Last value) + (1 − α)(Last forecast) + Estimated trend = 0.5(21,000) + (1 − 0.5)(21,000) + 1,500 = 22,500 28) B 29) D

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30) D

Latest trend = α(Last value − Next-to-last value) + (1 − α)(Last forecast − Next-to-last forecast) = 0.5(50 − 65) + (1 − 0.5)(65 − 75) = −12.5 Estimated trend = β(Latest trend) + (1 − β)(Last estimate of trend) = 0.1(−12.5) + 0.9(−5) = −5.75 Forecast = α(Last value) + (1 − α)(Last forecast) + Estimated trend = 0.5(50)+(1−0.5)(65)+(−5.75)=51.75. 31) FALSE 32) B

Forecast for one year ago = α (Last value) + (1−α) (Last Forecast) = 0.4(500) + (1−0.4) (750) = 650. Forecast for this year = α (Last value) +(1−α) (Last Forecast) = 0.4(300) + (1−0.4) (650) = 510 33) A 34) FALSE 35) E

36) A 37) D 38) A

39) A 40) B

41) A

42) D

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43) TRUE 44) TRUE 45) FALSE 46) FALSE 47) FALSE 48) A 49) TRUE 50) E Year 2 years ago Last year

Number Sold 18,000 20,000

Forecast 18,500 19,700

Error 500 300

51) D

52) E 53) FALSE 54) TRUE 55) FALSE 56) B 57) FALSE 58) TRUE 59) C 60) TRUE 61) B

Forecast for this year = α (Last value) + (1−α) (Last Forecast) = 0.2 (20,000) + (1−0.2) (15,000) = 16,000 62) B

Forecast = α(Last Value) + (1 − α)(Last Forecast) = 0.3(59) + (1 − 0.3)(64)= 62.5. 63) FALSE 64) A 65) FALSE 66) A

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67) D

68) C 69) FALSE 70) D

71) E

y = 350 − 2.5 x = 350 − 2.5(6) = 335. Seasonal forecast = Forecast × Seasonal Factor = 335 (0.6) = 201 72) FALSE 73) TRUE 74) C

y = 40,000 + 150x = 40,000 + 150(3) = 40,450 75) TRUE 76) D 77) D

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1) The feasible region only contains points that satisfy all constraints. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-19 The feasible region only contains points...

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2) Consider the following linear programming problem. Which of the following assumptions

are satisfied? I. Continuous-variables assumption II. Proportionality assumption III. Certainty assumption Minimize C = 12x + 4y subject to 2x + 4y ≥ 12 5x + 2y ≥ 10 and x,y are integers 2) ______ A) B) C) D) E)

I and III only II and III only. II only III only I only

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-94 Consider the following linear programming...

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3) Consider the following linear programming problem. Which of the following assumptions

are satisfied? I. Continuous-variables assumption II. Proportionality assumption III. Certainty assumption Minimize C = 12x + 4y2 subject to 2x + 4y ≥ 12 5x + 2y ≥ 10 and x≥0, y≥0. 3) ______ A) B) C) D) E)

I only I and II only I and III only III only II only

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-95 Consider the following linear programming...

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4) Since all linear programming models must contain nonnegativity constraints, Solver will

automatically include them and it is not necessary to add them to a formulation. 4) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-16 Since all linear programming models must...

5) The production planner for a private label soft drink maker is planning the production of two

soft drinks: root beer (R) and sassafras soda (S). There are at most 12 hours per day of production time and 1,500 gallons per day of carbonated water available. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. The firm’s goal is to maximize profits. Which of the following is not a feasible solution? 5) ______ A) (R, S) = (300, 0) B) (R, S) = (0, 0) C) (R, S) = (0, 240) D) (R, S) = (180, 240) E) (R, S) = (180, 120) Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Present the algebraic form of a linear programming model from its formulation on Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-70 The production planner for a private label soft...

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6) The owner of Crackers, Incorporated produces both Deluxe (D) and Classic (C) crackers. She

only has 4,800 ounces of sugar, 9,600 ounces of flour, and 2,000 ounces of salt for her next production run. A box of Deluxe crackers requires 2 ounces of sugar, 6 ounces of flour, and 1 ounce of salt to produce. A box of Classic crackers requires 3 ounces of sugar, 8 ounces of flour, and 2 ounces of salt to produce. Profits are 40 cents for a box of Deluxe crackers and 50 cents for a box of Classic crackers. Crackers, Incorporated would like to maximize profits. What is the sugar constraint? 6) ______ A) 6D + 8C ≤ 4,800 B) 1D + 2C ≤ 4,800 C) 2D + 3C ≤ 4,800 D) 4D + 5C ≤ 4,800 E) 3D + 2C ≤ 4,800 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-81 The owner of Crackers, Incorporated. produces...

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7) A manager should know the following things about linear programming. 7) ______ A) B) C) D) E)

All of the answer choices are correct. What it is. When it should not be used. How to interpret the results of a study. When it should be used.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the three key questions to be addressed in formulating any spreadsheet Topic : Formulating the Wyndor problem on a spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-39 A manager should know the following...

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8) An electronics firm produces two models of pocket calculators: the A-100 (A) and the B-200

(B). Each model uses one circuit board, of which there are only 2,500 available for this week’s production. In addition, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators. Each A-100 requires 15 minutes to produce while each B-200 requires 30 minutes to produce. The firm forecasts that it could sell a maximum of 4,000 of the A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each and profits for the B-200 are $4.00 each. The firm’s goal is to maximize profits. What is the objective function? 8) ______ A) P = 0.25A + 0.5B B) P = 4A + 1B C) P = 1A + 4B D) P = 1A + 1B E) P = 0.25A + 1B Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-72 An electronics firm produces two models...

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9)

Where are the output cells located? 9) ______ A) B) C) D) E)

B2:C2, B5:C7, and F5:F7 None of the answer choices are correct. B2:C2 B10:C10 F5:F7

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-46 Where are the output cells...

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10) Which objective function has the same slope as this one: 4x + 2y = 20. 10) ______ A) B) C) D) E)

8x + 8y = 20 4x − 2y = 20 2x + 4y = 20 4x + 2y = 10 2x − 4y = 20

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-52 Which objective function has the same...

11) A feasible point on the optimal objective function line is an optimal solution. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-28 A feasible point on the optimal...

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12) Constraints limit the alternatives available to a decision maker. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-05 Constraints limit the alternatives available to...

13) All linear programming models have an objective function and at least two constraints. 13) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-04 All linear programming models have an...

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14) The operations manager of a mail order house purchases double (D) and twin (T) beds for

resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager’s goal is to maximize profits. Which of the following is not a feasible solution? 14) ______ A) (D, T) = (0, 0) B) (D, T) = (0, 250) C) (D, T) = (90, 100) D) (D, T) = (0, 200) E) (D, T) = (150, 0) Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-86 The operations manager of a mail order house...

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15) What is the optimal solution for the following problem?

Maximize P = 3x + 15y subject to 2x + 4y ≤ 12 5x + 2y ≤ 10 and x ≥ 0, y ≥ 0. 15) ______ A) B) C) D) E)

(x, y) = (0, 3) (x, y) = (2, 0) None of the answer choices are correct. (x, y) = (0, 0) (x, y) = (1, 5)

16) The value of the objective function decreases as the objective function line is moved away

from the origin. 16) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-27 The value of the objective function...

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17) The operations manager of a mail order house purchases double (D) and twin (T) beds for

resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager’s goal is to maximize profits. What is the objective function? 17) ______ A) P = 100D + 90T B) P = 300D + 500T C) P = 300D + 150T D) P = 500D + 300T E) P = 150D + 300T Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-84 The operations manager of a mail order...

18) If a single optimal solution exists while using the graphical method to solve a linear

programming problem, it will exist at a corner point. 18) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-33 If a single optimal solution exists...

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19) The production planner for a private label soft drink maker is planning the production of two

soft drinks: root beer (R) and sassafras soda (S). There are at most 12 hours per day of production time and 1,500 gallons per day of carbonated water available. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. The firm’s goal is to maximize profits. What is the daily profit when producing the optimal amounts? 19) ______ A) $960 B) $1,800 C) $1,900 D) $1,560 E) $2,520 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to solve a linear programming spreadsheet model. Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-71 The production planner for a private label soft...

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20) The production planner for a private label soft drink maker is planning the production of two

soft drinks: root beer (R) and sassafras soda (S). There are at most 12 hours per day of production time and 1,500 gallons per day of carbonated water available. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. The firm’s goal is to maximize profits. What is the objective function? 20) ______ A) P = 2R + 3S B) P = 3R +2S C) P = 5R + 5S D) P = 4R + 6S E) P = 6R + 4S Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-68 The production planner for a private label...

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21) Which of the following constitutes a simultaneous solution to the following 2 equations?

(1) 3x1 + 2x2 = 6 (2) 6x1 + 3x2 = 12 21) ______ A) B) C) D) E)

(x1, x2) = (2, 0) (x1, x2) = (0, 0) (x1, x2) = (0.5, 2) (x1, x2) = (0, 3) (x1, x2) = (1, 1.5)

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-55 Which of the following constitutes a...

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22) Given the following 2 constraints, which solution is a feasible solution for a maximization

problem? (1) 14x1 + 6x2 ≤ 42 (2) x1 − x2 ≤ 3 22) ______ A) B) C) D) E)

(x1, x2) = (2, 1) (x1, x2) = (2, 6) (x1, x2) = (5,1) (x1, x2) = (1,5) (x1, x2) = (4, 4)

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-53 Given the following 2 constraints, which...

23) When solving a minimization problem graphically, it is generally the goal to move the

objective function line out, away from the origin, as far as possible. 23) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-35 When solving a minimization problem graphically,...

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24) Consider the following linear programming problem. Which of the following assumptions

are satisfied? I. Continuous-variables assumption II. Proportionality assumption III. Certainty assumption Minimize C = 12x + 4y subject to 2x + 4y ≥ 12 5x + 2y ≥ 10 and x≥0, y≥0. 24) ______ A) B) C) D) E)

I only I and III only I, II and III. II only III only

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-96 Consider the following linear programming...

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25) The production planner for Fine Coffees produces two coffee blends: American (A) and

British (B). He can only get 300 pounds of Colombian beans per week and 200 pounds of Dominican beans per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. The goal of Fine Coffees is to maximize profits. Which of the following is not a feasible solution? 25) ______ A) (A, B) = (400, 400). B) (A, B) = (200, 300). C) (A, B) = (0, 400). D) (A, B) = (0, 0). E) (A, B) = (400, 0). Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-62 The production planner for Fine...

26) An example of a decision variable in a linear programming problem is profit maximization. 26) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Name and identify the purpose of the four kinds of cells used in linear programm Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-12 An example of a decision variable...

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27) Linear programming problems always involve either maximizing or minimizing an objective

function. 27) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-03 Linear programming problems always involve either...

28) The owner of Crackers, Incorporated produces both Deluxe (D) and Classic (C) crackers. She

only has 4,800 ounces of sugar, 9,600 ounces of flour, and 2,000 ounces of salt for her next production run. A box of Deluxe crackers requires 2 ounces of sugar, 6 ounces of flour, and 1 ounce of salt to produce. A box of Classic crackers requires 3 ounces of sugar, 8 ounces of flour, and 2 ounces of salt to produce. Profits are 40 cents for a box of Deluxe crackers and 50 cents for a box of Classic crackers. Crackers, Incorporated would like to maximize profits. What is the daily profit when producing the optimal amounts? 28) ______ A) $800 B) $500 C) $600 D) $640 E) $620 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to solve a linear programming spreadsheet model. Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-83 The owner of Crackers, Incorporated. produces...

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29) Using Excel’s Solver add-in, find the optimal solution for the following problem?

Maximize P = 8x + 3y subject to 2x + 4y ≤ 20 6x + 3y ≤ 18 and x ≥ 0, y ≥ 0. 29) ______ A) B) C) D) E)

(x, y) = (0, 3) None of the answer choices are correct. (x, y) = (3, 0) (x, y) = (0, 0) (x, y) = (0, 5)

Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to solve a linear programming spreadsheet model. Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-91 Using Excel&#8217;s Solver add-in, find the...

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30) Using Excel’s Solver add-in, find the optimal solution for the following problem?

Maximize P = 3x + 8y subject to 2x + 4y ≤ 20 6x + 3y ≤ 18 and x ≥ 0, y ≥ 0. 30) ______ A) B) C) D) E)

None of the answer choices are correct. (x, y) = (2, 0) (x, y) = (0, 3) (x, y) = (0, 0) (x, y) = (0, 5)

31) Linear programming problems may have multiple goals or objectives specified. 31) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-01 Linear programming problems may have multiple...

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32) Which of the following constitutes a simultaneous solution to the following 2 equations?

(1) 3x1 + 4x2 = 10 (2) 5x1 + 4x2 = 14 32) ______ A) B) C) D) E)

x2 = 2x1 x1 = x2 (x1, x2) = (2, 0.5) (x1, x2) = (2, 1) (x1, x2) = (4, 0.5)

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33) The production planner for Fine Coffees produces two coffee blends: American (A) and

British (B). He can only get 300 pounds of Colombian beans per week and 200 pounds of Dominican beans per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. The goal of Fine Coffees is to maximize profits. What is the objective function? 33) ______ A) P = 2A + B. B) P = 4A + 8B. C) P = 12A + 8B. D) P = A + 2B. E) P = 8A + 12B. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-59 What is the objective function?

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34) The production planner for Fine Coffees produces two coffee blends: American (A) and

British (B). He can only get 300 pounds of Colombian beans per week and 200 pounds of Dominican beans per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. The goal of Fine Coffees is to maximize profits. What is the constraint for Colombian beans? 34) ______ A) A + 2B ≤ 4,800. B) 2A + B ≤ 4,800. C) 12A + 8B ≤ 4,800. D) 4A + 8B ≤ 4,800. E) 8A + 12B ≤ 4,800. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-60 The production planner for Fine...

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35) The production planner for a private label soft drink maker is planning the production of two

soft drinks: root beer (R) and sassafras soda (S). There are at most 12 hours per day of production time and 1,500 gallons per day of carbonated water available. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. The firm’s goal is to maximize profits. What is the time constraint? 35) ______ A) 2R + 5S ≤ 720. B) 3R + 2S ≤ 720. C) 3R + 5S ≤ 720. D) 5R + 5S ≤ 720. E) 2R + 3S ≤ 720. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-69 The production planner for a private label soft...

36) For a graph where the horizontal axis represents the variable x and the vertical axis represents

the variable y, the slope of a line is the change in y when x is increased by 1. 36) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-26 For a graph where the horizontal...

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37) Given the following 2 constraints, which solution is a feasible solution for a minimization

problem? (1) 14x1 + 6x2 ≥ 42 (2) x1 + 3x2 ≥ 6 37) ______ A) B) C) D) E)

(x1, x2) = (0.5, 5). (x1, x2) = (2, 1). (x1, x2) = (1, 2). (x1, x2) = (2, 5). (x1, x2) = (0, 4).

38) When solving a maximization problem graphically, it is typically the goal to move the

objective function line out, away from the origin, as far as possible. 38) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-34 When solving a maximization problem graphically,...

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39) An infeasible solution violates all of the constraints of the problem. 39) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-14 An infeasible solution violates all of...

40) All constraints in a linear programming problem are either ≤ or ≥ inequalities. 40) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-30 All constraints in a linear programming...

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41) The owner of Crackers, Incorporated produces both Deluxe (D) and Classic (C) crackers. She

only has 4,800 ounces of sugar, 9,600 ounces of flour, and 2,000 ounces of salt for her next production run. A box of Deluxe crackers requires 2 ounces of sugar, 6 ounces of flour, and 1 ounce of salt to produce. A box of Classic crackers requires 3 ounces of sugar, 8 ounces of flour, and 2 ounces of salt to produce. Profits are 40 cents for a box of Deluxe crackers and 50 cents for a box of Classic crackers. Crackers, Incorporated would like to maximize profits. Which of the following is not a feasible solution? 41) ______ A) (D, C) = (0, 0) B) (D, C) = (0, 1,000) C) (D, C) = (0, 1,000) D) (D, C) = (1,600, 0) E) (D, C) = (800, 600) F) (D, C) = (0, 1,200) G) (D, C) = (800, 600) H) (D, C) = (1,600, 0) I) (D, C) = (0, 1,200) J) (D, C) = (0, 0) Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-82 The owner of Crackers, Incorporated. produces...

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42) In a linear programming model, the certainty assumption states that all model parameters can

be estimated so well that they are, in essence, known without error. 42) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-38 In a linear programming model, the...

43) Linear programming problems can be formulated both algebraically and on spreadsheets. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-10 Linear programming problems can be formulated...

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44) When formulating a linear programming problem on a spreadsheet, objective cells will show

the levels of activities for the decisions being made. 44) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-07 When formulating a linear programming problem...

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45)

Where are the changing cells located? 45) ______ A) B) C) D) E)

B2:C2 None of the answer choices are correct. F10 B2:C2, B5:C7, and F5:F7 B10:C10

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-44 Where are the changing cells located?

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46) An electronics firm produces two models of pocket calculators: the A-100 (A) and the B-200

(B). Each model uses one circuit board, of which there are only 2,500 available for this week’s production. In addition, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators. Each A-100 requires 15 minutes to produce while each B-200 requires 30 minutes to produce. The firm forecasts that it could sell a maximum of 4,000 of the A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each and profits for the B-200 are $4.00 each. The firm’s goal is to maximize profits. What is the time constraint? 46) ______ A) 1A + 0.5B ≤ 800 B) 0.25A + 1B ≤ 800 C) 0.25A + 0.5B ≤ 800 D) 1A + 1B ≤ 800 E) 0.5A + 0.25B ≤ 800 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-73 An electronics firm produces two models of...

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47) Use the graphical method for linear programming to find the optimal solution for the

following problem. Minimize C = 3x + 15y subject to 2x + 4y ≥ 12 5x + 2y ≥ 10 and x ≥ 0, y ≥ 0. 47) ______ A) B) C) D) E)

(x, y) = (6, 0). (x, y) = (1, 2.5). (x, y) = (0, 5). (x, y) = (0, 0). (x, y) = (0, 3).

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48) An electronics firm produces two models of pocket calculators: the A-100 (A) and the B-200

(B). Each model uses one circuit board, of which there are only 2,500 available for this week’s production. In addition, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators. Each A-100 requires 15 minutes to produce while each B-200 requires 30 minutes to produce. The firm forecasts that it could sell a maximum of 4,000 of the A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each and profits for the B-200 are $4.00 each. The firm’s goal is to maximize profits. What is the weekly profit when producing the optimal amounts? 48) ______ A) $10,000 B) $2,500 C) $6,400 D) $4,600 E) $5,200 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to solve a linear programming spreadsheet model. Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-75 An electronics firm produces two models of pocket...

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49)

Where is the objective cell located? 49) ______ A) B) C) D) E)

B10:C10 None of the answer choices are correct. B2:C2, B5:C7, and F5:F7 B2:C2 F10

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-45 Where is the objective cell located?

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50) In a linear programming model, the certainty assumption states that the contribution of each

activity to the objective function is proportional to the level of this activity. 50) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-37 In a linear programming model, the...

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51) The production planner for Fine Coffees produces two coffee blends: American (A) and

British (B). He can only get 300 pounds of Colombian beans per week and 200 pounds of Dominican beans per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. The goal of Fine Coffees is to maximize profits. What is the constraint for Dominican beans? 51) ______ A) 12A + 8B ≤ 4,800. B) 8A + 4B ≤ 3,200. C) 4A + 8B ≤ 3,200. D) 8A + 12B ≤ 4,800. E) 4A + 8B ≤ 4,800. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-61 The production planner for Fine...

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52) For the products A, B, C, and D, which of the following could be a linear programming

objective function? 52) ______ A) B) C) D) E)

P = 1A + 2BC +3D P = 1A + 2B +3C + 4D All of the answer choices are correct. P = 1A + 2B/C +3D P = 1A + 2AB +3ABC + 4ABCD

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Name and identify the purpose of the four kinds of cells used in linear programm Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-48 For the products A, B, C,...

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53) A local bagel shop produces bagels (B) and croissants (C). Each bagel requires 6 ounces of

flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar available for today’s baking. Bagel profits are 20 cents each and croissant profits are 30 cents each. The shop wishes to maximize profits. What is the sugar constraint? 53) ______ A) 2B + 4C ≤ 4,800 B) 4B + 2C ≤ 4,800 C) 6B + 3C ≤ 4,800 D) 1B + 1C ≤ 4,800 E) 2B + 3C ≤ 4,800 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-77 A local bagel shop produces bagels...

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54) The operations manager for the Blue Moon Brewing Company produces two beers: Lite (L)

and Dark (D). She can only get 675 gallons of malt extract per day for brewing and her brewing hours are limited to 8 hours per day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract. Each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg and profits for Dark beer are $2.00 per keg. The brewery’s goal is to maximize profits. What is the time constraint? 54) ______ A) 5L + 3D ≤ 480. B) 2L +3D ≤ 480. C) 2L + 4D ≤ 480. D) 3L + 2D ≤ 480. E) 4L + 2D ≤ 480. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-65 The operations manager for the Blue Moon...

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55) When formulating a linear programming problem on a spreadsheet, which of the following is

true? 55) ______ A) B) C) D) E)

The objective function is called the objective cell. Decision variables are called changing cells. Parameters are called data cells. Nonnegativity constraints typically are included. All of the answer choices are correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-42 When formulating a linear programming problem...

56) The graphical method can handle problems that involve any number of decision variables. 56) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-23 The graphical method can handle problems...

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57) A linear programming problem can have multiple optimal solutions. 57) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-29 A linear programming problem can have...

58) When using the graphical method, the region that satisfies all of the constraints of a linear

programming problem is called the: 58) ______ A) B) C) D) E)

region of optimality. feasible region. optimum solution space. profit maximization space. region of nonnegativity.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-50 When using the graphical method, the...

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59) A local bagel shop produces bagels (B) and croissants (C). Each bagel requires 6 ounces of

flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar available for today’s baking. Bagel profits are 20 cents each and croissant profits are 30 cents each. The shop wishes to maximize profits. What is the daily profit when producing the optimal amounts? 59) ______ A) $340 B) $420 C) $380 D) $220 E) $580 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to solve a linear programming spreadsheet model. Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-79 A local bagel shop produces bagels...

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60) Use the graphical method for linear programming to find the optimal solution for the

following problem. Minimize C = 12x + 4y subject to 2x + 4y ≥ 12 5x + 2y ≥ 10 and x ≥ 0, y ≥ 0. 60) ______ A) B) C) D) E)

(x, y) = (6, 0) (x, y) = (0, 0) (x, y) = (0, 5) (x, y) = (1, 2.5) (x, y) = (0, 3)

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61) A local bagel shop produces bagels (B) and croissants (C). Each bagel requires 6 ounces of

flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar available for today’s baking. Bagel profits are 20 cents each and croissant profits are 30 cents each. The shop wishes to maximize profits. What is the objective function? 61) ______ A) P = 0.2B + 0.4C. B) P = 0.2B + 0.3C. C) P = 0.6B + 0.3C. D) P = 0.1B + 0.1C. E) P = 0.3B + 0.2C. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-76 A local bagel shop produces bagels...

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62) Which of the following is not a component of a linear programming model? 62) ______ A) B) C) D) E)

a spreadsheet parameters constraints an objective decision variables

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Name and identify the purpose of the four kinds of cells used in linear programm Topic : Formulating the wyndor problem on a spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-40 Which of the following is not...

63) In linear programming, solutions that satisfy all of the constraints simultaneously are referred

to as: 63) ______ A) B) C) D) E)

All of the answer choices are correct. nonnegative. optimal. feasible. targeted.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-41 In linear programming, solutions that satisfy...

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64) The equation 5x + 7y = 10 is linear. 64) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Present the algebraic form of a linear programming model from its formulation on Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-21 The equation 5x + 7y...

65) The production planner for Fine Coffees produces two coffee blends: American (A) and

British (B). He can only get 300 pounds of Colombian beans per week and 200 pounds of Dominican beans per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. The goal of Fine Coffees is to maximize profits. What is the weekly profit when producing the optimal amounts? 65) ______ A) $0. B) $700. C) $800. D) $900. E) $400. Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to solve a linear programming spreadsheet model. Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-63 The production planner for Fine...

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66) The origin satisfies any constraint with a ≥ sign and a positive right-hand side. 66) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-18 The origin satisfies any constraint with...

67) A circle would be an example of a feasible region for a linear programming problem. 67) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-20 A circle would be an example...

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68) A maximization problem can generally be characterized by having all ≥ constraints. 68) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-32 A maximization problem can generally be...

69) A local bagel shop produces bagels (B) and croissants (C). Each bagel requires 6 ounces of

flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar available for today’s baking. Bagel profits are 20 cents each and croissant profits are 30 cents each. The shop wishes to maximize profits. Which of the following is not a feasible solution? 69) ______ A) (B, C) = (800, 600) B) (B, C) = (0, 1400) C) (B, C) = (1100, 0) D) (B, C) = (0, 1100) E) (B, C) = (0, 0) Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-78 A local bagel shop produces bagels...

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70) After the data is collected the next step to formulating a linear programming model is to: 70) ______ A) specify the parameters of the problem. B) identify the constraints. C) identify the decision variables. D) None of the answer choices are correct. E) identify the objective function. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-49 After the data is collected the...

71) Linear programming allows a manager to find the best mix of activities to pursue and at what

levels. 71) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-02 Linear programming allows a manager to...

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72) When formulating a linear programming problem on a spreadsheet, the data cells will show

the optimal solution. 72) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-06 When formulating a linear programming problem...

73) The owner of Crackers, Incorporated produces both Deluxe (D) and Classic (C) crackers. She

only has 4,800 ounces of sugar, 9,600 ounces of flour, and 2,000 ounces of salt for her next production run. A box of Deluxe crackers requires 2 ounces of sugar, 6 ounces of flour, and 1 ounce of salt to produce. A box of Classic crackers requires 3 ounces of sugar, 8 ounces of flour, and 2 ounces of salt to produce. Profits are 40 cents for a box of Deluxe crackers and 50 cents for a box of Classic crackers. Crackers, Incorporated would like to maximize profits. What is the objective function? 73) ______ A) P = 0.2D + 0.3C B) P = 0.5D + 0.4C C) P = 0.1D + 0.2C D) P = 0.4D + 0.5C E) P = 0.6D + 0.8C Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-80 The owner of Crackers, Incorporated. produces...

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74) The operations manager for the Blue Moon Brewing Company produces two beers: Lite (L)

and Dark (D). She can only get 675 gallons of malt extract per day for brewing and her brewing hours are limited to 8 hours per day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract. Each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg and profits for Dark beer are $2.00 per keg. The brewery’s goal is to maximize profits. Which of the following is not a feasible solution? 74) ______ A) (L, D) = (0, 120). B) (L, D) = (135, 0). C) (L, D) = (0, 0). D) (L, D) = (90, 75). E) (L, D) = (135, 120). Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-66 The operations manager for the Blue Moon Brewing...

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75) The operations manager of a mail order house purchases double (D) and twin (T) beds for

resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager’s goal is to maximize profits. What is the weekly profit when ordering the optimal amounts? 75) ______ A) $30,000 B) $42,000 C) $45,000 D) $0 E) $54,000 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to solve a linear programming spreadsheet model. Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-87 The operations manager of a mail order house...

76) The equation 3xy = 9 is linear. 76) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Present the algebraic form of a linear programming model from its formulation on Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-22 The equation 3xy = 9 is...

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77) A feasible solution is one that satisfies all the constraints of a linear programming problem

simultaneously. 77) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-13 A feasible solution is one that...

78) Which of the following could not be a constraint for a linear programming problem? 78) ______ A) 1A + 2B ≤ 3 B) 1A + 2B C) 1A + 2B ≥ 3 D) 1A + 2B = 3 E) 1A + 2B + 3C ≤ 3 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Name and identify the purpose of the four kinds of cells used in linear programm Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-47 Which of the following could not...

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79) Use the graphical method for linear programming to find the optimal solution for the

following problem. Maximize P = 4x + 5y subject to 2x + 4y ≤ 12 5x + 2y ≤ 10 and x ≥ 0, y ≥ 0. 79) ______ A) B) C) D) E)

(x, y) = (1, 2.5) (x, y) = (0, 3) (x, y) = (1, 5) (x, y) = (0, 0) (x, y) = (2, 0)

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80) The operations manager for the Blue Moon Brewing Company produces two beers: Lite (L)

and Dark (D). She can only get 675 gallons of malt extract per day for brewing and her brewing hours are limited to 8 hours per day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract. Each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg and profits for Dark beer are $2.00 per keg. The brewery’s goal is to maximize profits. What is the objective function? 80) ______ A) P = 2L + 3D. B) P = 4L + 2D. C) P = 2L + 4D. D) P = 3L + 2D. E) P = 5L + 3D. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-64 The operations manager for the Blue Moon...

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81)

Where are the data cells located? 81) ______ A) B) C) D) E)

None of the answer choices are correct. B2:C2, B5:C7, and F5:F7 F10 B2:C2 B10:C10

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-43 Where are the data cells located?

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82) Use the graphical method for linear programming to find the optimal solution for the

following problem. Minimize C = 6x + 10y subject to 2x + 4y ≥ 12 5x + 2y ≥ 10 and x ≥ 0, y ≥ 0. 82) ______ A) B) C) D) E)

(x, y) = (6, 0) (x, y) = (0, 5) (x, y) = (0, 0) (x, y) = (1, 2.5) (x, y) = (0, 3)

83) Linear programming models can have either ≤ or ≥ inequality constraints but not both in the

same problem. 83) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-31 Linear programming models can have either...

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84) Solving linear programming problems graphically 84) ______ A) B) C) D) E)

provides geometric intuition about what linear programming is trying to achieve. is possible with any number of decision variables. None of the answer choices are correct. will always result in an optimal solution. All of the answer choices are correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-51 Solving linear programming problems...

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85) The operations manager of a mail order house purchases double (D) and twin (T) beds for

resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager’s goal is to maximize profits. What is the storage space constraint? 85) ______ A) 500D + 100T ≤ 18,000 B) 100D + 90T ≥ 18,000 C) 100D + 90T ≤ 18,000 D) 90D + 100T ≤ 18,000 E) 300D + 90T ≤ 18,000 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-85 The operations manager of a mail order house...

86) When formulating a linear programming problem on a spreadsheet, the Excel equation for

each output cell can typically be expressed as a SUMPRODUCT function. 86) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-08 When formulating a linear programming problem...

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87) The best feasible solution is called the optimal solution. 87) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-15 The best feasible solution is called...

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88) An electronics firm produces two models of pocket calculators: the A-100 (A) and the B-200

(B). Each model uses one circuit board, of which there are only 2,500 available for this week’s production. In addition, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators. Each A-100 requires 15 minutes to produce while each B-200 requires 30 minutes to produce. The firm forecasts that it could sell a maximum of 4,000 of the A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each and profits for the B-200 are $4.00 each. The firm’s goal is to maximize profits. Which of the following is not a feasible solution? 88) ______ A) (A, B) = (0, 0) B) (A, B) = (100, 1600) C) (A, B) = (0, 1000) D) (A, B) = (2500, 0) E) (A, B) = (1800, 700) Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > MC Qu. 05-74 An electronics firm produces two models...

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89) One of the great strengths of spreadsheets is their flexibility for dealing with a wide variety

of problems. 89) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a basic linear programming model in a spreadsheet from a description o Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-09 One of the great strengths of...

90) Which of the following constitutes a simultaneous solution to the following 2 equations?

(1) 4x1 + 2x2 = 7 (2) 4x1 - 3x2 = 2 90) ______ A) B) C) D) E)

(x1, x2) = (0, 3) (x1, x2) = (0, 0) (x1, x2) = (1, 1.25) (x1, x2) = (1.25, 1) (x1, x2) = (1.25, 0)

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91) An objective function represents a family of parallel lines. 91) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-24 An objective function represents a family...

92) The continuous-variables assumption states that the decision variables in a linear

programming problem can take on any value within the range permitted by the constraints. 92) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Explain what linear programming is. Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-36 The continuous-variables assumption states...

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93) The line forming the boundary of what is permitted by a constraint is referred to as a

parameter. 93) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-17 The line forming the boundary of...

94) When solving linear programming problems graphically, there are an infinite number of

possible objective function lines. 94) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply the graphical method to solve a two-variable linear programming problem. Topic : The graphical method for solving two-variable problems Source : Chapter 05 Test Bank - Static > TF Qu. 05-25 When solving linear programming problems...

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95) The operations manager for the Blue Moon Brewing Company produces two beers: Lite (L)

and Dark (D). She can only get 675 gallons of malt extract per day for brewing and her brewing hours are limited to 8 hours per day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract. Each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg and profits for Dark beer are $2.00 per keg. The brewery’s goal is to maximize profits. What is the daily profit when producing the optimal amounts? 95) ______ A) $505. B) $405. C) $420. D) $240. E) $0. Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to solve a linear programming spreadsheet model. Topic : Using excel's solver to solve linear programming problems Source : Chapter 05 Test Bank - Static > MC Qu. 05-67 The operations manager for the Blue Moon...

96) The parameters of a model are the numbers in the data cells of a spreadsheet. 96) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Name and identify the purpose of the four kinds of cells used in linear programm Topic : The mathematical model in the spreadsheet Source : Chapter 05 Test Bank - Static > TF Qu. 05-11 The parameters of a model are...

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Answer Key Test name: Chapter 05 Test Bank 1) 2) 3) 4) 5)

TRUE B C FALSE D To determine feasibility, substitute the variable values into the constraints. Substituting R = 180 and S = 240 violates both constraints. (1) 2R + 3S ≤ 720 ⇒ 2(180) + 3(240) = 1,080 ≥ 720 (2) 5R + 5S ≤ 1,500 ⇒ 5(180) + 5(240) = 2,100 ≥ 1,500 6) C

Since each D requires 2 ounces of sugar and each C requires 3 ounces of sugar, the constraint should reflect that the usage (2 ounces for each D, 3 ounces for each C) must be less than the supply. 7) A 8) C

Since the objective is to maximize profits, the objective function should reflect the profitability of A ($1.00 per unit) and B ($4.00 per unit). 9) B 10) D

To determine the slope of the objective function, solve for the variable "y". y = −2x + 10 indicates a slope of −2. Only 4x + 2y = 10 has the same slope. 11) TRUE 12) TRUE 13) FALSE 14) B

To determine feasibility, substitute the variable values into the constraints. Substituting option "b" values of D and T violates at least one constraint. (1) 100D + 90T ≤ 18,000 ⇒ 100(0) + 90(250) = 22,500 ≥18,000 {constraint violated} (2) 500D + 300C ≤ 75,000 ⇒ 500(0) + 300(250) = 75,000 = 75,000 15) A

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Graph the two constraints to define the feasible region. Next, find the objective function value that just touches the edge of the feasible region (here, at point (0, 3) the objective function is maximized with a value of 45. Alternatively, evaluate the extreme points of the feasible region: (0, 0) - objective function value 0 (2, 0) - objective function value 6 (1, 2.5) - objective function value 40.5 (0, 3) - objective function value 45 {maximum}

16) FALSE 17) C

Since the objective is to maximize profits, the objective function should reflect the profitability of D($300 per bed) and T ($150 per bed). 18) TRUE 19) B

Using Excel’s Solver add-in, the optimal solution of the linear program shown below is R = 300, S = 0, with weekly profits of $1,800. Maximize P = 6R + 4S subject to 2R + 3S ≤ 720 5R + 5S ≤ 1,500 and R ≥ 0, S ≥ 0.

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20) E

Since the objective is to maximize profits, the objective function should reflect the profitability of R ($6.00 per case) and S ($4.00 per case). 21) A

Using subtraction to eliminate one variable (x1) allows solving for the other (x2). Then substitution of the value for x2 into an original equation allows us to solve for x1. 2(3x1 + 2x2 = 6) {this equation is multiplied by 2 to allow elimination of x1) −(6x1 + 3x2 = 12) 0x1 − 2x2 = 0 ⇒ x2 = 0 Since x2 = 0, 3x1 + 2x2 = 6 ⇒ 3x1 = 6 ⇒ x1= 2 22) A

To determine feasibility, substitute the variable values into the constraints. Substituting x1 = 2 and x2 = 1 leaves both constraints satisfied. (1) 14x1 + 6x2 ≤ 42 ⇒ 14(2) + 6(1) = 34 ≤ 42 (2) x1x2 ≤ 3⇒ 1(2) − 1(1) = 3 ≤ 3 23) FALSE 24) C 25) A

To determine feasibility, substitute the variable values into the constraints. Substituting A = 400 and B = 400 violates both constraints. (1) 12A + 8B ≤ 4,800 ⇒ 12(400) + 8(400) = 8,000 ≥ 4,800 (2) 4A + 8B ≤ 3,200 ⇒ 4(400) + 8(400) = 4,800 ≥ 3,200 26) FALSE 27) TRUE 28) D

Using Excel’s Solver add-in, the optimal solution of the linear program shown below is D = 1,600, C = 0, with weekly profits of $640. Maximize P = 0.4D + 0.5C subject to 2D + 3C ≤ 4,800 6D + 8C ≤ 9,600 D + 2C ≤ 2,000 and D ≥ 0, C ≥ 0. 29) C

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Using Excel’s Solver add-in, the optimal solution of the linear program shown above is x = 3, y = 0, with an objective function value of 24. 30) E

Using Excel’s Solver add-in, the optimal solution of the linear program shown above is x = 0, y = 5, with an objective function value of 40. 31) FALSE 32) D

Using subtraction to eliminate one variable (x2) allows solving for the other. Then substitution of the value for x1 into an original equation allows us to solve for x 2. 3x1 + 4x2 = 10 −(5x1 + 4x2 = 14) −2x1 + 0x2 = −4 ⇒ x1 = 2 Since x1 = 2, 3x1 + 4x2 = 10 ⇒ 4x2 = 4 ⇒ x2 = 1 33) A

Since the objective is to maximize profits, the objective function should reflect the profitability of A ($2.00 per pound) and B ($1.00 per pound). 34) C

Since each pound of A uses 12 ounces of Colombian beans and each pound of B uses 8 ounces of Colombian beans, it is convenient to convert the supply of Columbian beans to ounces (300 pounds = 4,800 ounces). Then the constraint should reflect that the usages (12 ounces per pound of A, 8 ounces per pound of B) must be less than the supply. 35) E

Since each case of R requires 2 minutes and each case of S uses 3 minutes, it is convenient to convert the available time to minutes (12 hours = 720 minutes). Then the constraint should reflect that the usages (2 minutes for R, 3 minutes for S) must be less than the supply. 36) TRUE 37) D

To determine feasibility, substitute the variable values into the constraints. Substituting x1 = 2 and x2 = 5 leaves both constraints satisfied. (1) 14x1 + 6x2 ≥ 42 ⇒ 14(2) + 6(5) = 48 ≥ 42 (2) x1 + 3x2 ≥ 6 ⇒ 1(2) + 3(5) = 17 ≥ 6 38) TRUE 39) FALSE

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40) FALSE 41) FIFI

To determine feasibility, substitute the variable values into the constraints. Substituting D = 0 and C = 1200 violates at least one constraint. (1) 2D + 3C ≤ 4,800 ⇒ 2(0) + 3(1,200) = 3,600 ≤ 4,800 (2) 6D + 8C ≤ 9,600 ⇒ 6(0) + 8(1,200) = 9,600 = 9,600 (3) D + 2C ≤ 2,000 ⇒ 1(0) + 2(1,200) = 2,400 ≥ 1,400 {constraint violated} 42) TRUE 43) TRUE 44) FALSE 45) E 46) C

Since each A requires 15 minutes and each B uses 30 minutes, it is convenient to convert the required time to hours. Then the constraint should reflect that the usages (0.25 hour for A, 0.5 hour for B) must be less than the supply. 47) A

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Graph the two constraints to define the feasible region. Next, find the objective function value that just touches the edge of the feasible region (here, at point (6, 0) the objective function is minimized with a value of 18. Alternatively, evaluate the extreme points of the feasible region: (6, 0) − objective function value 18 {minimum} (0, 5) − objective function value 75 (1, 2.5) − objective function value 40.5

48) E

Using Excel’s Solver add-in, the optimal solution of the linear program shown below is A = 1,200, B = 1,000, with weekly profits of $5,200. Maximize P = 1A + 4B subject to 0.25A + 0.5B ≤ 800 A + B ≤ 2,500 A ≤ 4,000 B ≤ 1,000 andA ≥ 0, B ≥ 0. 49) E 50) FALSE 51) C

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Since each pound of A uses 12 ounces of Dominican beans and each pound of B uses 8 ounces of Dominican beans, it is convenient to convert the supply of Dominican beans to ounces (200 pounds = 3,200 ounces). Then the constraint should reflect that the usages (4 ounces per pound of A, 8 ounces per pound of B) must be less than the supply. 52) B

A linear objective function can only include products of a changing cell and a data cell. Only option "a" can be represented with a SUMPRODUCT function in Excel. 53) A

Since each B requires 2 tablespoons of sugar and each C requires 4 tablespoons of sugar, the constraint should reflect that the usage (2 tablespoons for each B, 4 tablespoons for each C) must be less than the supply. 54) C

Since each keg of L requires 2 minutes and each keg of D uses 4 minutes, it is convenient to convert the available time to minutes (8 hours = 480 minutes). Then the constraint should reflect that the usages (2 minutes for A, 4 minutes for D) must be less than the supply. 55) E 56) FALSE 57) TRUE 58) B 59) C

Using Excel’s Solver add-in, the optimal solution of the linear program shown below is B = 400, C = 1,000, with weekly profits of $380. Maximize P = 0.2B + 0.3C subject to 2B + 4C ≤ 4,800 6B + 3C ≤ 6,600 B + C ≤ 1,400 and B ≥ 0, C ≥ 0. 60) C

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Graph the two constraints to define the feasible region. Next, find the objective function value that just touches the edge of the feasible region (here, at point (0, 5) the objective function is minimized with a value of 20). Alternatively, evaluate the extreme points of the feasible region: (6, 0) - objective function value 72 (0, 5) - objective function value 20 {minimum} (1, 2.5) - objective function value 22

61) B

Since the objective is to maximize profits, the objective function should reflect the profitability of B ($0.20 per unit) and C ($0.30 per unit). 62) A 63) D 64) TRUE 65) C

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Using Excel’s Solver add-in, the optimal solution of the linear program shown below is A = 400, B = 0, with weekly profits of $800. Maximize P = 2A + B subject to 12A + 8B ≤ 4800 4A + 8B ≤ 3200 and A ≥ 0, B ≥ 0. 66) FALSE 67) FALSE 68) FALSE 69) B

To determine feasibility, substitute the variable values into the constraints. Substituting B = 0 and C = 1400 violates at least one constraint. (1) 2B + 4C ≤ 4,800 ⇒ 2(0) + 4(1,400) = 5,600 ≥ 4,800 {constraint violated} (2) 6B + 3C ≤ 6,600 ⇒ 6(0) + 3(1,400) = 4,200 ≤ 6,600 (3) B + C ≤ 1,400 ⇒ 1,400 = 1,400 70) C 71) TRUE 72) FALSE 73) D

Since the objective is to maximize profits, the objective function should reflect the profitability of D($0.40 per box) and C ($0.50 per box). 74) E

To determine feasibility, substitute the variable values into the constraints. Substituting L = 135 and D = 120 violates both constraints. (1) 2L + 4D ≤ 480 ⇒ 2(135) + 4(120) = 750 ≥ 480 (2) 5L + 3D ≤ 675 ⇒ 5(135) + 3(120) = 1,035 ≥ 675 75) E

Using Excel’s Solver add-in, the optimal solution of the linear program shown below is D = 180, T = 0, with weekly profits of $54,000. Maximize P = 300D + 150T subject to 100D + 90T ≤ 18,000 300D + 150T ≤ 75,000 and D ≥ 0, T ≥ 0. 76) FALSE 77) TRUE

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78) B

A constraint requires both a left-hand side (level of activities) and right-hand side (feasible value). 79) A

Graph the two constraints to define the feasible region. Next, find the objective function value that just touches the edge of the feasible region (here, at point (1, 2.5) the objective function is maximized with a value of 16.5. Alternatively, evaluate the extreme points of the feasible region: (0, 0) − objective function value 0 (0, 3) − objective function value 15 (2, 0) − objective function value 8 (1, 2.5) − objective function value 16.5 {maximum} Using Excel’s Solver add-in, the optimal solution of the linear program shown above is x = 1, y = 2.5, with an objective function value of 16.5. 80) D

Since the objective is to maximize profits, the objective function should reflect the profitability of L ($3.00 per keg) and D ($2.00 per keg). 81) B 82) D

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83) FALSE 84) A 85) C

Since each D requires 100 cubic feet and each T requires 90 cubic feet, the constraint should reflect that the usage (100 cubic feet for each D, 90 cubic feet for each C) must be less than the supply. 86) TRUE 87) TRUE 88) B

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To determine feasibility, substitute the variable values into the constraints. Substituting A = 100 and B = 1600 violates at least one constraint. (1) 0.25A + 0.5B ≤ 800 ⇒ 2(100) + 3(1,600) = 5,000 ≥ 800 {constraint violated} (2) A + B ≤ 2,500 ⇒ 100 + 1,600 = 1,700 ≤ 2500 (3) A ≤ 4,000 ⇒ 100 ≤ 4,000 (4) B ≤ 1,000 ⇒ 1,600 ≥ 1,000 {constraint violated} 89) TRUE 90) D

Using subtraction to eliminate one variable (x1) allows solving for the other (x2). Then substitution of the value for x2 into an original equation allows us to solve for x1. 4x1 + 2x2 = 7 − (4x1 − 3x2 = 2) 0x1 + 5x2 = 5 ⇒ x2 = 1 Since x2 = 1, 4x1 + 2x2 = 7 ⇒ 4x1 = 5 ⇒ x1 = 1.25 91) TRUE 92) TRUE 93) FALSE 94) TRUE 95) C

Using Excel’s Solver add-in, the optimal solution of the linear program shown below is L = 90, D = 75, with weekly profits of $420. Maximize P = 3L + 2D subject to 2L + 4D ≤ 480 5L + 3D ≤ 675 and L ≥ 0, D ≥ 0. 96) TRUE

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1) Generally, assignment problems match people to an equal number of tasks at a minimum

cost. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Assignment problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-38 Generally, assignment problems match people to...

