MAT 540 Week 2 Quiz 1 Chapter 1 and 11 Solution

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Mat 540 Quiz 1 Week 2 Chapter 1 and 11 Solution

Introduction to Management Science, 11e (Taylor)Chapter 1 Management Science

1) Management science involves the philosophy of approaching a problem in a subjective manner. Answer: Diff: 1 Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: scientific approachAACSB: Analytic skills

2) Management science techniques can be applied only to business and military organizations.Answer: Diff: 1 Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: scientific approach, problem solvingAACSB: Analytic skills

3) Management scientists use the terms "data" and "information" interchangeably--that is, the two terms mean the same thingAnswer: Diff: 2 Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: dataAACSB: Analytic skills

4) A management science solution can be either a recommended decision or information that helps a manager make a decisionAnswer: Diff: 2 Page Ref: 5Section Heading: The Management Science Approach to Problem SolvingKeywords: model, management science techniquesAACSB: Analytic skills

5) A variable is a value that is usually a coefficient of a parameter in an equation.Answer: Diff: 1 Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: variableAACSB: Analytic skills6) Parameters are known, constant values that are usually coefficients of variables in equations. Answer: Diff: 1 Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: parameterAACSB: Analytic skills

7) Data are pieces of information from the problem environment. Answer: Diff: 1 Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: dataAACSB: Analytic skills

8) A model is a mathematical representation of a problem situation including variables, parameters, and equations. Answer: Diff: 1 Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: model, management science techniquesAACSB: Analytic skills

9) A management science technique usually applies to a specific model type. Answer: Diff: 1 Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: models, management science techniquesAACSB: Analytic skills

10) The first step of the management science process is to define the problem.Answer: Diff: 2 Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: management science processAACSB: Analytic skills

11) Management science modeling techniques provide results that are known with certainty. Answer: Diff: 2 Page Ref: 17Section Heading: Management Science Modeling TechniquesKeywords: management science modeling techniques, certaintyAACSB: Analytic skills12) The term "sensitivity analysis" refers to testing how a problem solution reacts to changes in one or more of the model parameters. Answer: Diff: 1 Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: sensitivity analysis, parameter changes

13) Fixed costs depend on the number of items produced. Answer: Diff: 1 Page Ref: 7Section Heading: Model Building: Break-Even AnalysisKeywords: fixed cost, break-even analysisAACSB: Analytic skills

14) Variable costs depend on the number of items produced. Answer: Diff: 1 Page Ref: 7Section Heading: Model Building: Break-Even AnalysisKeywords: variable cost, break-even analysis

15) Fixed cost is the difference between total cost and total variable cost. Answer: Diff: 1 Page Ref: 8Section Heading: Model Building: Break-Even AnalysisKeywords: total cost, break-even analysis

16) The break-even point is the volume that equates total revenue with total cost. Answer: Diff: 1 Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

17) In general, an increase in price increases the break-even point if all costs are held constant. Answer: Diff: 1 Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills18) If variable costs increase, but price and fixed costs are held constant, the break-even point will decrease. Answer: Diff: 2 Page Ref: 11Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

19) Managers utilize spreadsheets to conduct their own analyses in management science studies. Answer: Diff: 2 Page Ref: 12Section Heading: Computer SolutionKeywords: spreadsheetsAACSB: Analytic skills

20) Management science techniques focus primarily on observation, model construction, and implementation to find an appropriate solution to a problem. Answer: Diff: 2 Page Ref: 15Section Heading: Management Science Modeling TechniquesKeywords: mgt science modeling techniques, steps of the scientific methodAACSB: Analytic skills

21) Management science modeling techniques focus on model construction and problem solution. Answer: Diff: 2 Page Ref: 15Section Heading: Management Science Modeling TechniquesKeywords: mgt science model techniques, model constr, prob solutionAACSB: Analytic skills

22) A typical objective function might be written as 3S + 2R + 5Z 20.Answer: Diff: 2 Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: objective functionAACSB: Analytic skills