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2) A grocery store manager must decide how to best present a limited supply of milk and

cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be sold at a profit of $2.50 per dozen. To increase appeal to customers, one gallon of milk and a dozen cookies can be packaged together and sold for a profit of $3.00 per bundle. The manager has at most 100 gallons of milk and 150 dozen cookies to make available each day. The manager has decided to stock at least 75 individual gallons of milk per day (excluding milk bundled with cookies). Demand for individual packages of cookies is at most 140 dozen per day (excluding cookies bundled with milk). The manager wishes to determine how much of each product to stock each day. Which of the following is the constraint that limits the amount of milk the store will use (both in bundles and sold separately) each day? 2) ______ A) M + B ≥ 75 B) M ≤ 100 C) M + B ≥ 100 D) M + B ≤ 75 E) M + B ≤ 100 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Mixed problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-71 A grocery store manager must decide...

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3) It is usually quite simple to obtain estimates of parameters in a linear programming problem. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the flexibility that managers have in prescribing key considerations Topic : Model formulation from a broader perspective Source : Chapter 06 Test Bank - Static > TF Qu. 06-12 It is usually quite simple to...

4) Transportation and assignment problems are examples of fixed-requirement problems. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-43 Transportation and assignment problems are examples...

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5) A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets

per day. Plant D can produce 50 widgets per day. Each day, the widgets produced in the plants must be shipped to satisfy the demand of 3 customers. Customer 1 requires 75 units per day, customer 2 requires 100 units per day, and customer 3 requires 175 units per day. The shipping costs for each possible route are shown in the table below: Shipping Costs per unit Plant 1 A B C D

Customer 2 $ 25 $ 20 $ 40 $ 15

3 $ 35 $ 30 $ 35 $ 20

$ 15 $ 40 $ 20 $ 25

The firm needs to satisfy all demand each day, but would like to minimize the total costs. The firm’s problem falls within which classification? 5) ______ A) Transportation problem B) Cost-benefit-trade-off C) Resource-allocation D) Transshipment problem E) Assignment problem Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Transportation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-73 A firm has 4 plants that produce...

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6) A freelance writer must choose how to spend her time working on several different types of

projects. Newspaper stories take 3 hours to write and pay a flat rate of $45 per story. Magazine articles take much longer to write (25 hours) but pay significantly better ($400 per article). Proofreading is often tedious, but the writer can always find proofreading jobs that pay $20 per hour. The writer wants to maximize her income, but doesn't want to work more than 45 hours per week. Additionally, she dislikes proofreading so she would like to spend no more than 7 hours per week on that task. Both newspaper stories and magazine articles must be completed in the week they are started (HINT: use an integer constraint to be sure that all newspaper and magazine jobs are finished within a week). Which of the following is the objective function for the writer's problem? 6) ______ A) Min R = 3N + 25M + P B) Max R = 3N + 400M + 20P C) Max R = 45N + 400M − 20P D) Min R = 3N + 25M + 20P E) Max R = 45N + 400M + 20P Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-66 A freelance writer must choose how...

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7) Having one requirement for each location is a characteristic common to all transportation

problems. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-25 Having one requirement for each location...

8) A linear programming model contains which of the following components? 8) ______ A) B) C) D) E)

Measure of performance Decisions Constraints Data All of the answer choices are correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Identify the four components of any linear programming model and the kind of spr Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > MC Qu. 06-47 A linear programming model contains which...

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9)

Where are data cells located? 9) ______ A) B) C) D) E)

E5:E7 B10:D10 B2:D2, B4:D7, and G5:G7 B2:D2 G10

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Learning Objective : Identify the kinds of Excel functions that linear programming spreadsheet models Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-51 Where are data cells...

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10) The transportation model method for evaluating location alternatives minimizes: 10) ______ A) the number of destinations. B) the number of sources. C) total shipping cost. D) total supply. E) total demand. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-60 The transportation model method for evaluating...

11) Using techniques to test the initial versions of a model to identify errors and omissions is

called: 11) ______ A) B) C) D) E)

model simplification. model enhancement. None of the answer choices are correct. model enrichment. model validation.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the flexibility that managers have in prescribing key considerations Topic : Model formulation from a broader perspective Source : Chapter 06 Test Bank - Static > MC Qu. 06-58 Using techniques to test the initial...

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12) A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets

Customer 2 $ 25 $ 20 $ 40 $ 15

3 $ 35 $ 30 $ 35 $ 20

$ 15 $ 40 $ 20 $ 25

The firm needs to satisfy all demand each day, but would like to minimize the total costs. Which of the following constraints is unnecessary for this problem (xi,j is the number of widgets shipped from factory i to customer j)? 12) ______ A) xC,1 + xxC,2 + xxC,3 ≤ 100 B) xA,1, xA,2, xA,3, xB,1, xB,2, xB,3, xC,1, xC,2, xC,3 integer C) xA,1 + xB,1 + xxC,1 ≥ 75 D) xA,1 + xA,2 + xA,3 ≤ 100 E) xB,1 + xB,2 + xB,3 ≤ 100 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Transportation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-75 A firm has 4 plants that produce...

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13) The capacity row in a distribution-network formulation shows the maximum number of units

than can be shipped through the network. 13) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-27 The capacity row in a distribution-network...

14) A transportation problem requires a unit cost for every source-destination combination. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-36 A transportation problem requires a unit...

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15) Transportation problems are concerned with distributing commodities from sources to

destinations in such a way as to minimize the total distribution cost. 15) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-33 Transportation problems are concerned with distributing...

16) It is the nature of the application that determines the classification of the resulting linear

programming formulation. 16) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Model formulation from a broader perspective Source : Chapter 06 Test Bank - Static > TF Qu. 06-21 It is the nature of the...

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17) For cost-benefit-tradeoff problems, minimum acceptable levels for each kind of benefit are

prescribed and the objective is to achieve all these benefits with minimum cost. 17) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Cost-benefit-trade-off problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-18 For cost-benefit-tradeoff problems, minimum acceptable levels...

18) Applications of assignment problems may include: 18) ______ A) B) C) D) E)

matching personnel to jobs and assigning machines to tasks only. assigning busses to routes. matching personnel to jobs. assigning machines to tasks. matching personnel to jobs, assigning machines to tasks, and assigning busses to routes.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Assignment problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-64 Applications of assignment problems...

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19) In most cases, the minimum acceptable level for a cost-benefit-tradeoff problem is set by

how much money is available. 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Cost-benefit-trade-off problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-20 In most cases, the minimum acceptable...

20) In linear programming formulations, it is possible to have the following types of constraints: 20) ______ A) ≤ and ≥ only B) ≤ C) All of the answer choices are correct. D) ≥ E) = Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Recognize various kinds of managerial problems to which linear programming can b Topic : Model formulation from a broader perspective Source : Chapter 06 Test Bank - Static > MC Qu. 06-48 In linear programming formulations, it is...

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21) Transportation problems always involve shipping goods from one location to another. 21) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-34 Transportation problems always involve shipping goods...

22) A grocery store manager must decide how to best present a limited supply of milk and

cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be sold at a profit of $2.50 per dozen. To increase appeal to customers, one gallon of milk and a dozen cookies can be packaged together and sold for a profit of $3.00 per bundle. The manager has at most 100 gallons of milk and 150 dozen cookies to make available each day. The manager has decided to stock at least 75 individual gallons of milk per day (excluding milk bundled with cookies). Demand for individual packages of cookies is at most 140 dozen per day (excluding cookies bundled with milk). The manager wishes to determine how much of each product to stock each day. Which of the following is the objective function for the grocer's problem? 22) ______ A) Max P = 2.5M + 3C + 1.5B B) Max P = 1.5M + 2.5C + 3B C) Min P = 1.5M + 2.5C + 3B D) Min P = 1.5M + 1.5C + 3B. E) Max P = 2.5M + 1.5C + 3B Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Mixed problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-70 A grocery store manager must decide...

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23) Mixed problems may have the following type of constraints: 23) ______ A) B) C) D)

All of the answer choices are correct. ≥ = ≤ E) None of the answer choices are correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Mixed problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-56 Mixed problems may have the following...

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24) A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets

Customer 2 $ 25 $ 20 $ 40 $ 15

3 $ 35 $ 30 $ 35 $ 20

$ 15 $ 40 $ 20 $ 25

The firm needs to satisfy all demand each day, but would like to minimize the total costs. The objective function for the firm's problem will have how many terms? 24) ______ A) 7 B) 5 C) 14 D) 12 E) 10 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Transportation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-74 A firm has 4 plants that produce...

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25)

Where are the output cells located? 25) ______ A) B) C) D)

E5:E7 B10:D10 B2:D2 B2:D2, B4:D7, and G5:G7

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26) Starting with a simple version of a model and adding to it until it reflects the real problem is

called: 26) ______ A) B) C) D) E)

model enrichment. model elaboration. model simplification. None of the answer choices are correct. model validation.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the flexibility that managers have in prescribing key considerations Topic : Model formulation from a broader perspective Source : Chapter 06 Test Bank - Static > MC Qu. 06-59 Starting with a simple version of...

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27)

Where is the objective cell located? 27) ______ A) B) C) D) E)

B2:D2, B4:D7, and G5:G7 B10:D10 E5:E7 B2:D2 G10

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28) Which of the following is not information needed to use the transportation model? 28) ______ A) Unit shipping distances B) Capacity of the sources C) All of the answer choices are correct. D) Unit shipping costs E) Demand of the destinations Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-61 Which of the following is not...

29) When formulating a linear programming model on a spreadsheet, the constraints are located

(in part) in the output cells. 29) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Identify the four components of any linear programming model and the kind of spr Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > TF Qu. 06-02 When formulating a linear programming model...

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30) When formulating a linear programming model on a spreadsheet, the decisions to be made

are located in the data cells. 30) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Identify the four components of any linear programming model and the kind of spr Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > TF Qu. 06-01 When formulating a linear programming model...

31) A mixed linear programming problem will always contain some of each of the three types of

constraints in it. 31) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Mixed problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-29 A mixed linear programming problem will...

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32) Choosing the best tradeoff between cost and benefits is a managerial judgment decision. 32) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Cost-benefit-trade-off problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-24 Choosing the best tradeoff between cost...

33) In a cost-benefit-trade-off problem, management defines the maximum amount that can be

spent and the objective is to maximize benefits within this cost target. 33) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Cost-benefit-trade-off problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-42 In a cost-benefit-trade-off problem, management defines...

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34) A resource constraint refers to any functional constraint with a ≥ sign in a linear

programming model. 34) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the difference between resource constraints and benefit constraints, in Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-15 A resource constraint refers to any...

35) When studying a resource-allocation problem, it is necessary to determine the contribution

per unit of each activity to the overall measure of performance. 35) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-11 When studying a resource-allocation problem, it...

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36) The requirements assumption states that each source has a fixed supply of units, where the

entire supply must be distributed to the destinations and that each destination has a fixed demand for units, where the entire demand must be received from the sources. 36) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-35 The requirements assumption states that each...

37) Blending problems are a special type of mixed linear programming problem. 37) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Mixed problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-30 Blending problems are a special type...

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38) A freelance writer must choose how to spend her time working on several different types of

projects. Newspaper stories take 3 hours to write and pay a flat rate of $45 per story. Magazine articles take much longer to write (25 hours) but pay significantly better ($400 per article). Proofreading is often tedious, but the writer can always find proofreading jobs that pay $20 per hour. The writer wants to maximize her income, but doesn't want to work more than 45 hours per week. Additionally, she dislikes proofreading so she would like to spend no more than 7 hours per week on that task. Both newspaper stories and magazine articles must be completed in the week they are started (HINT: use an integer constraint to be sure that all newspaper and magazine jobs are finished within a week). Which of the following is the constraint that limits the amount of time the writer will work each week? 38) ______ A) 45N + 400M + 20P ≥ 45 B) 3N + 25M + P ≤ 7 C) 3N + 25M + P ≤ 45 D) 3N + 25M + P ≥ 45 E) 45N + 400M + 20P ≤ 45 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-67 A freelance writer must choose how...

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39) In an assignment problem, it is necessary to add an integer constraint to the decision

variables to ensure that they will take on a value of either 0 or 1. 39) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Assignment problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-40 In an assignment problem, it is...

40) A transportation problem with integer values for supply and demand will always return

integer values for all decision variables. 40) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-39 A transportation problem with integer values...

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41) When formulating a linear programming problem on a spreadsheet, which of the following is

true? 41) ______ A) B) C) D) E)

Parameters are called data cells. All of the answer choices are correct. Right-hand sides are part of the constraints. The objective function is called the objective cell. Decision variables are called changing cells.

42) A linear programming problem where the objective is to find the best mix of ingredients for a

product to meet certain specifications is called: 42) ______ A) B) C) D) E)

None of the answer choices are correct. a mixture problem. a resource-allocation problem. a cost-benefit tradeoff problem. a blending problem.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Mixed problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-57 A linear programming problem where the...

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43) Fixed-requirement constraints in a linear programming model are functional constraints that

use an equal sign. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe fixed-requirement constraints and where they arise. Topic : Mixed problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-26 Fixed-requirement constraints in a linear programming...

44) Which of the following are categories of linear programming problems? 44) ______ A) B) C) D) E)

Distribution-network problems Resource-allocation problems All of the above. None of the above. Cost-benefit-tradeoff problems

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-46 Which of the following are categories...

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45) A grocery store manager must decide how to best present a limited supply of milk and

cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be sold at a profit of $2.50 per dozen. To increase appeal to customers, one gallon of milk and a dozen cookies can be packaged together and sold for a profit of $3.00 per bundle. The manager has at most 100 gallons of milk and 150 dozen cookies to make available each day. The manager has decided to stock at least 75 individual gallons of milk per day (excluding milk bundled with cookies). Demand for individual packages of cookies is at most 140 dozen per day (excluding cookies bundled with milk). The manager wishes to determine how much of each product to stock each day. What is the maximum daily profit that the grocery store can achieve? 45) ______ A) $455 B) $485 C) $515 D) $425 E) $395 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Mixed problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-72 A grocery store manager must decide...

46) A mathematical model will be an exact representation of the real problem. 46) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the flexibility that managers have in prescribing key considerations Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > TF Qu. 06-04 A mathematical model will be an...

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47) A benefit constraint refers to a functional constraint with a ≥ sign in a linear programming

model. 47) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the difference between resource constraints and benefit constraints, in Topic : Cost-benefit-trade-off problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-19 A benefit constraint refers to a...

48) When formulating a linear programming model on a spreadsheet, the measure of

performance is located in the objective cell. 48) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Identify the four components of any linear programming model and the kind of spr Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > TF Qu. 06-03 When formulating a linear programming model...

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49) A key assumption of linear programming is that the equation for each of the output cells,

including the objective cell, can be expressed as a SUMPRODUCT (or SUM) function. 49) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Identify the kinds of Excel functions that linear programming spreadsheet models Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > TF Qu. 06-08 A key assumption of linear programming...

50) Cost-benefit-tradeoff problems are linear programming problems involving the allocation of

limited resources to activities. 50) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Cost-benefit-trade-off problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-17 Cost-benefit-tradeoff problems are linear programming problems...

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51) A freelance writer must choose how to spend her time working on several different types of

projects. Newspaper stories take 3 hours to write and pay a flat rate of $45 per story. Magazine articles take much longer to write (25 hours) but pay significantly better ($400 per article). Proofreading is often tedious, but the writer can always find proofreading jobs that pay $20 per hour. The writer wants to maximize her income, but doesn't want to work more than 45 hours per week. Additionally, she dislikes proofreading so she would like to spend no more than 7 hours per week on that task. Both newspaper stories and magazine articles must be completed in the week they are started (HINT: use an integer constraint to be sure that all newspaper and magazine jobs are finished within a week). What is the optimal mix of jobs for the writer to accept each week? 51) ______ A) N = 6, M = 1, P = 2 B) N = 13, M = 0, P = 6 C) N = 6, M = 1, P = 0 D) N = 5, M = 1, P = 5 E) N = 12, M = 0, P = 7 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-68 A freelance writer must choose how...

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52) A transportation problem with 3 factories and 4 customers will have 12 fixed-requirement

constraints. 52) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-45 A transportation problem with 3 factories...

53) Cost-benefit tradeoff problems have the following type of constraints: 53) ______ A) B) C) D)

None of the answer choices are correct. ≤ = ≥ E) < Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Cost-benefit-trade-off problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-55 Cost-benefit tradeoff problems have the following...

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54) When formulating a linear programming problem on a spreadsheet, data cells will show the

levels of activities for the decisions being made. 54) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Identify the four components of any linear programming model and the kind of spr Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > TF Qu. 06-07 When formulating a linear programming problem...

55) When formulating a transportation problem on a spreadsheet, which of the following are

necessary? 55) ______ A) B) C) D) E)

A network representation. A table for the solution. A table of data. All of the answer choices are correct. A table of data and a table for the solution.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Transportation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-62 When formulating a transportation problem on...

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56) Resource-allocation problems have the following type of constraints: 56) ______ A) None of the answer choices are correct. B) = C) ≤ D) ≥ E) < Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-49 Resource-allocation problems have the following type...

57) In the algebraic form of a resource constraint, the coefficient of each decision variable is the

resource usage per unit of the corresponding activity. 57) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the difference between resource constraints and benefit constraints, in Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-16 In the algebraic form of a...

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58) A freelance writer must choose how to spend her time working on several different types of

projects. Newspaper stories take 3 hours to write and pay a flat rate of $45 per story. Magazine articles take much longer to write (25 hours) but pay significantly better ($400 per article). Proofreading is often tedious, but the writer can always find proofreading jobs that pay $20 per hour. The writer wants to maximize her income, but doesn't want to work more than 45 hours per week. Additionally, she dislikes proofreading so she would like to spend no more than 7 hours per week on that task. Both newspaper stories and magazine articles must be completed in the week they are started (HINT: use an integer constraint to be sure that all newspaper and magazine jobs are finished within a week). The writer's problem falls within which classification? 58) ______ A) Cost-benefit-trade-off B) Transportation problems C) Resource-allocation D) Assignment problems E) Mixed problems Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-65 A freelance writer must choose how...

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59) The objective cell is a special kind of output cell. 59) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Identify the kinds of Excel functions that linear programming spreadsheet models Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > TF Qu. 06-13 The objective cell is a special...

60) An assignment problem is a special type of transportation problem. 60) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Assignment problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-37 An assignment problem is a special...

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61) A transportation problem with 3 factories and 4 customers will have 12 shipping lanes. 61) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Transportation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-44 A transportation problem with 3 factories...

62) It is the nature of the restrictions imposed on the decisions regarding the mix of activity

levels that determines the classification of the resulting linear programming formulation. 62) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Model formulation from a broader perspective Source : Chapter 06 Test Bank - Static > TF Qu. 06-22 It is the nature of the...

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63) Strict inequalities (i.e., < or >) are not permitted in linear programming formulations. 63) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Describe the difference between resource constraints and benefit constraints, in Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-10 Strict inequalities (i.e., &lt; or &gt;)...

64) Model formulation should precede problem formulation. 64) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Understand the flexibility that managers have in prescribing key considerations Topic : Model formulation from a broader perspective Source : Chapter 06 Test Bank - Static > TF Qu. 06-31 Model formulation should precede...

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65) Resource-allocation problems are linear programming problems involving the allocation of

limited resources to activities. 65) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-09 Resource-allocation problems are linear programming problems...

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66) A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets

Customer 2 $ 25 $ 20 $ 40 $ 15

3 $ 35 $ 30 $ 35 $ 20

$ 15 $ 40 $ 20 $ 25

The firm needs to satisfy all demand each day, but would like to minimize the total costs. What is the minimum daily shipping cost that the firm can achieve? 66) ______ A) $6,725 B) $7,925 C) $7,525 D) $7,125 E) $8,325 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Transportation problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-76 A firm has 4 plants that produce...

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67) An assignment problem: 67) ______ A) B) C) D) E)

All of the answer choices are correct. is a special case of the transportation problem. will always have an integer solution. None of the answer choices are correct. has all supplies and demands equal to 1.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Assignment problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-63 An assignment...

68) It is fairly common to have both resource constraints and benefit constraints in the same

formulation. 68) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the difference between resource constraints and benefit constraints, in Topic : Mixed problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-23 It is fairly common to have...

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69)

Where are the changing cells located? 69) ______ A) B) C) D) E)

B10:D10 B2:D2, B4:D7, and G5:G7 B2:D2 G10 E5:E7

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70) Once a linear programming problem has been formulated, it is rare to make major

adjustments to it. 70) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the flexibility that managers have in prescribing key considerations Topic : Model formulation from a broader perspective Source : Chapter 06 Test Bank - Static > TF Qu. 06-28 Once a linear programming problem has...

71) Approximations and simplifying assumptions generally are required to have a workable

model. 71) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Learning Objective : Understand the flexibility that managers have in prescribing key considerations Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > TF Qu. 06-05 Approximations and simplifying assumptions generally are...

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72) Financial planning is one of the most important areas of application for fixed-requirement

problems. 72) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Describe the five major categories of linear programming problems, including the Topic : Cost-benefit-trade-off problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-14 Financial planning is one of the...

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73) A grocery store manager must decide how to best present a limited supply of milk and

cookies to its customers. Milk can be sold by itself for a profit of $1.50 per gallon. Cookies can likewise be sold at a profit of $2.50 per dozen. To increase appeal to customers, one gallon of milk and a dozen cookies can be packaged together and sold for a profit of $3.00 per bundle. The manager has at most 100 gallons of milk and 150 dozen cookies to make available each day. The manager has decided to stock at least 75 individual gallons of milk per day (excluding milk bundled with cookies). Demand for individual packages of cookies is at most 140 dozen per day (excluding cookies bundled with milk). The manager wishes to determine how much of each product to stock each day. The manager's problem falls within which classification? 73) ______ A) Mixed problems B) Resource-allocation C) Cost-benefit-trade-off D) Transportation problems E) Assignment problems Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Learning Objective : Formulate a linear programming model from a description of a problem in any of t Topic : Mixed problems Source : Chapter 06 Test Bank - Static > MC Qu. 06-69 A grocery store manager must decide...

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74) When dealing with huge real problems, there is no such thing as the perfectly correct linear

programming model for the problem. 74) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the flexibility that managers have in prescribing key considerations Topic : Model formulation from a broader perspective Source : Chapter 06 Test Bank - Static > TF Qu. 06-32 When dealing with huge real...

75) A linear programming problem may return fractional solutions (e.g. 4 1/3) for a resource

allocation problem. 75) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Recognize various kinds of managerial problems to which linear programming can b Topic : Resource-allocation problems Source : Chapter 06 Test Bank - Static > TF Qu. 06-41 A linear programming problem may return...

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76) Linear programming does not permit fractional solutions. 76) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Understand the flexibility that managers have in prescribing key considerations Topic : A case study: the super grain corp. advertising-mix problem Source : Chapter 06 Test Bank - Static > TF Qu. 06-06 Linear programming does not permit fractional...

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Answer Key Test name: Chapter 06 Test Bank 1) TRUE 2) E 3) FALSE 4) TRUE 5) A 6) E 7) TRUE 8) E 9) C 10) C 11) E 12) B 13) FALSE 14) TRUE 15) TRUE 16) FALSE 17) TRUE 18) E 19) FALSE 20) C 21) FALSE 22) B 23) A 24) D 25) A 26) A 27) E 28) A 29) TRUE 30) FALSE 31) FALSE 32) TRUE 33) FALSE 34) FALSE 35) TRUE 36) TRUE 37) TRUE

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38) C 39) FALSE 40) TRUE 41) B 42) E 43) TRUE 44) C 45) C

Max Z = 1.5M + 2.5C + 3B M + B <= 100 C + B <= 150 C <= 140 M >= 75 M, C and B are integers 46) FALSE 47) TRUE 48) TRUE 49) TRUE 50) FALSE 51) D 52) FALSE

A transportation problem with m shipping nodes and n receiving nodes will have m + n fixedrequirement constraints. 3 + 4 = 7. 53) D 54) FALSE 55) E 56) C 57) TRUE 58) C 59) TRUE 60) TRUE 61) TRUE

A transportation problem with m shipping nodes and n receiving nodes will have m×n shipping lanes. 3 × 4 = 12. 62) TRUE 63) TRUE 64) FALSE

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65) TRUE 66) D 67) A 68) TRUE 69) A 70) FALSE 71) TRUE 72) FALSE 73) A 74) TRUE 75) TRUE 76) FALSE

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1) Which of the following best describes spaghetti code? 1) ______ A) B) C) D) E)

None of the answer choices are correct. Code that is not logically organized and jumps all over the place. Code that has a clear beginning, middle, and end. Code that is well documented. All of the answer choices are correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-34 Which of the following best describes...

2) Which of the following statements about a "good" spreadsheet model is FALSE? 2) ______ A) A good model is easy to modify. B) A good model is easy to understand. C) All of the above statements are TRUE. D) A good model has data entered in only one location. E) A good model uses range names to make formulas easier to understand. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-74 Which of the following statements about...

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3) A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for

a time period. After completing the model, the analyst feels there is an error. Interpret the auditing information shown below to determine which of the following statements is TRUE.

3) ______ A) The model is incorrect, but it is impossible to determine why. B) The model is incorrect only because it is using the wrong information for the

employee hours. C) The model is incorrect because it is using the wrong information for the employee hours and the model is incorrect because it is using the wrong wage information are both true. D) The model is incorrect only because it is using the wrong wage information. E) There is no error in the model. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-68 A spreadsheet modeler is creating a...

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4) A spreadsheet developer enters the formula "=B9*B10" into cell C1. If this formula is copied

and then pasted into cell D2, what will the formula in cell D2 be? 4) ______ A) B) C) D) E)

=B9*B11 =B10*B11 =C9*C10 =C10*C11 =B9*B10

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-59 A spreadsheet developer enters the formula...

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5) Which of the following are ways to distinguish data cells, changing cells, output cells, and

the objective cell on a spreadsheet? 1. Borders 2. Shading 3. Color 5) ______ A) B) C) D) E)

I, II, and III II only I only I and II only III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-45 Which of the following are ways...

6) When a number is needed in an output cell, it should typically be entered there directly. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-11 When a number is needed in...

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7) A relative reference does not change when it is filled or copied into other cells. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-07 A relative reference does not change...

8) Colors and shading should be avoided on a spreadsheet because it distracts from the model. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-14 Colors and shading should be avoided...

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9) Whenever possible, the entire model should be displayed on the spreadsheet. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-13 Whenever possible, the entire model should...

10) Which of the following can be done using the auditing tools in Excel? 1. Trace the cells that a particular cell refers to. 2. Trace the cells that make reference to a particular cell. 3. Trace the history of values for a particular cell. 10) ______ A) B) C) D) E)

I and II only III only I only I, II, and III II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-44 Which of the following can be...

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11) In the spreadsheet shown below, which of the following is a data cell? A B C 1 2 3

Loan Term Interest Rate Initial Value

12 Months 5% per Year $10,000

Payment

$856.07

5 A 6

Month

7 8 9 10 11 12 13 14 15 16 17 18 19

January February March April May June July August September October November December Total

Interest Charged $41.67 $38.27 $34.87 $31.44 $28.01 $24.56 $21.09 $17.61 $14.12 $10.61 $7.09 $3.55

Payment

New Balance

$856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07

$9,185.59 $8,367.79 $7,546.58 $6,721.95 $5,893.88 $5,062.37 $4,227.39 $3,388.92 $2,546.97 $1,701.51 $852.52 ($0.00)

1. A good model is easy to understand. 2. A good model doesn't use borders and shading. 3. A good model is easy to debug. 11) ______ A) B) C) D) E)

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I and II only II only I and III only I only III only

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-63 In the spreadsheet shown below, which...

12) Data (for example, prices or costs) should be entered directly into every output cell as

needed. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-10 Data (for example, prices or costs)...

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13) A college student is developing a spreadsheet model of a budget. To calculate the monthly

surplus (or deficit), the student subtracts living expenses, entertainment costs, and savings from income. Entering which of the following formulas into cell B5 will perform the proper calculation? A 1

Monthly Income

Living Expenses

Entertainment

Savings

Surplus/Deficit

13) ______ A) =B1 − B2 − B3 − B4 B) =Monthly Income − Expenses C) =B1 − (B2 − B3 − B4) D) =B2 + B3 + B4 − B1 E) =B1 + (B2 − B3 − B4) Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply both the general process for modeling in spreadsheets and the guidelines i Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-53 A college student is developing a...

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14) When developing a new spreadsheet model, it is important to first get a model that works and

then to go back later and change the layout so the model is easy to read. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-25 When developing a new spreadsheet...

15) The first step in spreadsheet building is to enter the formulas into their proper cells. 15) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > TF Qu. 07-26 The first step in spreadsheet building...

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16) A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for

a time period. After completing the model, the analyst feels there is an error, so pressed Ctrl+~ to show formulas. Which of the following statements is true? A

1 2 3

Wage

4 5 6 7 8 9

Employee 1 2 3 4 5

11.5 per hour

Hours 40 35 28 17 25

Total Wages =$B$2*B5 =$B$2*B6 =$B$2*B7 =$B$2*B8 =$B$2*B9 16) ______

A) B) C) D)

There is no error in the model. The model is incorrect, but it is impossible to determine why. The model is incorrect only because it is using the wrong wage information. The model is incorrect only because it is using the wrong information for the employee hours. E) The model is incorrect because it is using the wrong information for the employee hours and the model is incorrect because it is using the wrong wage information are both true. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-72 A spreadsheet modeler is creating a...

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17) The data is the first thing that should be entered in a spreadsheet model. 17) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-08 The data is the first thing...

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18) A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for

a time period. After completing the model, the analyst feels there is an error. Interpret the auditing information shown below to determine which of the following statements is TRUE.

18) ______ A) The model is incorrect only because it is using the wrong wage information. B) The model is incorrect because it is using the wrong information for the employee

hours and the model is incorrect because it is using the wrong wage information are both true. C) The model is incorrect, but it is impossible to determine why. D) There is no error in the model. E) The model is incorrect only because it is using the wrong information for the employee hours. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-70 A spreadsheet modeler is creating a...

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19) A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for

a time period. After completing the model, the analyst feels there is an error, so pressed Ctrl+~ to show formulas. Which of the following statements is true? A

1 2 3

Wage

4 5 6 7 8 9

Employee 1 2 3 4 5

11.5 per hour

Hours 40 35 28 17 25

Total Wages =A5*B5 =A6*B6 =A7*B7 =A8*B8 =A9*B9 19) ______

A) The model is incorrect only because it is using the wrong information for the

employee hours. B) The model is incorrect because it is using the wrong information for the employee hours and the model is incorrect because it is using the wrong wage information are both true. C) The model is incorrect, but it is impossible to determine why. D) There is no error in the model. E) The model is incorrect only because it is using the wrong wage information. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-71 A spreadsheet modeler is creating a...

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20) Which of the following is not an advantage of using range names? 20) ______ A) They make the model easier to modify. B) They make formulas easier to interpret. C) They make the Solver entries easier to understand and they make the model easier to

modify are not advantages of using range names. D) All of the answer choices are advantages of using range names. E) They make the Solver entries easier to understand. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-41 Which of the following is not...

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21) In the example shown below, cell B2 uses an Excel formula. A B C 1 2

Loan Term Interest Rate Initial Value Payment

3 4

12 Months 0.05 per Year 10000 =−PMT(B2/12,B1,B3)

5 A 6 7 8 9 10 11 12 13 14 15 16 17 18

Month January February March April May June July August September October November December

Interest Charged =B3*B2/12 =D7*$B$2/12 =D8*$B$2/12 =D9*$B$2/12 =D10*$B$2/12 =D11*$B$2/12 =D12*$B$2/12 =D13*$B$2/12 =D14*$B$2/12 =D15*$B$2/12 =D16*$B$2/12 =D17*$B$2/12

Payment =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4

New Balance =B3+B7−C7 =D7+B8−C8 =D8+B9−C9 =D9+B10−C10 =D10+B11−C11 =D11+B12−C12 =D12+B13−C13 =D13+B14−C14 =D14+B15−C15 =D15+B16−C16 =D16+B17−C17 =D17+B18−C18 21) ______

⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-23 In the example shown below, cell...

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22) Which of the following should be entered first when building a spreadsheet model? 22) ______ A) The data cells B) The changing cells C) The output cells D) The objective cell E) The Solver parameters Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-39 Which of the following should be...

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23) A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for

a time period. The modeler has named cell B2 "Hourly_Wage" to make the model more understandable. What formula should be entered into cell C5? A

1 2 3

Wage

$ 11.50 per hour

4 5

Employee 1

Hours 40

Total Wages

23) ______ A) B) C) D) E)

=B1*$B$5 =Hourly_Wage +B5 =$B$2*Hourly_Wage =B1*B5 =Hourly_Wage*B5

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-67 A spreadsheet modeler is creating a...

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24) Which of the following is not a major step in the process of modeling with spreadsheets? 24) ______ A) Analyze B) Test C) Build D) All of the answer choices are major steps. E) Plan Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-33 Which of the following is not...

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25) In the spreadsheet shown below, changing the value in Cell B1 will cause which other cells

to change?

25) ______ A) B) C) D) E)

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Cell B2 None of the answer choices are correct. Cell B7 Cell B3 Cell D18

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-47 In the spreadsheet shown below, changing...

26) A relative reference changes when it is filled or copied into other cells. 26) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-28 A relative reference changes when it...

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27) Which of the following statements about a "poor" spreadsheet model is FALSE? 27) ______ A) A poor model will always give an incorrect result. B) A poor model has data entered in only one location. C) A poor model is easy to understand. D) A poor model is easy to modify. E) A poor model uses range names to make formulas easier to understand. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-75 Which of the following statements about...

28) The Plan-Build-Test-Analyze process should always be followed step-by-step, from

beginning to end: Plan then Build then Test then Analyze. 28) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > TF Qu. 07-03 The Plan-Build-Test-Analyze process should always be...

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29) A student is using a spreadsheet model to track monthly income and expenses and also to

calculate his annual income. After pressing Ctrl+~, the formula view of the spreadsheet (shown below) was visible. What spreadsheet construction error did the student commit? A

1 2 3 4 5 6 7

Monthly Income Living Expenses Entertainment Savings Surplus/Deficit

3600 2500 500 250 =B2−B3−B4−B5

8 9

Monthly Income Annual Income

3600 =12*B8 29) ______

A) B) C) D) E)

Failure to adequately use labels to identify cells Using an advanced Excel formula instead of a simpler mathematical calculation Incorrect formula Entering data in more than one place There are no errors in the spreadsheet.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply both the general process for modeling in spreadsheets and the guidelines i Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-55 A student is using a spreadsheet...

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30) Which of the following are valid range names in Excel? 1. Unit_Cost 2. UnitCost 3. Unit Cost 30) ______ A) B) C) D) E)

I only I and II only I and III only II only III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-62 A spreadsheet developer enters the formula...

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31) In the spreadsheet shown below, which of the following is NOT a data cell? A B C 1 2 3

Loan Term Interest Rate Initial Value

12 Months 5% per Year $10,000

Payment

$856.07

5 A 6

Month

7 8 9 10 11 12 13 14 15 16 17 18 19

January February March April May June July August September October November December Total

Interest Charged $41.67 $38.27 $34.87 $31.44 $28.01 $24.56 $21.09 $17.61 $14.12 $10.61 $7.09 $3.55

Payment

New Balance

$856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07 $856.07

$9,185.59 $8,367.79 $7,546.58 $6,721.95 $5,893.88 $5,062.37 $4,227.39 $3,388.92 $2,546.97 $1,701.51 $852.52 ($0.00)

31) ______ A) B) C) D) E)

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All of the answer choices are data cells. Cell B1 Cell B7 Cell B3 Cell B2

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-48 In the spreadsheet shown below, which...

32) Each data value should be entered into how many cells? 32) ______ A) B) C) D) E)

3 0 2 The value should be entered into any formula in which it is needed. 1

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-43 Each data value should be entered...

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33) A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for

a time period. After completing the model, the analyst feels there is an error, so pressed Ctrl+~ to show formulas. Which of the following statements is true? A

1 2 3

Wage

4 5 6 7 8 9

Employee 1 2 3 4 5

11.5 per hour

Hours 40 35 28 17 25

Total Wages =$B$2*A5 =$B$2*A6 =$B$2*A7 =$B$2*A8 =$B$2*A9 33) ______

A) The model is incorrect, but it is impossible to determine why. B) The model is incorrect only because it is using the wrong wage information. C) The model is incorrect because it is using the wrong information for the employee

hours and the model is incorrect because it is using the wrong wage information are both true. D) There is no error in the model. E) The model is incorrect only because it is using the wrong information for the employee hours. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-73 A spreadsheet modeler is creating a...

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34) A spreadsheet developer enters the formula "=$B$9*$B$10" into cell C1. If this formula is

copied and then pasted into cell D2, what will the formula in cell D2 be? 34) ______ A) B) C) D) E)

=$B$9*$B$10 =$B$10*$B$11 =$C$10*$C$11 =C9*C10 =C10*C11

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-60 A spreadsheet developer enters the formula...

35) The overall measure of performance in a spreadsheet model is represented by the changing

cells in the model. 35) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-32 The overall measure of performance in...

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36) The auditing tools can be used to determine which user last made changes to a particular cell. 36) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > TF Qu. 07-30 The auditing tools can be used...

37) Before building a full-scale version of her spreadsheet model, Julie constructs a smaller

version of the spreadsheet. Julie is performing which step of the modeling process? 37) ______ A) Analyze B) Test C) Plan D) None of the answer choices are correct. E) Build Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-50 Before building a full-scale version of...

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38) A spreadsheet developer enters the formula "=B9*$B$10" into cell C1. If this formula is

copied and then pasted into cell D2, what will the formula in cell D2 be? 38) ______ A) B) C) D) E)

=$C$10*$C$11 =B9*$B$10 =C10*$B$10 =B9*$B$11 =C9*C10

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-61 A spreadsheet developer enters the formula...

39) Before staring work on a spreadsheet, Julie sketches a rough draft of how the finished

spreadsheet might look. Julie is performing which step of the modeling process? 39) ______ A) B) C) D) E)

Build Plan Test Analyze None of the answer choices are correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-49 Before staring work on a spreadsheet,...

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40) When sketching out a spreadsheet, it is important to have selected the formulas for all of the

output cells. 40) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > TF Qu. 07-05 When sketching out a spreadsheet, it...

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41) A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for

a time period. After entering the data below, the modeler would like to enter a formula in cell C5 that can then be copied to cells C6 through C9 without further modification. What formula should be entered in cell C5 to make this possible? A

1 2 3

Wage

$ 11.50 per hour

4 5

Employee 1

Hours 40

Total Wages

41) ______ A) B) C) D) E)

=B2+B5 =B2*B5 =B2*$B$5 =$B$2*B5 =$B$2*$B$5

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42) In the example shown below, cell B4 is an input to cell C7.

42) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > TF Qu. 07-19 In the example shown below, cell...

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43) A student is using a spreadsheet to calculate her monthly surplus/deficit as well as annual

income. After pressing Ctrl+~, the formula view (shown below) appeared. What issues should be addressed on this spreadsheet? A

1 2 3 4 5 6 7

Monthly Income Living Expenses Entertainment Savings Surplus/Deficit

3600 2500 500 250 =B2−B3−B4−B5

8 9

Months per Year Annual Income

12 =B8*B2 43) ______

A) B) C) D) E)

Failure to adequately use labels to identify cells Range names should be used Data should be entered only once Simple formulas should be used rather than complex Excel functions Absolute references should be used

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Identify some deficiencies in a poorly formulated spreadsheet model. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-56 A student is using a spreadsheet...

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44) A spreadsheet modeler is creating a spreadsheet to calculate each employee's total wages for

a time period. After completing the model, the analyst feels there is an error. Interpret the auditing information shown below to determine which of the following statements is TRUE.

44) ______ A) The model is incorrect only because it is using the wrong information for the

employee hours. B) The model is incorrect, but it is impossible to determine why. C) The model is incorrect only because it is using the wrong wage information. D) There is no error in the model. E) The model is incorrect because it is using the wrong information for the employee hours and the model is incorrect because it is using the wrong wage information are both true. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-69 A spreadsheet modeler is creating a...

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45) Which of the following tips can be helpful when you can't figure out what formula needs to

be entered in an output cell? 45) ______ A) B) C) D) E)

Optimize the model. Test the model. Do some calculations by hand. Visualize where you want to finish. All of the answer choices are correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-37 Which of the following tips can...

46) Numbers should be included directly in formulas rather than entered separately in data cells

in order to keep the spreadsheet model concise. 46) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-17 Numbers should be included directly in...

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47) In the example shown below, cell C7 uses an absolute reference. A B C 1 2

Loan Term Interest Rate Initial Value Payment

3 4

12 Months 0.05 per Year 10000 =−PMT(B2/12,B1,B3)

5 A 6 7 8 9 10 11 12 13 14 15 16 17 18

Month January February March April May June July August September October November December

Interest Charged =B3*B2/12 =D7*$B$2/12 =D8*$B$2/12 =D9*$B$2/12 =D10*$B$2/12 =D11*$B$2/12 =D12*$B$2/12 =D13*$B$2/12 =D14*$B$2/12 =D15*$B$2/12 =D16*$B$2/12 =D17*$B$2/12

Payment =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4

New Balance =B3+B7−C7 =D7+B8−C8 =D8+B9−C9 =D9+B10−C10 =D10+B11−C11 =D11+B12−C12 =D12+B13−C13 =D13+B14−C14 =D14+B15−C15 =D15+B16−C16 =D16+B17−C17 =D17+B18−C18 47) ______

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48) Which of the following statements about a good spreadsheet model is FALSE? 48) ______ A) A good model is easy to debug. B) A good model is easy to modify. C) A good model doesn’t use borders and shading. D) A good model is easy to understand. E) A good model is easy to understand and a good model is easy to debug. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-65 Which of the following statements about...

49) The auditing tools can be used to trace the cells that make reference to a particular cell. 49) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > TF Qu. 07-16 The auditing tools can be used...

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50) An absolute reference changes when it is filled or copied into other cells. 50) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-27 An absolute reference changes when it...

51) Once the data is entered into a spreadsheet model, it should never be moved. 51) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-09 Once the data is entered into...

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52) There is a systematic procedure that will lead to a single correct spreadsheet model. 52) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > TF Qu. 07-02 There is a systematic procedure that...

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53) In the example shown below, cell D7 uses an absolute reference. A B C 1 2

Loan Term Interest Rate Initial Value Payment

3 4

12 Months 0.05 per Year 10000 =−PMT(B2/12,B1,B3)

5 A 6 7 8 9 10 11 12 13 14 15 16 17 18

Month January February March April May June July August September October November December

Interest Charged =B3*B2/12 =D7*$B$2/12 =D8*$B$2/12 =D9*$B$2/12 =D10*$B$2/12 =D11*$B$2/12 =D12*$B$2/12 =D13*$B$2/12 =D14*$B$2/12 =D15*$B$2/12 =D16*$B$2/12 =D17*$B$2/12

Payment =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4

New Balance =B3+B7−C7 =D7+B8−C8 =D8+B9−C9 =D9+B10−C10 =D10+B11−C11 =D11+B12−C12 =D12+B13−C13 =D13+B14−C14 =D14+B15−C15 =D15+B16−C16 =D16+B17−C17 =D17+B18−C18 53) ______

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54) It is better to use powerful functions in Excel to complete a calculation in a single cell than to

spread out a calculation over many cells using simpler formulas. 54) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-12 It is better to use powerful...

55) Which of the following statements is TRUE about a good spreadsheet model? 55) ______ A) B) C) D) E)

A good model doesn't use borders and shading. A good model is easy to understand. A good model is easy to understand and a good model is easy to debug. A good model is easy to debug. A good model is difficult for users to modify.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-64 Which of the following statements is...

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56) Which of the following actions will toggle the worksheet between viewing values and

formulas? 56) ______ A) B) C) D) E)

Press Ctrl+; Press Ctrl+~ Select Trace Dependents. Select Trace Precedents. Press Ctrl+!

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-46 Which of the following actions will...

57) When testing a spreadsheet model by entering values in the changing cells, which of the

following are appropriate values to enter? 57) ______ A) Zeros, large numbers, and inputs for which you know what the values of the output

cells should be B) Zeroes C) All of the answer choices are correct. D) Large numbers E) Values for which you know what the values of the output cells should be Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-38 When testing a spreadsheet model by...

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58) Which of the following is an appropriate first step when building a spreadsheet model? 58) ______ A) Visualize where you want to finish. B) Expand the model to full scale. C) Optimize the model. D) Test the model. E) Start with building a small scale model. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-36 Which of the following is an...

59) Which of the following is not a part of the planning step when building a spreadsheet model? 59) ______ A) Test the spreadsheet model. B) Do some calculations by hand. C) All of the answer choices are part of the planning step. D) Visualize where you want to finish. E) Sketch out a spreadsheet. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-35 Which of the following is not...

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60) If two managers are given the same business problem to analyze with a spreadsheet, their

spreadsheet models will likely be almost identical. 60) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > TF Qu. 07-01 If two managers are given the...

61) When building a model, it is often a good idea to start with a small-scale version of the

problem. 61) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > TF Qu. 07-04 When building a model, it is...

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62) An absolute reference does not change when it is filled or copied into other cells. 62) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-06 An absolute reference does not change...

63) A spreadsheet developer enters the formula "=B9*B10" into cell C1. If this formula is copied

and then pasted into cell C2, what will the formula in cell C2 be? 63) ______ A) B) C) D) E)

=B10*B11 =C10*C11 =B9*B11 =B9*B10 =C9*C10

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-57 A spreadsheet developer enters the formula...

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64) Which of the following are valid range names in Excel? 64) ______ A) B) C) D) E)

TotalProfit and Total_Profit only Total Profit TotalProfit Total_Profit All of the answer choices are correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-40 Which of the following are valid...

65) A spreadsheet developer enters the formula "=$B$9*$B$10" into cell C1. If this formula is

copied and then pasted into cell C2, what will the formula in cell C2 be? 65) ______ A) B) C) D) E)

=C10*C11 =$B$9*$B$10 =B9*B11 =$B$10*$B$11 =C9*C10

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-58 A spreadsheet developer enters the formula...

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66) After pressing Ctrl+~ to toggle Excel to view formulas, an analyst reviews the spreadsheet

shown below. Which of the following is TRUE? A

1 Monthly 2 Monthly Income 3 Living Expenses 4 Entertainment 5 Savings 6 Surplus/Deficit

3600 2500 500 250 =Monthly_Income-Living_ExpensesEntertainment-Savings

7 8 Annual Surplus

=12*Surplus_Deficit

1. B2 is a data cell. 2. B6 is a data cell. 3. B6 is an output cell. 66) ______ A) B) C) D) E)

III only I and III I and II I only II only

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > MC Qu. 07-54 After pressing Ctrl+ to toggle Excel...

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67) When an analyst uses Solver to find the optimal solution to a problem modeled on a

spreadsheet, which step in the modeling process is occurring? 67) ______ A) B) C) D) E)

Test None of the answer choices are correct. Plan Build Analyze

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-52 When an analyst uses Solver to...

68) When an analyst enters data into a model to see if the results match expectations, which step

of the modeling process is occurring? 68) ______ A) B) C) D) E)

None of the answer choices are correct. Build Analyze Test Plan

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the general process for modeling in spreadsheets. Topic : Overview of the process of modeling with spreadsheets Source : Chapter 07 Test Bank - Static > MC Qu. 07-51 When an analyst enters data into...

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69) The toggle feature in Excel switches back and forth between viewing formulas and viewing

values in the output cells. 69) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > TF Qu. 07-15 The toggle feature in Excel switches...

70) Colors and shading can be used to make a spreadsheet model much easier to read and

interpret. 70) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-29 Colors and shading can be used...

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71) If you add rows or columns to a spreadsheet Excel will automatically adjust named ranges to

compensate. 71) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > TF Qu. 07-18 If you add rows or columns...

72) The decisions to be addressed in a spreadsheet model are represented by the changing cells in

the model. 72) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > TF Qu. 07-31 The decisions to be addressed in a...

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73) In the example shown below, cell B3 is a data cell. A B 1 2

Loan Term Interest Rate Initial Value Payment

3 4

12 Months 0.05 per Year 10000 =−PMT(B2/12,B1,B3)

5 A 6 7 8 9 10 11 12 13 14 15 16 17 18

Month January February March April May June July August September October November December

Interest Charged =B3*B2/12 =D7*$B$2/12 =D8*$B$2/12 =D9*$B$2/12 =D10*$B$2/12 =D11*$B$2/12 =D12*$B$2/12 =D13*$B$2/12 =D14*$B$2/12 =D15*$B$2/12 =D16*$B$2/12 =D17*$B$2/12

Payment =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4 =$B$4

New Balance =B3+B7−C7 =D7+B8−C8 =D8+B9−C9 =D9+B10−C10 =D10+B11−C11 =D11+B12−C12 =D12+B13−C13 =D13+B14−C14 =D14+B15−C15 =D15+B16−C16 =D16+B17−C17 =D17+B18−C18 73) ______

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74) In the example shown below, cells B7 through B18 are inputs to cell B4.

74) ______ ⊚ true ⊚ false Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Apply a variety of techniques for debugging a spreadsheet model. Topic : Debugging a spreadsheet model Source : Chapter 07 Test Bank - Static > TF Qu. 07-20 In the example shown below, cells...

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75) How many cells should be used to represent each constraint? 75) ______ A) B) C) D) E)

2 4 3 0 1

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some guidelines for building good spreadsheet models. Topic : Some guidelines for building &quot;good&quot; spreadsheet models Source : Chapter 07 Test Bank - Static > MC Qu. 07-42 How many cells should be used...

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Answer Key Test name: Chapter 07 Test Bank 1) B 2) C 3) D 4) D 5) A 6) FALSE 7) FALSE 8) FALSE 9) TRUE 10) A 11) C 12) FALSE 13) A 14) FALSE 15) FALSE 16) A 17) TRUE 18) E 19) E 20) A 21) FALSE 22) A 23) E 24) D 25) E

The auditing tools show that cell B4 is dependent upon cell B1. Similarly, cell B18 depends upon B4, and D18 depends upon B18. Therefore, B1 influences D18. Cells B2, B3, and B7 are not dependent upon B1. 26) TRUE 27) A 28) FALSE 29) D

The data "monthly income" is entered in both cell B2 and B8. It should be entered in only one cell. 30) B

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31) C

Cell B7 calculates the interest using the data from cells B2 and B3. Therefore, it is not a data cell but a formula cell. Cells B1, B2, and B3 are data cells. 32) E 33) E 34) A 35) FALSE 36) FALSE 37) E 38) C 39) B 40) FALSE 41) D 42) TRUE 43) B

Use of range names makes formulas more easily interpreted. 44) D 45) C 46) FALSE 47) TRUE 48) C 49) TRUE 50) FALSE 51) FALSE 52) FALSE 53) FALSE 54) FALSE 55) C 56) B 57) C 58) A 59) A 60) FALSE 61) TRUE 62) TRUE 63) A 64) A 65) B 66) B

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67) E 68) D 69) TRUE 70) TRUE 71) FALSE 72) TRUE 73) TRUE 74) FALSE 75) C

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1) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

If the coefficient of Activity 2 in the objective function changes to $100, then: 1) ______ A) B) C) D) E)

None of the choices is correct. the shadow price is valid. the problem must be resolved to find the optimal solution. the original solution remains optimal. the shadow price is not valid.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-53 If the coefficient of Activity 2...

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2) A parameter analysis report can only be used to investigate changes in a single data cell at a

time. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Parameters with Analytic Solver to systematically investigate the effect of Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > TF Qu. 08-25 A parameter analysis report can only...

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3) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

If the right-hand side of Resource C is increased by 40, and the right-hand side of Resource B is decreased by 20, then: 3) ______ A) None of the choices is correct. B) the shadow price may or may not be not valid. C) the optimal solution remains the same. D) the shadow price is valid. E) the optimal solution will change. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Evaluate simultaneous changes in right-hand sides to determine whether the chang Topic : The Effect of Simultaneous Changes in the Constraints Source : Chapter 08 Test Bank - Static > MC Qu. 08-58 If the right-hand side of Resource C...

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4) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

What is the allowable range for the objective function coefficient (A3) for Activity 3? 4) ______ A) 0 ≤ A3 ≤ 650 B) 150 ≤ A3 ≤ ∞ C) 400 ≤ A3 ≤ ∞ D) 0 ≤ A3 ≤ 250 E) 300 ≤ A3 ≤ 500 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-49 What is the allowable range for...

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5) When maximizing profit in a linear programming problem, the allowable increase and

allowable decrease columns in the sensitivity report make it possible to find the range over which the profitability does not change. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > TF Qu. 08-10 When maximizing profit in a linear...

6) Which of the following are benefits of what-if analysis? 6) ______ A) B) C) D) E)

All of the choices are correct. It pinpoints the sensitive parameters of the model. It gives the new optimal solution if conditions change. It tells management what policy decisions to make. None of the choices is correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Summarize the benefits of what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-33 Which of the following are benefits...

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7) The allowable range for an objective function coefficient assumes that the original estimates

for all the other coefficients are completely accurate so that this is the only one whose true value may differ from its original estimate. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > TF Qu. 08-08 The allowable range for an objective...

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8) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

If the coefficient for Activity 1 in the objective function changes to $40, then the objective function value: 8) ______ A) will remain the same. B) can only be discovered by resolving the problem. C) will increase by $77.80. D) will increase by $23. E) will increase by $30. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-39 If the coefficient for Activity 1...

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9) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

If the right-hand side of Resource B changes to 80, then the objective function value: 9) ______ A) will remain the same. B) will decrease by $2,250. C) can only be discovered by resolving the problem. D) will decrease by $1,500. E) will decrease by $750. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Predict how the value in the objective cell would change if a small change were Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-54 If the right-hand side of Resource B...

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10) A parameter analysis report can be used to investigate the changes in how many data cells at

a time? 10) ______ A) B) C) D) E)

3 All of the these 2 1 or 2 1

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Parameters with Analytic Solver to systematically investigate the effect of Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-59 A parameter analysis report can be...

11) When certain parameters of a model represent managerial policy decisions, what-if analysis

provides information about what the impact would be of altering these policy decisions. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Summarize the benefits of what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > TF Qu. 08-06 When certain parameters of a model...

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12) A parameter analysis report re-solves the problem for a range of values of a data cell. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Parameters with Analytic Solver to systematically investigate the effect of Topic : The Effect of Simultaneous Changes in the Constraints Source : Chapter 08 Test Bank - Static > TF Qu. 08-24 A parameter analysis report re-solves the...

13) What-if analysis can: 1. be done graphically for problems with two decision variables. 2. reduce a manager's confidence in the model that has been formulated. 3. increase a manager's confidence in the model that has been formulated. 13) ______ A) B) C) D) E)

III only. II only. I and III only. All of the these. I only.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what is meant by what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-29 What-if analysis can:

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14) The term "allowable range for an objective function coefficient" refers to a constraint's right-

hand side quantity. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > TF Qu. 08-07 The term &#34;allowable range for an...

15) In robust optimization, what is meant by the term "soft constraint"? 15) ______ A) B) C) D) E)

A constraint that has a shadow price of zero A constraint that can be violated dramatically without serious repercussions A constraint that can be violated slightly without serious repercussions A constraint that is not violated A constraint that cannot be violated

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the goal of robust optimization and how it is implemented with independ Topic : Robust Optimization Source : Chapter 08 Test Bank - Static > MC Qu. 08-69 In robust optimization, what is meant...

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16) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

If the right-hand side of Resource B changes to 10, then the objective function value: 16) ______ A) will decrease by $60. B) will decrease by $120. C) can only be discovered by resolving the problem. D) will remain the same. E) will decrease by $20. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-43 If the right-hand side of Resource B...

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17) The purpose of a linear programming study is to help guide management's final decision by

providing insights. 17) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Summarize the benefits of what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > TF Qu. 08-02 The purpose of a linear programming...

18) When a change occurs in the right-hand side value of one of the constraints, a proportional

change will occur in one of the coefficients of the objective function. 18) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > TF Qu. 08-21 When a change occurs in the...

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19) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

What is the optimal objective function value for this problem? 19) ______ A) B) C) D) E)

$7.78 $90 $240 It cannot be determined from the given information. $330

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how the spreadsheet formulation of the problem can be used to perform a Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-36 What is the optimal objective function...

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20) Shadow price analysis is widely used to help management find the best trade-off between

costs and benefits for a problem. 20) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Predict how the value in the objective cell would change if a small change were Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > TF Qu. 08-05 Shadow price analysis is widely used...

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21) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

If the coefficient for Activity 1 in the objective function changes to $50, then the objective function value: 21) ______ A) can only be discovered by resolving the problem. B) will decrease by $2750. C) will remain the same. D) will decrease by $450. E) is $0. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-52 If the coefficient for Activity 1...

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22) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

If the right-hand side of Resource C changes to 130, then: 22) ______ A) B) C) D) E)

the shadow price is not valid. the problem must be resolved to find the optimal solution. None of the choices is correct. the original solution remains optimal. the shadow price is valid.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-56 If the right-hand side of Resource C...

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23) Changing the objective function coefficients may or may not change the optimal solution, but

it will always change the value of the objective function. 23) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > TF Qu. 08-11 Changing the objective function coefficients may...

24) A shadow price tells how much a decision variable can be increased or decreased without

changing the value of the solution. 24) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Predict how the value in the objective cell would change if a small change were Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > TF Qu. 08-19 A shadow price tells how much...

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25) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

If the objective coefficients of Activity 2 and Activity 3 are both decreased by $100, then: 25) ______ A) the optimal solution remains the same. B) the optimal solution will change. C) the optimal solution may or may not remain the same. D) None of the choices is correct. E) the shadow prices are valid. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Evaluate simultaneous changes in objective function coefficients to determine wh Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > MC Qu. 08-57 If the objective coefficients of Activity 2...

Version 1

26) Managerial decisions regarding right-hand sides are often interrelated and so frequently are

considered simultaneously. 26) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Evaluate simultaneous changes in right-hand sides to determine whether the chang Topic : The Effect of Simultaneous Changes in the Constraints Source : Chapter 08 Test Bank - Static > TF Qu. 08-22 Managerial decisions regarding right-hand sides are...

27) The term "allowable range for the right-hand-side" refers to coefficients of the objective

function. 27) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > TF Qu. 08-16 The term &#34;allowable range for the...

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28) Resource B has right-hand side allowable decrease of 50. Resource C has right-hand side

allowable decrease of 100. If the right-hand side of Resource B decreases by 30 and the right-hand side of Resource C decreases by 40, then 28) ______ A) the shadow prices remain valid. B) the original solution remains optimal. C) the shadow prices do not remain valid. D) the problem must be resolved to find the new objective value. E) None of the choices is correct. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Evaluate simultaneous changes in objective function coefficients to determine wh Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > MC Qu. 08-64 Resource B has right-hand side allowable...

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29) A chance constraint 1. replaces the right-hand side with the minimum value. 2. allows the objective function coefficients to be replaced with random numbers. 3. ensures that the chance constraint will never be violated. 4. can be used to model a soft constraint which can be violated at times. 29) ______ A) III only B) I only C) IV only D) I and II only E) II only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use chance constraints to deal with constraints that actually can be violated a Topic : Chance Constraints With Analytic Solver Source : Chapter 08 Test Bank - Static > MC Qu. 08-74 A chance constraint

30) A shadow price indicates how much the optimal value of the objective function will increase

per unit increase in the right-hand side of a constraint so long as the change is within the allowable increase. 30) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Predict how the value in the objective cell would change if a small change were Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > TF Qu. 08-09 A shadow price indicates how much...

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31) The allowable range for an objective function coefficient indicates 31) ______ A) B) C) D)

the price a firm would be willing to obtain more of a resource. the amount of each resource available for use. the shadow price of each resource. the largest error in estimating objective coefficients that will not affect the optimal solution. E) the prices a firm is allowed to charge for its product. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Enumerate the different kinds of changes in the model that can be considered by Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-60 The allowable range for an objective...

32) If the right-hand side value of a constraint in a two variable linear programming problems is

changed, then: 32) ______ A) B) C) D) E)

the optimal values for one or more of the decision variables may change. a parallel shift must be made in the graph of that constraint. None of the choices is correct. All of the choices are correct. the optimal measure of performance may change.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-32 If the right-hand side value of...

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33) A shadow price reflects which of the following in a maximization problem? 33) ______ A) B) C) D) E)

None of the choices is correct. The marginal loss in the objective value realized by adding one unit of a resource The marginal gain in the objective value realized by subtracting one unit of a resource The marginal gain in the objective value realized by adding one unit of a resource The marginal cost of adding additional resources

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Predict how the value in the objective cell would change if a small change were Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-27 A shadow price reflects which of...

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34) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

What is the allowable range for the objective coefficient (A2) for Activity 2? 34) ______ A) 20 ≤ A2 ≤ 80 B) 30 ≤ A2 ≤ 90 C) −4 ≤ A2 ≤ 56 D) −10 ≤ A2 ≤ 50 E) −44 ≤ A2 ≤ 16 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-37 What is the allowable range for...

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35) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

If the right-hand side of Resource C changes to 140, then the objective function value: 35) ______ A) will increase by $80. B) will increase by $137.50. C) will remain the same. D) can only be discovered by resolving the problem. E) will increase by $57.50. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-55 If the right-hand side of Resource C...

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36) When even a small change in the value of a coefficient in the objective function can change

the optimal solution, the coefficient is called: 36) ______ A) B) C) D) E)

sensitive. optimal. within the range. out of the range. None of the choices is correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Summarize the benefits of what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-34 When even a small change in...

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37) Note: This question requires access to Solver.

In the following linear programming problem, what is the allowable increase for the objective function coefficient for variable x? Maximize P = 3x + 15y subject to2x + 4y ≤ 12 5x + 2y ≤ 10 and x ≥ 0, y ≥ 0. 37) ______ A) 4.5 B) 3 C) 9 D) ∞ (infinity) E) 15 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how the spreadsheet formulation of the problem can be used to perform a Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-65 Note: This question requires access to...

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38) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

What is the allowable range for the right-hand-side for Resource C? 38) ______ A) ∞ ≤ RHSc ≤ 62 B) − ∞ ≤ RHSc ≤ 40 C) 0 ≤ RHSc ≤ 22 D) 18 ≤ RHSc ≤ ∞ E) −2 ≤RHSc ≤ ∞ Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-38 What is the allowable range for...

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39) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

If the coefficient of Activity 1 in the objective function changes to $10, then: 39) ______ A) B) C) D) E)

the shadow price is valid. the problem must be resolved to find the optimal solution. the shadow price is not valid. None of the above. the original solution remains optimal.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-41 If the coefficient of Activity 1...

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40) Activity 1 has an objective function coefficient allowable increase of 30. Activity 2 has an

objective function coefficient allowable increase of 60. If both activities objective function coefficient increases by 20, what will happen to the final values in the optimal solution? 40) ______ A) The optimal solution may or may not remain the same. B) The optimal solution will change. C) The shadow prices are valid. D) The optimal solution remains the same. E) None of the choices is correct. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Evaluate simultaneous changes in objective function coefficients to determine wh Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > MC Qu. 08-63 Activity 1 has an objective function...

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41) Chance constraints are an available option in 1. graphical linear programming. 2. the Solver tool included with Excel. 3. analytic Solver. 41) ______ A) B) C) D) E)

I, II, and III II and III only II only I only III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use chance constraints to deal with constraints that actually can be violated a Topic : Chance Constraints With Analytic Solver Source : Chapter 08 Test Bank - Static > MC Qu. 08-75 Chance constraints are an available option...

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42) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

What is the optimal objective function value for this problem? 42) ______ A) B) C) D) E)

975 500 8,250 1,200 It cannot be determined from the given information.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Enumerate the different kinds of changes in the model that can be considered by Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-48 What is the optimal objective function...

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43) When conducting robust optimization 1. The right-hand side of each ≤ constraint should be replaced with the minimum value. 2. The right-hand side of each ≤ constraint should be replaced with the maximum value. 3. The right-hand side of each ≥ constraint should be replaced with the maximum value. 43) ______ A) B) C) D) E)

I only III only I and III only II only II and III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the goal of robust optimization and how it is implemented with independ Topic : Robust Optimization Source : Chapter 08 Test Bank - Static > MC Qu. 08-72 When conducting robust optimization

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44) In a problem with 4 decision variables, the 100% rule indicates that each objective

coefficient can be safely increased by what amount without invalidating the current optimal solution? 44) ______ A) 100%. B) 25% of the allowable increase of that coefficient. C) 25% of the range of optimality. D) It can't be determined from the information given. E) 25%. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Evaluate simultaneous changes in objective function coefficients to determine wh Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > MC Qu. 08-35 In a problem with 4 decision...

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45) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

If the right-hand side of Resource A changes to 10, then the objective function value: 45) ______ A) will decrease by $77.80. B) will remain the same. C) will decrease by $125. D) will decrease by $12.50. E) can only be discovered by resolving the problem. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Predict how the value in the objective cell would change if a small change were Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-42 If the right-hand side of Resource A...

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46) If the change to a right-hand side is within the allowable range, the value of the shadow price

remains valid. 46) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > TF Qu. 08-17 If the change to a right-hand...

47) In robust optimization, what is meant by the term "hard constraint"? 47) ______ A) B) C) D) E)

A constraint that has a shadow price of zero A constraint that is not violated A constraint that can be violated dramatically without serious repercussions A constraint that cannot be violated A constraint that can be violated slightly without serious repercussions

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the goal of robust optimization and how it is implemented with independ Topic : Robust Optimization Source : Chapter 08 Test Bank - Static > MC Qu. 08-70 In robust optimization, what is meant...

Version 1

48) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

Which parameter is most sensitive to an increase in its value? 48) ______ A) B) C) D) E)

The objective coefficient of Activity 3. The objective coefficient of Activity 2. All of the choices are correct. None of the choices is correct. The objective coefficient of Activity 1.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-47 Which parameter is most sensitive to...

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49) According to the 100% rule for simultaneous changes in objective function coefficients, if

the sum of the percentage changes exceeds 100%, the optimal solution will definitely change. 49) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Evaluate simultaneous changes in objective function coefficients to determine wh Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > TF Qu. 08-14 According to the 100% rule for...

50) Every change in the value of an objective function coefficient will lead to a different optimal

solution. 50) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > TF Qu. 08-12 Every change in the value of...

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51) Whenever proportional changes are made to all the unit profits in a problem, the optimal

solution will remain the same. 51) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Evaluate simultaneous changes in objective function coefficients to determine wh Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > TF Qu. 08-15 Whenever proportional changes are made to...

52) It is usually quite easy to find the needed data for a linear programming study. 52) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Summarize the benefits of what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > TF Qu. 08-03 It is usually quite easy to...

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53) If a change is made in only one of the objective function coefficients: 53) ______ A) B) C) D) E)

All of the choices are correct. the optimal solution will always change. None of the choices is correct. the slope of the objective function line always will change. one or more of the decision variables will always change.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Enumerate the different kinds of changes in the model that can be considered by Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-31 If a change is made in...

Version 1

54) Note: This question requires access to Solver.

In the following linear programming problem, how much would the firm be willing to pay for an additional 5 units of Resource B? Maximize P = 3x + 15y subject to2x + 4y ≤ 12 (Resource A) 5x + 2y ≤ 10 (Resource B) and x ≥ 0, y ≥ 0. 54) ______ A) B) C) D) E)

Nothing It is impossible to determine. 18.75 11.25 15

Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how the spreadsheet formulation of the problem can be used to perform a Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-68 Note: This question requires access to...

Version 1

55) Note: This question requires access to Solver.

In the following linear programming problem, how much would the firm be willing to pay for an additional 5 units of Resource A? Maximize P = 3x + 15y subject to2x + 4y ≤ 12 (Resource A) 5x + 2y ≤ 10 (Resource B) andx ≥ 0, y ≥ 0. 55) ______ A) 15 B) 7.50 C) 11.25 D) It is impossible to determine. E) 18.75 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how the spreadsheet formulation of the problem can be used to perform a Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-67 Note: This question requires access to...

Version 1

56) To determine if an increase in an objective function coefficient will lead to a change in final

values for decision variables, an analyst can do which of the following? 1. Compare the increase in the objective function coefficient to the allowable decrease. 2. Compare the increase in the objective function coefficient to the allowable increase. 3. Rerun the optimization to see if the final values change. 56) ______ A) II and III only B) I and III only C) II only D) III only E) I only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-61 To determine if an increase in...

57) What-if analysis: 57) ______ A) B) C) D) E)

requires that only one parameter change while the rest are held fixed. may involve changes in the objective function coefficients. All of the choices are correct. may involve changes in the right-hand side values. None of the choices is correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Explain what is meant by what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-30 What-if...

Version 1

58) If the change to a right-hand side is within the allowable range, the solution will remain the

same. 58) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Predict how the value in the objective cell would change if a small change were Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > TF Qu. 08-18 If the change to a right-hand...

59) The Solver report that shows the allowable ranges for objective function coefficients,

allowable ranges for constraint right-hand sides, and shadow prices is called the 59) ______ A) B) C) D) E)

sensitivity report. answer report. parameter report. range report. solution report.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how the spreadsheet formulation of the problem can be used to perform a Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-62 The Solver report that shows the...

Version 1

60) When conducting robust optimization 1. Use the maximum value of each objective function coefficient for a maximization

problem. 2. Use the minimum value of each objective function coefficient for a maximization problem. 3. Use the maximum value of each objective function coefficient for a minimization problem. 60) ______ A) II only B) II and III only C) I only D) III only E) I and III only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the goal of robust optimization and how it is implemented with independ Topic : Robust Optimization Source : Chapter 08 Test Bank - Static > MC Qu. 08-73 When conducting robust optimization

Version 1

61) If the optimal solution will remain the same over a wide range of values for a particular

coefficient in the objective function, then management will want to take special care to accurately estimate this coefficient. 61) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Summarize the benefits of what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > TF Qu. 08-04 If the optimal solution will remain...

Version 1

62) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

If the coefficient for Activity 2 in the objective function changes to $400, then the objective function value: 62) ______ A) will increase by $2,750. B) will remain the same. C) can only be discovered by resolving the problem. D) will increase by $7,500. E) will increase by $100. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-51 If the coefficient for Activity 2...

Version 1

63) When a change in the value of an objective function coefficient remains within the allowable

range, the optimal solution will be unchanged. 63) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > TF Qu. 08-13 When a change in the value...

Version 1

64) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

If the right-hand side of Resource B is increased by 30, and the right-hand side of Resource C is decreased by 10, then: 64) ______ A) the optimal solution remains the same. B) the shadow prices are valid. C) the shadow prices may or may not be valid. D) None of the choices is correct. E) the optimal solution will change. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Evaluate simultaneous changes in right-hand sides to determine whether the chang Topic : The Effect of Simultaneous Changes in the Constraints Source : Chapter 08 Test Bank - Static > MC Qu. 08-46 If the right-hand side of Resource B...

Version 1

65) If the sum of the percentage changes of the right-hand sides does not exceed 100%, then the

solution will definitely remain optimal. 65) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Evaluate simultaneous changes in right-hand sides to determine whether the chang Topic : The Effect of Simultaneous Changes in the Constraints Source : Chapter 08 Test Bank - Static > TF Qu. 08-23 If the sum of the percentage...

66) In linear programming, what-if analysis is associated with determining the effect of

changing: 1. objective function coefficients. 2. right-hand side values of constraints. 3. decision variable values. 66) ______ A) B) C) D) E)

II and III only. I and II only. II and III only. I, II and III. None of the choices is correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what is meant by what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > MC Qu. 08-28 In linear programming, what-if analysis is...

Version 1

67) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

If the coefficient for Activity 3 in the objective function changes to $30, then the objective function value: 67) ______ A) will increase by $70. B) will increase by $30. C) will increase by an unknown amount. D) is $0. E) will remain the same. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > MC Qu. 08-40 If the coefficient for Activity 3...

Version 1

68) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 0

Reduced Objective Cost Coefficient 425 500

Allowable Increase 1E+30

Allowable Decrease 425

27.5

0.0

300

500

300

250

400

1E+30

250

Allowable Decrease 1E+30

Constraints Cell

Name

$E$2

Benefit A Benefit B Benefit C

$E$3 $E$4

Final Value 110

Shadow Constraint Price R.H. Side 0 60

Allowable Increase 50

110

1E+30

137.5

57.5

1E+30

What is the allowable range of the right-hand-side for Resource A? 68) ______ A) 0 ≤ RHSA ≤ 110 B) 0 ≤ RHSA ≤ 160 C) −∞ ≤ RHSA ≤ 110 D) −∞ ≤ RHSA ≤ 60 E) 110 ≤ RHSA ≤ 1600 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-50 What is the allowable range of...

Version 1

69) An optimal solution is only optimal with respect to a particular mathematical model that

provides only a representation of the actual problem. 69) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Explain what is meant by what-if analysis. Topic : The Importance of What-if Analysis to Managers Source : Chapter 08 Test Bank - Static > TF Qu. 08-01 An optimal solution is only optimal...

70) Note: This question requires access to Solver.

In the following linear programming problem, what is the allowable increase in the righthand side of the first constraint? Maximize P = 3x + 15y subject to 2x + 4y ≤ 12 5x + 2y ≤ 10 andx ≥ 0, y ≥ 0. 70) ______ A) ∞ (infinity) B) 8 C) 15 D) 12 E) 10 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how the spreadsheet formulation of the problem can be used to perform a Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-66 Note: This question requires access to...

Version 1

71) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

If the right-hand side of Resource B changes to 10, then: 71) ______ A) B) C) D) E)

the original solution remains optimal. the objective function value will decrease by 120. the shadow price is valid. None of the choices is correct. the shadow price is not valid.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Find how much the right-hand side of a single functional constraint can change b Topic : The Effect of Single Changes in a Constraint Source : Chapter 08 Test Bank - Static > MC Qu. 08-44 If the right-hand side of Resource B...

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72) One approach to robust optimization is to modify the original optimization problem by 72) ______ A) assigning random values to each uncertain parameter. B) assigning optimistic values to each uncertain parameter. C) assigning precise values to each uncertain parameter. D) assigning conservative values to each uncertain parameter. E) assigning average values to each uncertain parameter. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the goal of robust optimization and how it is implemented with independ Topic : Robust Optimization Source : Chapter 08 Test Bank - Static > MC Qu. 08-71 One approach to robust optimization is...

73) A parameter analysis report can be used to easily investigate the changes in any number of

data cells. 73) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Parameters with Analytic Solver to systematically investigate the effect of Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > TF Qu. 08-26 A parameter analysis report can be...

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74) Variable cells Cell Name $B$6 $C$6 $D$6

Activity 1 Activity 2 Activity 3

Final Value 3

Reduced Objective Allowable Cost Coefficient Increase 0 30 23

Allowable Decrease 17

−7

1E+30

Final Value 20

Shadow Price 7.78

Constraints Cell

Name

$E$2

Resource A Resource B Resource C

$E$3 $E$4

Constraint R.H. Side 20

Allowable Increase 10

Allowable Decrease 12.5

1E+30

If the coefficients of Activity 1 and Activity 2 in the objective function are both increased by $10, then: 74) ______ A) the shadow prices are valid. B) None of the choices is correct. C) the optimal solution will change. D) the optimal solution may or may not remain the same. E) the optimal solution remains the same. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Evaluate simultaneous changes in objective function coefficients to determine wh Topic : The Effect of Simultaneous Changes in Objective Function Coefficients Source : Chapter 08 Test Bank - Static > MC Qu. 08-45 If the coefficients of Activity 1...

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75) The allowable range gives ranges of values for the objective function coefficients within

which the values of the decision variables are optimal. 75) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Find how much any single coefficient in the objective function can change withou Topic : The Effect of Changes in One Objective Function Coefficient Source : Chapter 08 Test Bank - Static > TF Qu. 08-20 The allowable range gives ranges of...

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Answer Key Test name: Chapter 08 Test Bank 1) D

Decreasing the objective function coefficient for Activity 2 to 100 is a decrease of 200 (300 − 100 = 200). Since the allowable decrease for Activity 2 is 300, this change is within the range of optimality and the final values for the variables will not change. 2) FALSE 3) B

Both changes are within the allowable increase/decrease. Applying the 100% rule, the change in Resource B is 43.48% of the allowable decrease

. The change in

Resource C is 69.57% of the allowable increase . The total change of 113% (43.48% + 69.57%) is greater than 100%, so the shadow prices do not necessarily remain valid. 4) B

The objective coefficient for Activity 3 is 400. The allowable decrease is 250 and the allowable increase is ∞ (infinity). Therefore, the allowable range for this objective coefficient is (400 − 250) ≤ A3 ≤ (40 + ∞) → 150 ≤ A3 ∞. 5) 6) 7) 8)

FALSE B TRUE E Increasing the objective function coefficient for Activity 1 to 40 is an increase of 10 (40 − 30 = 10). Since the allowable increase for this objective function coefficient is 23, this is within the allowable range and the optimal solution will not change. The final value for Activity 1 is 3, so increasing the objective function coefficient by 10 leads to an increase in the objective function of 30 {(40 − 30) × 3 = 30}. 9) B

Decreasing the constraint right-hand side for Resource B to 80 is a decrease of 30 (110 − 80 = 30). Since the allowable decrease for this constraint right-hand side is 46, this is within the allowable range and the optimal solution remains unchanged. A decrease of 20 in the constraint right-hand side leads to a decrease of 2,250 in the objective function—multiply the change in the constraint right-hand side by the shadow price {(110 − 80) × 75 = 2,250}. 10) D

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11) TRUE 12) TRUE 13) D 14) FALSE 15) C 16) C

Decreasing the constraint right-hand side for Resource B to 10 is a decrease of 20 (30 − 10 = 20). Since the allowable decrease for Resource B is 10, this change exceeds the allowable decrease and the impact on the optimal solution cannot be determined without re-running the optimization. 17) TRUE 18) FALSE 19) E 20) TRUE 21) A

Decreasing the objective function coefficient for Activity 1 to 50 is a decrease of 450 (500 − 50 = 450). Since the allowable decrease for Activity 1 is 425, this change exceeds the allowable decrease and the impact on the optimal solution cannot be determined without re-running the optimization. 22) E

Increasing the constraint right-hand side for Resource C to 130 is an increase of 50 (130 − 80 = 50). Since the allowable increase for Resource C is 57.5, this change is within the allowable limits and the shadow prices remain valid. 23) FALSE 24) FALSE 25) A

Applying the 100% rule, the change in Activity 2 is 23.53% of the allowable decrease . The change in Activity 3 is 40% of the allowable decrease The total change of 63.53% (23.53% + 40%) does not exceed 100%, so the optimal solution will not change. 26) TRUE 27) FALSE 28) A

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Applying the 100% rule, the change in Resource B is 60% of the allowable decrease The change in Resource C is 40% of the allowable decrease The total change of 100% (60% + 40%) does not exceed 100%, so the shadow prices remain valid. 29) C 30) TRUE 31) D 32) D 33) D 34) B

The objective coefficient for Activity 2 is 40. The allowable decrease is 10 and the allowable increase is 50. Therefore, the allowable range for this objective coefficient is (40 − 10) ≤ A2 ≤ (40 + 50) → 30 ≤ A2 ≤ 90. 35) D

Increasing the constraint right-hand side for Resource C to 140 is an increase of 60 (140 − 80 = 60). Since the allowable increase for Resource C is 57.5, this change exceeds the allowable decrease and the impact on the optimal solution cannot be determined without re-running the optimization. 36) A 37) A

The sensitivity report (see below) shows that the allowable increase for variable x is 4.5. Variable cells Cell Name Final Value $B$ x0 3 $C$ y3 4

Reduced Cost −4. 5 0

Objective Coefficient 3

Allowable Increase 4.5

1 5

1E+3 0

Allowable Decrease 1E+3 0 9

Constraints Cell

Name

$F$9

* y = * y =

$F$1 0

Version 1

Final Value 1 2 6

Shadow Price 3.7 5 0

Constraint R.H. Side 1 2 1 0

Allowable Increase 8

1E+3 0

Allowable Decrease 1 2 4

38) D

The right-hand side for Resource C is 40. The allowable decrease is 22 and the allowable increase is ∞ (infinity). Therefore, the allowable range for this right-hand side is (40 − 22) ≤ RHSc ≤ (40 + ∞ ) → 18 ≤ RHSc ≤ ∞. 39) B

Decreasing the objective function coefficient for Activity 1 to 10 is a decrease of 20 (30 − 10 = 20). Since the allowable decrease for Activity 1 is 17, this change exceeds the allowable decrease and the impact on the optimal solution cannot be determined without re-running the optimization. 40) D

Applying the 100% rule, the change in Activity 1 is 66.67% of the allowable decrease .The change in Activity 2 is 33.33% of the allowable decrease . The total change of 100% (66.67% + 33.33%) does not exceed 100%, so the optimal solution will not change. 41) E 42) C

The objective function value is calculated by multiplying the final value of each variable by the appropriate objective function coefficient. (425 × 0) + (300 × 27.5) + (400 × 0) = 8,250. 43) C 44) B

With 4 decision variables an increase of 25% of the allowable increase would result in a total change of 100% (4 × 25%), which does not violate the 100% rule. 45) A

Decreasing the constraint right-hand side for Resource A to 10 is a decrease of 10 (20 − 10 = 10). Since the allowable decrease for this constraint right-hand side is 12.5, this is within the allowable range and the shadow price still applies. A decrease of 10 in the constraint right-hand side leads to a decrease of 77.80 in the objective function—multiply the change in the constraint right-hand side by the shadow price {(20 − 10) × 7.78 = 77.80}. 46) TRUE 47) D 48) A

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The allowable increase for Activity 3 (7 according to the sensitivity report) is smaller than the allowable increases for both Activity 1 (allowable increase of 23) and Activity 2 (allowable increase of 50). 49) FALSE 50) FALSE 51) TRUE 52) FALSE 53) D 54) A

The sensitivity report (see below) shows that the allowable increase for the right-hand side of the second constraint is ∞ (infinity). Since the change is within this allowable increase, the shadow price remains valid. However, the shadow price of 0 indicates that the firm does not require any more of Resource B, so the firm will not be willing to pay anything to obtain 5 additional units. Variable cells Cell Name Final Value $B$3 x0 $C$4

Reduced Objective Allowable Cost Coefficient Increase – 3 4.5 4.5 0 15 1E+30

Allowable Decrease 1E+30 9

Constraints Cell

Name

$F$9

* y = * y =

$F$1 0

Final Value 1 2 6

Shadow Price 3.7 5 0

Constraint R.H. Side 1 2 1 0

Allowable Increase 8

1E+3 0

Allowable Decrease 1 2 4

55) E

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The sensitivity report (see below) shows that the allowable increase for the right-hand side of the first constraint is 8. Since the change is within this allowable increase, the shadow price remains valid. Therefore, the firm would be willing to pay up to 18.75 {5 x 3.75} for the additional 5 units of Resource A. Variable cells Cell Name Final Value $B$ x0 3 $C$ 4

Reduced Cost – 4. 5 0

Objective Coefficient 3

Allowable Increase 4.5

1 5

1E+3 0

Allowable Decrease 1E+3 0 9

Constraints Cell

Name

$F$9

* y = * y =

$F$1 0

Final Value 1 2 6

Shadow Price 3.7 5 0

Constraint R.H. Side 1 2 1 0

Allowable Increase 8

1E+3 0

Allowable Decrease 1 2 4

56) A 57) C 58) FALSE 59) A 60) B 61) FALSE 62) A

Increasing the objective function coefficient for Activity 2 to 400 is an increase of 100 (400 − 300 = 100). Since the allowable increase for Activity 2 is 500, this change is within the range of optimality and the final values for the variables will not change. The increased objective function value is calculated by multiplying the final value of Activity 2 by the increase in the objective coefficient. (27.5 × 100) = 2,750. 63) TRUE 64) C

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Both changes are within the allowable range for the resources. Applying the 100% rule, the change in Resource B is 60% of the allowable increase {

}. The change in Resource C

is 45.5% of the allowable decrease { }. The total change of 105.5% (60% + 45.5%) is greater than 100%, so the shadow prices may or may not remain valid. 65) FALSE 66) B 67) C

Increasing the objective function coefficient for Activity 3 to 30 is an increase of 10 (30 − 20 = 10). Since the allowable increase for Activity 3 is 7, this change exceeds the allowable increase and the impact on the optimal solution cannot be determined without re-running the optimization. 68) C

The right-hand side for Resource A is 60. The allowable decrease is ∞ (infinity) and the allowable increase is 50. Therefore, the allowable range for this right-hand side is (60 − ∞ ) ≤ RHSA ≤ (60 + 50 ) → −∞ ≤ RHSA ≤ 110. 69) TRUE 70) B

The sensitivity report (see below) shows that the allowable increase for the right-hand side of constraint 1 is 8. Variable cells Cell Name Final Value $B$3 x0 $C$4

Reduced Objective Allowable Cost Coefficient Increase – 3 4.5 4.5 0 15 1E+30

Allowable Decrease 1E+30 9

Constraints Cell

Name

$F$9

* y = * y =

$F$1 0

Final Value 1 2 6

Shadow Price 3.7 5 0

Constraint R.H. Side 1 2 1 0

Allowable Increase 8

1E+3 0

Allowable Decrease 1 2 4

71) E

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Applying the 100% rule, the change in Activity 1 is 43.48% of the allowable increase . The change in Activity 2 is 20% of the allowable increase . The total change of 63.48% (43.48% + 20%) does not exceed 100%, so the optimal solution will not change. 75) TRUE

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1) The figure below shows the possible routes from city A to city M as well as the cost (in

dollars) of a trip between each pair of cities (note that if no arc joins two cities it is not possible to travel non-stop between those two cities). A traveler wishes to find the lowest cost option to travel from city A to city M.