23) Decision Support Systems (DSS) use computers to help decision makers address complex problems.Answer: Diff: 1 Page Ref: 20Section Heading: Management Science Models in Decision Support SystemsKeywords: decision making, management science24) In both an objective function and a constraint, the decision variables are represented by numbers.Answer: Diff: 1 Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: decision variablesAACSB: Analytic skills

25) Constraints usually appear as equations that are less than, equal to, or greater than a parameter.Answer: Diff: 1 Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: constraintsAACSB: Analytic skills

26) Enterprise Resource Planning (ERP) system is a data-oriented decision support system that utilizes specific management science solution procedures to solve individual problems such as cost-volume analysis. Answer: Diff: 1 Page Ref: 21Section Heading: Management Science Models in Decision Support SystemsKeywords: decision support systems

27) A key element of a decision support system (DSS) is the person using the system.Answer: Diff: 2 Page Ref: 20Section Heading: Management Science Models in Decision Support SystemsKeywords: decision support systemsAACSB: Analytic skills

28) Electronic data interchange (EDI) is a type of decision support system.Answer: Diff: 1 Page Ref: 21Section Heading: Management Science Models in Decision Support SystemsKeywords: decision support systemsAACSB: Analytic skills

29) A ________ is a symbol used to represent an item that can take on any value. Answer:

30) ________ are known, constant values that are coefficients of variables in equations. Answer:

31) ________ are pieces of information from the problem environment. Answer:

32) A ________ is a functional relationship including variables, parameters, and equations. Answer:

33) Management science techniques include ________ techniques, models that are represented as diagrams, presenting a pictorial representation of the system being analyzed. Answer:

34) An increase in output typically results in an increase in the ________ cost.Answer:

35) ________ techniques provide results that contain uncertainty, unlike mathematical programming techniques which are deterministic. Answer:

36) ________ costs are independent of the volume of goods produced and remain constant. Answer:

37) The difference between volume multiplied by price and the sum of fixed and variable costs is ________.Answer:

38) ________ depend on the number of items produced. Answer:

39) Total revenue minus total cost equals ________. Answer:

40) The ________ is the volume that equates total revenue with total cost. Answer:

41) A ________ represents a limitation to achieving maximum profits due to limited resources. Answer:

42) A ________ programming technique refers to a predetermined set of mathematical steps used to solve a problem. Answer:

43) One way to test how a management science model reacts to changes in its parameters is to conduct ________ analysis.Answer:

44) ________ consist of models that are represented as diagrams rather than as strictly mathematical techniques.Answer:

45) A management science technique that does not assume that all parameters are known with certainty is a(n) ________ technique.Answer:

46) A ________ is a computer-based system that helps decision-makers address complex problems that involve different parts of an organization and operations. Answer:

47) The relationship d = 5000 - 25p describes what happens to demand (d) as price (p) varies. Price can vary between $10 and $50. How many units can be sold when the price is $10? Answer:

48) Researchers at John H. Stroger, Jr. Hospital of Cook County used ________ to address the problem of healthcare-associated infections in hospitals.Answer

49) A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Write a mathematical expression for total cost. Answer:

50) A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Write a mathematical expression for total revenue. Answer:

51) A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Write a mathematical expression for total profit. Answer:

52) A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Find the break-even point. Answer:

53) A production process requires a fixed cost of $50,000 and the variable cost per unit is $25. The revenue per unit was projected to be $45, but a recent marketing study shows that because of an emerging competitor, the revenue will be about 12% lower. How does this affect the break-even point?Answer:

54) Administrators at a university will charge students $150 to attend a seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. How many students would have to register for the seminar for the university to break even? Answer:

55) Administrators at a university are planning to offer a summer seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. If we know that 20 people will attend, what price should be charged per person to break even? Answer:

56) Administrators at a university are planning to offer a summer seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. If 30 students pay $175 for the privilege of attending the seminar, how much of a profit (or loss) will be incurred? Answer