Which type of network optimization problem is used to solve this problem? 1) ______ A) B) C) D) E)

Maximum Flow Problem Shortest Path Problem Maximum-Cost Flow problem Minimum Flow Problem Average-Cost Flow problem

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-72 The figure below shows the possible routes...

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2) The objective of a minimum-cost flow problem is to minimize the total cost of sending the

available supply through the network even if all demand is not satisfied. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-13 The objective of a minimum-cost...

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3) The figure below shows the nodes (A–I) and capacities (labelled on arcs in packages/day) of

a shipping network. The firm would like to know how many packages per day can flow from node A to node I.

What is the capacity of the connection between nodes B and E? 3) ______ A) B) C) D) E)

9 packages/day 26 packages/day 16 packages/day 11 packages/day 21 packages/day

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-69 The figure below shows the nodes...

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4) A manufacturing firm has three plants and wants to find the most efficient means of meeting

the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below: Factory (capacity) A (100) B (75) C (100)

Customer (requirement) Customer 1 Customer 2 Customer 3 (25) (50) (125) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25

Customer 4 (75) $ 17 $ 20 $ 14

How many demand nodes are present in this problem? 4) ______ A) B) C) D) E)

12 4 1 7 3

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-50 A manufacturing firm has three plants...

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5) A manufacturing firm has three plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (25) (50) (125) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25

Customer 4 (75) $ 17 $ 20 $ 14

How many supply nodes are present in this problem? 5) ______ A) B) C) D) E)

12 4 1 3 7

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-49 A manufacturing firm has three plants...

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6) A manufacturing firm has three plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (25) (50) (125) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25

Customer 4 (75) $ 17 $ 20 $ 14

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. What is the optimal quantity to ship from Factory A to Customer 2? 6) ______ A) 125 units B) 75 units C) 100 units D) 50 units E) 25 units Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-52 A manufacturing firm has three plants...

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7) The figure below shows the possible routes from city A to city J as well as the time (in

minutes) required for a trip between each pair of cities (note that if no arc joins two cities it is not possible to travel non-stop between those two cities). A traveler wishes to find the quickest option to travel from city A to city J.

Which type of network optimization problem is used to solve this problem? 7) ______ A) B) C) D) E)

Maximum-Cost Flow problem Average-Cost Flow problem Shortest Path Problem Maximum Flow Problem Minimum Flow Problem

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-78 The figure below shows the possible routes...

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8) Which of the following will have negative net flow in a minimum-cost flow problem? 8) ______ A) Supply nodes B) None of the choices is correct. C) Demand nodes D) Arc capacities E) Transshipment nodes Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-35 Which of the following will have...

9) A minimum-cost flow problem may be summarized by drawing a network only after writing

out the full formulation. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-04 A minimum-cost flow problem may...

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10) Any minimum-cost flow problem where each arc can carry any desired amount of flow is a

transshipment problem. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-19 Any minimum-cost flow problem where...

11) In a maximum flow problem, the source and sink have fixed supplies and demands. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-26 In a maximum flow problem, the...

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12) The figure below shows the nodes (A−I) and capacities (labelled on arcs in packages/day) of

a shipping network. The firm would like to know how many packages per day can flow from node A to node I.

Which type of network optimization problem is used to solve this problem? 12) ______ A) B) C) D) E)

Minimum-Cost Flow problem Maximum Flow Problem Shortest Path Problem Maximum-Cost Flow problem Minimum Flow Problem

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-66 The figure below shows the nodes...

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13) The figure below shows the possible routes from city A to city J as well as the time (in

Which of the following paths would be infeasible? 13) ______ A) B) C) D) E)

A-B-D-G-I-J A-C-F-J A-B-C-E-G-I-J A-B-C-F-E-G-I-J A-C-F-E-G-I-J

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-80 The figure below shows the possible routes...

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14) A manufacturing firm has four plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (125) (150) (175) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25 $ 21 $ 15 $ 28

Customer 4 (75) $ 17 $ 20 $ 14 $ 12 14) ______

A) B) C) D) E)

3 16 12 8 4

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-57 A manufacturing firm has four plants...

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15) The figure below shows the possible routes from city A to city J as well as the time (in

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. Which of the following nodes are not visited? 15) ______ A) J B) A C) H D) C E) B Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-82 The figure below shows the possible routes...

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16) The figure below shows the nodes (A−I) and capacities (labelled on arcs in TB/s) of a

computer network. The firm would like to know how much information can flow from node A to node I.

Which nodes are the sink and source for this problem? 16) ______ A) B) C) D) E)

Node A is the sink, Node B is the source. Node B is the source, Node I is the sink. Node B is the sink, Node I is the source. Node A is the source, Node I is the sink. Node A is the sink, Node I is the source.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-61 The figure below shows the nodes...

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17) For a minimum-cost flow problem to have a feasible solution, which of the following must

be true? 17) ______ A) B) C) D) E)

There is the same number of supply nodes and demand nodes. There is only one supply node and one demand node. There is an equal amount of supply and demand. The transshipment nodes must be able to absorb flow. The supply and demand must be integers.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-41 For a minimum-cost flow problem...

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18) The figure below shows the possible routes from city A to city M as well as the cost (in

Which of the following paths would be infeasible? 18) ______ A) B) C) D) E)

A-B-E-G-J-L-M A-B-D-G-J-L-M A-C-F-H-K-M A-C-F-I-G-J-L-M A-B-D-G-I-M

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-74 The figure below shows the possible routes...

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19) A manufacturing firm has four plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (125) (150) (175) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25 $ 21 $ 15 $ 28

Customer 4 (75) $ 17 $ 20 $ 14 $ 12

How many demand nodes are present in this problem? 19) ______ A) B) C) D) E)

8 16 3 4 1

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-56 A manufacturing firm has four plants...

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20) Which of the following problems are special types of minimum-cost flow problems? 1. Transportation problems 2. Assignment problems 3. Transshipment problems 4. Shortest path problems 20) ______ A) I, II, and III only B) I, II, III, and IV C) I and II only D) None of the choices is correct. E) IV only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify several categories of network optimization problems that are special ty Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-40 Which of the following problems are...

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21) A manufacturing firm has three plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (25) (50) (125) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25

Customer 4 (75) $ 17 $ 20 $ 14

How many arcs will the network have? 21) ______ A) B) C) D) E)

3 12 15 7 4

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-51 A manufacturing firm has three plants...

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22) The figure below shows the nodes (A−I) and capacities (labelled on arcs in TB/s) of a

computer network. The firm would like to know how much information can flow from node A to node I.

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. At maximum capacity, what will be the data flow between nodes F and H? 22) ______ A) 10 TB/s B) 14 TB/s C) 15 TB/s D) 3 TB/s E) 4 TB/s Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-64 The figure below shows the nodes...

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23) When reformulating a shortest path problem as a minimum-cost flow problem, each link

should be replaced by a pair of arcs pointing in opposite directions. 23) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-33 When reformulating a shortest path problem...

24) Which of the following can be used to optimally solve minimum-cost flow problems? 1. The simplex method 2. The network simplex method 3. A greedy algorithm 24) ______ A) I only B) III only C) I and II only D) II only E) All of these Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-39 Which of the following can be...

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25) Each node in a minimum-cost flow problem where the net amount of flow generated is a

fixed positive number is a demand node. 25) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-06 Each node in a minimum-cost...

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26) The figure below shows the nodes (A−I) and capacities (labelled on arcs in TB/s) of a

computer network. The firm would like to know how much information can flow from node A to node I.

What is the capacity of the connection between nodes F and H? 26) ______ A) B) C) D) E)

15 TB/s 14 TB/s 10 TB/s 4 TB/s 3 TB/s

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-63 The figure below shows the nodes...

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27) The figure below shows the possible routes from city A to city J as well as the time (in

What is the shortest time possible to travel from node F to node J. 27) ______ A) B) C) D) E)

110 180 160 140 200

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-81 The figure below shows the possible routes...

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28) A manufacturing firm has three plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (25) (50) (125) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25

Customer 4 (75) $ 17 $ 20 $ 14

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. What is the minimum total cost to meet all customer requirements? 28) ______ A) $4,775 B) $4,475 C) $4,500 D) $4,950 E) $5,150 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-53 A manufacturing firm has three plants...

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29) A manufacturing firm has four plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (125) (150) (175) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25 $ 21 $ 15 $ 28

Customer 4 (75) $ 17 $ 20 $ 14 $ 12

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. What is the minimum total cost to meet all customer requirements? 29) ______ A) $9,100 B) $9,000 C) $8,750 D) $10,050 E) $8,950 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-59 A manufacturing firm has four plants...

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30) A shortest path problem is required to have only a single destination. 30) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-32 A shortest path problem is required...

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31) The figure below shows the nodes (A−I) and capacities (labelled on arcs in packages/day) of

a shipping network. The firm would like to know how many packages per day can flow from node A to node I.

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. At maximum capacity, what will be the flow between nodes B and E? 31) ______ A) 9 packages/day B) 21 packages/day C) 11 packages/day D) 26 packages/day E) 16 packages/day Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-70 The figure below shows the nodes...

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32) A transportation problem is just a minimum-cost flow problem without any transshipment

nodes and without any capacity constraints on the arcs. 32) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-18 A transportation problem is just a...

33) The amount of flow that is eventually sent through an arc is called the capacity of that arc. 33) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-09 The amount of flow that is...

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34) The source and sink of a maximum flow problem have conservation of flow. 34) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-22 The source and sink of a...

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35) The figure below shows the nodes (A − I) and capacities (labelled on arcs in packages/day) of

a shipping network. The firm would like to know how many packages per day can flow from node A to node I.

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. What is the maximum amount of data that can be transmitted from node A to node I? 35) ______ A) 53 packages/day. B) 13 packages/day. C) 34 packages/day. D) 43 packages/day. E) 23 packages/day. Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-71 The figure below shows the nodes...

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36) The source and sink of a maximum flow problem are analogous to the supply nodes and

demand nodes of a minimum cost flow problem. 36) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-25 The source and sink of a...

37) Which of the following is not an assumption of a shortest path problem? 37) ______ A) B) C) D) E)

Associated with each link or arc is a nonnegative number called its length. A path through the network must be chosen going from the origin to the destination. None of the choices is correct. The objective is to find a shortest path from the origin to the destination. The lines connecting certain pairs of nodes always allow travel in either direction.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-45 Which of the following is not...

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38) A manufacturing firm has three plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (25) (50) (125) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25

Customer 4 (75) $ 17 $ 20 $ 14

Which type of network optimization problem is used to solve this problem? 38) ______ A) B) C) D) E)

Maximum Flow Problem Shortest Path Problem Minimum Flow Problem Minimum-Cost Flow problem Maximum-Cost Flow problem

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-48 A manufacturing firm has three plants...

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39) The figure below shows the possible routes from city A to city M as well as the cost (in

Which nodes are the origin and destination for this problem? 39) ______ A) B) C) D) E)

Node B is the destination, Node I is the origin. Node A is the origin, Node I is the destination. Node A is the origin, Node M is the destination. Node B is the origin, Node I is the destination. Node A is the destination, Node I is the origin.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-73 The figure below shows the possible routes...

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40) All network optimization problems actually are special types of linear programming

problems. 40) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-03 All network optimization problems actually are...

41) Each morning, a manager’s day starts with the task of deciding which project each of the four

technicians in the department will be working on today. In terms of network problems, this is known as 41) ______ A) an assignment problem. B) a transportation problem. C) a transhipment problem. D) None of the choices are correct. E) a capacity problem. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify several categories of network optimization problems that are special ty Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-84 Each morning, a manager&#8217;s day starts...

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42) Conservation of flow is achieved when the flow through a node is minimized. 42) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-07 Conservation of flow is achieved when...

43) A minimum-cost flow problem is a special type of: 43) ______ A) B) C) D) E)

transportation problem. transshipment problem. maximum flow problem. linear programming problem. spanning tree problem.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-38 A minimum-cost flow problem is...

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44) In a maximum flow problem, flow is permitted in both directions and is represented by a pair

of arcs pointing in opposite directions. 44) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-23 In a maximum flow problem, flow...

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45) The figure below shows the possible routes from city A to city M as well as the cost (in

What is the cost of the connection between nodes K and I? 45) ______ A) B) C) D) E)

11 21 16 9 26

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-75 The figure below shows the possible routes...

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46) Which of the following is an example of a transshipment node? 46) ______ A) B) C) D) E)

Processing facilities Warehouses Short-term investment options All of the choices are correct. Storage facilities

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify several categories of network optimization problems that are special ty Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-37 Which of the following is an...

47) A maximum flow problem can be fit into the format of a minimum cost flow problem. 47) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-27 A maximum flow problem can be...

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48) The figure below shows the nodes (A−I) and capacities (labelled on arcs in TB/s) of a

computer network. The firm would like to know how much information can flow from node A to node I.

Which type of network optimization problem is used to solve this problem? 48) ______ A) B) C) D) E)

Maximum-Cost Flow problem Shortest Path Problem Maximum Flow Problem Minimum-Cost Flow problem Minimum Flow Problem

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-60 The figure below shows the nodes...

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49) In a feasible minimum-cost flow problem, the network has enough arcs with sufficient

capacity to enable all the flow generated at the supply nodes to reach all the demand nodes. 49) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-11 In a feasible minimum-cost flow...

50) A minimum-cost flow problem will always have feasible solutions as long as there is a

balance between the total supply from the supply nodes and the total demand at the demand nodes. 50) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-14 A minimum-cost flow problem will always...

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51) Any node where the net amount of flow generated is fixed at zero is a transshipment node. 51) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-08 Any node where the net amount...

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52) The figure below shows the possible routes from city A to city M as well as the cost (in

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. What is the minimum cost for the traveler to move from node A to node M? 52) ______ A) $67 B) $96 C) $116 D) $82 E) $76 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-77 The figure below shows the possible routes...

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53) Shortest path problems are concerned with finding the shortest route through a network. 53) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-29 Shortest path problems are concerned with...

54) The network simplex method can be used to solve minimum-cost flow problems with over a

million arcs. 54) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify some areas of application for these types of problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-16 The network simplex method can be...

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55) Which of the following is not an assumption of a minimum-cost flow problem? 55) ______ A) There is an equal number of supply and demand nodes. B) Flow through an arc is only allowed in the direction indicated by the arrowhead. C) At least one of the nodes is a supply node. D) The cost of the flow through each arc is proportional to the amount of that flow. E) The objective is either to minimize the total cost or to maximize the total profit. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-36 Which of the following is not...

56) The objective of a maximum flow problem is to maximize the total profit generated by

sending flow through a network. 56) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-24 The objective of a maximum flow...

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57) The figure below shows the possible routes from city A to city M as well as the cost (in

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. Which of the following nodes are not visited? 57) ______ A) M B) B C) I D) A E) C Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-76 The figure below shows the possible routes...

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58) The figure below shows the possible routes from city A to city J as well as the time (in

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. What is the minimum cost for the traveler to move from node A to node J? 58) ______ A) 315 minutes B) 305 minutes C) 325 minutes D) 320 minutes E) 310 minutes Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-83 The figure below shows the possible routes...

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59) Network representations can be used for financial planning. 59) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify some areas of application for these types of problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-01 Network representations can be used for...

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60) The figure below shows the nodes (A−I) and capacities (labelled on arcs in TB/s) of a

computer network. The firm would like to know how much information can flow from node A to node I.

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. What is the maximum amount of data that can be transmitted from node A to node I? 60) ______ A) 23 TB/s B) 13 TB/s C) 43 TB/s D) 33 TB/s E) 53 TB/s Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-65 The figure below shows the nodes...

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61) In a minimum-cost flow problem, the cost of the flow through each arc is proportional to the

amount of that flow. 61) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-12 In a minimum-cost flow problem...

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62) The figure below shows the nodes (A−I) and capacities (labelled on arcs in packages/day) of

a shipping network. The firm would like to know how many packages per day can flow from node A to node I.

Which nodes are the sink and source for this problem? 62) ______ A) B) C) D) E)

Node A is the source, Node I is the sink. Node B is the source, Node I is the sink. Node B is the sink, Node I is the source. Node A is the sink, Node I is the source. Node A is the sink, Node B is the source.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-67 The figure below shows the nodes...

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63) In a minimum-cost flow problem there can be only one supply node and only one demand

node. 63) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-10 In a minimum-cost flow problem...

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64) The figure below shows the nodes (A−I) and capacities (labelled on arcs in TB/s) of a

computer network. The firm would like to know how much information can flow from node A to node I.

How many transshipment nodes are present in this problem? 64) ______ A) B) C) D) E)

8 6 2 1 7

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-62 The figure below shows the nodes...

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65) Which of the following is not an assumption of a maximum flow problem? 65) ______ A) B) C) D) E)

Flow can move toward the sink and away from the sink. All flow through the network originates at one node, called the source. The objective is to maximize the total amount of flow from the source to the sink. If a node is not the source or the sink then it is a transshipment node. The maximum amount of flow through an arc is given by the capacity of the arc.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-42 Which of the following is not...

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66) The figure below shows the possible routes from city A to city J as well as the time (in

Which nodes are the origin and destination for this problem? 66) ______ A) B) C) D) E)

Node B is the origin, Node I is the destination. Node A is the origin, Node J is the destination. Node A is the destination, Node I is the origin. Node A is the origin, Node M is the destination. Node B is the destination, Node I is the origin.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-79 The figure below shows the possible routes...

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67) Maximum flow problems are concerned with maximizing the flow of goods through a

distribution network. 67) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify some areas of application for these types of problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-20 Maximum flow problems are concerned with...

68) The network simplex method can aid managers in conducting what-if analysis. 68) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : A Case Study: The BMZ Co. Maximum Flow Problem Source : Chapter 09 Test Bank - Static > TF Qu. 09-17 The network simplex method can aid...

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69) As long as all its supplies, demands, and any arc capacities have integer values, any optimal

solution to a minimum-cost flow problem is guaranteed to have integer values. 69) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-15 As long as all its supplies...

70) Network representations can be used for the following problems: 70) ______ A) B) C) D) E)

project planning. All of the choices are correct. financial planning. facilities location. resource management.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify some areas of application for these types of problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-34 Network representations can be used for...

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71) A manufacturing firm has four plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (125) (150) (175) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25 $ 21 $ 15 $ 28

Customer 4 (75) $ 17 $ 20 $ 14 $ 12

How many supply nodes are present in this problem? 71) ______ A) B) C) D) E)

1 3 16 8 4

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-55 A manufacturing firm has four plants...

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72) A manufacturing firm has four plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (125) (150) (175) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25 $ 21 $ 15 $ 28

Customer 4 (75) $ 17 $ 20 $ 14 $ 12

Note: This question requires Solver. Formulate the problem in Solver and find the optimal solution. What is the optimal quantity to ship from Factory B to Customer 3? 72) ______ A) 75 units B) 25 units C) 100 units D) 50 units E) 125 units Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-58 A manufacturing firm has four plants...

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73) Determining how much traffic a network can handle is a _________ problem while finding

the most efficient route between two points is known as a _________ problem. 73) ______ A) B) C) D) E)

transhipment, transportation transhipment, shortest path shortest path, maximum flow transportation, shortest path maximum flow, shortest path

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify several categories of network optimization problems that are special ty Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-85 Determining how much traffic...

74) In a true maximum flow problem there is only one source and one sink. 74) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-21 In a true maximum flow problem...

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75) In a shortest path problem there are no arcs permitted, only links. 75) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-31 In a shortest path problem there...

76) In a shortest path problem, when "real travel" through a network can end at more than one

node: 1. An arc with length 0 is inserted. 2. The problem cannot be solved. 3. A dummy destination is needed. 76) ______ A) B) C) D) E)

III only I only I and III only II only I and II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-47 In a shortest path problem, when...

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77) Which of the following is an application of a shortest path problem? 1. Minimize total distance traveled. 2. Minimize total flow through a network. 3. Minimize total cost of a sequence of activities. 4. Minimize total time of a sequence of activities. 77) ______ A) B) C) D) E)

I, III, and IV only I, II, III, and IV IV only I and II only I, II, and III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify some areas of application for these types of problems. Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-46 Which of the following is an...

78) The model for any minimum-cost flow problem is represented by a network with flow

passing through it. 78) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-05 The model for any minimum-cost...

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79) A network representation is a very specific conceptual aid and is only used in special cases. 79) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-02 A network representation is a very...

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80) A manufacturing firm has four plants and wants to find the most efficient means of meeting

Customer (requirement) Customer 1 Customer 2 Customer 3 (125) (150) (175) $ 15 $ 10 $ 20 $ 20 $ 12 $ 19 $ 22 $ 20 $ 25 $ 21 $ 15 $ 28

Customer 4 (75) $ 17 $ 20 $ 14 $ 12

Which type of network optimization problem is used to solve this problem? 80) ______ A) B) C) D) E)

Minimum-Cost Flow problem Maximum-Cost Flow problem Shortest Path Problem Maximum Flow Problem Minimum Flow Problem

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Minimum-Cost Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-54 A manufacturing firm has four plants...

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81) In a shortest path problem, the lines connecting the nodes are referred to as arcs. 81) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-30 In a shortest path problem, the...

82) A network model showing the geographical layout of the problem is the usual way to

represent a shortest path problem. 82) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate network models for various types of network optimization problems. Topic : Shortest Path Problems Source : Chapter 09 Test Bank - Static > TF Qu. 09-28 A network model showing the geographical...

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83) Which of the following could be the subject of a maximum flow problem? 83) ______ A) B) C) D) E)

Products Vehicles Oil None of the choices is correct.. All of the choices are correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify some areas of application for these types of problems. Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-44 Which of the following could be...

84) What is the objective of a maximum flow problem? 84) ______ A) B) C) D) E)

Maximize the total amount of flow leaving the source node. Maximize the profit of the network. Maximize the routes being used. Maximize the sum of the flow through all arcs. None of the choices is correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of minimum-cost flow problems, maximum flow problem Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-43 What is the objective of a...

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85) The figure below shows the nodes (A−I) and capacities (labelled on arcs in packages/day) of

a shipping network. The firm would like to know how many packages per day can flow from node A to node I.

How many transshipment nodes are present in this problem? 85) ______ A) B) C) D) E)

8 2 1 7 6

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a spreadsheet model for a minimum-cost flow problem, a maxim Topic : Maximum Flow Problems Source : Chapter 09 Test Bank - Static > MC Qu. 09-68 The figure below shows the nodes...

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Answer Key Test name: Chapter 09 Test Bank 1) 2) 3) 4)

B FALSE E B Each of the four customers is a demand node. 5) D

Each of the three factories is a supply node. 6) D

Using Solver, the optimal quantity to ship from source A to destination 2 is 50 units. 7) C 8) C 9) FALSE 10) TRUE 11) FALSE 12) B 13) C 14) B

With 4 supply nodes and 4 demand nodes, there will be 16 {4 × 4} arcs in the network. 15) E

Using Solver, the shortest path is A-C-F-H-J. Therefore, node B is not visited. 16) D 17) C 18) C 19) D

Each of the four customers is a demand node. 20) B 21) B

With 3 supply nodes and 4 demand nodes, there will be 12 {3x4} arcs in the network. 22) A

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Using Solver, the optimal quantity to ship from node F to node H is 10 TB/s. 23) TRUE 24) C 25) FALSE 26) B 27) A

The time to travel between nodes F and J = 35 + 75 = 110. 28) B

Using Solver, minimum cost to meet all customer demand is $4,475. 29) A

Using Solver, minimum cost to meet all customer demand is $9,100. 30) TRUE 31) A

Using Solver, the optimal quantity to ship from node B to node E is 9 packages/day. 32) TRUE 33) FALSE 34) FALSE 35) C

Using Solver, the maximum quantity to ship from node A to node I is 34 packages/day. 36) TRUE 37) E 38) D 39) C 40) FALSE 41) A 42) FALSE 43) D 44) FALSE 45) A 46) D 47) TRUE 48) C 49) TRUE 50) FALSE 51) TRUE

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52) A

Using Solver, the shortest path is A-C-F-I-M with a minimum cost of $67. 53) TRUE 54) TRUE 55) A 56) FALSE 57) B

Using Solver, the shortest path is A-C-F-I-M. Therefore, node B is not visited. 58) B

Using Solver, the minimum time is 305 minutes. 59) TRUE 60) D

Using Solver, the optimal quantity to ship from node A to node I is 33 TB/s. 61) TRUE 62) A 63) FALSE 64) E 65) A 66) B 67) TRUE 68) TRUE 69) TRUE 70) B 71) E

Each of the four factories is a supply node. 72) A

Using Solver, the optimal quantity to ship from source B to destination 3 is 75 units. 73) E 74) TRUE 75) FALSE 76) C 77) A 78) TRUE 79) FALSE 80) A

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81) FALSE 82) FALSE 83) E 84) A 85) D

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1) In a BIP problem, 1 corresponds to a yes decision and 0 to a no decision. If there are two

projects under consideration, A and B, and either both projects will be undertaken or no project will be undertaken, then the following constraint needs to be added to the formulation: 1) ______ A) A + B ≤ 2. B) A ≥ B. C) A = B. D) None of the choices is correct. E) A ≤ B. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-36 In a BIP problem, 1 corresponds...

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2) A bakery produces both pies and cakes. Both products use the same materials (flour, sugar

and eggs) and both have a setup cost ($100 for cakes, $200 for pies). The baker earns a profit of $10 per cake and $12 per pie and can sell as many of each as it can produce. The daily supply of flour, sugar and eggs is limited. To manage the decision-making process, an analyst has formulated the following linear programming model (assume that it is possible to produce fractional pies and cakes for this example): Max 10x1 + 12x2 − 100y1 − 200y2 s.t. 5x1 + 10x2 ≤ 1000 {Constraint 1} 2x1 + 5x2 ≤ 2500 {Constraint 2} 2x1 + 1x2 ≤ 300 {Constraint 3} My1 ≥ x1 {Constraint 4} My2 ≥ x2 {Constraint 5}

Which of the constraints limit the amount of raw materials that can be consumed? 2) ______ A) B) C) D) E)

Constraint 5 Constraints 1, 2 and 3 Constraint 3 and 4 Constraint 3 Constraint 4

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > MC Qu. 10-74 A bakery produces both pies and...

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3) The university administration would like to add some additional parking locations. To make

everyone happy, they would like each building to be within a 5 minute walk of at least one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model: Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6 s.t. x1 + x2 + x5 + x6 ≥ 1 {Residence Hall A constraint} x1 + x2 + x3 ≥ 1 {Residence Hall B constraint} x4 + x5 + x6 ≥ 1 {Science building constraint} x1 + x4 + x5 ≥ 1 {Music building constraint} x2 + x3 + x4 ≥ 1 {Math building constraint} x3 + x4 + x5 ≥ 1 {Business building constraint} x2 + x5 + x6 ≥ 1 {Auditorium constraint} x1 + x4 + x6 ≥ 1 {Arena constraint} x1 + x2 + x3 + x4 + x5 + x6 ≥ 4 {Total locations constraint}

Which of the locations is the most expensive? 3) ______ A) B) C) D) E)

Location 6 Location 5 Location 2 Location 4 Location 3

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-59 The university administration would like to...

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4) A manufacturer has the capability to produce both chairs and tables. Both products use the

same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model: Max 20x1 + 65x2 − 100y1 − 200y2 s.t. 5x1 + 10x2 ≤ 100 {Constraint 1} 20x1 + 50x2 ≤ 250 {Constraint 2} 1x1 + 1.5x2 ≤ 10 {Constraint 3} My1 ≥ x1 {Constraint 4} My2 ≥ x2 {Constraint 5}

Which of the constraints limit the amount of raw materials that can be consumed? 4) ______ A) B) C) D) E)

Constraint 1 Constraint 5 Constraint 1 and 4 only Constraints 1, 2 and 3 Constraint 4

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > MC Qu. 10-70 A manufacturer has the capability to...

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5) If a firm wishes to choose at most 2 of 4 possible activities (A, B, C and D), the constraint xA

+ xB + xC + xD ≥ 2 will enforce this relationship in a linear program. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-23 If a firm wishes to choose at...

6) Use of binary variables in a linear programming application does not violate the continuous-

variables assumption. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : The Nature of Integer Programming Source : Chapter 10 Test Bank - Static > TF Qu. 10-26 Use of binary variables in a linear...

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7) If choosing one alternative from a group excludes choosing all of the others then these

alternatives are called mutually exclusive. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-08 If choosing one alternative from a...

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8) A firm has prepared the following binary integer program to evaluate a number of potential

locations for new warehouses. The firm’s goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 20x1 + 30x2 + 10x3 + 15x4 s.t. 5x1 + 7x2 + 12x3 + 11x4 ≤ 21 {Constraint 1} x1 + x2 + x3 + x4 ≥ 2 {Constraint 2} x1 + x2 ≤ 1 {Constraint 3} x1 + x3 ≥ 1 {Constraint 4} x2 = x4 {Constraint 5}

Which of the constraints ensures that at least two of the potential sites will be selected? 8) ______ A) Constraint 5 B) Constraint 4 C) Constraint 1 D) Constraint 3 E) Constraint 2 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-42 A firm has prepared the following...

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9) A problem where all the variables are binary variables is called a pure BIP problem. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-04 A problem where all the variables...

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10) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost and is qualified to clean only certain buildings. There are eight possible crews to choose from in this case. The goal is to minimize costs while making sure that each building is cleaned. The management science department formulated the following linear programming model to help with the selection process. Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8 s.t. x1 + x2 + x5 + x7 ≥ 1 {Building A constraint} x1 + x2 + x3 ≥ 1 {Building B constraint} x6 + x8 ≥ 1 {Building C constraint} x1 + x4 + x7 ≥ 1 {Building D constraint} x2 + x7 ≥ 1 {Building E constraint} x3 + x8 ≥ 1 {Building F constraint} x2 + x5 + x7 ≥ 1 {Building G constraint} x1 + x4 + x6 ≥ 1 {Building H constraint} x1 + x6 + x8 ≥ 1 {Building I constraint} x1 + x2 + x7 ≥ 1 {Building J constraint}

Set up the problem in Excel and find the optimal solution. Which crews are selected? 10) ______ A) Crews 3, 4, and 5. B) Crews 1, 7, and 8 C) Crews 1, 2, and 3 D) Crews 2, 3, and 5 E) Crews 1, 5, and 6 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for crew scheduling in the travel i Topic : Using BIP for Crew Scheduling: The Southwestern Airways Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-68 Note: This problem requires the use...

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11) A manufacturer has the capability to produce both chairs and tables. Both products use the

Which of the following would be a reasonable value for the variable "M"? 11) ______ A) B) C) D) E)

0.1 10 0.01 1 100

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > MC Qu. 10-71 A manufacturer has the capability to...

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12) A firm has prepared the following binary integer program to evaluate a number of potential

new capital projects. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 100x1 + 120x2 + 90x3 + 135x4 s.t. 150x1 + 200x2 + 225x3 + 175x4 ≤ 500 {Constraint 1} x1 + x2 + x3 + x4 ≥ 2 {Constraint 2} x2 + x4 ≤ 1 {Constraint 3} x2 + x3 ≥ 1 {Constraint 4} x1 = x4 {Constraint 5}

Which constraint ensures that the firm will not spend more capital than it has available (assume that each potential project has a different cost)? 12) ______ A) Constraint 5 B) Constraint 3 C) Constraint 2 D) Constraint 4 E) Constraint 1 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-49 A firm has prepared the following...

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13) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. A firm has prepared the following binary integer program to evaluate a number of potential new capital projects. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 100x1 + 120x2 + 90x3 + 135x4 s.t. 150x1 + 200x2 + 225x3 + 175x4 ≤ 500 {Constraint 1} x1 + x2 + x3 + x4 ≥ 2 {Constraint 2} x2 + x4 ≤ 1 {Constraint 3} x2 + x3 ≥ 1 {Constraint 4} x1 = x4 {Constraint 5}

Set up the problem in Excel and find the optimal solution. What is the expected net present value of the optimal solution? 13) ______ A) 210 B) 220 C) 435 D) 235 E) 310 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-51 Note: This problem requires the use...

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14) The university is scheduling cleaning crews for its ten buildings. Each crew has a different

cost and is qualified to clean only certain buildings. There are eight possible crews to choose from in this case. The goal is to minimize costs while making sure that each building is cleaned. The management science department formulated the following linear programming model to help with the selection process. Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8 s.t. x1 + x2 + x5 + x7 ≥ 1 {Building A constraint} x1 + x2 + x3 ≥ 1 {Building B constraint} x6 + x8 ≥ 1 {Building C constraint} x1 + x4 + x7 ≥ 1 {Building D constraint} x2 + x7 ≥ 1 {Building E constraint} x3 + x8 ≥ 1 {Building F constraint} x2 + x5 + x7 ≥ 1 {Building G constraint} x1 + x4 + x6 ≥ 1 {Building H constraint} x1 + x6 + x8 ≥ 1 {Building I constraint} x1 + x2 + x7 ≥ 1 {Building J constraint}

Which of the constraints is a set covering constraint? 14) ______ A) B) C) D) E)

Building F constraint All of the choices are correct. Building A constraint None of the choices is correct. Building C constraint

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for crew scheduling in the travel i Topic : Using BIP for Crew Scheduling: The Southwestern Airways Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-64 The university is scheduling cleaning crews...

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15) Using binary integer programming to select the best set of projects to pursue (from a larger

set of potential projects) is an example of 15) ______ A) B) C) D)

predictive analytics. None of the choices are correct. prescriptive analytics. descriptive analytics.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : Using Integer or Nonlinear Programming to Perform Prescriptive Analytics Source : Chapter 10 Test Bank - Static > MC Qu. 10-29 Using binary integer programming to select...

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16) A firm has prepared the following binary integer program to evaluate a number of potential

Which of the constraints enforces a mutually exclusive relationship? 16) ______ A) B) C) D) E)

Constraint 1 Constraint 2 Constraint 3 Constraint 5 Constraint 4

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-46 A firm has prepared the following...

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17) The Excel sensitivity report can be used to perform sensitivity analysis for integer

programming problems. 17) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-17 The Excel sensitivity report can be...

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18) A new pizza restaurant is moving into town. The owner is considering a number of potential

sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A−J) and would like to open a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model: Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8 s.t. x1 + x2 + x5 + x7 ≥ 1 {Neighborhood A constraint} x1 + x2 + x3 ≥ 1 {Neighborhood B constraint} x5 + x6 + x8 ≥ 1 {Neighborhood C constraint} x1 + x4 + x7 ≥ 1 {Neighborhood D constraint} x2 + x3 + x7 ≥ 1 {Neighborhood E constraint} x3 + x4 + x8 ≥ 1 {Neighborhood F constraint} x2 + x5 + x7 ≥ 1 {Neighborhood G constraint} x1 + x4 + x6 ≥ 1 {Neighborhood H constraint} x1 + x6 + x8 ≥ 1 {Neighborhood I constraint} x1 + x2 + x7 ≥ 1 {Neighborhood J constraint}

Which of the locations is NOT within 15 minutes of neighborhood A? 18) ______ A) B) C) D) E)

Location 2 Location 5 Location 7 Location 1 Location 6

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-55 A new pizza restaurant is moving...

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19) BIP can be used to determine the timing of activities. 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a binary integer programming model for crew scheduling in the travel i Topic : Using BIP for Crew Scheduling: The Southwestern Airways Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-14 BIP can be used to determine...

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1. The university administration would like to add some additional parking locations. To

make everyone happy, they would like each building to be within a 5 minute walk of at least one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model: Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6 s.t. x1 + x2 + x5 + x6 ≥ 1 {Residence Hall A constraint} x1 + x2 + x3 ≥ 1 {Residence Hall B constraint} x4 + x5 + x6 ≥ 1 {Science building constraint} x1 + x4 + x5 ≥ 1 {Music building constraint} x2 + x3 + x4 ≥ 1 {Math building constraint} x3 + x4 + x5 ≥ 1 {Business building constraint} x2 + x5 + x6 ≥ 1 {Auditorium constraint} x1 + x4 + x6 ≥ 1 {Arena constraint} x1 + x2 + x3 + x4 + x5 + x6 ≥ 4 {Total locations constraint} %media:formula44.mml% Which of the constraints is a set covering constraint? 2. Residence Hall A constraint. 3. Science building constraint. 4. Total locations constraint. 19) ______ A) I and II only B) All of these C) III only D) II only E) I only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-58 The university administration would like to...

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20) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost and is qualified to clean only certain buildings. There are eight possible crews to choose from in this case. The goal is to minimize costs while making sure that each building is cleaned. The management science department formulated the following linear programming model to help with the selection process. Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8 s.t. x1 + x2 + x5 + x7 ≥ 1 {Building A constraint} x1 + x2 + x3 ≥ 1 {Building B constraint} x6 + x8 ≥ 1 {Building C constraint} x1 + x4 + x7 ≥ 1 {Building D constraint} x2 + x7 ≥ 1 {Building E constraint} x3 + x8 ≥ 1 {Building F constraint} x2 + x5 + x7 ≥ 1 {Building G constraint} x1 + x4 + x6 ≥ 1 {Building H constraint} x1 + x6 + x8 ≥ 1{Building I constraint} x1 + x2 + x7 ≥ 1 {Building J constraint}

Set up the problem in Excel and find the optimal solution. What is the cost of the optimal set of locations? 20) ______ A) 355 B) 255 C) 655 D) 455 E) 555 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-69 Note: This problem requires the use...

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21) The university administration would like to add some additional parking locations. To make

Which of the locations is NOT within 5 minutes of the Arena? 21) ______ A) B) C) D)

Location 6 Location 1 Location 2 Location 4

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-61 The university administration would like to...

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22) It is possible to have a constraint in a BIP that excludes the possibility of choosing none of

the alternatives available. 22) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-10 It is possible to have a...

23) To model a situation where a setup cost will be charged if a certain product is produced, the

best approach is to include an Excel "IF" function. 23) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > TF Qu. 10-19 To model a situation where a...

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24) In a crew scheduling problem there is no need for a set covering constraint. 24) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a binary integer programming model for crew scheduling in the travel i Topic : Using BIP for Crew Scheduling: The Southwestern Airways Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-21 In a crew scheduling problem there...

25) A linear programming formulation is not valid for a product mix problem when there are

setup costs for initiating production. 25) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > TF Qu. 10-16 A linear programming formulation is not...

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26) A firm has prepared the following binary integer program to evaluate a number of potential

Which of the constraints ensures that at least two of the potential projects will be selected? 26) ______ A) Constraint 3 B) Constraint 1 C) Constraint 2 D) Constraint 5 E) Constraint 4 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-48 A firm has prepared the following...

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27) In a BIP problem with 2 mutually exclusive alternatives, x1 and x2, the following constraint

needs to be added to the formulation if one alternative must be chosen: 27) ______ A) x1 + x2 ≤ 1. B) C) D) E)

x1 − x2 ≤ 1. x1 + x2 = 1. None of the choices is correct. x1− x2 = 1.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-34 In a BIP problem with 2 mutually...

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28) A bakery produces both pies and cakes. Both products use the same materials (flour, sugar

Which of the following would be a reasonable value for the variable "M"? 28) ______ A) B) C) D) E)

100 0.1 1,000 10 1

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > MC Qu. 10-75 A bakery produces both pies and...

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29) Binary integer programming problems are those where all the decision variables restricted to

integer values are further restricted to be binary variables. 29) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-01 Binary integer programming problems are those...

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30) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of at least one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model: Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6 s.t. x1 + x2 + x5 + x6 ≥ 1{Residence Hall A constraint} x1 + x2 + x3 ≥ 1 {Residence Hall B constraint} x4 + x5 + x6 ≥ 1 {Science building constraint} x1 + x4 + x5 ≥ 1 {Music building constraint} x2 + x3 + x4 ≥ 1 {Math building constraint} x3 + x4 + x5 ≥ 1 {Business building constraint} x2 + x5 + x6 ≥ 1 {Auditorium constraint} x1 + x4 + x6 ≥ 1 {Arena constraint} x1 + x2 + x3 + x4 + x5 + x6 ≥ 4 {Total locations constraint}

Set up the problem in Excel and find the optimal solution. Which locations are selected? 30) ______ A) Locations 1, 2, 4, and 5 B) Locations 1, 2, 3, and 5 C) Locations 1, 3, 4, and 5 D) Locations 2, 3, 4, and 5 E) Locations 1, 3, and 5 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-62 Note: This problem requires the use...

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31) Use of binary variables in a linear programming application violates the proportionality

assumption. 31) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : The Nature of Integer Programming Source : Chapter 10 Test Bank - Static > TF Qu. 10-27 Use of binary variables in a linear programming...

32) Variables whose only possible values are 0 and 1 are called integer variables. 32) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-03 Variables whose only possible values are...

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33) The algorithms available for solving BIP problems are much more efficient than those for

linear programming which is one of the advantages of formulating problems this way. 33) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-07 The algorithms available for solving BIP...

34) In a BIP problem with 3 mutually exclusive alternatives, x1 , x2 , and x3, the following

constraint needs to be added to the formulation: 34) ______ A) x1 + x2 + x3 = 1. B) x1 + x2 + x3 ≤ 1. C) None of the choices is correct. D) x1 − x2 − x3 = 1. E) x1 − x2 − x3 ≤ 1. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-37 In a BIP problem with 3...

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35) A firm has prepared the following binary integer program to evaluate a number of potential

Which of the constraints enforces a contingent relationship? 35) ______ A) B) C) D) E)

Constraint 4 Constraint 2 Constraint 5 Constraint 3 Constraint 1

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-41 A firm has prepared the following...

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36) The constraint x1 + x2 + x3- ≤ 2 in a BIP represents mutually exclusive alternatives. 36) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-09 The constraint x1 + x2 +...

37) An auxiliary binary variable is an additional binary variable that is introduced into a model to

represent additional yes-or-no decisions. 37) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > TF Qu. 10-15 An auxiliary binary variable is an...

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38) When binary variables are used in a linear program, the Solver Sensitivity Report is not

available. 38) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-25 When binary variables are used in...

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39) A new pizza restaurant is moving into town. The owner is considering a number of potential

sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A−J) and would like to open a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model: Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8 s.t.x1 + x2 + x5 + x7 ≥ 1 {Neighborhood A constraint} x1 + x2 + x3 ≥ 1 {Neighborhood B constraint} x5 + x6 + x8 ≥ 1 {Neighborhood C constraint} x1 + x4 + x7 ≥ 1 {Neighborhood D constraint} x2 + x3 + x7 ≥ 1 {Neighborhood E constraint} x3 + x4 + x8 ≥ 1 {Neighborhood F constraint} x2 + x5 + x7 ≥ 1 {Neighborhood G constraint} x1 + x4 + x6 ≥ 1 {Neighborhood H constraint} x1 + x6 + x8 ≥ 1 {Neighborhood I constraint} x1 + x2 + x7 ≥ 1 {Neighborhood J constraint}

Which of the constraints is a set covering constraint? 39) ______ A) B) C) D) E)

None of the choices is correct. All of the choices are correct. Neighborhood A constraint Neighborhood F constraint Neighborhood C constraint

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for crew scheduling in the travel i Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-52 A new pizza restaurant is moving...

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40) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm’s goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 20x1 + 30x2 + 10x3 + 15x4 s.t. 5x1 + 7x2 + 12x3 + 11x4 ≤ 21 {Constraint 1} x1 + x2 + x3 + x4 ≥ 2 {Constraint 2} x1 + x2 ≤ 1 {Constraint 3} x1 + x3 ≥ 1 {Constraint 4} x2 = x4 {Constraint 5}

Set up the problem in Excel and find the optimal solution. What is the expected net present value of the optimal solution? 40) ______ A) 45 B) 40 C) 20 D) 35 E) 30 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-45 Note: This problem requires the use...

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41) A BIP problem considers one yes-or-no decision at a time with the objective of choosing the

best alternative. 41) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-06 A BIP problem considers one yes-or-no...

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42) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. A new pizza restaurant is moving into town. The owner is considering a number of potential sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A−J) and would like to open a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model: Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8 s.t. x1 + x2 + x5 + x7 ≥ 1 {Neighborhood A constraint} x1 + x2 + x3 ≥ 1 {Neighborhood B constraint} x5 + x6 + x8 ≥ 1 {Neighborhood C constraint} x1 + x4 + x7 ≥ 1 {Neighborhood D constraint} x2 + x3 + x7 ≥ 1 {Neighborhood E constraint} x3 + x4 + x8 ≥ 1 {Neighborhood F constraint} x2 + x5 + x7 ≥ 1 {Neighborhood G constraint} x1 + x4 + x6 ≥ 1 {Neighborhood H constraint} x1 + x6 + x8 ≥ 1 {Neighborhood I constraint} x1 + x2 + x7 ≥ 1 {Neighborhood J constraint}

Set up the problem in Excel and find the optimal solution. Which locations are selected? 42) ______ A) Location 1 B) Location 5 C) None of locations 1, 3, and 5 are selected. D) Location 3 E) All of locations 1, 3, and 5 are selected. Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-56 Note: This problem requires the use...

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43) A yes-or-no decision is a mutually exclusive decision if it can be yes only if a certain other

yes-or-no decision is yes. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-11 A yes-or-no decision is a mutually...

44) Which of the following techniques or tools can be used to perform sensitivity analysis for an

integer programming problem? 1. The sensitivity report 2. Trial-and-error 3. A parameter analysis report 44) ______ A) B) C) D) E)

II only I only II and III only All of the choices are correct. III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-39 Which of the following techniques or...

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45) Binary variables can have the following values: 45) ______ A) B) C) D) E)

1 only. any integer value less than 1. any integer value greater than 1. 0 and 1 only. 0 only.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-31 Binary variables can have the following...

46) Binary variables are best suited to be the decision variables when dealing with yes-or-no

decisions. 46) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-05 Binary variables are best suited to...

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47) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. To enhance the safety of your facility, you decide to add more fire extinguishers. Your goal is to have each area within 50 feet of a fire extinguisher, but to minimize the total number of fire extinguishers you need to purchase. You have divided the facility into 7 zones and have identified 8 possible locations for fire extinguishers. The following table shows the distance (in feet) from each zone to each potential location.

Location 1 Location 2 Location 3 Location 4 Location 5 Location 6 Location 7 Location 8

Distance to location (in feet) Zone A Zone B Zone C Zone D Zone E Zone F Zone G 51 40 70 73 36 32 50 75 40 65 48 52 79 55 58 73 74 64 41 59 67 80 51 52 30 50 64 43 42 38 59 54 41 74 55 53 59 51 46 61 36 47 71 52 62 67 63 62 30 74 68 31 77 60 32 38

How many fire extinguishers should you purchase? 47) ______ A) B) C) D) E)

6 5 3 4 2

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Create Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-79 Note: This problem requires the use...

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48) The use of binary variables in a linear programming application violates which of these

assumptions? 1. Continuous-variable assumption 2. Proportionality assumption 3. Certainty assumption 48) ______ A) B) C) D) E)

None of the assumptions are violated. III only I, II and III II only I only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : The Nature of Integer Programming Source : Chapter 10 Test Bank - Static > MC Qu. 10-28 The use of binary variables in a linear...

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49) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model: Max 20x1 + 65x2 − 100y1 − 200y2 s.t. 5x1 + 10x2 ≤ 100 {Constraint 1} 20x1 + 50x2 ≤ 250 {Constraint 2} 1x1 + 1.5x2 ≤ 10 {Constraint 3} My1 ≥ x1 {Constraint 4} My2 ≥ x2 {Constraint 5}

Set up the problem in Excel and find the optimal solution. What is the optimal production schedule? 49) ______ A) 0 chairs, 5 tables B) 10 chairs, 5 tables C) 5 chairs, 10 tables D) 10 chairs, 0 tables E) 15 chairs, 5 tables Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > MC Qu. 10-72 Note: This problem requires the use...

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50) BIP can be used in capital budgeting decisions to determine whether to invest in certain

projects. 50) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-13 BIP can be used in capital...

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51) A new pizza restaurant is moving into town. The owner is considering a number of potential

sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A−J) and would like to open a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model: Min 100x1 + 120x2 + 90x3 + 135x4 +75x 5 + 85x6 + 110x7 + 135x8 s.t. x1 + x2 + x5 + x7 ≥ 1 {Neighborhood A constraint} x1 + x2 + x3 ≥ 1 {Neighborhood B constraint} x5 + x6 + x8 ≥ 1 {Neighborhood C constraint} x1 + x4 + x7 ≥ 1 {Neighborhood D constraint} x2 + x3 + x7 ≥ 1 {Neighborhood E constraint} x3 + x4 + x8 ≥ 1 {Neighborhood F constraint} x2 + x5 + x7 ≥ 1 {Neighborhood G constraint} x1 + x4 + x6 ≥ 1 {Neighborhood H constraint} x1 + x6 + x8 ≥ 1 {Neighborhood I constraint} x1 + x2 + x7 ≥ 1 {Neighborhood J constraint}

Which of the locations is within 15 minutes of neighborhoods C, H, and I? 51) ______ A) B) C) D) E)

Location 2 Location 8 Location 6 None of these locations is within 15 minutes of neighborhoods C, H, and I. Location 4

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-54 A new pizza restaurant is moving...

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52) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least two projects. If project 1 is chosen then project 2 cannot be selected. Formulate the problem as a linear program and determine the optimal solution. Project

Cost

$250,000

Net Present Value $500,000

$500,000

$750,000

$290,000

$333,000

$650,000

$400,000

$750,000

$600,000

Notes Cannot be selected if 2 is selected Cannot be selected if 1 is selected

52) ______ A) B) C) D) E)

Project 1 and project 2 Project 2 and project 3 Project 3 and project 5 Project 1 and project 5 Project 1 and project 3

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Create Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-78 Note: This problem requires the use...

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53) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and eggs) and both have a setup cost ($100 for cakes, $200 for pies). The baker earns a profit of $10 per cake and $12 per pie and can sell as many of each as it can produce. The daily supply of flour, sugar and eggs is limited. To manage the decision-making process, an analyst has formulated the following linear programming model (assume that it is possible to produce fractional pies and cakes for this example): Max 10x1 + 12x2 − 100y1 − 200y2 s.t. 5x1 + 10x2 ≤ 1000 {Constraint 1} 2x1 + 5x2 ≤ 2500 {Constraint 2} 2x1 + 1x2 ≤ 300 {Constraint 3} My1 ≥ x1 {Constraint 4} My2 ≥ x2 {Constraint 5}

Set up the problem in Excel and find the optimal solution. What is the optimal production schedule? 53) ______ A) 133⅓ cakes, 0 pies B) 0 cakes, 33⅓ pies C) 133⅓ cakes, 33⅓ pies D) 133⅓ cakes, 133⅓ pies E) 33⅓ cakes, 133⅓ pies Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > MC Qu. 10-76 Note: This problem requires the use...

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54) Note: This problem requires the use of a linear programming application such as Solver or

Set up the problem in Excel and find the optimal solution. What is the cost of the optimal set of locations? 54) ______ A) 220 B) 435 C) 310 D) 210 E) 265 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-57 Note: This problem requires the use...

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55) A new pizza restaurant is moving into town. The owner is considering a number of potential

Which of the locations is the most expensive? 55) ______ A) B) C) D) E)

Location 4 Location 2 Location 5 Location 3 Location 1

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-53 A new pizza restaurant is moving...

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56) In a BIP problem with 2 mutually exclusive alternatives, x1 and x2, the following constraint

needs to be added to the formulation: 56) ______ A) x1 + x2 ≥ 1. B) x1 + x2 ≤ 1. C) None of the choices is correct. D) x1 − x2 = 1. E) x1 − x2 ≤ 1. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-33 In a BIP problem with 2...

57) Using BIP to select which stocks to include in a portfolio is an example of _________ . 57) ______ A) prescriptive analytics B) descriptive analytics C) predictive analytics D) data cleaning E) graphical decision-making Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : Using Integer or Nonlinear Programming to Perform Prescriptive Analytics Source : Chapter 10 Test Bank - Static > MC Qu. 10-82 Using BIP to select which stocks to...

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58) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model: Max 20x1 + 65x2 − 100y1 – 200y2 s.t. 5x1 + 10x2 ≤ 100 {Constraint 1} 20x1 + 50x2 ≤ 250 {Constraint 2} 1x1 + 1.5x2 ≤ 10 {Constraint 3} My1 ≥ x1 {Constraint 4} My2 ≥ x2 {Constraint 5}

Set up the problem in Excel and find the optimal solution. What is the maximum profit possible? 58) ______ A) $25 B) $100 C) $50 D) $75 E) $125 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > MC Qu. 10-73 Note: This problem requires the use ...

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59) Which of the following is NOT an example of prescriptive analytics. 59) ______ A) B) C) D) E)

Determining how best to schedule flight crews for an airline Calculating how long the lights in a room are on each day Selecting new locations for a fast-food restaurant Deciding which new products to introduce Developing a stock portfolio

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : Using Integer or Nonlinear Programming to Perform Prescriptive Analytics Source : Chapter 10 Test Bank - Static > MC Qu. 10-81 Which of the following is NOT an...

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60) The university is scheduling cleaning crews for its ten buildings. Each crew has a different

Without solving the BIP model, which crew could be scheduled to clean Buildings B and F? 60) ______ A) Crew 4 B) Crew 7 C) Crew 3 D) Crew 8 E) Crew 6 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for crew scheduling in the travel i Topic : Using BIP for Crew Scheduling: The Southwestern Airways Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-66 The university is scheduling cleaning crews...

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61) The university administration would like to add some additional parking locations. To make

Which of the locations is within 5 minutes of the science, music, math, and business buildings? 61) ______ A) Location 5 B) Location 2 C) Location 6 D) None of these locations is within 5 minutes of the listed buildings. E) Location 4 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-60 The university administration would like to...

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62) Note: This problem requires the use of a linear programming application such as Solver or

Set up the problem in Excel and find the optimal solution. What is the maximum profit possible? 62) ______ A) $1,633.33 B) $1,333.33 C) $1,533.33 D) $1,233.33 E) $1,433.33 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > MC Qu. 10-77 Note: This problem requires the use...

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63) Note: This problem requires the use of a linear programming application such as Solver or

Analytic Solver. The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of at least one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model: Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6 s.t. x1 + x2 + x5 + x6 ≥ 1 {Residence Hall A constraint} x1 + x2 + x3 ≥ 1 {Residence Hall B constraint} x4 + x5 + x6 ≥ 1 {Science building constraint} x1 + x4 + x5 ≥ 1 {Music building constraint} x2 + x3 + x4 ≥ 1 {Math building constraint} x3 + x4 + x5 ≥ 1 {Business building constraint} x2 + x5 + x6 ≥ 1 {Auditorium constraint} x1 + x4 + x6 ≥ 1 {Arena constraint} x1 + x2 + x3 + x4 + x5 + x6 ≥ 4 {Total locations constraint}

Set up the problem in Excel and find the optimal solution. What is the cost of the optimal set of locations? 63) ______ A) 1,865 B) 1,715 C) 1,445 D) 1,535 E) 1,655 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > MC Qu. 10-63 Note: This problem requires the use...

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64) In a site selection problem, a common goal is to identify the set of locations that provides

adequate service at the minimum cost. 64) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of sites for faci Topic : Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City Pro Source : Chapter 10 Test Bank - Static > TF Qu. 10-20 In a site selection problem, a...

65) If a firm wishes to choose at least 2 of 4 possible activities (A, B, C and D), the constraint xA

+ xB + xC + xD ≥ 2 will enforce this relationship in a linear program. 65) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-24 If a firm wishes to choose...

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66) A parameter analysis report can be used to perform sensitivity analysis for integer

programming problems. 66) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-18 A parameter analysis report can be...

67) Binary variables are variables whose only possible values are 0 or 1. 67) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-02 Binary variables are variables whose only...

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68) The university is scheduling cleaning crews for its ten buildings. Each crew has a different

Which of the crews is the least expensive? 68) ______ A) B) C) D) E)

Crew 4 Crew 2 Crew 1 Crew 5 Crew 3

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for crew scheduling in the travel i Topic : Using BIP for Crew Scheduling: The Southwestern Airways Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-65 The university is scheduling cleaning crews...

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69) In a BIP problem, 1 corresponds to a yes decision and 0 to a no decision. If there are 4

projects under consideration (A, B, C, and D) and at most 2 can be chosen then the following constraint needs to be added to the formulation: 69) ______ A) A + B + C + D ≤ 1. B) A + B + C + D ≤ 4. C) A + B + C + D = 2. D) A + B + C + D ≤ 2. E) None of the choices is correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-38 In a BIP problem, 1 corresponds...

70) If activities A and B are mutually exclusive, the constraint xA ≤ xB will enforce this

relationship in a linear program. 70) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-22 If activities A and B are...

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71) A firm has prepared the following binary integer program to evaluate a number of potential

Which constraint ensures that the firm will not spend more capital than it has available (assume that each potential location has a different cost)? 71) ______ A) Constraint 4 B) Constraint 3 C) Constraint 1 D) Constraint 5 E) Constraint 2 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-43 A firm has prepared the following...

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72) The university is scheduling cleaning crews for its ten buildings. Each crew has a different

Without solving the BIP model, which crew will never be scheduled to clean Building A? 72) ______ A) Crew 1 B) Crew 7 C) Crew 6 D) Crew 5 E) Crew 2 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for crew scheduling in the travel i Topic : Using BIP for Crew Scheduling: The Southwestern Airways Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-67 The university is scheduling cleaning crews...

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73) The constraint x1 ≤ x2 in a BIP problem means that alternative 2 cannot be selected unless

alternative 1 is also selected. 73) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > TF Qu. 10-12 The constraint x1...

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74) A manufacturer produces both widgets and gadgets. Widgets generate a profit of $50 each

and gadgets have a profit margin of $35 each. To produce each item, a setup cost is incurred. This setup cost of $500 for widgets and $400 for gadgets. Widgets consume 4 units of raw material A and 5 units of raw material B. Gadgets consume 6 units of raw material A and 2 units of raw material B. Each day, the manufacturer has 500 units of each raw material available. Set up the problem in Excel and find the optimal solution. What is the maximum profit possible? 74) ______ A) $4,500 B) $5,500 C) $3,500 D) $6,500 E) $7,500 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use mixed binary integer programming to deal with setup costs for initiating the Topic : Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised Wyndor Proble Source : Chapter 10 Test Bank - Static > MC Qu. 10-80 A manufacturer produces both widgets and...

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75) Note: This problem requires the use of a linear programming application such as Solver or

Set up the problem in Excel and find the optimal solution. Which projects are selected? 75) ______ A) Projects 2 and 3 B) Projects 1 and 3 C) Project 4 D) Project 2 E) Project 1 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-50 Note: This problem requires the use...

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76) Binary integer programming can be used for: 76) ______ A) B) C) D) E)

All of the choices are correct. scheduling asset divestitures. capital budgeting. site selection. assignments of routes.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-32 Binary integer programming can be used...

77) Binary integer programming problems can answer which types of questions? 77) ______ A) B) C) D) E)

Should a plant be located at a particular location? All of the choices are correct. Should an investment be made? None of the choices is correct. Should a project be undertaken?

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how binary decision variables are used to represent yes-or-no decisions Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-30 Binary integer programming problems can answer...

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78) Note: This problem requires the use of a linear programming application such as Solver or

Set up the problem in Excel and find the optimal solution. Which locations are selected? 78) ______ A) Locations 1 and 3 B) Location 2 C) Location 4 D) Location 1 E) Locations 2 and 4 Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-44 Note: This problem requires the...

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79) A firm has prepared the following binary integer program to evaluate a number of potential

Which of the constraints enforces a mutually exclusive relationship? 79) ______ A) B) C) D) E)

Constraint 5 Constraint 3 Constraint 2 Constraint 4 Constraint 1

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-40 A firm has prepared the following...

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80) A firm has prepared the following binary integer program to evaluate a number of potential

Which of the constraints enforces a contingent relationship? 80) ______ A) B) C) D) E)

Constraint 2 Constraint 1 Constraint 4 Constraint 3 Constraint 5

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a binary integer programming model for the selection of projects. Topic : Using BIP for Project Selection: The Tazer Corp. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-47 A firm has prepared the following...

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81) In a BIP problem, 1 corresponds to a yes decision and 0 to a no decision. If project A can be

undertaken only if project B is also undertaken then the following constraint needs to be added to the formulation: 81) ______ A) A + B ≤ 1. B) A ≤ B. C) B ≤ A. D) None of the choices is correct. E) A + B = 1. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use binary decision variables to formulate constraints for mutually exclusive al Topic : A Case Study: The California Manufacturing Co. Problem Source : Chapter 10 Test Bank - Static > MC Qu. 10-35 In a BIP problem, 1 corresponds...

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Answer Key Test name: Chapter 10 Test BankTest 1) C

The contingent constraint A = B requires that either both project be selected (A = B = 1) or that neither project be selected (A = B = 0). 2) B

Constraints 1, 2, and 3 limit the amount of raw materials that can be consumed to the available quantities. 3) A

Because the objective is to minimize the cost of locations, the objective function coefficient must represent the cost of each location. Therefore, location 6 (coefficient = 500) is the most expensive of the choices. 4) D

Constraints 1, 2, and 3 limit the amount of raw materials that can be consumed to the available quantities. 5) FALSE

The constraint xA + xB + xC + xD ≥ 2 will ensure that at least 2 of the 4 activities are selected. 6) FALSE 7) TRUE 8) E

Constraint 2 requires that at least two of the variables have a value of 1. 9) TRUE 10) B

The optimal solution selects crews 1, 7, and 8. 11) E

M is a "sufficiently" large number to ensure that Myj will exceed any reasonable decision variable. In this case, production of chairs and tables could reasonably exceed 10, but not 100. 12) E

Since all projects have a different cost, constraint 1 shows each selected project (xj = 1) will consume a limited resource (capital).

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13) A

The optimal solution selects projects 2 and 3 and has an expected value of 210. 14) B

All of the constraints (with the exception of the binary constraint) are set covering constraints. 15) C 16) C

Constraint 3 allows at most one of the two variables to have a value of 1, which is a mutually exclusive relationship. 17) FALSE 18) E

The variable for location 6 (x6) does not appear in the set covering constraint for neighborhood A. 19) TRUE 20) A

All of the constraints (with the exception of the binary constraint and the Total locations constraint) are set covering constraints. 21) C

The optimal solution selects crews 1, 7, and 8 at a cost of 655. 22) C

The variable for location 4 (x4) does not appear in the set covering constraint for the Arena. 23) TRUE 24) FALSE 25) FALSE 26) TRUE 27) C

Constraint 2 requires that at least two of the variables have a value of 1. 28) C

The constraint x1 + x2 = 1 requires that one (and only one) of the two options be selected. 29) C

M is a "sufficiently" large number to ensure that Myj will exceed any reasonable decision variable. In this case, production of pies and cakes could reasonably exceed 100, but not 1,000.

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30) TRUE 31) A

The optimal solution selects locations 1, 2, 4, and 5. 32) FALSE 33) FALSE 34) FALSE 35) B

The mutually exclusive constraint x1 + x2 +x3 ≤ 1 requires that at most one of the projects be selected by allowing at most one of the variables to have a value of 1. 36) C

Constraint 5 requires that option 2 and option 4 will have the same decision. Each option is contingent on the other. 37) FALSE

A mutually exclusive constraint allows at most one alternative to be selected (that is, at most one variable can have a value of 1). The constraint x1 + x2 + x3- ≤ 2 allows selection of 0, 1, or 2 alternatives simultaneously. 38) FALSE 39) TRUE 40) B

All of the constraints (with the exception of the binary constraint) are set covering constraints. 41) E

The optimal solution selects locations 1 and 3 for the new warehouses and has an expected value of 30. 42) FALSE 43) E

The optimal solution selects locations 1, 3, and 5. 44) FALSE 45) C 46) D 47) TRUE 48) C

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Solving the linear program below shows that the optimal solution is to select locations 2, 5, and 8 (although other optimal solutions may exist, 3 fire extinguishers is the minimum required).

49) E 50) A

After solving the linear program, the optimal production schedule is 0 chairs and 5 tables. 51) TRUE 52) C

The variable for location 6 (x6) appears in the set covering constraints for neighborhoods C, H, and I. 53) D

Solving the linear program below shows that the optimal solution is to select projects 1 and 5. Max 500x1 + 750x2 + 333x3 + 400x4 + 600x5 s.t. 250x1 + 500x2 + 290x3 + 650x4 +750x5 ≤ 1000 {Capital} x1 + x2 ≤ 1 {Projects 1 and 2 are mutually exclusive} x1 + x2 + x3 + x4 + x5 ≥ 2 {Select at least two projects}

54) C

After solving the linear program, the optimal production schedule is 133⅓ cakes and 33⅓ pies. 55) E

The optimal solution selects locations 1, 3, and 5 at a cost of 265. 56) A

Because the objective is to minimize the cost of locations, the objective function coefficient must represent the cost of each location. Therefore, location 4 (coefficient = 135) is the most expensive of the choices. 57) B

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The constraint x1 + x2 ≤ 1 allows at most one of the two options to be selected. 58) A 59) E

After solving the linear program, the optimal production schedule is 0 chairs and 5 tables and the profit is $125. 60) B 61) C

The variable for crew 3 (x3) appears in the set covering constraints for Buildings B and F. 62) E

The variable for location 4 (x4) appears in the set covering constraints for the science, music, math, and business buildings. 63) E

After solving the linear program, the optimal production schedule is 133⅓ cakes and 33⅓ pies and the profit is $1,433.33. 64) D

The optimal solution selects locations 1, 2, 4, and 5 at a cost of 1,535. 65) TRUE 66) TRUE 67) TRUE 68) TRUE 69) A

Because the objective is to minimize the cost of crews, the objective function coefficient must represent the cost of each location. Therefore, crew 4 (coefficient = 190) is the least expensive of the choices. 70) D

The constraint A + B + C + D ≤ 2 requires that at most two of the projects be selected by allowing at most two of the variables to have a value of 1. 71) FALSE

The constraint xA ≤ xB will enforce a contingent relationship between activities A and B. 72) C

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Since all locations have a different cost, constraint 1 shows each selected location (xj = 1) will consume a limited resource (capital). 73) C

The variable for location 6 (x6) does not appear in the set covering constraint for Building A. 74) FALSE

The constraint x1 ≤ x2 is a contingent constraint. It allows for selection of neither alternative (x1 = x2 = 0), only the second alternative (x1 = 0, x2 = 1), or both alternatives (x1 = x2 = 1). The only action that is not allowed is selection of only the first alternative (x1 = 1, x2 = 0). 75) A

After solving the linear program below, the optimal production schedule is 100 widgets and 0 gadgets, the profit is $4,500. Max 50x1 + 35x2 − 500y1 − 400y2 s.t. 4x1 + 6x2 ≤ 500 {Raw material A} 5x1 + 2x2 ≤ 500 {Raw material B} My1 ≥ x1 {Widget Setup Cost} My2 ≥ x2 {Gadget Setup Cost} 76) A

The optimal solution selects projects 2 and 3. 77) A 78) B 79) A

The optimal solution selects locations 1 and 3 for the new warehouses. 80) B

Constraint 3 allows at most one of the two variables to have a value of 1, which is a mutually exclusive relationship. 81) E

Constraint 5 requires that option 1 and option 4 will have the same decision. Each option is contingent on the other. 82) B

The contingent constraint A ≤ B allows project B to be selected independent of A, but requires that B is selected if A will also be selected.

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1) Sometimes Evolutionary Solver will make a random change in a member of the population. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > TF Qu. 11-33 Sometimes Evolutionary Solver will make a...

2) The use of nonlinear programming to allocate investments among a number of different

stocks is an example of _________ analytics. 2) ______ A) B) C) D) E)

positive predictive prescriptive descriptive proactive

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Applying Nonlinear Programming to Portfolio Selection Source : Chapter 11 Test Bank - Static > MC Qu. 11-77 The use of nonlinear programming...

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3) Nonlinear programming problems with decreasing marginal returns are generally easier to

solve then nonlinear programming problems with increasing marginal returns. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > TF Qu. 11-07 Nonlinear programming problems with decreasing marginal...

4) Evolutionary Solver is best suited to which kinds of problems? 4) ______ A) B) C) D) E)

Linear programs Nonlinear programs with decreasing marginal returns and no discontinuities Nonlinear programs with many constraints None of the choices is correct. Nonlinear programs with difficult objective functions

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > MC Qu. 11-53 Evolutionary Solver is best suited to...

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5) It now is common practice for professional managers of large stock portfolios to use

computer models based partially on separable programming. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Distinguish between nonlinear programming problems that should be easy to solve Topic : Separable Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-24 It now is common practice for...

6) If the Analytic Solver Model Analysis indicates that the model is quadratic, which of the

following is TRUE? 6) ______ A) B) C) D) E)

The model contains functions such as "IF" or "ROUND". Using the Nonlinear Solver will never find the optimal solution. The Evolutionary Solver will always find the optimal solution. The model can be solved using linear programming tools. None of the choices is true.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to analyze a model and choose the most appropriate solving m Topic : Using Analytic Solver To Analyze A Model And Choose A Solving Method Source : Chapter 11 Test Bank - Static > MC Qu. 11-75 If the Analytic Solver Model Analysis indicates...

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7) The joint risk for pairs of stocks in a portfolio selection problem is called: 7) ______ A) B) C) D) E)

decreasing marginal return. the covariance of the return. None of the choices is correct. the variance of the return. the expected return.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Nonlinear Solver to solve simple types of nonlinear programming problems Topic : Applying Nonlinear Programming to Portfolio Selection Source : Chapter 11 Test Bank - Static > MC Qu. 11-49 The joint risk for pairs...

8) A local maximum is always a global maximum in a nonlinear programming problem. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 10-11 A local maximum is always a...

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9) If the Analytic Solver Model Analysis indicates that the model is NLP Convex, then only the

Evolutionary Solver can be counted on to yield near optimal solutions. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to analyze a model and choose the most appropriate solving m Topic : Using Analytic Solver To Analyze A Model And Choose A Solving Method Source : Chapter 11 Test Bank - Static > TF Qu. 11-37 If the Analytic Solver Model Analysis indicates...

10) A nonlinear function may contain which of the following? 1. A term that contains a single variable with an exponent of 1. 2. A term that contains a single variable with an exponent of 2. 3. A term that is a constant times the product of two variables. 10) ______ A) B) C) D) E)

II and III only III only I, II, and III I only II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-43 A nonlinear function may contain which...

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11) Evolutionary Solver is often faster than the standard Solver at solving linear programming

problems. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > TF Qu. 11-34 Evolutionary Solver is often faster than...

12) You have noticed that paying higher wages attracts more productive employees. However,

you are concerned that there may be a limit to this relationship. Some experimentation has convinced you that the relationship between daily wages paid ( x) and profits can be modelled by the equation Profit = 50 x − 0.5 x2 + .001 x3 + 200. The range of wages you are willing to consider is from $0 to $500 per day. Use the Evolutionary Solver tool to determine the level of wages that will maximize profits. 12) ______ A) Cannot be determined B) 500 C) 300 D) 200 E) 400 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a nonlinear programming model from a description of the problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > MC Qu. 11-72 You have noticed that paying higher...

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13) The marketing department has determined that the relationship between marketing

expenditures (x) and sales can be modelled by the equation Sales = 100x − x2 + 20. Use a Nonlinear Solver tool to determine the level of marketing expenditure that will maximize sales. 13) ______ A) 60 B) 50 C) 70 D) 80 E) 40 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a nonlinear programming model from a description of the problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > MC Qu. 11-70 The marketing department has determined...

14) Excel’s curve fitting method is used to find the values of the parameters for an equation that

best fit data. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-10 Excel&#8217;s curve fitting method is used...

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15) You have noticed that paying higher wages attracts more productive employees. However,

you are concerned that there may be a limit to this relationship. Some experimentation has convinced you that the relationship between wages paid ( x) and profits can be modelled by the equation Profit = 25 x − 0.1 x2 + 200. Use a Nonlinear Solver tool to determine the level of wages that will maximize profits. 15) ______ A) 100 B) 75 C) 25 D) 50 E) 125 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a nonlinear programming model from a description of the problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > MC Qu. 11-71 You have noticed that paying higher wages...

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16) Which of the following techniques is appropriate when a nonlinear programming problem

has multiple local optima? 1. Running Solver many times with different starting points 2. Using the multistart feature to try different starting points 3. Using Evolutionary Solver 16) ______ A) B) C) D) E)

II only II and III only III only I only I, II, and III

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the multistart feature of Solver to attempt to solve some more difficult non Topic : Difficult Nonlinear Programming Problems Source : Chapter 11 Test Bank - Static > MC Qu. 11-51 Which of the following techniques is...

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17) A nonlinear programming problem may have: 1. Activities with increasing marginal returns 2. Activities with decreasing marginal returns 3. Nonlinear functional constraints 17) ______ A) B) C) D) E)

II and III only I, II, and III I only II only III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-45 A nonlinear programming problem...

18) The proportionality assumption can be violated by nonlinear programming because of cross-

product terms involving the product of two variables. 18) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-23 The proportionality assumption can be violated...

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19) Which of the following profit functions has a quadratic form? 1. x2 + 3x − 4 2. 3x2 + 4x + 6 3. 3x − 4 19) ______ A) B) C) D) E)

II only I only III only I, II, and III I and II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > MC Qu. 11-61 Which of the following profit functions...

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20) If the data cells are in column D and the changing cells are in column C, which of the

following are linear formulas in a spreadsheet? 1. =SUMPRODUCT(D1:D6, C1:C6) 2. =SUMPRODUCT(C1:C3, C4:C6) 3. =SUM(C1:C6) 20) ______ A) B) C) D) E)

I, II, and III I only III only II only I and III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-38 If the data cells are in column D...

21) When there are decreasing marginal returns: 21) ______ A) B) C) D) E)

the slope of the graph never decreases but sometimes increases. the graph always consists of a series of line segments. the graph always consists of a smooth curve. separable programming should not be used. the slope of the graph never increases but sometimes decreases.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > MC Qu. 11-40 When there are decreasing marginal...

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22) Mutation is the technique used to create the next generation of solutions in the Evolutionary

Solver. 22) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > TF Qu. 11-30 Mutation is the technique used to...

23) When the marginal return from an activity decreases on a continuous basis, the profit graphs

will consist of a series of line segments. 23) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Construct nonlinear formulas needed for nonlinear programming models. Topic : Separable Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-17 When the marginal return from an...

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24) A firm offers two different prices on its products, depending upon the quantity purchased.

Since available resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $75 each for the first 25 units and $60 for each unit over 25. Product 2’s profitability is $200 each for the first 50 units and $100 each for each unit over 50. The products each require two raw materials to produce (see table below for usages and available quantities). Raw Material A B

Product 1 usage Product 2 usage Available Quantity (gallons per unit) (gallons per unit) (gallons) 10 20 1,500 5 7 2,000

Use separable programming to find the optimal production plan. 24) ______ A) B) C) D) E)

100 units Product 1, 25 units Product 2 25 units Product 1, 100 units Product 2 50 units Product 1, 50 units Product 2 100 units Product 1, 50 units Product 2 100 units Product 1, 100 units Product 2

Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply the separable programming technique when applicable. Topic : Separable Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-74 A firm offers two different prices on its...

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25) One reason that a manager may choose to use a nonlinear model to analyze a problem is 25) ______ A) nonlinear techniques such as Evolutionary Solver provide optimal results. B) nonlinear models may provide greater precision than linear models. C) nonlinear models take less time to solve than linear models. D) nonlinear models are easier to solve than linear models. E) nonlinear models are easier to understand than linear models. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how a nonlinear programming model differs from a linear programming mod Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-57 One reason that a manager may...

26) Sometimes the Solver can return different solutions when optimizing a nonlinear

programming problem. 26) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-08 Sometimes the Solver can return different...

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27) In some applications of separable programming, the profit graphs will be curves rather than a

series of line segments. 27) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Construct nonlinear formulas needed for nonlinear programming models. Topic : Separable Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-16 In some applications of separable programming...

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28) The following chart shows the relationship between marketing and sales.

Which of the following statements is TRUE? 1. There is a local minimum when marketing expenditure is approximately $120. 2. There is a local maximum when marketing expenditure is approximately $120. 3. There is a global maximum when marketing expenditure is approximately $160. 28) ______ A) I only B) I and II only C) III only D) II only E) II and III only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-65 The following chart shows the relationship...

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29) A firm offers three different prices on its products, depending upon the quantity purchased.

Since available resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $10 each for the first 50 units, $9 each for units 51-100, and $8 for each unit over 100. Product 2’s profitability is $20 each for the first 25 units, $19 each for units 26-50, and $18 each for each unit over 50. The products each require 3 raw materials to produce (see table below for usages and available quantities). Raw Material

Product 1 usage (pounds per unit)

A B C

5 4 7

Product 2 usage (pounds per unit) 12 10 6

Available Quantity (pounds) 1,000 2,000 1,500

Use separable programming to find the optimal production plan. 29) ______ A) B) C) D) E)

25 units Product 1, 140 units Product 2 140 units Product 1, 25 units Product 2 100 units Product 1, 140 units Product 2 100 units Product 1, 100 units Product 2 100 units Product 1, 50 units Product 2

Question Details AACSB : Technology Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply the separable programming technique when applicable. Topic : Separable Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-73 A firm offers three different prices on its...

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30) Separable programming is applicable when there are increasing or decreasing marginal

returns. 30) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use the Nonlinear Solver to solve simple types of nonlinear programming problems Topic : Separable Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-14 Separable programming is applicable when there...

31) A quadratic programming problem is a special type of linear programming problem. 31) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-12 A quadratic programming problem is a...

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32) Profit = 3x1 + 2x2 + 9x1x2 is an example of a nonlinear function. 32) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-21 Profit = 3x1 + 2x2...

33) The proportionality assumption of linear programming states that each term in the objective

function is the sum of two or more variables. 33) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how a nonlinear programming model differs from a linear programming mod Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-22 The proportionality assumption of linear programming...

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34) Evolutionary Solver uses an algorithm based on genetics, evolution, and survival of the

fittest. 34) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > TF Qu. 11-29 Evolutionary Solver uses an algorithm based...

35) If D1 is a data cell, and C1 and C2 are changing cells, then IF(D1 >= 2, C1, C2) is a linear

function. 35) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-06 If D1 is a data cell...

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36) In separable programming, each activity that violates the proportionality assumption is

separated into parts with a new variable for each part. 36) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Construct nonlinear formulas needed for nonlinear programming models. Topic : Separable Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-15 In separable programming, each activity that...

37) The members of the population used to create the next generation are picked randomly by the

Evolutionary Solver. 37) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > TF Qu. 11-32 The members of the population used...

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38) Two runs of the Evolutionary Solver on the same problem will typically yield the same

solution. 38) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > TF Qu. 11-35 Two runs of the Evolutionary Solver...

39) If the slope of a graph never increases, but sometimes decreases as the level of the activity

increases, then it is said to have decreasing marginal returns. 39) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > TF Qu. 11-02 If the slope of a graph never increases...

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40) Which of the following statements about solving maximization problems with Excel’s

Nonlinear Solver is TRUE? 1. Nonlinear Solver will always find the global maximum. 2. Nonlinear Solver will typically find a local maximum but not necessarily the global maximum. 3. With diminishing returns, Nonlinear Solver will always find the global maximum. 40) ______ A) I only B) II only C) Only II and III D) III only E) I, II, and III Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Nonlinear Solver to solve simple types of nonlinear programming problems Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-67 Which of the following statements about...

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41) If the data cells are in column D and the changing cells are in column C, which of the

following are not linear formulas in a spreadsheet? 1. =IF(D1 >= 6, C1, C2) 2. =ROUND(C3) 3. =ABS(C3) 41) ______ A) B) C) D) E)

III only I, II, and III II only I only II and III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-39 If the data cells are in...

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42) After some experimentation, you have observed the following data concerning the

relationship between marketing and sales. Use Excel’s curve fitting method to find the best quadratic equation to model this relationship. Marketing ($) Sales ($ 100)

100 110 120 130 140 150 160

170

180

190

200

310 500 600 690 780 850 925 1,000 1,050 1,090 1,120 42) ______ 2

A) −0.055x + 24x + 1516 B) −0.055x2 + 24x − 1516 C) 0.055x2 + 24x − 1516 D) −0.11x2 + 24x − 1516 E) −0.055x2 − 24x − 1516 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Construct nonlinear formulas needed for nonlinear programming models. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-64 After some experimentation, you have observed...

43) The Nonlinear Solver keeps track of a large set of candidate solutions, called the population. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use the Nonlinear Solver to solve simple types of nonlinear programming problems Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-31 The Nonlinear Solver keeps track of...

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44) The risk for a portfolio is decreased when the particular stocks tend to move up and down

together. 44) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate a nonlinear programming model from a description of the problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > TF Qu. 11-26 The risk for a portfolio is...

45) The measure of risk in a portfolio selection problem is called: 45) ______ A) B) C) D) E)

decreasing marginal return. the variance of the return. None of the choices is correct. the expected return. the covariance of the return.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Nonlinear Solver to solve simple types of nonlinear programming problems Topic : Applying Nonlinear Programming to Portfolio Selection Source : Chapter 11 Test Bank - Static > MC Qu. 11-48 The measure of risk in a...

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46) A nonlinear function may contain a product of two variables. 46) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-19 A nonlinear function may contain a...

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47) The following chart shows a relationship between advertising expenditures and sales.

Which of the following describes the chart in terms of a linear relationship? 47) ______ A) B) C) D) E)

The chart shows a proportional relationship. The chart shows decreasing marginal returns. The chart is piecewise linear. The chart shows increasing marginal returns. The chart shows a linear relationship.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-59 The following chart shows a relationship...

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48) The following chart shows a relationship between advertising expenditures and sales.

Which of the following describes the chart in terms of a linear relationship? 48) ______ A) B) C) D) E)

The chart is piecewise linear. The chart shows a linear relationship. The chart shows decreasing marginal returns. The chart shows a proportional relationship. The chart shows discontinuities.

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49) The multistart feature in Solver can be used for nonlinear programming problems to

systematically try a number of different starting points. 49) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use the multistart feature of Solver to attempt to solve some more difficult non Topic : Difficult Nonlinear Programming Problems Source : Chapter 11 Test Bank - Static > TF Qu. 11-27 The multistart feature in Solver can be...

50) Which of the following statements about Solver’s Multistart option are TRUE? 50) ______ A) B) C) D) E)

A nonlinear problem will always have the solution for any starting point. Multistart may not find the optimal solution. Using Multistart guarantees that Solver will find the optimal solution. Multistart always uses 100 random starting points. Multistart works well with functions such as "IF" and "ROUND".

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the multistart feature of Solver to attempt to solve some more difficult non Topic : Difficult Nonlinear Programming Problems Source : Chapter 11 Test Bank - Static > MC Qu. 11-69 Which of the following statements about...

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51) Which of the following are advantages of the Evolutionary Solver? 51) ______ A) B) C) D) E)

The complexity of the objective function does not matter. It will always find the optimal solution. It always finds the same solution. None of the choices is correct. It is faster than the standard Solver.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > MC Qu. 11-54 Which of the following are advantages...

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52) The following chart shows the relationship between marketing and sales.

Which of the following statements is TRUE? 1. There is a local maximum when marketing expenditure is approximately $120. 2. There is a local minimum when marketing expenditure is approximately $140. 3. There is a local maximum when marketing expenditure is approximately $160. 52) ______ A) III only B) I, II, and III C) II only D) I only E) Only I and II Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-66 The following chart shows the relationship...

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53) If C1 is a changing cell, then ROUND(C1) is a linear function. 53) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-05 If C1 is a changing cell...

54) Having activities with decreasing marginal returns is the only way that the proportionality

assumption can be violated. 54) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > TF Qu. 11-13 Having activities with decreasing marginal returns...

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55) Decreasing marginal returns violates which assumption of linear programming? 55) ______ A) The proportionality assumption B) None of the choices is correct. C) The divisibility assumption D) The continuous-variables assumption E) All of the choices are correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > MC Qu. 11-41 Decreasing marginal returns violates which assumption...

56) If a problem can be modelled as a separable program with three line segments, how many

decision variables is it likely to have? 56) ______ A) B) C) D) E)

1 Only 1 or 2 2 1, 2, or 3 3

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when the separable programming technique is applicable to enable using Topic : Separable Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-68 If a problem can be modelled...

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57) The following chart shows a relationship between advertising expenditures and sales.

Which of the following describes the chart in terms of a linear relationship? 57) ______ A) B) C) D) E)

The chart shows a proportional relationship. The chart is piecewise linear. The chart shows discontinuities. The chart shows increasing marginal returns. The chart shows a linear relationship.

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58) In separable programming, if an activity violates the proportionality assumption it must have

increasing marginal returns. 58) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Separable Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-20 In separable programming, if an activity...

59) If the Analytic Solver Model Analysis indicates that the model is a NSP, then the GRG

Nonlinear search method is the best one to use. 59) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to analyze a model and choose the most appropriate solving m Topic : Using Analytic Solver To Analyze A Model And Choose A Solving Method Source : Chapter 11 Test Bank - Static > TF Qu. 11-36 If the Analytic Solver Model Analysis indicates...

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60) Separable programming will always find the optimal solution when the following is true: 60) ______ A) Separable programming only finds an approximate solution. B) The profit or cost graph is piecewise linear and there are decreasing marginal returns

must both be true. C) None of the choices is correct. D) There are decreasing marginal returns. E) The profit or cost graph is piecewise linear. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Construct nonlinear formulas needed for nonlinear programming models. Topic : Separable Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-50 Separable programming will always find the...

61) If a model uses IF or ROUND functions that incorporate the changing cells, then running the

Analytic Solver Analyze Model without Solving feature will typically say the model is of what type? 61) ______ A) None of the choices is correct. B) QP Convex C) Linear D) NLP Convex E) NSP Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to analyze a model and choose the most appropriate solving m Topic : Using Analytic Solver To Analyze A Model And Choose A Solving Method Source : Chapter 11 Test Bank - Static > MC Qu. 11-56 If a model uses IF or ROUND functions...

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62) When applying nonlinear programming to portfolio selection, a trade-off is being made

between the expected return and the risk associated with the investment. 62) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a nonlinear programming model from a description of the problem. Topic : Applying Nonlinear Programming to Portfolio Selection Source : Chapter 11 Test Bank - Static > TF Qu. 11-25 When applying nonlinear programming to portfolio...

63) In problems where the objective is to minimize the total cost of the activities, an activity is

said to have decreasing marginal returns if the slope of its cost graph never increases but sometimes decreases as the level of the activity increases. 63) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > TF Qu. 11-03 In problems where the objective is...

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64) Which of the following are disadvantages of the Evolutionary Solver? 1. It does not deal well with complicated objective functions. 2. It does not perform well on models with many constraints. 3. It is easily trapped at local optima. 64) ______ A) B) C) D) E)

I and II III only I only None of these II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > MC Qu. 11-55 Which of the following are disadvantages...