57) A newly opened bed-and-breakfast projects the following: Monthly fixed costs$8000 Variable cost per occupied room per night $40 Revenue per occupied room per night $165 Write the expression for total cost per month. Answer:

58) A newly opened bed-and-breakfast projects the following: Monthly fixed costs $8000 Variable cost per occupied room per night $40 Revenue per occupied room per night $165 Write the expression for total revenue per month. Answer: R(x) = 165x Diff: 2 Page Ref: 8Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

59) A newly opened bed-and-breakfast projects the following: Monthly fixed costs $8000 Variable cost per occupied room per night $40 Revenue per occupied room per night$165 How many rooms would have to be occupied per month in order to break even?Answer:

60) A script writer has received an advance against royalties of $10,000. The royalty rate is $2 for every performance in the U.S., and $3 for every performance outside the U.S. Define variables for this problem. Answer:

61) A business analyst describes his company's profit function as 3x2 + 6x - 200. If x is the output volume, what statements can you make about the price, fixed cost, and variable cost?Answer:

62) A script writer has received an advance against royalties of $10,000. The royalty rate is $2 for every performance in the U.S., and $3 for every performance outside the U.S. Write an expression that could be used to compute the number of performances in order to cover the advance. Answer:

63) Students are organizing a "Battle of the Bands" contest. They know that at least 100 people will attend. The rental fee for the hall is $150 and the winning band will receive $500. In order to guarantee that they break even, how much should they charge for each ticket? Answer:

64) A popular performer is scheduled to appear at a major city. The promoter is deciding between two venues, the larger of which costs $20,000 to rent and the smaller of which costs $12,000 to rent. Ticket prices for the smaller venue are $20, but the promoter is unsure what to charge per ticket for the larger venue. If exactly 1000 customers arrive, what percentage change in ticket prices would make the profit at the large venue identical to that of the smaller venue?Answer:

65) A manufacturer buys peas for vegetable pies from two cooperatives. The price per unit is $6 from cooperative A and $5.50 per unit from cooperative B. Define variables that would tell how many units to purchase from each source. Answer:

66) A manufacturer buys peas for vegetable pies from two cooperatives. The price per unit is $6 from cooperative A and $5.50 per unit from cooperative B. Develop an objective function that would minimize the total cost. Answer:

67) A manufacturer buys peas for vegetable pies from two cooperatives. The price per unit is $6 from cooperative A and $5.50 per unit from cooperative B. The manufacturer needs at least 12,000 units of peas. Cooperative A can supply up to 8000 units, and cooperative B can supply at least 6000 units. Develop constraints for these conditions. Answer:

68) A group of professors struggles to craft a set of assessment questions for their operations management intro class. They want to cover four topic areas with at least four questions each and have no more than twenty questions total for the assessment. What would a set of constraints look like if they chose an optimization approach to the assessment?Answer:

69) What are some different types of decision support systems?Answer:

70) A manager of the cereal bar at the college campus has determined that the profit made for each bowl of Morning Buzz cereal sold, x, is equal to: Z = $4x - 0.5x. Each bowl of Morning Buzz weighs 6 ounces, and the manager has 12 lbs (192 ounces) of cereal available each day, which can be written as the constraint, 6x 192. What maximum profit will be made from Morning Buzz if it is all sold in one day? Answer:

71) The College Coffee Caf buys tea from three suppliers. The price per pound is $15.00 from supplier A, $17.50 from supplier B, and $21.00 from supplier C. They have budgeted $175 to purchase the tea. The caf needs at least 12 pounds of tea, and supplier C can supply no more than 4 pounds. Develop constraints for these conditions. Answer:

72) The College Coffee Caf receives a profit of $1.25 for each cup of house tea that they sell, $1.40 for each cup of the premium brand, and $1.50 for each cup of their special blend. Develop an objective that maximizes profit. Answer:

73) The steps of the management science process are:A) problem definition, model construction, observation, model solution, implementation. B) observation, problem definition, model construction, model solution, implementation. C) model construction, problem definition, observation, model solution, implementation. D) observation, implementation, problem definition, model construction, model solution. Answer:

74) A model is a functional relationship that includes: A) variables.B) parameters.C) equations.D) all of the above Answer:

75) Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model? A) a decision variableB) an objective functionC) a constraintD) a parameterAnswer:

76) There is considerable overlap in the scientific method and management science techniques. Which of the following steps is shared between them?A) observationB) problem definitionC) model constructionD) implementationAnswer:

77) Which of the following is incorrect with respect to the use of models in decision making? A) They improve understanding of the problem.B) They promote subjectivity in decision making.C) They are generally easy to use.D) They provide a systematic approach to problem solving.Answer: Diff: 3 Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: model, problem solvingAACSB: Analytic skills78) The field of management science A) approaches decision making irrationally with techniques based on the scientific method.B) is another name for management or human resources management.C) concentrates on the use of quantitative methods to assist managers in decision making. D) is completely separate and distinct from all other disciplines.Answer: Diff: 1 Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: management science, operations researchAACSB: Analytic skills

79) The processes of problem observation A) cannot be done until alternatives are proposed.B) requires consideration of multiple criteria.C) is the first step of decision making.D) is the final step of problem solving.Answer: Diff: 1 Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: observation, problem observation, management science processAACSB: Analytic skills

80) The limits of the problem and the degree to which it pervades other units in the organization must be included during the ________ step of the management science process. A) observation B) definition C) solution D) implementation Answer:

81) ________ involves determining the functional relationship between variables, parameters, and equations.A) Problem observation B) Problem definition C) Model construction D) Model solution Answer: Diff: 1 Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: management science process, model constructionAACSB: Analytic skills

82) Which steps of the management science process can either be a recommended decision or information that helps a manager make a decision? A) model implementation B) problem definition C) model solution D) problem formulation Answer: Diff: 2 Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: management science process, model solutionAACSB: Analytic skills

83) The quantitative analysis approach requires A) mathematical expressions for the relationship.B) uncomplicated problems.C) the manager to have prior experience with similar problems.D) access to a computer.Answer: Diff: 2 Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: management science, operations research, quantitative analysisAACSB: Analytic skills

84) The earliest developments and use of management science techniques was in the field ofA) military operations.B) railroads.C) politics.D) manufacturing.Answer: Diff: 2 Page Ref: 5Section Heading: The Management Science Approach to Problem SolvingKeywords: management science, operations researchAACSB: Analytic skills85) The result of an effective decision making process should be monitored in order to A) reveal the break-even point.B) reveal errors in the implementation. C) keep fixed and variable costs distinct.D) change the scientific method.Answer: Diff: 2 Page Ref: 7Section Heading: The Management Science Approach to Problem SolvingKeywords: decision making processAACSB: Analytic skills

86) The management science process does not include A) feedback. B) implementation. C) subjective preference. D) information. Answer: Diff: 2 Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: management science processAACSB: Analytic skills

87) The indicator that results in total revenues being equal to total cost is called the A) marginal cost.B) marginal volume. C) break-even point. D) profit mix. Answer: Diff: 1 Page Ref: 7Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

88) Variable cost A) depends on the number of units produced. B) plus marginal cost equals fixed cost. C) is equal to total cost in deterministic models. D) is the same as average cost.Answer: Diff: 2 Page Ref: 7Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills89) The components of break-even analysis are A) cost and profit.B) volume and cost.C) volume, cost and profit.D) volume and profit. Answer: Diff: 1 Page Ref: 7Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

90) ________ are generally independent of the volume of units produced and sold. A) Fixed costs B) Variable costs C) Profits D) Average costAnswer: Diff: 1 Page Ref: 7Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

91) The purpose of break-even analysis is to determine the number of units of a product to sell that will A) appeal to the consumer.B) result in a profit.C) result in a loss.D) result in zero profit.Answer: Diff: 2 Page Ref: 7Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