65) If C1:C6 are all changing cells, then SUMPRODUCT(C1:C3, C4:C6) is a linear function. 65) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-04 If C1:C6 are all changing cells...

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66) Trying different starting points and picking the best solution will always yield the optimal

solution to a nonlinear programming problem. 66) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the multistart feature of Solver to attempt to solve some more difficult non Topic : Difficult Nonlinear Programming Problems Source : Chapter 11 Test Bank - Static > TF Qu. 11-28 Trying different starting points and picking...

67) Which of the following profit functions has a logarithmic form? 1. x2 + 3x − 4 2. 4 ln x + 7 3. 3x − 4 67) ______ A) B) C) D) E)

I, II, and III I only II only I and II only III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Continuing the Wyndor Case Study to Deal with Decreasing Marginal Returns Source : Chapter 11 Test Bank - Static > MC Qu. 11-62 Which of the following profit functions...

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68) Excel’s curve fitting method is used to graph a nonlinear equation. 68) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-09 Excel&#8217;s curve fitting method is used...

69) A linear function may contain which of the following? 1. A term that contains a single variable with an exponent of 1. 2. A term that contains a single variable with an exponent of 2. 3. A term that is a constant times the product of two variables. 69) ______ A) B) C) D) E)

II only II and III only I only I, II, and III III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-42 A linear function may contain which...

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70) Linear programming assumes that the profit from each activity is proportional to the level of

that activity. 70) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how a nonlinear programming model differs from a linear programming mod Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-01 Linear programming assumes that the profit...

71) Applying separable programming requires having profit graphs that are smooth curves. 71) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Construct nonlinear formulas needed for nonlinear programming models. Topic : Separable Programming Source : Chapter 11 Test Bank - Static > TF Qu. 11-18 Applying separable programming requires having profit...

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72) Which of the following is an example of a nonlinear function? 72) ______ A)

Profit = 5x-1 + 7x2- − 2x22

B) Profit = x1 + 6x2 + 3x1x2 C) None of the choices is correct. D) Profit = 8x1x2 − x12 − 4x22 E) All of the choices are correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-46 Which of the following is an...

73) Evolutionary Solver is based on which of the following concepts? 1. Genetics 2. Evolution 3. Survival of the Fittest 73) ______ A) B) C) D) E)

I, II, and III I only II and III only III only II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Evolutionary Solver to attempt to solve some difficult nonlinear programming Topic : Evolutionary Solver And Genetic Algorithms Source : Chapter 11 Test Bank - Static > MC Qu. 11-52 Evolutionary Solver is based on which...

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74) Which of the following can be part of a nonlinear profit graph? 1. Decreasing marginal returns 2. Increasing marginal returns 3. Discontinuities 74) ______ A) B) C) D) E)

I, II, and III II only I and II only I only III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : Separable Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-44 Which of the following can be...

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75) After some experimentation, you have observed the following data concerning the

relationship between marketing and sales. Use Excel’s curve fitting method to find the best quadratic equation to model this relationship. Marketing ($) Sales ($ 100)

100 110 120 130 140 150 160

170

180

190

200

310 400 500 600 700 850 975 1,100 1,300 1,425 1,600 75) ______

A) 0.11x2 + 1.4x + 40 B) 0.05x2 − 1.1x + 44 C) 0.05x2 − 1.1x − 44 D) 0.11x2 − 1.4x − 40 E) 0.05x2 + 1.1x + 44 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Construct nonlinear formulas needed for nonlinear programming models. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-63 After some experimentation, you have observed...

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76) The requirement that decision variables representing the levels of the activities can take on

any nonnegativity values (not just integer values) is referred to as: 76) ______ A) B) C) D) E)

the continuous-variables assumption. None of the choices is correct. a nonlinear function. the proportionality assumption. the divisibility assumption.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Recognize when a nonlinear programming model is needed to represent a problem. Topic : The Challenges of Nonlinear Programming Source : Chapter 11 Test Bank - Static > MC Qu. 11-47 The requirement that each term in...

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77) A portfolio analyst has been asked to allocate investment funds among three different stocks.

The relevant data for the stocks is shown in the following table. If the goal is to maximize return while maintaining risk within acceptable bounds (in this case, a portfolio standard deviation of no more than 20%), find the proper allocation of the funds to each stock. Stock

Return (R)

20%

10%

15%

Risk Pair of Stocks (Standard Deviation S) 25% AB 12% AC 10% B-C

Joint Risk (Covariance)

0.05 0.075 -0.05

What proportion of the portfolio should be allocated to stock B? 77) ______ A) B) C) D) E)

0.039 0.000 0.059 0.081 0.021

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate a nonlinear programming model from a description of the problem. Topic : Applying Nonlinear Programming to Portfolio Selection Source : Chapter 11 Test Bank - Static > MC Qu. 11-76 Note: This problem requires...

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Answer Key Test name: Chapter 11 Test Bank 1) 2) 3) 4) 5) 6)

TRUE C TRUE E FALSE E A quadratic model cannot be solved using linear programming tools and the Evolutionary Solver is not guaranteed to find the optimal solution. A quadratic model cannot contain functions such as "IF" or "ROUND", but if the model is being maximized and has diminishing returns, the Nonlinear Solver can find the optimal solution. 7) B 8) FALSE 9) FALSE 10) C 11) FALSE 12) B 13) B

Since the relationship displays decreasing marginal returns, Nonlinear Solver can be used to find the solution to the following problem: Max 100x − x2 + 20 s.t.x ≥ 0 The optimal solution is x = 50. 14) TRUE 15) E

Since the relationship displays decreasing marginal returns, Nonlinear Solver can be used to find the solution to the following problem: Max 25x − 0.1x2 + 200 s.t.x ≥ 0 The optimal solution is x = 125. 16) E 17) B 18) TRUE 19) E

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The quadratic form is ax2 + bx + c. Options I and II follow this form. 20) E

Choice "II" involves the product of two or more changing cells, which is nonlinear. 21) E 22) FALSE 23) FALSE 24) C 25) B 26) TRUE 27) TRUE 28) E

There is a local maximum when marketing equals 120 (there is a peak but it is lower than the peak when marketing equals 160). There is a global maximum when marketing equals 160 because this is the highest value observed. 29) B 30) FALSE 31) FALSE 32) TRUE 33) FALSE 34) TRUE 35) TRUE 36) TRUE 37) FALSE 38) FALSE 39) TRUE 40) C

In a maximization problem, Nonlinear Solver will always find a local maximum, but only when marginal returns are decreasing will this be guaranteed to be the global maximum. 41) E

"IF" functions which test a data cell are linear, but the "ROUND" and "ABS" functions are nonlinear. 42) B

The best fit using a quadratic form is −0.055x2 + 24x − 1516. 43) FALSE 44) FALSE

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45) B 46) TRUE 47) B 48) E 49) TRUE 50) B 51) A 52) B

There is a local maximum when marketing equals 120 (there is a peak but it is lower than the peak when marketing equals 160). There is a local maximum when marketing equals 160 because this is the highest value observed (this point is also the global maximum). There is a local minimum when marketing equals 140. 53) FALSE 54) FALSE 55) A 56) E

A separable program will have one decision variable for each line segment. 57) B 58) FALSE 59) FALSE 60) B 61) E 62) TRUE 63) FALSE 64) E 65) FALSE 66) FALSE 67) C

The logarithmic form is a In x + b. Option II follows this form. 68) FALSE 69) C 70) TRUE 71) FALSE 72) E 73) A 74) A 75) C

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The best fit using a quadratic form is 0.0469x2 − 1.1416x − 43.904. 76) A 77) C

Nonlinear Solver can be used to find the solution to the following problem: Max xARA + xBRB + xCRC s. t. (xASA)2 + (xBSB)2 + (xCSC)2 + 2SASBCOvAB + 2SASCCOvAC + 2SBSCCOVBC ≤ 0.04 xA + xB + xC = 1 xA , xB , xC ≥ 0 The optimal solution is xA = 0.340, xB = 0.059, xC = 0.601.

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1) Two professors at a nearby university want to co-author a new textbook in either economics

or statistics. They feel that if they write an economics book they have a 50% chance of placing it with a major publisher where it should ultimately sell about 40,000 copies. If they can’t get a major publisher to take it, then they feel they have an 80% chance of placing it with a smaller publisher, with sales of 30,000 copies. On the other hand if they write a statistics book, they feel they have a 40% chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If they can’t get a major publisher to take it, they feel they have a 50% chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies. What is the expected copies sold for the optimal decision alternative? 1) ______ A) 30,500 copies B) 40,000 copies C) 50,000 copies D) 10,500 copies E) 32,000 copies Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-67 Two professors at a nearby university...

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2) An advantage of payoff tables compared to decision trees is that they permit analysts to

understand situations involving sequential decisions. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a payoff table from a description of the problem. Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-06 An advantage of payoff tables compared to...

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3) Two professors at a nearby university want to co-author a new textbook in either economics

or statistics. They feel that if they write an economics book they have a 50% chance of placing it with a major publisher where it should ultimately sell about 40,000 copies. If they can’t get a major publisher to take it, then they feel they have an 80% chance of placing it with a smaller publisher, with sales of 30,000 copies. On the other hand if they write a statistics book, they feel they have a 40% chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If they can’t get a major publisher to take it, they feel they have a 50% chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies. What is the probability that the statistics book would wind up being placed with a smaller publisher? 3) ______ A) 0.4 B) 0.5 C) 0.6 D) 0.3 E) 0 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-64 Two professors at a nearby university...

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4) Which of the following is not a criterion for decision making? 4) ______ A) B) C) D)

Maximin Maximum likelihood Maximax Bayes’ decision rule E) EVPI Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-30 Which of the following is not...

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5) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research done to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. What is the expected value of perfect information? 5) ______ A) 75 B) 100 C) 40 D) 45 E) 85 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Perform sensitivity analysis with Bayes decision rule. Topic : Checking Whether To Obtain More Information Source : Chapter 12 Test Bank - Static > MC Qu. 12-69 Refer to the following payoff...

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6) The operations manager for a local bus company wants to decide whether he should purchase

a small, medium, or large new bus for his company. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, medium, or high, as follows. Demand Bus Small Medium Large Prior Probability

Low 50 40 20 0.3

Medium 60 80 50 0.3

High 70 90 120 0.4

What is his expected value of perfect information? 6) ______ A) B) C) D) E)

$72,000 $61,000 $15,000 $87,000 $69,000

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Perform sensitivity analysis with Bayes decision rule. Topic : Checking Whether To Obtain More Information Source : Chapter 12 Test Bank - Static > MC Qu. 12-53 The operations manager for a local bus...

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7) Based on the following payoff table, answer the following: Alternative High Low Buy 90 −10 Rent 70 40 Lease 60 55 Prior Probability 0.4 0.6

The expected value of perfect information is: 7) ______ A) B) C) D) E)

69. 57. 12. 55. 90.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Perform sensitivity analysis with Bayes decision rule. Topic : Checking Whether To Obtain More Information Source : Chapter 12 Test Bank - Static > MC Qu. 12-39 Based on the following payoff...

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8) Based on the following payoff table, answer the following: Alternative High Low Buy 90 −10 Rent 70 40 Lease 60 55 Prior Probability 0.4 0.6

The maximum likelihood strategy is: 8) ______ A) B) C) D) E)

Low. Rent. Lease. High. Buy.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-37 Based on the following payoff...

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9) The construction manager for ABC Construction must decide whether to build single family

homes, apartments, or condominiums. She estimates annual profits (in $000) will vary with the population trend as follows: Population Trend Type Single Family Apartments Condos Prior Probability

Declining 200 70 −20 0.4

Stable 90 170 100 0.5

Growing 70 90 220 0.1

If she uses Bayes’ decision rule, which kind of dwellings will she decide to build? 9) ______ A) B) C) D) E)

Either apartments or condos Single family Apartments Either single family or apartments Condos

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-55 The construction manager for ABC...

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10) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research done to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is done, what is the joint probability that the state of nature is S1 and the research predicts S1? 10) ______ A) 0.24 B) 0.16 C) 0.36 D) 0.08 E) 0.32 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Determine whether it is worthwhile to obtain more information before making a de Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > MC Qu. 12-70 Refer to the following payoff...

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11) The maximin approach involves choosing the alternative that has the "best worst" payoff. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-13 The maximin approach involves choosing the alternative...

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12) The head of operations for a movie studio wants to determine which of two new scripts they

should select for their next major production. She feels that script number 1 has a 70% chance of earning $100 million over the long run, but a 30% chance of losing $20 million. If this movie is successful, then a sequel could also be produced, with an 80% chance of earning $50 million, but a 20% chance of losing $10 million. On the other hand, she feels that script number 2 has a 60 % chance of earning $120 million, but a 40% chance of losing $30 million. If successful, its sequel would have a 50% chance of earning $80 million and a 50% chance of losing $40 million. As with the first script, if the original movie is a "flop", then no sequel would be produced. What is the expected payoff for the optimal decision alternative? 12) ______ A) $90.6 million B) $60 million C) $150 million D) $72 million E) $84 million Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-62 The head of operations for a movie studio...

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13) Which one of the following statements is not correct when making decisions? 13) ______ A) B) C) D) E)

The sum of the state of nature probabilities must be 1. Perfect information assumes that the state of nature that will actually occur is known. All state of nature probabilities are assumed to be equal. Every probability must be greater than or equal to 0. Probabilities are used to compute expected values.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the logical way in which decision analysis organizes a problem. Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-31 Which one of the following statements...

14) Most people occupy a middle ground, and are classified as risk neutral. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Use utilities to better reflect the values of payoffs. Topic : Using Utilities To Better Reflect The Values Of Payoffs Source : Chapter 12 Test Bank - Static > TF Qu. 12-26 Most people occupy a middle ground...

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15) Based on the following payoff table, answer the following: Alternative High A 20 B 25 C 30 D 10 E 50 Prior Probability 0.3

Medium 20 30 12 12 40 0.2

Low 5 11 13 12 −28 0.5

The Bayes’ decision rule strategy is: 15) ______ A) B) C) D) E)

C. E. D. A. B.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-48 Based on the following payoff...

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16) The head of operations for a movie studio wants to determine which of two new scripts they

should select for their next major production. She feels that script number 1 has a 70% chance of earning $100 million over the long run, but a 30% chance of losing $20 million. If this movie is successful, then a sequel could also be produced, with an 80% chance of earning $50 million, but a 20% chance of losing $10 million. On the other hand, she feels that script number 2 has a 60 % chance of earning $120 million, but a 40% chance of losing $30 million. If successful, its sequel would have a 50% chance of earning $80 million and a 50% chance of losing $40 million. As with the first script, if the original movie is a "flop", then no sequel would be produced. What is the probability that script number 1 will be a success, and then its sequel will not? 16) ______ A) 0.7 B) 0.56 C) 0.2 D) 0.8 E) 0.14 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-59 The head of operations for a movie studio...

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17) Two professors at a nearby university want to co-author a new textbook in either economics

or statistics. They feel that if they write an economics book they have a 50% chance of placing it with a major publisher where it should ultimately sell about 40,000 copies. If they can’t get a major publisher to take it, then they feel they have an 80% chance of placing it with a smaller publisher, with sales of 30,000 copies. On the other hand if they write a statistics book, they feel they have a 40% chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If they can’t get a major publisher to take it, they feel they have a 50% chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies. What is the probability that the economics book would wind up being placed with a smaller publisher? 17) ______ A) 0.4 B) 0.1 C) 0.5 D) 0.8 E) 0.2 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu.12-63 Two professors at a nearby university...

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18) Bayes' decision rule says to choose the alternative with the largest expected payoff. 18) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply Bayes decision rule to solve a decision analysis problem. Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-17 Bayes&#39; decision rule says to choose...

19) With three possible states of nature, the equally likely criterion assigns a probability of 0.5 to

each state of nature. 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-16 With three possible states of nature, the...

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20) The operations manager for a local bus company wants to decide whether he should purchase

Low 50 40 20 0.3

Medium 60 80 50 0.3

High 70 90 120 0.4

What is the expected annual profit for the bus that he will decide to purchase using Bayes’ decision rule? 20) ______ A) $87,000 B) $72,000 C) $15,000 D) $69,000 E) $61,000 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-52 The operations manager for a local bus...

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21) The maximax approach is an optimistic strategy. 21) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-09 The maximax approach is an optimistic...

22) A decision tree shows all of the possible decisions and all of the possible events. 22) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > TF Qu. 12-05 A decision tree shows all of the...

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23) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is conducted, what is the joint probability that the state of nature is S2 and the research predicts S2? 23) ______ A) 0.08 B) 0.36 C) 0.16 D) 0.24 E) 0.32 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Determine whether it is worthwhile to obtain more information before making a de Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > MC Qu. 12-73 Refer to the following payoff...

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24) Two professors at a nearby university want to co-author a new textbook in either economics

or statistics. They feel that if they write an economics book they have a 50% chance of placing it with a major publisher where it should ultimately sell about 40,000 copies. If they can’t get a major publisher to take it, then they feel they have an 80% chance of placing it with a smaller publisher, with sales of 30,000 copies. On the other hand if they write a statistics book, they feel they have a 40% chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If they can’t get a major publisher to take it, they feel they have a 50% chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies. What is the expected copies sold for the decision to write the economics book? 24) ______ A) 30,500 copies B) 10,500 copies C) 50,000 copies D) 40,000 copies E) 32,000 copies Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-65 Two professors at a nearby university...

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25) The maximum likelihood criterion ignores the payoffs for states of nature other than the most

likely one. 25) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-15 The maximum likelihood criterion ignores the...

26) The maximin criterion is an optimistic criterion. 26) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-12 The maximin criterion is an optimistic...

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27) The head of operations for a movie studio wants to determine which of two new scripts they

should select for their next major production. She feels that script number 1 has a 70% chance of earning $100 million over the long run, but a 30% chance of losing $20 million. If this movie is successful, then a sequel could also be produced, with an 80% chance of earning $50 million, but a 20% chance of losing $10 million. On the other hand, she feels that script number 2 has a 60 % chance of earning $120 million, but a 40% chance of losing $30 million. If successful, its sequel would have a 50% chance of earning $80 million and a 50% chance of losing $40 million. As with the first script, if the original movie is a "flop", then no sequel would be produced. What is the expected payoff from selecting script number 1? 27) ______ A) $90.6 million B) $72 million C) $84 million D) $60 million E) $150 million Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-60 The head of operations for a movie studio...

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28) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. What is the unconditional probability that the research predicts S1? 28) ______ A) 0.6 B) 0.44 C) 0.32 D) 0.56 E) 0.4 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Determine whether it is worthwhile to obtain more information before making a de Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > MC Qu. 12-74 Refer to the following payoff...

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29) Based on the following payoff table, answer the following: Alternative High A 20 B 25 C 30 D 10 E 50 Prior Probability 0.3

Medium 20 30 12 12 40 0.2

Low 5 11 13 12 −28 0.5

The maximum likelihood strategy is: 29) ______ A) B) C) D) E)

D. E. B. C. A.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-47 Based on the following payoff...

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30) Using Bayes’ decision rule will always lead to larger payoffs. 30) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply Bayes decision rule to solve a decision analysis problem. Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-18 Using Bayes&#8217; decision rule will always...

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31) Based on the following payoff table, answer the following: Alternative Yes Small 10 Medium 20 Medium Large 30 Large 40 Extra Large 60 Prior Probability 0.3

No 30 40 45 35 20 0.7

The expected value of perfect information is: 31) ______ A) B) C) D) E)

9. 40.5. 60. 4.5. 49.5.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Perform sensitivity analysis with Bayes decision rule. Topic : Checking Whether To Obtain More Information Source : Chapter 12 Test Bank - Static > MC Qu. 12-44 Based on the following payoff...

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32) A utility function for money can be constructed by applying a lottery procedure. 32) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use utilities to better reflect the values of payoffs. Topic : Using Utilities To Better Reflect The Values Of Payoffs Source : Chapter 12 Test Bank - Static > TF Qu. 12-27 A utility function for money can...

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33) The head of operations for a movie studio wants to determine which of two new scripts they

should select for their next major production. She feels that script number 1 has a 70% chance of earning $100 million over the long run, but a 30% chance of losing $20 million. If this movie is successful, then a sequel could also be produced, with an 80% chance of earning $50 million, but a 20% chance of losing $10 million. On the other hand, she feels that script number 2 has a 60 % chance of earning $120 million, but a 40% chance of losing $30 million. If successful, its sequel would have a 50% chance of earning $80 million and a 50% chance of losing $40 million. As with the first script, if the original movie is a "flop", then no sequel would be produced. What is the expected payoff from selecting script number 2? 33) ______ A) $150 million B) $84 million C) $60 million D) $72 million E) $90.6 million Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-61 The head of operations for a movie studio...

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34) States of nature are alternatives available to a decision maker. 34) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the logical way in which decision analysis organizes a problem. Topic : A Case Study: The Goferbroke Company Problem Source : Chapter 12 Test Bank - Static > TF Qu. 12-01 States of nature are alternatives available...

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35) Based on the following payoff table, answer the following: Alternative High A 20 B 25 C 30 D 10 E 50 Prior Probability 0.3

Medium 20 30 12 12 40 0.2

Low 5 11 13 12 −28 0.5

The maximin strategy is: 35) ______ A) B) C) D) E)

D. A. B. E. C.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-46 Based on the following payoff...

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36) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. What is the posterior probability of S1 given that the research predicts S1? 36) ______ A) 0.82 B) 0.44 C) 0.18 D) 0.65 E) 0.57 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Determine whether it is worthwhile to obtain more information before making a de Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > MC Qu. 12-76 Refer to the following payoff...

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37) Based on the following payoff table, answer the following: Alternative High Low Buy 90 −10 Rent 70 40 Lease 60 55 Prior Probability 0.4 0.6

The maximin strategy is: 37) ______ A) B) C) D) E)

Low. High. Rent. Buy. Lease.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-36 Based on the following payoff...

38) A risk seeker has a decreasing marginal utility for money. 38) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use utilities to better reflect the values of payoffs. Topic : Using Utilities To Better Reflect The Values Of Payoffs Source : Chapter 12 Test Bank - Static > TF Qu. 12-24 A risk seeker has a decreasing...

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39) Based on the following payoff table, answer the following: Alternative High A 20 B 25 C 30 D 10 E 50 Prior Probability 0.3

Medium 20 30 12 12 40 0.2

Low 5 11 13 12 −28 0.5

The expected value of perfect information is: 39) ______ A) B) C) D) E)

23. 19. 0. 10.5. −28.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Perform sensitivity analysis with Bayes decision rule. Topic : Checking Whether To Obtain More Information Source : Chapter 12 Test Bank - Static > MC Qu. 12-49 Based on the following payoff...

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40) The construction manager for ABC Construction must decide whether to build single family

homes, apartments, or condominiums. She estimates annual profits (in $000) will vary with the population trend as follows: Population Trend Type Single Family Apartments Condos Prior Probability

Declining 200 70 −20 0.4

Stable 90 170 100 0.5

Growing 70 90 220 0.1

What is her expected value of perfect information? 40) ______ A) B) C) D) E)

$187,000 $65,000 $132,000 $123,000 $55,000

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Perform sensitivity analysis with Bayes decision rule. Topic : Checking Whether To Obtain More Information Source : Chapter 12 Test Bank - Static > MC Qu. 12-57 The construction manager for ABC...

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41) A posterior probability is a revised probability of a state of nature, after doing a test or survey

to refine the prior probability. 41) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use new information to update the probabilities of the states of nature. Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > TF Qu. 12-22 A posterior probability is a revised...

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42) The construction manager for ABC Construction must decide whether to build single family

homes, apartments, or condominiums. She estimates annual profits (in $000) will vary with the population trend as follows: Population Trend Type Single Family Apartments Condos Prior Probability

Declining 200 70 −20 0.4

Stable 90 170 100 0.5

Growing 70 90 220 0.1

What is the expected annual profit for the dwellings that she will decide to build using Bayes’ decision rule? 42) ______ A) $123,000 B) $55,000 C) $187,000 D) $132,000 E) $65,000 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-56 The construction manager for ABC...

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43) Payoffs always represent profits in decision analysis problems. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the logical way in which decision analysis organizes a problem. Topic : A Case Study: The Goferbroke Company Problem Source : Chapter 12 Test Bank - Static > TF Qu. 12-04 Payoffs always represent profits in decision...

44) Bayes’ theorem is a formula for determining prior probabilities of a state of nature. 44) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Perform sensitivity analysis with Bayes decision rule. Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > TF Qu. 12-23 Bayes&#8217; theorem is a formula for...

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45) Based on the following payoff table, answer the following: Alternative High A 20 B 25 C 30 D 10 E 50 Prior Probability 0.3

Medium 20 30 12 12 40 0.2

Low 5 11 13 12 −28 0.5

The maximax strategy is: 45) ______ A) B) C) D) E)

E. D. B. A. C.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-45 Based on the following payoff...

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46) Based on the following payoff table, answer the following: Alternative Yes Small 10 Medium 20 Medium Large 30 Large 40 Extra Large 60 Prior Probability 0.3

No 30 40 45 35 20 0.7

The maximax strategy is: 46) ______ A) B) C) D) E)

small. medium. medium large. extra large. large.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-40 Based on the following payoff:...

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47) An example of maximax decision making is a person buying lottery tickets in hopes of a very

big payoff. 47) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-10 An example of maximax decision making...

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48) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. What is the unconditional probability that the research predicts S2? 48) ______ A) 0.4 B) 0.6 C) 0.56 D) 0.32 E) 0.44 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Determine whether it is worthwhile to obtain more information before making a de Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > MC Qu. 12-75 Refer to the following payoff...

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49) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is conducted, what is the expected payoff using Bayes’ decision rule? 49) ______ A) 0 B) −44 C) 29 D) −82 E) 40 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use new information to update the probabilities of the states of nature. Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > MC Qu. 12-78 Refer to the following payoff...

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50) The operations manager for a local bus company wants to decide whether he should purchase

Low 50 40 20 0.3

Medium 60 80 50 0.3

High 70 90 120 0.4

If he uses Bayes’ decision rule, which size bus will he decide to purchase? 50) ______ A) B) C) D) E)

Large Either medium or large Medium Small Either small or medium

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-51 The operations manager for a local bus...

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51) Payoff tables can include only non-negative numbers. 51) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate a payoff table from a description of the problem. Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-07 Payoff tables can include only non-negative...

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52) The construction manager for ABC Construction must decide whether to build single family

homes, apartments, or condominiums. She estimates annual profits (in $000) will vary with the population trend as follows: Population Trend Type Single Family Apartments Condos Prior Probability

Declining 200 70 −20 0.4

Stable 90 170 100 0.5

Growing 70 90 220 0.1

If she uses the maximum likelihood criterion, which kind of dwellings will she decide to build? 52) ______ A) Condos B) Single family C) Either apartments or condos D) Apartments E) Either single family or apartments Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-54 The construction manager for ABC...

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53) Two professors at a nearby university want to co-author a new textbook in either economics

or statistics. They feel that if they write an economics book they have a 50% chance of placing it with a major publisher where it should ultimately sell about 40,000 copies. If they can’t get a major publisher to take it, then they feel they have an 80% chance of placing it with a smaller publisher, with sales of 30,000 copies. On the other hand if they write a statistics book, they feel they have a 40% chance of placing it with a major publisher, and it should result in ultimate sales of about 50,000 copies. If they can’t get a major publisher to take it, they feel they have a 50% chance of placing it with a smaller publisher, with ultimate sales of 35,000 copies. What is the expected copies sold for the decision to write the statistics book? 53) ______ A) 10,500 copies B) 40,000 copies C) 50,000 copies D) 32,000 copies E) 30,500 copies Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-66 Two professors at a nearby university...

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54) Utilities can be useful when monetary values do not accurately reflect the true values of an

outcome to the decision maker. 54) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use utilities to better reflect the values of payoffs. Topic : Using Utilities To Better Reflect The Values Of Payoffs Source : Chapter 12 Test Bank - Static > TF Qu. 12-25 Utilities can be useful when monetary values...

55) In decision analysis, states of nature refer to possible future conditions. 55) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the logical way in which decision analysis organizes a problem. Topic : A Case Study: The Goferbroke Company Problem Source : Chapter 12 Test Bank - Static > TF Qu. 12-02 In decision analysis, states of nature...

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56) Decision trees can only be used in sensitivity analysis for those problems that have two

decision alternatives. 56) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Sensitivity Analysis With Decision Trees Source : Chapter 12 Test Bank - Static > TF Qu. 12-20 Decision trees can only be used...

57) Determining the worst payoff for each alternative and choosing the alternative with the "best

worst" is the criterion called: 57) ______ A) B) C) D) E)

Bayes decision rule. maximax. minimin. maximin. maximum likelihood.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-33 Determining the worst payoff for each...

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58) The exponential utility function assumes a constant aversion to risk. 58) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Use utilities to better reflect the values of payoffs. Topic : Using Utilities To Better Reflect The Values Of Payoffs Source : Chapter 12 Test Bank - Static > TF Qu. 12-28 The exponential utility function assumes a...

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59) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is conducted, what is the joint probability that the state of nature is S2 and the research predicts S1? 59) ______ A) 0.16 B) 0.32 C) 0.24 D) 0.36 E) 0.08 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Determine whether it is worthwhile to obtain more information before making a de Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > MC Qu. 12-72 Refer to the following payoff...

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60) Based on the following payoff table, answer the following: Alternative Yes No Small 10 30 Medium 20 40 Medium Large 30 45 Large 40 35 Extra Large 60 20 Prior Probability 0.3 0.7

The maximum likelihood strategy is: 60) ______ A) B) C) D) E)

small. medium large. large. medium. extra large.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-42 Based on the following payoff...

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61) The maximin criterion refers to: 61) ______ A) B) C) D) E)

choosing the alternative with the highest payoff. minimizing the maximum return. maximizing the minimum return. choosing the alternative with the minimum payoff. None of the answer choices is correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-34 The maximin criterion refers...

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62) A risk-averse decision maker is trying to decide which alternative to choose. The payoff table

for the alternatives, given two possible states of nature, is shown below. Assuming that the decision maker's risk tolerance (R) is 5, which decision should she choose based on the utility of each outcome? Assume the exponential utility function is applicable. Alternative A B C D E Prior Probability

High 20 25 30 10 50 0.3

Low 5 11 13 12 −28 0.7 62) ______

A) B) C) D) E)

Alternative E Alternative A Alternative D Alternative B Alternative C

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use utilities to better reflect the values of payoffs. Topic : Using Utilities To Better Reflect The Values Of Payoffs Source : Chapter 12 Test Bank - Static > MC Qu. 12-79 A risk-averse decision maker is trying...

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63) What is the role of the group facilitator in decision conferencing? 63) ______ A) B) C) D) E)

Provide mathematical support for decision analysis. Structure and focus discussions. Determine the states of nature. Lead the group to the desired outcome. Determine the payoffs for each alternative.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some common features in the practical application of decision analysis. Topic : The Practical Application Of Decision Analysis Source : Chapter 12 Test Bank - Static > MC Qu. 12-80 What is the role of the...

64) Testing how a problem solution reacts to changes in one or more of the model parameters is

called: 64) ______ A) B) C) D) E)

analysis of tradeoffs. analysis of variance. decision analysis. priority recognition. sensitivity analysis.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Perform sensitivity analysis with Bayes decision rule. Topic : Sensitivity Analysis With Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-32 Testing how a problem solution reacts...

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65) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is conducted, what is the joint probability that the state of nature is S1 and the research predicts S2? 65) ______ A) 0.32 B) 0.16 C) 0.08 D) 0.24 E) 0.36 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Determine whether it is worthwhile to obtain more information before making a de Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > MC Qu. 12-71 Refer to the following payoff...

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66) A event node in a decision tree indicates that a decision needs to be made at that point. 66) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > TF Qu. 10-08 A event node in a decision...

67) The EVPI indicates an upper limit in the amount a decision-maker should be willing to spend

to obtain information. 67) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Determine whether it is worthwhile to obtain more information before making a de Topic : Checking Whether To Obtain More Information Source : Chapter 12 Test Bank - Static > TF Qu. 12-21 The EVPI indicates an upper limit...

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68) Prior probabilities refer to the relative likelihood of possible states of nature. 68) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the logical way in which decision analysis organizes a problem. Topic : A Case Study: The Goferbroke Company Problem Source : Chapter 12 Test Bank - Static > TF Qu. 12-03 Prior probabilities refer to the relative...

69) Based on the following payoff table, answer the following: Alternative High Low Buy 90 −10 Rent 70 40 Lease 60 55 Prior Probability 0.4 0.6

The maximax strategy is: 69) ______ A) B) C) D) E)

Buy. High. Low. Lease. Rent.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-35 Based on the following payoff...

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70) The head of operations for a movie studio wants to determine which of two new scripts they

should select for their next major production. She feels that script number 1 has a 70% chance of earning $100 million over the long run, but a 30% chance of losing $20 million. If this movie is successful, then a sequel could also be produced, with an 80% chance of earning $50 million, but a 20% chance of losing $10 million. On the other hand, she feels that script number 2 has a 60 % chance of earning $120 million, but a 40% chance of losing $30 million. If successful, its sequel would have a 50% chance of earning $80 million and a 50% chance of losing $40 million. As with the first script, if the original movie is a "flop", then no sequel would be produced. What would be the total payoff is script number 1 were a success, but its sequel were not? 70) ______ A) $150 million B) $50 million C) $−10 million D) $100 million E) $90 million Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Formulate and solve a decision tree for dealing with a sequence of decisions. Topic : Decision Trees Source : Chapter 12 Test Bank - Static > MC Qu. 12-58 The head of operations for a movie studio...

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71) Based on the following payoff table, answer the following: Alternative High Low Buy 90 −10 Rent 70 40 Lease 60 55 Prior Probability 0.4 0.6

The Bayes’ decision rule strategy is: 71) ______ A) B) C) D) E)

Rent. High. Lease. Low. Buy.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-38 Based on the following payoff...

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72) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. What is the posterior probability of S2 given that the research predicts S2? 72) ______ A) 0.57 B) 0.65 C) 0.18 D) 0.44 E) 0.82 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Determine whether it is worthwhile to obtain more information before making a de Topic : Using New Information To Update The Probabilities Source : Chapter 12 Test Bank - Static > MC Qu. 12-77 Refer to the following payoff...

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73) Based on the following payoff table, answer the following: Alternative Yes Small 10 Medium 20 Medium Large 30 Large 40 Extra Large 60 Prior Probability 0.3

No 30 40 45 35 20 0.7

The maximin strategy is: 73) ______ A) B) C) D) E)

medium. large. medium large. small. extra large.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-41 Based on the following payoff...

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74) Based on the following payoff table, answer the following: Alternative Yes Small 10 Medium 20 Medium Large 30 Large 40 Extra Large 60 Prior Probability 0.3

No 30 40 45 35 20 0.7

The Bayes’ decision rule strategy is: 74) ______ A) B) C) D) E)

small. extra large. medium large. large. medium.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-43 Based on the following payoff...

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75) The maximin approach involves choosing the alternative with the highest payoff. 75) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-11 The maximin approach involves choosing the alternative...

76) The maximum likelihood criterion says to focus on the largest payoff. 76) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > TF Qu. 12-14 The maximum likelihood criterion says to...

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77) Refer to the following payoff table: State of Nature Alternative A1 A2 Prior Probability

S1 75 0 0.6

S2 −40 100 0.4

There is an option of paying $100 to have research done to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. Given that the research is not done, what is the expected payoff using Bayes’ decision rule? 77) ______ A) 0 B) 100 C) 29 D) 75 E) 40 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-68 Refer to the following payoff...

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78) Sensitivity analysis may be useful in decision analysis, since prior probabilities may be

inaccurate. 78) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Perform sensitivity analysis with Bayes decision rule. Topic : Sensitivity Analysis With Decision Trees Source : Chapter 12 Test Bank - Static > TF Qu. 12-19 Sensitivity analysis may be useful in...

79) Two people who face the same problem must always arrive at the same decision. 79) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Use utilities to better reflect the values of payoffs. Topic : Using Utilities To Better Reflect The Values Of Payoffs Source : Chapter 12 Test Bank - Static > TF Qu. 12-29 Two people who face the same...

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80) The operations manager for a local bus company wants to decide whether he should purchase

Low 50 40 20 0.3

Medium 60 80 50 0.3

High 70 90 120 0.4

If he uses the maximum likelihood criterion, which size bus will he decide to purchase? 80) ______ A) Either medium or large B) Large C) Either small or medium D) Medium E) Small Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and evaluate several alternative criteria for making a decision based o Topic : Decision Criteria Source : Chapter 12 Test Bank - Static > MC Qu. 12-50 The operations manager for a local bus...

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Answer Key Test name: Chapter 12 Test Bank 1) E

The expected copies sold is the weighted average of the individual payoffs. This problem is best analyzed with a decision tree (shown below). The optimal decision is to pursue the economics text and the expected copies sold is 32,000 copies.

2) FALSE

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3) D

Being placed with a small publisher requires two events to occur. First, the book must be rejected by the large publisher (probability 0.6) and then the book must be accepted by the small publisher (probability 0.5). The probability of these two events occurring is the product of their individual probabilities (0.6 × 0.5 = 0.3). 4) E 5) D

EVPI = EP (with perfect info) − EP (without more info). With perfect information, the payoff would be 75(0.6) + 100(0.4) = 85. Without more information, EP is determined using Bayes’ decision rule (EP = 40). Therefore, EVPI = 85 − 40 = 45. 6) C

EVPI = EP (with perfect info) − EP (without more info). With perfect information, the payoff would be 50,000(0.3) + 80,000(0.3) + 120,000(0.4) = 87,000. Without more information, EP is determined using Bayes’ decision rule (EP = 72,000). Therefore, EVPI = 87,000 − 72,000 = 15,000. 7) C

EVPI = EP(with perfect info) – EP(without more info). With perfect information, the payoff would be 90(0.4) + 55(0.6) = 69. Without more information, EP is determined using Bayes' decision rule (EP = 57). Therefore, EVPI = 69 − 57 = 12. 8) C

The maximum likelihood strategy starts by identifying the most likely state of nature. In this case, the state of nature "Low" has the highest probability. Next, the strategy chooses the alternative that has the highest payoff for this state of nature. In this case, "Lease" has the highest payoff of 55 for the state of nature "Low". 9) B

The Bayes’ decision rule strategy begins with a calculation of the expected payoff for each alternative. The strategy then chooses the alternative with the highest expected payoff. Alternative Single Family Apartments Condos

Expected Payoff 132,000 122,000 64,000

10) C

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The prior probability of state S1 is 0.6. Since the probability that the research will predict S1 when S1 is the true case is also 0.6, the joint probability is the product of the two individual probabilities (0.6 × 0.6 = 0.36). 11) TRUE 12) A

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The expected payoff is the weighted average of the individual payoffs. This problem is best analyzed with a decision tree (shown below). The optimal decision is to pursue script 1 and the expected payoff is $90.6 million.

13) C 14) FALSE 15) E

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Expected Payoff 12.5 19 17.9 11.4 9

16) E

The probability of a sequence of events is the product of the individual probabilities. Success of script number 1 (0.7) × Failure of sequel (0.2) = 0.14. 17) A

Being placed with a small publisher requires two events to occur. First, the book must be rejected by the large publisher (probability 0.5) and then the book must be accepted by the small publisher (probability 0.8). The probability of these two events occurring is the product of their individual probabilities (0.5 × 0.8 = 0.4). 18) TRUE 19) FALSE 20) B

Expected Payoff 61,000 72,000 69,000

21) TRUE 22) TRUE 23) E

The prior probability of state S2 is 0.4. Since the probability that the research will predict S2 when S2 is the true case is 0.8, the joint probability is the product of the two individual probabilities (0.4 × 0.8 = 0.32). 24) E

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The expected copies sold is the weighted average of the individual payoffs. This problem is best analyzed with a decision tree (shown below). The expected copies sold is 32,000 copies.

25) TRUE 26) FALSE 27) A

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The expected payoff is the weighted average of the individual payoffs. This problem is best analyzed with a decision tree (shown below). The expected payoff is $90.6 million.

28) B

The prior probability of state S1 is 0.6. Since the probability that the research will predict S1 when S1 is the true case is also 0.6, the joint probability of correctly predicting S1 is the product of the two individual probabilities (0.6 × 0.6 = 0.36). The prior probability of state S2 is 0.4. Since the probability that the research will predict S2 when S2 is the true case is 0.8, the probability that the research will predict S1 is 1 − 0.8 = 0.2. The joint probability or incorrectly predicting S1 is the product of the two individual probabilities (0.4 × 0.2 = 0.08). The unconditional probability of predicting S1 is the sum of the two joint probabilities (0.36 + 0.08 = 0.44). 29) D

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The maximum likelihood strategy starts by identifying the most likely state of nature. In this case, the state of nature "Low" has the highest probability. Next, the strategy chooses the alternative that has the highest payoff for this state of nature. In this case, "C" has the highest payoff of 13 for the state of nature "Low". 30) FALSE 31) A

EVPI = EP (with perfect info) − EP (without more info). With perfect information, the payoff would be 60(0.3) + 45(0.7) = 49.5. Without more information, EP is determined using Bayes’ decision rule (EP = 40.5). Therefore, EVPI = 49.5 − 40.5 = 9. 32) TRUE 33) D

The expected payoff is the weighted average of the individual payoffs. This problem is best analyzed with a decision tree (shown below). The expected payoff is $72 million.

34) FALSE 35) E

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The maximin strategy chooses the alternative that has the highest minimum payoff. In this case, "C" has a minimum payoff of 13, which is higher than the minimum payoffs for the other alternatives. 36) A

The prior probability of state S1 is 0.6. The probability of the research predicting S1 is the probability of correctly predicting S1 (0.6 × 0.6 = 0.36) plus the probability of incorrectly predicting S1 (0.2 × 0.4 = 0.08) for a total of 0.44. Thus, the posterior probability that the true state is S1 given a prediction of S1 is . 37) E

The maximin strategy chooses the alternative that has the highest minimum payoff. In this case, "Lease" has a minimum payoff of 55, which is higher than the minimum payoff for “Buy” and “Rent”. 38) FALSE 39) D

EVPI = EP(with perfect info) − EP(without more info). With perfect information, the payoff would be 50(0.3) + 40(0.2) + 13(0.5) = 29.5. Without more information, EP is determined using Bayes' decision rule (EP = 19). Therefore, EVPI = 29.5 − 19 = 10.5. 40) E

EVPI = EP (with perfect info) − EP (without more info). With perfect information, the payoff would be 200,000(0.4) + 170,000(0.5) + 220,000(0.1) = 187,000. Without more information, EP is determined using Bayes’ decision rule (EP = 132,000). Therefore, EVPI = 187,000 − 132,000 = 55,000. 41) TRUE 42) D

Expected Payoff 132,000 122,000 64,000

43) FALSE 44) FALSE

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45) A

The maximax strategy chooses the alternative that has the highest maximum payoff. In this case, "E" has a maximum payoff of 50, which is the highest payoff in the table. 46) D

The maximax strategy chooses the alternative that has the highest maximum payoff. In this case, "Extra Large" has a maximum payoff of 60, which is the highest payoff in the table. 47) TRUE 48) C

The prior probability of state S1 is 0.6. Since the probability that the research will predict S2 when S1 is the true case is 0.4, the joint probability of incorrectly predicting S2 is the product of the two individual probabilities (0.6 × 0.4 = 0.24). The prior probability of state S2 is 0.4. Since the probability that the research will predict S2 when S2 is the true case is 0.8, the joint probability or correctly predicting S2 is the product of the two individual probabilities (0.4 × 0.8 = 0.32). The unconditional probability of predicting S1 is the sum of the two joint probabilities (0.24 + 0.32 = 0.56). 49) B

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This problem is best analyzed with a decision tree. The expected payoff when the research is done is −44.

50) C

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Expected Payoff 61,000 72,000* 69,000

51) FALSE 52) D

The maximum likelihood strategy starts by identifying the most likely state of nature. In this case, the state of nature "Stable" has the highest probability. Next, the strategy chooses the alternative that has the highest payoff for this state of nature. In this case, "Apartments" has the highest payoff of 170 for the state of nature "Stable". 53) E

The expected copies sold is the weighted average of the individual payoffs. This problem is best analyzed with a decision tree (shown below). The expected copies sold is 30,500 copies.

54) TRUE 55) TRUE

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56) FALSE 57) D 58) TRUE 59) E

The prior probability of state S2 is 0.4. Since the probability that the research will predict S2 when S2 is the true case is 0.8, the probability that the research will predict S1 is 1 − 0.8 = 0.2. The joint probability is the product of the two individual probabilities (0.4 × 0.2 = 0.08). 60) B

The maximum likelihood strategy starts by identifying the most likely state of nature. In this case, the state of nature "No" has the highest probability. Next, the strategy chooses the alternative that has the highest payoff for this state of nature. In this case, "Medium Large" has the highest payoff of 45 for the state of nature "No". 61) C 62) E

First, convert the monetary payoffs to utilities using the exponential utility function , then calculate uses Bayes' decision rule to choose the alternative with the highest expected utility (Alternative C). The utility table and expected utilities are shown below: Alternative A B C D E Prior Probabilities

Utility High 0.982 0.993 0.998 0.865 1.000 0.3

Utility Low 0.632 0.889 0.926 0.909 −269.426 0.7

Expected Utility 0.737 0.920 0.947* 0.896 −188.298

63) B 64) E 65) D

The prior probability of state S1 is 0.6. Since the probability that the research will predict S1 when S1 is the true case is 0.6, the probability that the research will predict S2 is 1 − 0.6 = 0.4. The joint probability is the product of the two individual probabilities (0.6 × 0.4 = 0.24). 66) FALSE 67) TRUE 68) TRUE 69) A

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The maximax strategy chooses the alternative that has the highest maximum payoff. In this case, "Buy" has a maximum payoff of 90, which is the highest payoff in the table. 70) E

The total payoff is the sum of the individual payoffs. Success of script 1 ($100) + Failure of sequel (−$10) = $90 million. 71) C

Expected Payoff 30 52 57

72) A

The prior probability of state S2 is 0.4. The probability of the research predicting S2 is the probability of correctly predicting S2 (0.4 × 0.8 = 0.32) plus the probability of incorrectly predicting S2 (0.6 × 0.4 = 0.24) for a total of 0.56. Thus, the posterior probability that the true state is S2 given a prediction of S2 is . 73) B

The maximin strategy chooses the alternative that has the highest minimum payoff. In this case, "Large" has a minimum payoff of 35, which is larger than the minimum payoff for the other options. 74) C

Expected Payoff 24 34 40.5 36.5 32

75) FALSE 76) FALSE 77) E

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Expected Payoff 29 40

78) TRUE 79) FALSE 80) B

The maximum likelihood strategy starts by identifying the most likely state of nature. In this case, the state of nature "High" has the highest probability. Next, the strategy chooses the alternative that has the highest payoff for this state of nature. In this case, "Large" has the highest payoff of 120 for the state of nature "High".

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1) Which of these would increase system utilization? 1) ______ A) B) C) D) E)

A decrease in service time All of the answers choices are correct. An increase in the service rate An increase in the number of servers An increase in the arrival rate

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-43 Which of these would increase system...

2) Customers filter into a record shop at an average of 1 per minute (exponential interarrivals)

where the service rate is 15 per hour (exponential service times). What is the average number of customers in the system with 8 servers? 2) ______ A) B) C) D) E)

4 3 6 2 5

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-56 Customers filter into a record shop at an...

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3) Customers arrive at a suburban ticket outlet at the rate of 14 per hour on Monday mornings

(exponential interarrival times). Selling the tickets and providing general information takes an average of 3 minutes per customer, and varies exponentially. There is 1 ticket agent on duty on Mondays. How many minutes does the average customer wait in line? 3) ______ A) 9 B) 7 C) 11 D) 8 E) 10 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Single-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-51 Customers arrive at a suburban ticket outlet at the...

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4) A single-server queueing system has an average service time of 16 minutes per customer,

which is exponentially distributed. The manager is thinking of converting to a system with a constant service time of 16 minutes. The arrival rate will remain the same. The effect will be to: 4) ______ A) increase the average waiting time. B) increase the utilization factor. C) decrease the average waiting time. D) not have any effect since the service time is unchanged. E) decrease the utilization factor. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the main types of basic queueing models. Topic : Some Single-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-47 A single-server queueing system has an...

5) If a manager increases the system utilization standard (assuming no change in the customer

arrival rate) what happens to the customer waiting time? 5) ______ A) B) C) D) E)

It decreases exponentially. There is no change. It increases exponentially. It increases proportionally. It decreases proportionally.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-39 If a manager increases the system...

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6) Priority High Low Number of servers: Service rate:

Average Arrival Rate (exponential interarrival times) 3 per hour 5 per hour 5 2 per hour (exponential service times)

What is the average number of low priority items waiting in line for service? 6) ______ A) B) C) D) E)

0.24 0 1.98 2.22 1.74

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-71 What is the average number of...

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7) Customers arrive at a video rental desk at the rate of one per minute (exponential interarrival

times). Each server can handle 0.4 customers per minute (exponential service times). What is the minimum number of servers needed to achieve an average time in the system of less than three minutes? 7) ______ A) 3 B) 6 C) 5 D) 4 E) 2 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-61 Customers arrive at a video rental desk...

8) A single server queueing system has an average service time of 8 minutes and an average

time between arrivals of 10 minutes. The arrival rate is: 8) ______ A) B) C) D) E)

10 per hour. 8 per hour. 6 per hour. 7.5 per hour. 12.5 per hour.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-35 A single server queueing system has...

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9) All single-server queueing models require the utilization factor to be at least 1. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-18 All single-server queueing models require the...

10) The goal of queueing analysis is to minimize: 10) ______ A) B) C) D) E)

customer waiting time. the sum of customer waiting time and service time. the sum of customer waiting costs and service costs. service costs. None of the answer choices is correct.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-34 The goal of queueing analysis is...

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11) The standard deviation for the degenerate distribution equals zero. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-13 The standard deviation for the degenerate...

12) A queueing system is said to be in a "steady state" when customers arrive at a constant rate,

that is, without any variability. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-15 A queueing system is said to...

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13) The cost of customer waiting is easy to estimate. 13) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-03 The cost of customer waiting is...

14) During the early morning hours, customers arrive at a branch post office at the average rate

of 45 per hour (exponential interarrival times), while clerks can handle transactions on an average of 4 minutes each (exponential). If each clerk costs $30 per hour and customer waiting time represents a cost of $20 per customer per hour, how many clerks can be justified on a cost basis? 14) ______ A) 3. B) 5. C) 6. D) 2. E) 4. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-53 During the early morning hours, customers...

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15) There are 5 servers in a system with an arrival rate of 6 per hour and a service time of 20

minutes. What is the system utilization? 15) ______ A) B) C) D) E)

2.0 1.2 0.3 0.4 0.1

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-45 There are 5 servers in a...

16) Which of the following is not an assumption of a multiple priority queueing model? 16) ______ A) Exponential interarrival times B) Customers wait in a single line. C) Customers are processed in the order of arrival. D) Exponential service times E) All of the answers choices are assumptions of a multiple priority queueing model. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-63 Which of the following is not...

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17) The number of customers in a system is the number in the queue plus one. 17) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-07 The number of customers in a...

18) A firm has two separate phone systems for customers to use when contacting the firm. A

manager is considering combining the two systems into a single system (with the same number of total servers as the two existing systems). What is likely to be the result of this change? 1. The new system will have higher utilization of servers. 2. The new system will have longer wait times for customers. 3. The new system will have shorter wait times for customers. 18) ______ A) II only B) I only C) II and III only D) I and II only E) III only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some key insights that queueing models provide about how queueing syst Topic : Some Insights About Designing Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-80 A firm has two separate phone...

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19) When the length of a waiting line gets longer, human servers tend to slow down their rate of

service. 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe some key insights that queueing models provide about how queueing syst Topic : Behavioral Queueing Theory Source : Chapter 13 Test Bank - Static > TF Qu. 13-32 When the length of a waiting line gets...

20) The expected waiting time in line is equal to the expected number of customers in line

divided by the arrival rate. 20) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-16 The expected waiting time in line...

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21) During the early morning hours, customers arrive at a branch post office at the average rate

of 45 per hour (exponential interarrival times), while clerks can handle transactions on an average of 4 minutes each (exponential). What is the minimum number of clerks needed to keep the average time in the system under 5 minutes? 21) ______ A) 5 B) 4 C) 2 D) 3 E) 6 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-54 During the early morning hours, customers...

22) Decreasing the variability of service times, without any change in the mean, improves the

performance of a single-server queueing system substantially. 22) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-28 Decreasing the variability of service...

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23) Priority High Low Number of servers: Service rate:

Average Arrival Rate (exponential interarrival times) 3 per hour 5 per hour 5 2 per hour (exponential service times)

What is the average number of high priority items waiting in line for service? 23) ______ A) B) C) D) E)

1.98 0.24 2.22 1.74 0

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-70 What is the average number of...

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24) A small popular restaurant at an interstate truck stop provides priority service to truckers.

The restaurant has ten tables where customers may be seated. The service time averages 40 minutes once a party is seated. The customer arrival rate is 12 parties per hour, with the parties being equally divided between truckers and non-truckers. On average, how much longer in minutes do parties of non-truckers spend in the system, compared to parties of truckers? 24) ______ A) 11. B) 7. C) It is impossible to determine without more information. D) 15. E) 4. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-77 A small popular restaurant at an interstate...

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25) A multiple-server system has customers arriving at an average rate of five per hour and an

average service time of forty minutes. The minimum number of servers for this system to have a utilization factor under 1 is: 25) ______ A) 3. B) None of the answer choices is correct. C) 4. D) 5. E) 2. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-48 A multiple-server system has customers arriving...

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26) Customers arrive at a suburban ticket outlet at the rate of 14 per hour on Monday mornings

(exponential interarrival times). Selling the tickets and providing general information takes an average of 3 minutes per customer, and varies exponentially. There is 1 ticket agent on duty on Mondays. What is the average number of customers waiting in line? 26) ______ A) 2.333 B) 4 C) 2.5 D) 3.966 E) 1.633 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Single-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-50 Customers arrive at a suburban ticket outlet at the...

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27) A small popular restaurant at an interstate truck stop provides priority service to truckers.

The restaurant has ten tables where customers may be seated. The service time averages 40 minutes once a party is seated. The customer arrival rate is 12 parties per hour, with the parties being equally divided between truckers and non-truckers. On average, how many parties of non-truckers are waiting to be seated? 27) ______ A) 1.75. B) 0.27. C) 0.88. D) 1.36. E) 0.52. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-76 A small popular restaurant at an interstate...

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28) Customers filter into a record shop at an average of 1 per minute (exponential interarrivals)

where the service rate is 15 per hour (exponential service times). What is the system utilization factor if 5 servers are used? 28) ______ A) B) C) D) E)

0.8. 1. 0.9. 0.7. 0.6.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-58 Customers filter into a record shop at an...

29) Queue discipline refers to the willingness of customers to wait in line for service. 29) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-09 Queue discipline refers to the willingness...

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30) Customers filter into a record shop at an average of 1 per minute (exponential interarrivals)

where the service rate is 15 per hour (exponential service times). What is the minimum number of servers needed to keep the average time in the system under 6 minutes? 30) ______ A) 3 B) 5 C) 4 D) 2 E) 6 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-57 Customers filter into a record shop at an...

31) Waiting lines occur even in systems that are less that 100% utilized because of variability in

service rates and/or arrival rates. 31) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-20 Waiting lines occur even in systems...

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32) Which of the following is not generally considered as a measure of performance in queueing

analysis? 32) ______ A) B) C) D) E)

The average number in the system The average number waiting in line The cost of servers plus customer waiting cost The system utilization factor Service time

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-40 Which of the following is not...

33) Adding a second human server to a system can lead to a slow down in the rate of service for

both servers. 33) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Learning Objective : Apply economic analysis to determine how many servers should be provided in a q Topic : Behavioral Queueing Theory Source : Chapter 13 Test Bank - Static > TF Qu. 13-33 Adding a second human server...

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34) A loading dock with two servers who work together as a team would be an example of a

multiple-server system. 34) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-10 A loading dock with two servers...

35) Applying nonpreemptive priorities improves the measures of performance in the top priority

class even more than applying preemptive priorities. 35) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > TF Qu. 13-30 Applying nonpreemptive priorities improves the measures...

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36) The reason for using priorities is to decrease the waiting times for high-priority customers. 36) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > TF Qu. 13-26 The reason for using priorities is...

37) The goal of queuing analysis is to minimize customer waiting lines. 37) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-01 The goal of queuing analysis is...

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38) Managers who oversee queueing systems are usually concerned with how many customers

are waiting and how long they will have to wait. 38) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-14 Managers who oversee queueing systems are...

39) Queueing models enable finding an appropriate balance between the cost of service and the

amount of waiting. 39) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-02 Queueing models enable finding an appropriate...

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40) When the line at the movie theatre gets long, the ticket clerk seems to work faster and more

efficiently. This is an example of what phenomenon? 40) ______ A) B) C) D) E)

Socialization Queue conflict Service bottleneck Server speedup Social loafing

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply economic analysis to determine how many servers should be provided in a q Topic : Behavioral Queueing Theory Source : Chapter 13 Test Bank - Static > MC Qu. 13-82 When the line at the movie theatre...

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41) Priority High Low Number of servers: Service rate:

Average Arrival Rate (exponential interarrival times) 3 per hour 5 per hour 5 2 per hour (exponential service times)

What is the overall arrival rate per hour? 41) ______ A) B) C) D) E)

15 3 5 8 4

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-64 What is the overall arrival rate...

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42) Most queueing models assume that the form of the probability distribution of interarrival

times is an exponential distribution. 42) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-04 Most queueing models assume that the...

43) Multiple-server queueing systems can perform satisfactorily with somewhat higher

utilization factors than can single-server queueing systems. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-29 Multiple-server queueing systems can perform satisfactorily...

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44) As the ratio of arrival rate to service rate is increased, which of the following is likely? 44) ______ A) Utilization is decreased because of the added strain on the system. B) Customers move through the system in less time because utilization is increased. C) The average number in the system decreases. D) None of the answer choices is correct. E) Customers move through the system more slowly because utilization is increased. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-42 As the ratio of arrival rate...

45) The assumption of constant service times cannot be used with human servers because of the

inevitable variability. 45) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-23 The assumption of constant service times...

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46) The only distribution of interarrival times that fits having random arrivals (completely

unpredictable in the sense that the chance of an arrival in the next minute always is just the same) is the exponential distribution. 46) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-05 The only distribution of interarrival times...

47) A multiple-server queueing system with an exponential arrival rate and service time has a

mean arrival rate of 4 customers per hour and a mean service time of 18 minutes per customer. The minimum number of servers required to keep the utilization factor under 1 is: 47) ______ A) 4. B) 3. C) 5. D) 1. E) 2. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-46 A multiple-server queueing system with an...

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48) Customers arrive at a video rental desk at the rate of one per minute (exponential interarrival

times). Each server can handle 0.4 customers per minute (exponential service times). If there are 4 servers, what is the probability of three or fewer customers in the system? 48) ______ A) 0.19 B) 0.68 C) 0.79 D) 0.63 E) 0.23 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-60 Customers arrive at a video rental desk...

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49) A small popular restaurant at an interstate truck stop provides priority service to truckers.

The restaurant has ten tables where customers may be seated. The service time averages 40 minutes once a party is seated. The customer arrival rate is 12 parties per hour, with the parties being equally divided between truckers and non-truckers. On average, how many parties of truckers are waiting to be seated? 49) ______ A) 1.36. B) 0.27. C) 1.75. D) 0.52. E) 0.88. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-75 A small popular restaurant at an interstate...

50) Choosing the number of servers in a system involves finding an appropriate trade-off

between the cost of the servers and the amount of waiting. 50) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply economic analysis to determine how many servers should be provided in a q Topic : Economic Analysis of the Number of Servers to Provide Source : Chapter 13 Test Bank - Static > TF Qu. 13-31 Choosing the number of servers in...

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51) Customers arrive at a suburban ticket outlet at the rate of 14 per hour on Monday mornings

(exponential interarrival times). Selling the tickets and providing general information takes an average of 3 minutes per customer, and varies exponentially. There is 1 ticket agent on duty on Mondays. How many minutes does the average customer spend in the system? 51) ______ A) 8. B) 11. C) 9. D) 7. E) 10. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Single-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-52 Customers arrive at a suburban ticket outlet at the...

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52) For a single-server queueing system, which of the following is TRUE? 1. A high utilization factor will result in a system that performs well. 2. A high utilization factor will result in a system that performs poorly. 3. A low utilization factor will result in a system that performs efficiently. 52) ______ A) B) C) D) E)

I and II only I only III only II only I and III only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some key insights that queueing models provide about how queueing syst Topic : Some Insights About Designing Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-78 For a single-server queueing system, which...

53) For a system that has a high utilization factor, decreasing the service rate will have only a

negligible effect on customer waiting time. 53) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-22 For a system that has a...

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54) A small popular restaurant at an interstate truck stop provides priority service to truckers.

The restaurant has ten tables where customers may be seated. The service time averages 40 minutes once a party is seated. The customer arrival rate is 12 parties per hour, with the parties being equally divided between truckers and non-truckers. What is the approximate average time in minutes that non-truckers wait to be seated? 54) ______ A) 8.4 B) 4.5 C) 2.7 D) 15.8 E) 13.6 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-74 A small popular restaurant at an interstate...

55) A system has one service facility that can service 10 customers per hour. The customers

arrive at an average rate of 6 per hour. In this case, no waiting line will form. 55) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-21 A system has one service facility...

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56) A queueing system has four crews with three members each. The number of "servers" is: 56) ______ A) 1. B) 12. C) 7. D) 3. E) 4. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > MC Qu. 13-37 A queueing system has four crews...

57) During the early morning hours, customers arrive at a branch post office at the average rate

of 45 per hour (exponential interarrival times), while clerks can handle transactions on an average of 4 minutes each (exponential). What is the average number of customers waiting for service if 6 clerks are used? 57) ______ A) 0.1 B) 0.01 C) 0 D) 1 E) 10 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-55 During the early morning hours, customers...

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58) Priority High Low Number of servers: Service rate:

Average Arrival Rate (exponential interarrival times) 3 per hour 5 per hour 5 2 per hour (exponential service times)

What is the average time in the system (in minutes) for a low priority item? 58) ______ A) B) C) D) E)

2 35 54 5 24

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-69 What is the average time in...

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59) A small popular restaurant at an interstate truck stop provides priority service to truckers.

The restaurant has ten tables where customers may be seated. The service time averages 40 minutes once a party is seated. The customer arrival rate is 12 parties per hour, with the parties being equally divided between truckers and non-truckers. What is the approximate average time in minutes that truckers wait to be seated? 59) ______ A) 4.5 B) 13.6 C) 8.4 D) 15.8 E) 2.7 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-73 A small popular restaurant at an interstate...

60) The utilization factor is the ratio of the arrival rate to the overall service rate. 60) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-17 The utilization factor is the ratio...

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61) Which of the following will equal the average time that a customer is in the system? 1. The average number in the system divided by the arrival rate. 2. The average number in the system multiplied by the arrival rate. 3. The average time in line plus the average service time. 61) ______ A) III only. B) II only. C) II and III only. D) I and III only. E) I only. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-41 Which of the following will equal...

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62) Priority High Low Number of servers: Service rate:

Average Arrival Rate (exponential interarrival times) 3 per hour 5 per hour 5 2 per hour (exponential service times)

What is the average number of all items waiting in line for service? 62) ______ A) B) C) D) E)

0.24 1.74 0 2.22 1.98

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 11-72 What is the average number of...

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63) The term queue discipline refers to: 63) ______ A) B) C) D) E)

the willingness of customers to wait in line for service. having multiple waiting lines without customers switching from line to line. None of the answer choices is correct. the reason waiting occurs in underutilized systems. the order in which customers are processed.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > MC Qu. 13-36 The term queue discipline refers...

64) When designing a single-server queueing system, giving a relatively high utilization factor to

the server ensures that the system is working efficiently. 64) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-27 When designing a single-server queueing...

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65) Priority High Low Number of servers: Service rate:

Average Arrival Rate (exponential interarrival times) 3 per hour 5 per hour 5 2 per hour (exponential service times)

What is the average time in line (in minutes) for a low priority item? 65) ______ A) B) C) D) E)

35 2 5 54 24

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-67 What is the average time in...

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66) Queueing models conventionally assume that the queue can hold an unlimited number of

customers. 66) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-08 Queueing models conventionally assume that the...

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67) Priority High Low Number of servers: Service rate:

Average Arrival Rate (exponential interarrival times) 3 per hour 5 per hour 5 2 per hour (exponential service times)

What is the average time in the system (in minutes) for a high priority item? 67) ______ A) B) C) D) E)

24 54 5 35 2

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-68 What is the average time in...

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68) In a preemptive priority system, any lower-priority customer being served is ejected back

into the queue whenever a higher-priority customer enters the queueing system. 68) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > TF Qu. 13-25 In a preemptive priority system, the...

69) In a nonpreemptive priority system, customers are served in the order in which they arrive in

the queue. 69) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the main types of basic queueing models. Topic : Some Single-Server Queueing Models Source : Chapter 13 Test Bank - Static > TF Qu. 13-24 In a nonpreemptive priority system, customers...

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70) In a single-server system, the utilization factor is equal to the mean arrival rate divided by the

mean service rate. 70) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Measures of Performance for Queueing Systems Source : Chapter 13 Test Bank - Static > TF Qu. 13-19 In a single-server system, the utilization...

71) Customers arrive at a suburban ticket outlet at the rate of 14 per hour on Monday mornings

(exponential interarrival times). Selling the tickets and providing general information takes an average of 3 minutes per customer, and varies exponentially. There is 1 ticket agent on duty on Mondays. What is the system utilization? 71) ______ A) 1 B) 0.8 C) 0.7 D) 0.9 E) 0.6 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Single-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-49 Customers arrive at a suburban ticket outlet at the...

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72) A single bay car wash with an exponential arrival rate and service time has cars arriving an

average of 10 minutes apart, and an average service time of 4 minutes. The utilization factor is: 72) ______ A) 0.24. B) None of the answer choices is correct. C) 0.4. D) 0.67. E) 2.5 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Identify the key measures of performance for queueing systems and the relations Topic : Some Single-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-44 A single bay car wash with...

73) After hiring a second mechanic, the service manager noticed that productivity (measured as

number of cars serviced per day per mechanic) decreased. This is an example of what phenomenon? 73) ______ A) Server speedup B) Socialization C) Queue conflict D) Social loafing E) Service bottleneck Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Apply economic analysis to determine how many servers should be provided in a q Topic : Behavioral Queueing Theory Source : Chapter 13 Test Bank - Static > MC Qu. 13-81 After hiring a second mechanic, the...

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74) Which of the following is not an example of a commercial service system? 74) ______ A) B) C) D) E)

ATM cash machine Travel agency Tool crib Brokerage service Call center

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Give many examples of various types of queueing systems that are commonly encou Topic : Some Examples of Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-38 Which of the following is not...

75) For a single-server queueing system, which of the following is TRUE? 1. Decreasing the variability of service times improves the performance of the system. 2. Decreasing the variability of service times reduces the performance of the system. 3. Increasing the variability of arrival times improves the performance of the system. 75) ______ A) I and II only B) I and III only C) II only D) I only E) III only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe some key insights that queueing models provide about how queueing syst Topic : Some Insights About Designing Queueing Systems Source : Chapter 13 Test Bank - Static > MC Qu. 13-79 For a single-server queueing system, which...

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76) Priority High Low Number of servers: Service rate:

Average Arrival Rate (exponential interarrival times) 3 per hour 5 per hour 5 2 per hour (exponential service times)

What is the average time in line (in minutes) for a high priority item? 76) ______ A) B) C) D) E)

24 54 35 2 5

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-66 What is the average time in...

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77) A multiple priority queueing model assumes that: 77) ______ A) B) C) D) E)

arrival rates are exponentially distributed. service rate is exponentially distributed. items are serviced in the order of arrival. items are serviced in order of priority class. service activities are preemptive.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-62 A multiple priority queueing model assumes...

78) The lack-of-memory property refers to a customer’s willingness to wait in line even though

there are other customers that will be served first. 78) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Identify the characteristics of the probability distributions that are commonly Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-06 The lack-of-memory property refers to a...

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79) The most commonly used queueing models assume service times that follow the exponential

distribution. 79) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-11 The most commonly used queueing models...

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80) Priority High Low Number of servers: Service rate:

Average Arrival Rate (exponential interarrival times) 3 per hour 5 per hour 5 2 per hour (exponential service times)

What is the system utilization factor? 80) ______ A) B) C) D) E)

0.65 0.45 0.50 0.55 0.80

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe how differences in the importance of customers can be incorporated int Topic : Priority Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-65 What is the system utilization...

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81) Customers arrive at a video rental desk at the rate of one per minute (exponential interarrival

times). Each server can handle 0.4 customers per minute (exponential service times). If there are 4 servers, what is the average time it takes in minutes to rent a videotape? 81) ______ A) 2 B) 3 C) 4 D) 5 E) 6 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Apply a queueing model to determine the key measures of performance for a queue Topic : Some Multiple-Server Queueing Models Source : Chapter 13 Test Bank - Static > MC Qu. 13-59 Customers arrive at a video rental desk...

82) The exponential distribution will always provide a reasonably close approximation of the true

service-time distribution. 82) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the elements of a queueing model. Topic : Elements of a Queueing Model Source : Chapter 13 Test Bank - Static > TF Qu. 13-12 The exponential distribution will always provide...

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Answer Key Test name: Chapter 13 Test Bank 1) E 2) A

First, convert inter-arrival time to arrival rate Using the MMs textbook spreadsheet, this results in

.

3) B

First, convert service time to service rate

4) C

Constant service times will have less variation, which leads to a decrease in average queue length and waiting time. 5) C 6) C

Using the textbook spreadsheet Nonpreemptive Priorities, the average number of items in line (Lq) for low priority items is 1.98. 7) C

Using the MMs textbook spreadsheet, trial and error show that with 5 servers average time in the system is 2.63 minutes but with 4 servers average time in the system increases to 3.03 minutes. 8) C

rearranging to solve for λ (the arrival rate) we see that . 9) FALSE 10) C 11) TRUE 12) FALSE 13) FALSE 14) E

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First, convert service time to service rate Using the MMs Economic Analysis textbook spreadsheet, we see that fewer than 4 servers will not be able to keep up with arrivals and 5 or more servers has a higher cost than 4 servers. 15) D

The utilization factor can be calculated to be 0.4. First, convert service time to service rate

16) C 17) FALSE 18) E 19) FALSE 20) TRUE 21) A

First, convert service time to service rate Using the MMs textbook spreadsheet, trial and error show that with 5 servers average time in the system is 4.47 minutes but with 4 servers average time in the system increases to 6.04 minutes. 22) TRUE 23) B

Using the textbook spreadsheet Nonpreemptive Priorities, the average number of items in line (Lq) for high priority items is 0.237. 24) A

First, convert service time to service rate λ = 6 parties per hour for both truckers and non-truckers and there are 10 servers (tables). Assuming non-trucker customers won’t be asked to leave after being seated, this is a nonpreemptive queueing system. Using the textbook spreadsheet Nonpreemptive Priorities, the average time in the system (W) for low priority items is 0.894 hour (53.64 minutes) and for high priority items is 0.712 hour (42.72 minutes). A difference of 10.92 minutes. 25) C

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First, convert service time to service rate ( ). Next, set the utilization equal to 1 and solve for s. . Round up to 4 servers. 26) E

First, convert service time to service rate

27) D

First, convert service time to service rate λ = 6 parties per hour for both truckers and non-truckers and there are 10 servers (tables). Assuming non-trucker customers won’t be asked to leave after being seated, this is a nonpreemptive queueing system. Using the textbook spreadsheet Nonpreemptive Priorities, the average number waiting in line (Lq) for low priority items is 1.36 parties. 28) A

First, convert inter-arrival time to arrival rate

29) FALSE 30) E

First, convert inter-arrival time to arrival rate Using the MMs textbook spreadsheet, trial and error show that with 6 servers average time in the system is 4.57 minutes but with 5 servers average time in the system increases to 6.22 minutes. 31) TRUE 32) E 33) TRUE 34) FALSE

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35) FALSE 36) TRUE 37) FALSE 38) TRUE 39) TRUE 40) D 41) D

λTotal= λHigh + λLow = 5 + 3 = 8 customers per hour. 42) TRUE 43) TRUE 44) E 45) FALSE 46) TRUE 47) E

First, convert service time to service rate ( ). Next, set the utilization equal to 1 and solve for s. . Round up to 2 servers. 48) B

λ = 1 customer per minute, μ = 0.4 customer per minute Using the MMs textbook spreadsheet with 4 servers, the probability of three or fewer customers is the sum of the individual probabilities: P0 + P1 + P2 + P3 = 0.074 + 0.184 + 0.230 + 0.192 = 0.680 49) B

First, convert service time to service rate λ = 6 parties per hour for both truckers and non-truckers and there are 10 servers (tables). Assuming non-trucker customers won’t be asked to leave after being seated, this is a nonpreemptive queueing system. Using the textbook spreadsheet Nonpreemptive Priorities, the average number waiting in line (Lq) for high priority items is 0.27 parties. 50) TRUE 51) E

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First, convert service time to service rate

52) D 53) FALSE 54) E

First, convert service time to service rate λ = 6 parties per hour for both truckers and non-truckers and there are 10 servers (tables). Assuming non-trucker customers won’t be asked to leave after being seated, this is a nonpreemptive queueing system. Using the textbook spreadsheet Nonpreemptive Priorities, the average time waiting in line (Wq) for low priority items is 0.227 hour (13.64 minutes). 55) FALSE 56) E

Each crew is considered a server because they work together. 57) A

First, convert service time to service rate Using the MMs textbook spreadsheet, this results in

.

58) C

Using the textbook spreadsheet Nonpreemptive Priorities, the average time in system (W) for low priority items is 0.896 hour (53.76 minutes). 59) E

First, convert service time to service rate λ = 6 parties per hour for both truckers and non-truckers and there are 10 servers (tables). Assuming non-trucker customers won’t be asked to leave after being seated, this is a nonpreemptive queueing system. Using the textbook spreadsheet Nonpreemptive Priorities, the average time waiting in line (Wq) for high priority items is 0.046 hour (2.76 minutes). 60) TRUE 61) D

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W (the expected waiting time in the system) is given by the equation

(where Wq is

the time in line and is the average service time). W can also be found via Little’s Law. L = λW. Rearranging to solve for W shows that is the arrival rate).

(where L is the average number in the system and λ

62) D

Using the textbook spreadsheet Nonpreemptive Priorities, the average number of items in line (Lq) for high priority items is 0.237 and for low priority items is 1.98. The total number of items in line is 0.237 + 1.98 = 2.22. 63) E 64) FALSE 65) E

Using the textbook spreadsheet Nonpreemptive Priorities, the average time in line (Wq) for low priority items is 0.396 hour (23.75 minutes). 66) TRUE 67) D

Using the textbook spreadsheet Nonpreemptive Priorities, the average time in system (W) for high priority items is 0.579 hour (34.74 minutes). 68) TRUE 69) FALSE 70) TRUE 71) C

First, convert service time to service rate

72) C

The utilization factor can be calculated to be 0.4. First, convert inter-arrival time to arrival rate ( (

) and convert service time to service rate ).

73) D 74) C 75) D 76) E

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Using the textbook spreadsheet Nonpreemptive Priorities, the average time in line (Wq) for high priority items is 0.079 hour (4.74 minutes). 77) D 78) FALSE 79) TRUE 80) E

. 81) B

λ = 1 customer per minute, μ = 0.4 customer per minute Using the MMs textbook spreadsheet with 4 servers, average time in the system is 3.03 minutes. 82) FALSE

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1) Note: This question requires the use of the Queueing Simulator spreadsheet in Excel. Use the

queueing simulator to simulate a queueing system with 3 servers, uniform interarrival times between 20 and 50 seconds and exponential service times with an average of 75 seconds. Use a simulation run length of 10,000 arrivals. If you observe the system at a random time, what is the probability that there will be 4 or more customers waiting in line? 1) ______ A) 0.2 B) 0.6 C) 0.8 D) 0.4 E) 0.9 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Queueing Simulator to perform computer simulations of basic queueing sys Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-71 Note: This question requires the use...

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2) You have determined that waiting times at a toll booth are uniformly distributed over the

interval 20 to 60 seconds. What formula would you use in Excel to generate random values in this range that follow the uniform distribution? 2) ______ A) = (60 − 20) × RAND() B) = 60 + (60 − 20) × RAND() C) = (60 + 20) × RAND() D) = 20 + (60 − 20) × RAND() E) = 20 + (60 + 20) × RAND() Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-54 You have determined that waiting times...

3) In order to generate more accurate results when using simulation: 3) ______ A) B) C) D) E)

None of the answer choices is correct. increase the number of replications. All of the answers choices are correct. increase the number of factors considered. use a continuous distribution instead of a discrete distribution.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-35 In order to generate more accurate...

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4) Computers can simulate years of actual operations in seconds. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the basic concept of computer simulation. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-02 Computers can simulate years of...

5) You have determined that waiting times at a restaurant are uniformly distributed over the

interval 5 to 12 minutes. The first random number your simulation returns is 0.2154. What is the waiting time that this random number generates? 5) ______ A) 7.5 minutes B) 11 minutes C) 6.5 minutes D) 5 minutes E) 10 minutes Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-57 You have determined that waiting times...

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6) Managers can use simulation to obtain optimal answers for a wide range of problems. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the basic concept of computer simulation. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-01 Managers can use simulation to obtain...

7) Simulation is the first choice of decision makers instead of analytic models. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-10 Simulation is the first choice...

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8) Simulation models are fairly easy to use and understand; therefore they can be used for a

wide range of situations. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the basic concept of computer simulation. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-04 Simulation models are fairly easy to...

9) The main reason that a large number of replications of a simulation would be made is: 9) ______ A) computers are usually used, and they can easily handle a large number of replications. B) None of the answer choices is correct. C) it is more likely to provide optimal answers. D) it is a form of sampling, and large samples give more accurate results than small

samples. E) it is part of the scientific approach. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-34 The main reason that a large...

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10) When using a random number table, it is important to always start at the same point of the

table so that results may be replicated. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-12 When using a random number...

11) A parameter analysis report is used to generate many replications of a computer simulation. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > TF Qu. 14-29 A parameter analysis report is used...

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12) Customers arrive at a carwash on average once every 20 minutes. It seems likely that

customer interarrival times follow an exponential distribution. In a simulation, the random number 0.1398 is generated. How long will it be until the next simulated arrival occurs? 12) ______ A) 49.35 minutes B) 39.35 minutes C) 29.35 minutes D) 9.35 minutes E) 19.35 minutes Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-67 Customers arrive at a carwash...

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13) Given this frequency distribution, the random number 0.2258 would be interpreted as a

demand of: Demand 0 1 2 3

Frequency 38 22 22 18 13) ______

A) B) C) D) E)

0. 1 or 2. 3. 2. 1.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-31 Given this frequency distribution, the random...

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14) On cold mornings, the probability that David's car won't start is 0.22. When it doesn't start,

he takes the bus and is late for work. When it does start, he drives to work on the freeway. Sixty-five percent of the time the freeway is clear, and he gets to work on time. The rest of the time he is late. Simulate 10 consecutive days' of cold morning trips to work using the random numbers given (use the smaller numbers to represent "car won't start" and "freeway not clear"). Random numbers: Car 0.7772 0.2902 0.8120 0.2259 0.0527 0.2958 0.2891 0.0131 0.5219 0.9949

Freeway 0.2282 0.3674 0.1654 0.6909 0.7010 0.9802 0.5615 0.5604 0.4361 0.1405

How many times is David late for work? 14) ______ A) B) C) D) E)

4. 2. 3. 1. 5.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-44 On cold mornings, the probability that...

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15) If a simulation begins with the first random number, the third simulated value would be:

Random numbers: 0.6246, 0.2594, 0.4055 Demand 0 1 2 3 4

Frequency 0.15 0.30 0.25 0.15 0.15 15) ______

A) B) C) D) E)

1. 2. 3. 4. 0.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-40 If a simulation begins with the...

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16) Which of the following statements about simplifying assumptions for simulations is TRUE? 1. Simplifying assumptions should not be used in simulations. 2. Simplifying assumptions should lead to conservative estimates. 3. Simplifying assumptions should lead to optimistic estimates. 16) ______ A) III only B) II only C) I only D) II and III only E) I and II only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Analysis of the Case Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-60 Which of the following statements about...

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17) You are reviewing a simulation model and find that the analyst who prepared the model used

the formula = 15 + (45 − 15) × RAND() to generate the simulated cost of a product. Which of the following assumptions did the analyst make about the cost of the product? 1. The minimum cost of the product is 15. 2. The maximum cost of the product is 60. 3. The cost of the product is uniformly distributed. 17) ______ A) I and II only B) I only C) II only D) I and III only E) III only Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-62 You are reviewing a simulation model...

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18) After some experimentation, you have determined that you have a biased coin. The

probability of heads is 0.6 and the probability of tails is 0.4. If you flip this coin 25 times, how many times would you expect to observe the result "tails"? 18) ______ A) 10 B) 20 C) 15 D) 1 E) 5 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-50 After some experimentation, you have determined...

19) A number is a random number between 0 and 1 if it is generated in such a way that every

possible number within this interval has an equal chance of occurring. 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-11 A number is a random number...

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20) Random observations can be generated in Excel by using the VLOOKUP function. 20) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-15 Random observations can be generated in...

21) With the speed of computers, it is not necessary to limit the amount of factors considered in a

simulation. 21) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Outline the steps of a major computer simulation study. Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > TF Qu. 14-23 With the speed of computers, it...

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22) A larger confidence interval is desirable for a measure of performance since it shows that the

results are valid over a larger range. 22) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Outline the steps of a major computer simulation study. Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > TF Qu. 14-27 A larger confidence interval is desirable...

23) A manager is simulating the number of times a machine operator stops a machine to make

adjustments. After careful study the manager found that the number of stops ranged from one to five per cycle and that each number of stops was equally likely. Using the random numbers 0.1835 and 0.3094 (in that order), the next two simulated cycles would respectively have stops for adjustment of: 23) ______ A) 2 and 2. B) 2 and 1. C) 1 and 1. D) 2 and 3. E) 1 and 2. Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-41 A manager is simulating the number...

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24) Animation can be used to display computer simulations in action. 24) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > TF Qu. 14-26 Animation can be used to display...

25) After some experimentation, you have determined that you have a biased coin. The

probability of heads is 0.6 and the probability of tails is 0.4. What is the probability that you will observe heads on three successive flips? 25) ______ A) 0.216 B) 0.096 C) 0.6 D) 0.24 E) 0.36 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-49 After some experimentation, you have determined...

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26) Random numbers can be generated in Excel by using the VLOOKUP function. 26) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-13 Random numbers can be generated in...

27) A stochastic system is one that evolved over time according to a continuous probability

distribution. 27) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the basic concept of computer simulation. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-05 A stochastic system is one that...

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28) Given this frequency distribution, the random number 0.9015 would be interpreted as a

demand of: Demand 0 1 2 3

Frequency 38 22 22 18 28) ______

A) B) C) D) E)

2. 0. 1 or 2. 1. 3.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-33 Given this frequency distribution, the random...

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29) Which of the following can be used for computer simulation? 29) ______ A) B) C) D) E)

Spreadsheets Programming languages Simulators All of the answers choices are correct. Simulation languages

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Outline the steps of a major computer simulation study. Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-46 Which of the following can be...

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30) Given this frequency distribution, the random number 0.5211 would be interpreted as a

demand of: Demand 0 1 2 3

Frequency 38 22 22 18 30) ______

A) B) C) D) E)

2. 3. 0. 1 or 2. 1.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-32 Given this frequency distribution, the random...

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31) Service times at a doctor’s office take an average of 40 minutes. It seems likely that service

times follow an exponential distribution. In a simulation, the random number 0.7588 is generated. How long it will be until the next simulated arrival occurs? 31) ______ A) 6 minutes B) 11 minutes C) 16 minutes D) 21 minutes E) 1 minute Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-69 Service times at a doctor&#8217;s office...

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32) The Queueing Simulator returned the results shown below. Which of the following waiting

times in the queue is most likely to occur?

L= Lq = W = Wq =

Results Point Estimate 95% Confidence Low 4.880311 4.24800115 3.103927 2.49630124 96.15651 85.0003253 61.15651 50.0003253

Interval High 5.51262128 3.71155313 107.312699 72.3126987 32) ______

A) B) C) D) E)

90 seconds 60 seconds 120 seconds 100 seconds 80 seconds

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Queueing Simulator to perform computer simulations of basic queueing sys Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-76 The Queueing Simulator returned the results...

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33) Note: This question requires the use of the Queueing Simulator spreadsheet in Excel. Use the

queueing simulator to simulate a queueing system with 2 servers, exponential interarrival times with a mean of 20 seconds and constant service times of 35 seconds. Use a simulation run length of 10,000 arrivals. What is the point estimate for the average number of customers in the system? 33) ______ A) 2 customers B) 10 customers C) 4 customers D) 9 customers E) 8 customers Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Queueing Simulator to perform computer simulations of basic queueing sys Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-74 Note: This question requires the use...

34) Simulation will often give measures of performance as outputs. 34) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : A Case Study: Herr Cutter&#8217;s Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > TF Qu. 14-21 Simulation will often give measures of...

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35) The "next-event time advance" procedure does which of the following? 1. Determines which upcoming event will occur first 2. Advances the time of the simulation to the next event time 3. Generates a random variable to select the next event which will happen 35) ______ A) B) C) D) E)

III only II only II and III only I only I and II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-59 The "next-event time advance" procedure does...

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36) On cold mornings, the probability that David's car won't start is 0.22. When it doesn't start,

Freeway 0.2282 0.3674 0.1654 0.6909 0.7010 0.9802 0.5615 0.5604 0.4361 0.1405

How many times is David late for work because his car won't start? 36) ______ A) B) C) D) E)

1. 0. 2. 4. 3.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-43 On cold mornings, the probability that...

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37) You have been asked to simulate the process of "flipping" two identical, unbiased coins.

How many possible outcomes exist for this process? (Hint: Once the coins are flipped it is impossible to tell which is which.) 37) ______ A) 1 B) 2 C) 5 D) 4 E) 3 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-47 You have been asked to simulate...

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38) The Queueing Simulator returned the results shown below for a system with 2 servers.

Which of the following is most likely to occur? Point Estimate L= Lq = W = Wq =

4.880311 3.103927 96.15651 61.15651

Results 95% Confidence Low 4.24800115 2.49630124 85.0003253 50.0003253

Interval High 5.51262128 3.71155313 107.312699 72.3126987 38) ______

A) B) C) D) E)

A total time in system of 80 seconds. A total of 5 customers in the system. A queue length of 5 customers. A queue waiting time of 40 seconds. All are equally likely.

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39) After reviewing past history, you have assembled the following table showing the frequency

of certain levels of sales over the past 40 months. If the largest random number used to represent sales of 300 units is 1.00, what will be the smallest number used to represent sales of 300 units? Sales (units) 100

Frequency 12

150

200

250

300

Corresponding Random Numbers

≤ x ≤ 1 39) ______

A) B) C) D) E)

0.6500 0.1000 0.7500 0.3000 0.5000

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-53 After reviewing past history, you have...

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40) You have been asked to simulate the process of "flipping" two identical, unbiased coins.

What is the probability of the outcome where one coin is heads and the other is tails? (Hint: Once the coins are flipped it is impossible to tell which is which.) 40) ______ A) 0.75 B) 0.50 C) 0.25 D) 0.45 E) 0.10 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-48 You have been asked to simulate...

41) One purpose of running experiments on a simulation model is to answer "what-if" questions. 41) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-09 One purpose of running experiments on...

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42) Computer simulation is only applicable to situations that have elements that can be described

by random variables. 42) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-16 Computer simulation is only applicable to...

43) Service times at a doctor’s office take an average of 40 minutes. It seems likely that service

times follow an exponential distribution. In a simulation, what formula would you use to estimate how long the next service will take? 43) ______ A) = NORM.INV(RAND(),40,4) B) = NORM.INV(RAND(),40,0) C) = 40 + (40 − 0) × RAND() D) = − 40 × LN(RAND()) E) = 40 × LN(RAND()) Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-68 Service times at a doctor&#8217;s office...

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44) Which of the following would not be a probable reason for choosing simulation as a

decision-making tool? 44) ______ A) B) C) D) E)

Users are able to understand the model. The situation is too complex for a mathematical model. There is a limited time in which to obtain results. All of these are probable reasons for choosing simulation. Good results have been obtained in the past using simulation.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-36 Which of the following would not...

45) You have determined that waiting times at a restaurant are uniformly distributed over the

interval 5 to 12 minutes. What formula would you use in Excel to generate random values in this range that follow the uniform distribution? 45) ______ A) = 12 + (12 − 5) × RAND(). B) = (12 + 5) × RAND(). C) = 5 + (12 + 5) × RAND(). D) = 5 + (12 − 5) × RAND(). E) = (12 − 5) × RAND(). Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-56 You have determined that waiting times...

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46) Which of the following would not be considered a main advantage of simulation? 46) ______ A) All of the answers choices are advantages. B) It can serve as a training tool. C) It compresses time. D) It generates an optimal solution. E) It permits experimentation with the system. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the basic concept of computer simulation. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-42 Which of the following would not...

47) Over the course of an eight hour day, a business normally has about 200 customers arrive.

Assuming that the customers arrive at about the same rate over the entire day, what is the average interarrival time? 47) ______ A) 1.2 minutes B) 2.0 minutes C) 3.6 minutes D) 2.4 minutes E) 3.0 minutes Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Analysis of the Case Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-78 Over the course of an eight...

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48) You are reviewing a simulation model and find that the analyst who prepared the model used

the formula =NORM.INV(RAND(),50,3) to generate the cost of a product. Which of the following assumptions did the analyst make about the product cost? 1. The minimum cost is 50. 2. The average (mean) cost is 50. 3. The cost is uniformly distributed. 48) ______ A) II and III only B) II only C) III only D) I only E) I and II only Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-65 You are reviewing a simulation model...

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49) You have determined that waiting times at a toll booth are uniformly distributed over the

interval 20 to 60 seconds. The first random number your simulation returns is 0.4732. What is the waiting time that this random number generates? 49) ______ A) 38.928 seconds B) 48.928 seconds C) 68.928 seconds D) 88.928 seconds E) 78.928 seconds Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-55 You have determined that waiting times...

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50) After reviewing past history, you have assembled the following table showing the frequency

of certain levels of sales over the past 40 months. If the smallest random number used to represent sales of 200 units is 0.45, what will be the largest number used to represent sales of 200 units? Sales (units) 100

Frequency 12

150

200 250

8 4

300

Corresponding Random Numbers

0.45

≤ × < ??

50) ______ A) B) C) D) E)

0.5000 0.9000 0.3000 0.1000 0.6500

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-52 After reviewing past history, you have...

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51) The main procedure for advancing the time on the simulation clock is called next-event time

advance. 51) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > TF Qu. 14-20 The main procedure for advancing the...

52) Note: This question requires the use of the Queueing Simulator spreadsheet in Excel. Use the

queueing simulator to simulate a queueing system with 3 servers, uniform interarrival times between 20 and 50 seconds and exponential service times with an average of 75 seconds. Use a simulation run length of 10,000 arrivals. What is the point estimate for the total amount of time a customer will spend in the system? 52) ______ A) 135 seconds B) 90 seconds C) 105 seconds D) 75 seconds E) 120 seconds Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Queueing Simulator to perform computer simulations of basic queueing sys Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-70 Note: This question requires the use...

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53) In a model of a stochastic system, the simulation clock is mainly used to 53) ______ A) B) C) D) E)

determine how fast the computer can run the simulation. measure the number of events that will happen during the simulation. estimate how long the simulation will run. determine how much computer time to use for the simulation. determine the amount of simulated time that has elapsed at any point in the simulation.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-58 In a model of a stochastic...

54) Computer simulation is a useful tool because it generates accurate information using very

small samples. 54) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-14 Computer simulation is a useful tool...

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55) A simulation model is often formulated in terms of a flow diagram. 55) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Outline the steps of a major computer simulation study. Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > TF Qu. 14-24 A simulation model is often formulated...

56) It is always necessary to test the validity of a simulation model by comparing its results with

those of an analytic study. 56) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > TF Qu. 14-22 It is always necessary to test...

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57) A simulation model is validated if it adequately depicts real system performance. 57) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-08 A simulation model is validated if...

58) A simulation clock keeps track of how long the simulation has run in real time. 58) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > TF Qu. 14-19 A simulation clock keeps track of...

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59) If a simulation begins with the first random number, the first simulated value would be:

Random numbers: 0.6246, 0.2594, 0.4055 Demand 0 1 2 3 4

Frequency 0.15 0.30 0.25 0.15 0.15 59) ______

A) B) C) D) E)

3. 4. 2. 0. 1.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-38 If a simulation begins with the...

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60) A Data Table can be used to "trick" Excel to perform many replications of a computer

simulation. 60) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-30 A Data Table can be used...

61) Simulation is especially useful for situations too complex to be studied using analytical

models. 61) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-06 Simulation is especially useful for situations...

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62) A flow diagram shows the output of a simulation run. 62) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Outline the steps of a major computer simulation study. Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > TF Qu. 14-25 A flow diagram shows the output...

63) Analytical methods are preferable to simulation if an appropriate analytical method is

available. 63) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-17 Analytical methods are preferable to simulation...

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64) A simulation model includes a description of the components of the system that is to be

simulated. 64) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the basic concept of computer simulation. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-18 A simulation model includes a description...

65) Simulation is basically an optimization technique. 65) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-03 Simulation is basically an...

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66) The Queueing Simulator returned the results shown below. Which of the following waiting

times in the queue is most likely to occur? Point Estimate L= Lq = W = Wq =

2.609291 0.467107 91.17717 16.32225

Results 95% Confidence Low 2.56954198 0.43781499 89.8143125 15.3034959

Interval High 2.64904039 0.49639927 92.5400212 17.3410052 66) ______

A) B) C) D) E)

18.0 seconds 20.0 seconds 15.0 seconds 10.0 seconds 12.0 seconds

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67) Which of the following is NOT a step in the process of conducting a simulation study? 67) ______ A) All of the answers choices are steps in the simulation process. B) Check the accuracy of the simulation model. C) Plan the simulations to be performed. D) Collect the data and formulate the simulation model. E) Present recommendations to management. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Outline the steps of a major computer simulation study. Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-61 Which of the following is NOT...

68) One key advantage of computer simulation is that is makes full use of the simplifying

approximations that are available. 68) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > TF Qu. 14-28 One key advantage of computer simulation...

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69) Simulation enables a decision maker to experiment with a system and observe its behavior. 69) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > TF Qu. 14-07 Simulation enables a decision maker to...

70) You are reviewing a simulation model and find that the analyst who prepared the model used

the formula =NORM.INV(RAND(),100,5) to generate the waiting time at a restaurant (in seconds). Which of the following assumptions did the analyst make about the waiting time? 1. The minimum waiting time is 100. 2. The average (mean) waiting time is 100. 3. The waiting time is normally distributed. 70) ______ A) III only B) I and II only C) I only D) II only E) II and III only Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-64 You are reviewing a simulation model...

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71) After reviewing past history, you have assembled the following table showing the frequency

of certain levels of sales over the past 40 months. If the smallest random number used to represent sales of 100 units is 0, what will be the largest number used to represent sales of 100 units? Sales (units) 100 150

Frequency 12 6

200

250

300

Corresponding Random Numbers 0 ≤ x < ??

71) ______ A) B) C) D) E)

0.9000 0.7500 0.5000 0.1000 0.3000

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-51 After reviewing past history, you have...

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72) Which of the following is not a reason for simulation's popularity? 72) ______ A) B) C) D) E)

It is especially effective at optimizing decision variables. It is simple to use and/or understand. Many situations are too complex for mathematical solutions. Extensive software packages are available. If can be used for a wide range of applications.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the role computer simulation plays in many management science studies. Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-37 Which of the following is not...

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73) The Queueing Simulator returned the results shown below for a system with 3 servers. If the

firm would like their waiting room to be full no more than 2% of the time, how large must their waiting room be?

L = Lq = W = Wq = P0 = P1 = P2 = P3 = P4 = P5 = P6 = P7 = P8 = P9 = P10 =

Results Point Estimate 95% Confidence Low 2.609291 2.56954198 0.467107 0.43781499 91.17717 89.8143125 16.32225 15.3034959 0.0433 0.04181393 0.20877 0.20481166 0.310375 0.30631295 0.211764 0.20883956 0.108892 0.1061888 0.056623 0.0542479 0.02902 0.02706856 0.014867 0.0134174 0.007729 0.00662602 0.004219 0.00333691 0.002417 0.00169642

Interval High 2.64904039 0.49639927 92.5400212 17.3410052 0.04478615 0.21272876 0.31443784 0.21468769 0.11159452 0.0589981 0.03097214 0.01631696 0.00883164 0.00510016 0.00313856 73) ______

A) B) C) D) E)

8 customers 7 customers 4 customers 6 customers 5 customers

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74) Note: This question requires the use of the Queueing Simulator spreadsheet in Excel. Use the

queueing simulator to simulate a queueing system with 2 servers, exponential interarrival times with a mean of 20 seconds and constant service times of 35 seconds. Use a simulation run length of 10,000 arrivals. If you observe the system at a random time, what is the probability that there will be 3 or more customers waiting in line? 74) ______ A) 0.9 B) 0.7 C) 0.99 D) 0.2 E) 0.4 Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Queueing Simulator to perform computer simulations of basic queueing sys Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-75 Note: This question requires the use...

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75) A simulation model includes: 1. a description of the components of the system. 2. a simulation clock. 3. a definition of the state of the system. 75) ______ A) B) C) D) E)

I only. I, II, and III. II only. I and II only. III only.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe and use the building blocks of a simulation model for a stochastic syst Topic : Outline of a Major Computer Simulation Study Source : Chapter 14 Test Bank - Static > MC Qu. 14-45 A simulation model...

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76) Customers arrive at a carwash on average once every 20 minutes. It seems likely that

customer interarrival times follow an exponential distribution. In a simulation, what formula would you use to estimate how long it will be until the next arrival occurs? 76) ______ A) = 20 × LN(RAND()) B) = − 20 × LN(RAND()) C) = NORM.INV(RAND(),20,0) D) = 20 + (20 − 0) × RAND() E) = NORM.INV(RAND(),20,3) Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-66 Customers arrive at a carwash...

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77) If a simulation begins with the first random number, the second simulated value would be:

Random numbers: 0.6246, 0.2594, 0.4055 Demand 0 1 2 3 4

Frequency 0.15 0.30 0.25 0.15 0.15 77) ______

A) B) C) D) E)

1. 3. 4. 0. 2.

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : Use random numbers to generate random events that have a simple discrete distrib Topic : The Essence of Computer Simulation Source : Chapter 14 Test Bank - Static > MC Qu. 14-39 If a simulation begins with the...

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78) You are reviewing a simulation model and find that the analyst who prepared the model used

the formula = 100 + (175 − 100) × RAND() to generate the simulated selling price of a product. Which of the following assumptions did the analyst make about the selling price of the product? 1. The minimum price of the product is 175. 2. The maximum price of the product is 175. 3. The cost of the product is normally distributed. 78) ______ A) II only B) I and II only C) I and III only D) III only E) I only Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Use Excel to perform basic computer simulations on a spreadsheet. Topic : A Case Study: Herr Cutters Barber Shop (Revisited) Source : Chapter 14 Test Bank - Static > MC Qu. 14-63 You are reviewing a simulation model...

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Answer Key Test name: Chapter 14 Test Bank 1) A

The Queueing Simulator returns the following probabilities for 0 to 3 customers in the system (P(0) = 0.0435, P(1) = 0.2037, P(2) = 0.3104, P(3) = 0.2171). The probability of 4 or more customers is equal to 1 − P(x < 4), so P(x ≥ 4) = 0.2252. Your value may vary somewhat due to the use of the random number generator. 2) D

The formula to generate a uniformly generated variable that ranges between a and b is = a + (b − a) × RAND(). In this case, a = 20 and b = 60, so the formula is = 20 + (60 − 20) × RAND(). 3) B 4) TRUE 5) C

The formula to generate a uniformly generated variable that ranges between a and b is = a + (b − a) × RAND(). In this case, a = 5 and b = 12, so the formula is = 5 + (12 − 5) × RAND(). With a random number of 0.2154, this leads to a waiting time of 6.5 minutes (5 + (12 − 5) × 0.2154 = 6.5078). 6) FALSE 7) FALSE 8) TRUE 9) D 10) FALSE 11) FALSE 12) B

To simulate an exponential distribution, use the natural logarithm formula in Excel. In this case, the correct formula is = −20 × LN(RAND()). With a random number of 0.1398, this equation returns an arrival time of 39.35 minutes. 13) A

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The frequencies of each event can be used to calculate the probability of each event by dividing the frequency of each event by the total of all observations. . The results are then used to determine the corresponding random numbers to each event. A random number of 0.2258 falls within the range for demand of 0. Demand 0 1 2 3

Frequency 38 22 22 18

Probability 0.38 0.22 0.22 0.18

Corresponding Random Numbers 0 ≤ x ≤ 0.38 0.38 < x ≤ 0.60 0.60 < x ≤ 0.82 0.82 < x ≤ 1.00

14) E

David will be late for work unless his car starts and traffic is clear the same day. In this case, he will be late for work on 5 days. Day

Car

Traffic

Car Start

1 2 3 4 5 6 7 8 9 10

0.7772 0.2902 0.8120 0.2259 0.0527 0.2958 0.2891 0.0131 0.5219 0.9949

0.2282 0.3674 0.1654 0.6909 0.7010 0.9802 0.5615 0.5604 0.4361 0.1405

Yes Yes Yes Yes No Yes Yes No Yes Yes

Freeway Clear No Yes No Yes Yes Yes Yes Yes Yes No

On-Time No Yes No Yes No Yes Yes No Yes No

15) A

A random number of 0.4055 falls within the range for demand of 1. Demand 0 1 2 3 4

Probability 0.15 0.30 0.25 0.15 0.15

Corresponding Random Numbers 0 ≤ x ≤ 0.15 0.15 < x ≤ 0.45 0.45 < x ≤ 0.70 0.70 < x ≤ 0.85 0.85 < x ≤ 1.00

16) B 17) D

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The analyst used a formula that generates a uniformly distributed cost between 15 and 45. Therefore, I and III are true. 18) A

Since the probability of tails is 0.4, the expected number of tails is the probability of the event times the number of trials (0.4 × 25 = 10). 19) TRUE 20) TRUE 21) FALSE 22) FALSE 23) E

A random number of 0.1835 falls within the range for demand of 1. A random number of 0.3094 falls within the range for demand of 2. Demand 1 2 3 4 5

Probability 0.20 0.20 0.20 0.20 0.20

Corresponding Random Numbers 0 ≤ x ≤ 0.20 0.20 < x ≤ 0.40 0.40 < x ≤ 0.60 0.60 < x ≤ 0.80 0.80 < x ≤ 1.00

24) TRUE 25) A

Since the probability of heads is 0.6, the probability of three heads successively is the product of the individual probabilities. 0.6 × 0.6 × 0.6 = 0.216. 26) FALSE 27) FALSE 28) E

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The frequencies of each event can be used to calculate the probability of each event by dividing the frequency of each event by the total of all observations. . The results are then used to determine the corresponding random numbers to each event. A random number of 0.9015 falls within the range for demand of 3. Demand 0 1 2 3

Frequency 38 22 22 18

Probability 0.38 0.22 0.22 0.18

Corresponding Random Numbers 0 ≤ x ≤ 0.38 0.38 < x ≤ 0.60 0.60 < x ≤ 0.82 0.82 < x ≤ 1.00

29) D 30) E

The frequencies of each event can be used to calculate the probability of each event by dividing the frequency of each event by the total of all observations. . The results are then used to determine the corresponding random numbers to each event. A random number of 0. 5211 falls within the range for demand of 1. Demand 0 1 2 3

Frequency 38 22 22 18

Probability 0.38 0.22 0.22 0.18

Corresponding Random Numbers 0 ≤ x ≤ 0.38 0.38 < x ≤ 0.60 0.60 < x ≤ 0.82 0.82 < x ≤ 1.00

31) B

To simulate an exponential distribution, use the natural logarithm formula in Excel. In this case, the correct formula is = −40 × LN(RAND()).With a random number of 0.7588, this equation returns an arrival time of 11.04 minutes. 32) B

The Queueing Simulator returned a total time in the queue (Wq) range of about 50 to 72 seconds (95% confidence interval). The only choice that falls within this range is 60 seconds. 33) C

The Queueing Simulator returns a total time in the system (L) of about 4 customers. Your value may vary somewhat due to the use of the random number generator. 34) TRUE

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35) E 36) C

Using a probability of less than 0.22 as indicating the car did not start, two values (0.0527 and 0.0131) indicate that David's car did not start. 37) E

According to the Queueing Simulator results, only a total of 5 customers in the system (L = 5) falls within the 95% confidence intervals. 39) C

Sales of 300 occurred in 10 out of 40 months. This is a probability of 0.25 (10 / 40 = 0.25). Therefore, if the upper end of the range of random numbers is 1.00, the lower end of the range will be 0.75 (1.00 − 0.25). Sales (units) 100

Frequency 12

150

200

250

300

Corresponding Random Numbers

0.75

≤ x ≤ 1.00

40) B

Each coin can end up as heads (H) or tails (T). With two coins, the possible results are H-H, H-T, T-H, or TT. However, since it isn't possible to tell which coin is which, H-T and T-H are the same thing, so the result H-T and T-H are the same, leading to three possible outcomes (H-H, HT, and T-T). However, there are two paths to the outcome H-T. H-T has a probability of 0.25 (0.5 × 0.5) and T-H also has a probability of 0.25 (0.5 × 0.5). The sum of the probabilities of these two paths is 0.5. 41) TRUE 42) TRUE 43) D

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To simulate an exponential distribution, use the natural logarithm formula in Excel. In this case, the correct formula is = −40 × LN(RAND()). 44) C 45) D

The formula to generate a uniformly generated variable that ranges between a and b is = a + (b − a) × RAND(). In this case, a = 5 and b = 12, so the formula is = 5 + (12 − 5) × RAND(). 46) D 47) D

200 customers in eight hours is a rate of 0.417 customers per minute The interarrival time is the reciprocal of the arrival rate

48) B

The analyst used a formula that generates a normally distributed cost with a mean of 50 and a standard deviation of 3. Therefore, only II is true. 49) A

The formula to generate a uniformly generated variable that ranges between a and b is = a + (b − a) * RAND(). In this case, a = 20 and b = 60, so the formula is = 20 + (60 − 20) * RAND(). With a random number of 0.4732, this leads to a waiting time of 38.928 seconds (20 + (60 − 20) * 0.4732 = 38.928). 50) E

Sales of 200 occurred in 8 out of 40 months. This is a probability of 0.2 (8 / 40 = 0.2). Therefore, if the lower end of the range of random numbers is 0.45, the upper end of the range will be 0.65 (0.45 + 0.2). Sales (units) 100

Frequency 12

150

200 250

8 4

300

Corresponding Random Numbers

0.45

≤ x < 0.65

51) TRUE

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52) B

The Queueing Simulator returns a total time in the system (W) of about 90 seconds. Your value may vary somewhat due to the use of the random number generator. 53) E 54) FALSE 55) TRUE 56) FALSE 57) TRUE 58) FALSE 59) C

A random number of 0.6246 falls within the range for demand of 2. Demand 0 1 2 3 4

Probability 0.15 0.30 0.25 0.15 0.15

Corresponding Random Numbers 0 ≤ x ≤ 0.15 0.15 < x ≤ 0.45 0.45 < x ≤ 0.70 0.70 < x ≤ 0.85 0.85 < x ≤ 1.00

60) TRUE 61) TRUE 62) FALSE 63) TRUE 64) TRUE 65) FALSE 66) C

The Queueing Simulator returned a total time in the queue (Wq) range of about 15.3 to 17.3 seconds (95% confidence interval). The choice that is closest to this range is 15 seconds. 67) A 68) FALSE 69) TRUE 70) E

The analyst used a formula that generates a normally distributed waiting time with a mean of 100 and a standard deviation of 5. Therefore, II and III are true. 71) E

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Sales of 100 occurred in 12 out of 40 months. This is a probability of 0.3 (12 / 40 = 0.3). Therefore, if the lower end of the range of random numbers is 0, the upper end of the range will be 0.3. Sales (units) 100 150

Frequency 12 6

200

250

300

Corresponding Random Numbers 0 ≤ x < 0.3000

72) A 73) C

The Queueing Simulator results indicate that there will be 7 or fewer customers in the system with a probability of 0.9836. With three servers (and therefore up to 3 customers in service), this indicates a need for a waiting room that will hold 4 customers. 74) B

The Queueing Simulator returns the following probabilities for 0 to 2 customers in the system (P(0) = 0.05, P(1) = 0.12, P(2) = 0.14). The probability of 3 or more customers is equal to 1 − P(x < 2), so P(x ≥ 3) = 0.69. Your value may vary somewhat due to the use of the random number generator. 75) B 76) B

To simulate an exponential distribution, use the natural logarithm formula in Excel. In this case, the correct formula is = −20 × LN(RAND()). 77) A

A random number of 0.2594 falls within the range for demand of 1. Demand 0 1 2 3 4

Probability 0.15 0.30 0.25 0.15 0.15

Corresponding Random Numbers 0 ≤ x ≤ 0.15 0.15 < x ≤ 0.45 0.45 < x ≤ 0.70 0.70 < x ≤ 0.85 0.85 < x ≤ 1.00

78) A

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The analyst used a formula that generates a uniformly distributed cost between 100 and 175. Therefore, only II is true.

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1) Analytic Solver can be used to fit a continuous distribution to data. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use an Analytic Solver procedure that identifies the continuous distribution tha Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-19 Analytic Solver can be used to fit...

2) The parameter analysis report can simultaneously vary up to how many different decision

variables? 2) ______ A) B) C) D) E)

1 Any number of decision variables. 2 4 3

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to generate a parameter analysis report and a trend chart as Topic : Decision Making With Parameter Analysis Reports and Trend Charts Source : Chapter 15 Test Bank - Static > MC Qu. 15-60 The parameter analysis report can simultaneously...

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3) A danger of using the lognormal distribution is that values can fall below zero. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-11 A danger of using the lognormal...

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4) The distribution shown below is most likely which of the following?

4) ______ A) B) C) D) E)

Lognormal distribution Exponential distribution Triangular distribution Uniform distribution Normal distribution

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-75 The distribution shown below is most...

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5) Which of the following is not one of the charts or tables provided by Analytic Solver? 5) ______ A) Cumulative frequency chart B) Standard error chart C) Frequency chart D) Percentiles table E) Statistics table Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Interpret the results generated by Analytic Solver when performing a computer si Topic : Project Management: Revisiting the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > MC Qu. 15-49 Which of the following is not...

6) A probability distribution shows the relative likelihood of observing any particular value. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-33 A probability distribution shows the relative...

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7) The normal distribution is a good choice when all values within a range are equally likely. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-08 The normal distribution is a good...

8) A manager has observed sales for a number of days and developed the following table of

probabilities. Which of the following distributions would be most appropriate for modeling the daily sales? Daily Sales 100 200 300 400

Probability 0.40 0.05 0.50 0.05 8) ______

A) B) C) D) E)

Custom discrete distribution Triangular distribution Lognormal distribution Normal distribution Integer uniform distribution

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-77 A manager has observed sales for...

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9) Which of the following is NOT a continuous distribution? 9) ______ A) B) C) D) E)

Triangular distribution Exponential distribution Lognormal distribution Normal distribution Poisson distribution

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-66 Which of the following is NOT...

10) The more trials that are run, the lower the standard error will become. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to generate a parameter analysis report and a trend chart as Topic : Decision Making With Parameter Analysis Reports and Trend Charts Source : Chapter 15 Test Bank - Static > TF Qu. 15-21 The more trials that are run, the...

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11) The Analytic Solver can be used to simultaneously optimize up to how many decision

variables? 11) ______ A) B) C) D) E)

1 4 Many decision variables can be optimized simultaneously. 3 2

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Solver in Analytic Solver to search for an optimal solution for a simula Topic : Optimizing With Computer Simulation Using the Solver in Analytic Solver Source : Chapter 15 Test Bank - Static > MC Qu. 15-61 The Analytic Solver can be used...

12) Analytic Solver cannot handle constraints in a simulation model. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use the Solver in Analytic Solver to search for an optimal solution for a simula Topic : Optimizing With Computer Simulation Using the Solver in Analytic Solver Source : Chapter 15 Test Bank - Static > TF Qu. 15-24 Analytic Solver cannot handle constraints in a...

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13) The custom distribution in Analytic Solver allows only discrete distributions to be entered. 13) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-17 The custom distribution in Analytic Solver allows...

14) Which of the following provide the mean, median, standard deviation, range, etc. for the

results cell in Analytic Solver? 14) ______ A) B) C) D) E)

Frequency chart Percentiles table None of the answer choices is correct. Statistics table Cumulative frequency chart

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : Bidding For a Construction Project: A Prelude to the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > MC Qu. 15-44 Which of the following provide the...

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15) When applying simulation to an inventory problem, which of the following would be an

uncertain variable cell? 15) ______ A) B) C) D) E)

The demand The holding cost per unit All of the answers choices are correct. None of the answer choices is correct. The total profit

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : Bidding For a Construction Project: A Prelude to the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > MC Qu. 15-45 When applying simulation to an inventory...

16) A danger of using the normal distribution is that values can fall below zero. 16) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-12 A danger of using the normal...

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17) The exponential distribution is widely used to describe the time between random events. 17) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-13 The exponential distribution is widely used...

18) The sensitivity chart in Analytic Solver indicates the increase in the results cell per unit

increase in the uncertain variable cell. 18) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Interpret the results generated by Analytic Solver when performing a computer si Topic : Project Management: Revisiting the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > TF Qu. 15-06 The sensitivity chart in Analytic Solver indicates...

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19) The use of different hotel rates for different classes of customers is known as revenue

management. 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role of Analytic Solver in performing computer simulations. Topic : Revenue Management in the Travel Industry Source : Chapter 15 Test Bank - Static > TF Qu. 15-29 The use of different hotel rates...

20) Which of the following distributions has a fixed minimum and maximum? 1. Normal distribution 2. Triangular distribution 3. Lognormal distribution 4. Exponential distribution 20) ______ A) B) C) D) E)

I and II only II only III only I only IV only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-65 Which of the following distributions has...

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21) The number of trials is one of the options to be set in Analytic Solver. 21) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role of Analytic Solver in performing computer simulations. Topic : A Case Study: Freddie the Newsboy's Problem Source : Chapter 15 Test Bank - Static > TF Qu. 15-02 The number of trials is one...

22) The triangular distribution has a fixed upper and lower bound. 22) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-09 The triangular distribution has a fixed...

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23) The normal distribution is always a symmetric distribution. 23) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-37 The normal distribution is always a symmetric...

24) For the exponential distribution, values near ________ are most likely. 24) ______ A) the variance B) zero C) the mean Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-72 For the exponential distribution, values...

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25) Which of the following is not a characteristic of the triangular distribution? 25) ______ A) B) C) D) E)

It can be asymmetric. It has a fixed upper and lower bound. Some value is the most likely. The most likely value is the mean. Values close to the most likely value are more common.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-52 Which of the following is not...

26) The cell that represents the output of a computer simulation is referred to as: 26) ______ A) B) C) D) E)

None of the answer choices is correct. a decision variable. a results cell. an uncertain variable cell. a statistic cell.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : A Case Study: Freddie the Newsboy's Problem Source : Chapter 15 Test Bank - Static > MC Qu. 15-41 The cell that represents the output...

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27) The negative binomial distribution describes the number of trials until an event occurs n

times. 27) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-16 The negative binomial distribution describes the...

28) A grocery chain has decided to reduce the price of milk to encourage customers to purchase

higher quantities. This is an example of revenue management. 28) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the role of Analytic Solver in performing computer simulations. Topic : Revenue Management in the Travel Industry Source : Chapter 15 Test Bank - Static > TF Qu. 15-31 A grocery chain has decided to...

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29) Which of the following distributions describes the number of times an event occurs in a fixed

number of trials? 29) ______ A) B) C) D) E)

Geometric distribution None of the answer choices is correct. Binomial distribution Poisson distribution Negative binomial distribution

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-57 Which of the following distributions describes...

30) If only the mean value of a parameter is known, it is possible to use the normal distribution to

model the parameter. 30) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-38 If only the mean value of a...

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31) The geometric distribution describes the number of times an event occurs in a fixed number

of trials. 31) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-14 The geometric distribution describes the number...

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32) The following distribution has been observed for a random value. Which distribution would

be most appropriate to use to simulate this value?

32) ______ A) B) C) D) E)

Triangular distribution Lognormal distribution Normal distribution Integer uniform distribution Exponential distribution

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-73 The following distribution has been...

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33) When applying simulation to an inventory problem, which of the following is the most

appropriate choice for the results cell? 33) ______ A) B) C) D) E)

None of the answer choices is correct. The total profit The demand All of the answers choices are correct. The holding cost per unit

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : Bidding For a Construction Project: A Prelude to the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > MC Qu. 15-46 When applying simulation to an inventory...

34) A central-tendency distribution is likely to have two separate peaks, indicating that two

widely separated sets of values are equally likely. 34) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-32 A central-tendency distribution is likely to...

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35) The sensitivity chart conveys which of the following? 35) ______ A) B) C) D) E)

The relative frequency of various results cell values How strongly various uncertain variable cells influence the results cell None of the answer choices is correct. The mean profit The increase in profit per unit increase in an uncertain variable cell

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Interpret the results generated by Analytic Solver when performing a computer si Topic : Project Management: Revisiting the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > MC Qu. 15-48 The sensitivity chart conveys which of...

36) The triangular distribution is always a symmetric distribution. 36) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-36 The triangular distribution is always a...

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37) The binomial distribution describes the number of times an event occurs in a fixed number of

trials. 37) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-15 The binomial distribution describes the number...

38) Which of the following distributions describes the number of times an event occurs during a

given period of time or space? 38) ______ A) B) C) D) E)

None of the answer choices is correct. Uniform distribution Exponential distribution Normal distribution Poisson distribution

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-56 Which of the following distributions describes...

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39) The relative likelihood of any particular value is given by the height of the distribution's 39) ______ A) probability density function. B) cumulative density function. C) most likely value. D) central-tendency distribution. E) standard deviation. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-68 The relative likelihood of any particular...

40) A results cell refers to a random input cell. 40) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role of Analytic Solver in performing computer simulations. Topic : A Case Study: Freddie the Newsboy's Problem Source : Chapter 15 Test Bank - Static > TF Qu. 15-01 A results cell refers to a...

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41) Which of the following are advantages of computer simulation over analytical methods like

PERT/CPM for predicting the probability that a project will complete by a deadline? 1. It does not need to make as many simplifying assumptions. 2. It is more flexible about which probability distributions can be used. 3. It provides a solution more quickly. 41) ______ A) I, II, and III B) III only C) I only D) I and II only E) II only Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : Bidding For a Construction Project: A Prelude to the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > MC Qu. 15-47 Which of the following are advantages...

42) The parameter analysis report in Analytic Solver can be used to systematically investigate a

set of values for a decision variable in a simulation model. 42) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to generate a parameter analysis report and a trend chart as Topic : Decision Making With Parameter Analysis Reports and Trend Charts Source : Chapter 15 Test Bank - Static > TF Qu. 15-20 The parameter analysis report in Analytic Solver...

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43) Computer simulations of project management problems often use a triangular distribution to

represent the task durations in a project management problem. 43) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : Project Management: Revisiting the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > TF Qu. 15-27 Computer simulations of project management problems...

44) Which of the following distributions describes the number of trials until an event occurs n

times? 44) ______ A) B) C) D) E)

Binomial distribution Poisson distribution Geometric distribution None of the answer choices is correct. Negative binomial distribution

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-59 Which of the following distributions describes...

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45) The standard error gives an indication of the accuracy of the estimated mean. 45) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role of Analytic Solver in performing computer simulations. Topic : A Case Study: Freddie the Newsboy's Problem Source : Chapter 15 Test Bank - Static > TF Qu. 15-05 The standard error gives an indication...

46) The sensitivity chart in Analytic Solver indicates how strongly various uncertain variable

cells influence the results cell. 46) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Interpret the results generated by Analytic Solver when performing a computer si Topic : Project Management: Revisiting the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > TF Qu. 15-07 The sensitivity chart in Analytic Solver indicates...

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47) For a distribution that is positively skewed, which of the following is TRUE? 47) ______ A) B) C) D) E)

The mean and the standard deviation are equal. The mean and the most likely value will be the same. All values are equally likely. The mean will be located to the right of the most likely value. The mean will be located to the left of the most likely value.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-70 For a distribution that is positively...

48) A trend chart shows the trend in profit values from trial to trial. 48) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to generate a parameter analysis report and a trend chart as Topic : Decision Making With Parameter Analysis Reports and Trend Charts Source : Chapter 15 Test Bank - Static > TF Qu. 15-22 A trend chart shows the trend...

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49) Which of the following distributions would be most appropriate for modeling the number of

students found in a small classroom? 49) ______ A) B) C) D) E)

Integer uniform distribution Triangular distribution Lognormal distribution Exponential distribution Normal distribution

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-71 Which of the following distributions would...

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50) Which of the following distributions is not skewed? 1. Normal distribution 2. Uniform distribution 3. Lognormal distribution 4. Exponential distribution 50) ______ A) B) C) D) E)

I and II only I only III only IV only II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-63 Which of the following distributions is...

51) The normal distribution is a good choice to represent the task durations in a project

management problem. 51) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : Project Management: Revisiting the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > TF Qu. 15-28 The normal distribution is a good...

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52) The PERT method for project management assumes that task durations follow a triangular

distribution. 52) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : Project Management: Revisiting the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > TF Qu. 15-25 The PERT method for project management...

53) The normal distribution has a fixed upper and lower bound. 53) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-10 The normal distribution has a fixed...

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54) Which of the following is not a characteristic of the uniform distribution? 54) ______ A) B) C) D) E)

None of the answers choices is characteristic of the uniform distribution. Some value is the most likely It has a fixed minimum value All of the answers choices are characteristic of the uniform distribution. It has a fixed maximum value

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-54 Which of the following is not...

55) Which of the following is a random input cell in Analytic Solver? 55) ______ A) B) C) D) E)

A decision variable None of the answer choices is correct. An uncertain variable cell A results cell A statistic cell

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : A Case Study: Freddie the Newsboy's Problem Source : Chapter 15 Test Bank - Static > MC Qu. 15-40 Which of the following is a...

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56) One way to ensure that Analytic Solver identifies an optimal solution quickly is to do which

of the following? 1. Set the "Max Time without Improvement" setting to zero. 2. Add bounds for the decision variables. 3. Add integer constraints to the model. 56) ______ A) B) C) D) E)

II and III only I, II, and III III only I only II only

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use the Solver in Analytic Solver to search for an optimal solution for a simula Topic : Optimizing With Computer Simulation Using the Solver in Analytic Solver Source : Chapter 15 Test Bank - Static > MC Qu. 15-76 One way to ensure that Analytic Solver...

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57) Which of the following distributions is widely used to describe the time between random

events? 57) ______ A) B) C) D) E)

Normal distribution Uniform distribution Poisson distribution None of the answer choices is correct. Exponential distribution

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-55 Which of the following distributions is...

58) The normal distribution is popular because it accurately portrays the variation observed in

many natural phenomenon. 58) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-34 The normal distribution is popular because...

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59) Which of the following distributions is positively skewed? 1. Normal distribution 2. Uniform distribution 3. Lognormal distribution 4. Exponential distribution 59) ______ A) B) C) D) E)

I only III and IV only III only II only IV only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-62 Which of the following distributions is...

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60) The distribution shown below is most likely which of the following?

60) ______ A) B) C) D) E)

Normal distribution Lognormal distribution Triangular distribution Exponential distribution Integer uniform distribution

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-74 The distribution shown below is most...

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61) Which of the following is a discrete distribution? 61) ______ A) B) C) D) E)

Exponential distribution Normal distribution Triangular distribution Poisson distribution Lognormal distribution

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-67 Which of the following is a...

62) Which of the following distributions has a fixed minimum and maximum? 1. Normal distribution 2. Uniform distribution 3. Lognormal distribution 4. Exponential distribution 62) ______ A) B) C) D) E)

III only I only I and II only IV only II only

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-64 Which of the following distributions has...

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63) Which chart indicates the trend in forecast values as a particular decision variable is varied? 63) ______ A) Statistics table B) None of the answer choices is correct. C) Frequency chart D) Trend chart E) Cumulative frequency chart Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Use Analytic Solver to generate a parameter analysis report and a trend chart as Topic : Decision Making With Parameter Analysis Reports and Trend Charts Source : Chapter 15 Test Bank - Static > MC Qu. 15-50 Which chart indicates the trend in...

64) Increasing the number of trials increases the accuracy of a simulation. 64) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the role of Analytic Solver in performing computer simulations. Topic : A Case Study: Freddie the Newsboy's Problem Source : Chapter 15 Test Bank - Static > TF Qu. 15-04 Increasing the number of trials increases...

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65) Which of the following is not a step required to perform a simulation with Analytic Solver? 65) ______ A) Set the simulation options. B) All are steps required to perform a simulation with Analytic Solver. C) Develop the spreadsheet model. D) Define the uncertain variable cells. E) Define the results cells to forecast. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : A Case Study: Freddie the Newsboy's Problem Source : Chapter 15 Test Bank - Static > MC Qu. 15-39 Which of the following is not...

66) A distribution is chosen from the Distributions menu for which type of cell? 66) ______ A) B) C) D) E)

None of the answer choices is correct. A results cell A statistic cell An uncertain variable cell A decision variable

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : A Case Study: Freddie the Newsboy's Problem Source : Chapter 15 Test Bank - Static > MC Qu. 15-42 A distribution is chosen from the...

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67) Which of the following is not a characteristic of the normal distribution? 67) ______ A) B) C) D) E)

Values closest to the mean are more likely. Some value is the most likely. Extreme values are possible, but rare. It must be symmetric. Values cannot fall below zero.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-51 Which of the following is not...

68) Which of the following charts shows a histogram giving the relative frequency of the various

output values in the forecast cell? 68) ______ A) B) C) D) E)

Frequency chart Percentiles table Reverse cumulative chart Statistics table Cumulative frequency chart

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : Bidding For a Construction Project: A Prelude to the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > MC Qu. 15-43 Which of the following charts shows...

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69) Analytic Solver is guaranteed to find the optimal solution to a simulation problem. 69) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use the Solver in Analytic Solver to search for an optimal solution for a simula Topic : Optimizing With Computer Simulation Using the Solver in Analytic Solver Source : Chapter 15 Test Bank - Static > TF Qu. 15-23 Analytic Solver is guaranteed to find the...

70) Which of the following distributions describes the number of trials until an event occurs? 70) ______ A) None of the answer choices is correct. B) Geometric distribution C) Negative binomial distribution D) Poisson distribution E) Binomial distribution Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-58 Which of the following distributions describes...

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71) Which of the following is NOT a central-tendency distribution? 71) ______ A) B) C) D)

Uniform distribution Triangular distribution Normal distribution Lognormal distribution

Question Details AACSB : Analytical Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-69 Which of the following is NOT...

72) If an analyst knows only the minimum and maximum values possible for a parameter, the

triangular distribution is a good choice for modeling. 72) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-35 If an analyst knows only the minimum...

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73) The distribution used for the uncertain variable cells is one of the options to be set in the

Simulation Options in Analytic Solver. 73) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the role of Analytic Solver in performing computer simulations. Topic : A Case Study: Freddie the Newsboy's Problem Source : Chapter 15 Test Bank - Static > TF Qu. 15-03 The distribution used for the uncertain...

74) Which of the following is not a characteristic of the lognormal distribution? 74) ______ A) B) C) D) E)

Values cannot fall below zero. All of the answers choices are characteristic of the lognormal distribution. Some value is the most likely. Extreme values (high end only) are possible, but rare. It is negatively skewed (above the mean more likely).

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Describe the characteristics of many of the probability distributions that can b Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > MC Qu. 15-53 Which of the following is not...

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75) Analytic Solver can be used to fit a discrete distribution to data. 75) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use an Analytic Solver procedure that identifies the continuous distribution tha Topic : Choosing the Right Distribution Source : Chapter 15 Test Bank - Static > TF Qu. 15-18 Analytic Solver can be used to fit...

76) The ride sharing firm Uber uses dynamic pricing, which results in higher fares during busy

times and lower fares during less busy times. This is an example of revenue management. 76) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : Describe the role of Analytic Solver in performing computer simulations. Topic : Revenue Management in the Travel Industry Source : Chapter 15 Test Bank - Static > TF Qu. 15-30 The ride sharing firm Uber uses...

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77) The PERT method for project management assumes that task durations follow a beta

distribution. 77) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : Use Analytic Solver to perform various basic computer simulations that cannot be Topic : Project Management: Revisiting the Reliable Construction Co. Case Study Source : Chapter 15 Test Bank - Static > TF Qu. 15-26 The PERT method for project management...

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Answer Key Test name: Chapter 15 Test Bank 1) 2) 3) 4)

TRUE C FALSE D All values are equally likely in the uniform distribution. 5) 6) 7) 8)

B TRUE FALSE A Only the custom distribution is capable of modeling a distribution with such widely varying probabilities. 9) E 10) TRUE 11) C 12) FALSE 13) FALSE 14) D 15) A 16) TRUE 17) TRUE 18) FALSE 19) TRUE 20) B 21) TRUE 22) TRUE 23) TRUE 24) B 25) D 26) C 27) TRUE 28) FALSE 29) C 30) FALSE

The normal distribution requires knowledge of the mean and the standard deviation.

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31) FALSE 32) D

Only the integer uniform distribution has discrete values. 33) B 34) FALSE 35) B 36) FALSE

The triangular distribution can be symmetric or asymmetric, depending upon the parameters chosen. 37) TRUE 38) E 39) A 40) FALSE 41) D 42) TRUE 43) TRUE 44) E 45) TRUE 46) TRUE 47) D 48) FALSE 49) A

Only the integer uniform distribution would allow modeling of the number of students without the possibility of fractional results. This is appropriate because students cannot be divided into fractions. Furthermore, the integer uniform distribution allows a fixed maximum and minimum value, which would reflect the fact that the number of students cannot be less than zero or more than the capacity of the classroom. 50) A 51) FALSE

Since the normal distribution includes negative values, it is a poor choice to model task durations. 52) FALSE 53) FALSE 54) B 55) C 56) A 57) E

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58) TRUE 59) B 60) C

The triangular distribution has a minimum, maximum, and most likely value. 61) D 62) E 63) D 64) TRUE 65) B 66) D 67) E 68) A 69) FALSE 70) B 71) A

The uniform distribution does not have any unique value that is more likely than any other. 72) FALSE

The triangular distribution requires knowledge of the minimum, maximum and most likely values. 73) FALSE 74) E 75) TRUE 76) TRUE 77) TRUE

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