92) Variable cost does not includeA) raw materials and resources. B) staff and management salaries.C) material handling and freight. D) direct labor and packaging. Answer: Diff: 2 Page Ref: 7Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills93) Which variable is not a component of break-even analysis? A) fixed costs B) variable costs C) number of employees D) number of customers Answer: Diff: 1 Page Ref: 7Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

94) At the break-even point,A) total revenue equals total cost.B) profit is maximized.C) revenue is maximized. D) costs are minimized.Answer: Diff: 1 Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

95) If the price increases, but fixed and variable costs do not change, the break-even point A) decreases. B) increases.C) remains the same.D) may increase or decrease, depending on sales.Answer: Diff: 2 Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

96) If the price decreases, but fixed and variable costs do not change, the break-even point A) decreases B) increasesC) remains the sameD) may increase or decrease, depending on salesAnswer: Diff: 2 Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills97) The term ________ refers to testing how a problem solution reacts to changes in one or more of the model parameters. A) graphical solution B) decision analysis C) sensitivity analysis D) break-even analysis Answer: Diff: 2 Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: sensitivity analysis, modeling processAACSB: Analytic skills

98) If fixed costs decrease, but variable cost and price remain the same, the break-even point A) decreases.B) increases. C) remains the same. D) may increase or decrease depending on sales.Answer: Diff: 2 Page Ref: 12Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

99) If fixed costs increase, but variable cost and price remain the same, the break-even point A) decreases.B) increases.C) remains the same. D) may increase or decrease depending on sales.Answer: Diff: 2 Page Ref: 12Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills100) EKA manufacturing company produces part #2206 for the aerospace industry. Each unit of part #2206 is sold for $15. The unit production cost of part #2206 is $3. The fixed monthly cost of operating the production facility is $3000. How many units of part #2206 have to be sold in a month to break even? A) 166.67 B) 200 C) 250 D) 500 Answer: Diff: 2 Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

101) EKA manufacturing company produces part #2206 for the aerospace industry. The unit production cost of part #2206 is $3. The fixed monthly cost of operating the production facility is $3000. Next month's demand for part #2206 is 200 units. How much should the company charge for each unit of part #2206 to break even? A) $12 B) $15 C) $18 D) $20 Answer: Diff: 2 Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

102) A bed-and-breakfast breaks even every month if they book 30 rooms over the course of a month. Their fixed cost is $6000 per month and the revenue they receive from each booked room is $180. What is their variable cost per occupied room?A) $130B) $140C) $148D) $160Answer: Diff: 3 Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills103) Administrators at a university will charge students $150 to attend a seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. How many students would have to register for the seminar for the university to break even? A) 18 B) 20 C) 24 D) 30 Answer: Diff: 2 Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

104) A university is planning a seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. If we know that 20 people will attend, what price should be charged per person to break even? A) $120 B) $150 C) $175 D) $200 Answer: Diff: 2 Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills

105) It costs $50,000 to start a production process. Variable cost is $25 per unit and revenue is $45 per unit. What is the break-even point?A) 1000 unitsB) 1111 unitsC) 2000 unitsD) 2500 unitsAnswer: Diff: 1 Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytic skills106) Which of the following statements is false? A) Decision models selectively describe the managerial situation. B) Decision models consider all factors from the real world. C) Decision models designate performance measures that reflect objectives. D) Decision models designate decision variables. Answer: Diff: 2 Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: models, decision models, modeling techniquesAACSB: Analytic skills

107) Decision support systems and sensitivity analysis are useful management science tools for answering the question:A) by when?B) who else?C) how much?D) what if?Answer: Diff: 2 Page Ref: 21Section Heading: Management Science Models in Decision Support SystemsKeywords: decision support systemsAACSB: Analytic skills

108) A difficult aspect of using spreadsheets to solve management science problems isA) obtaining the solution to standard management science problems.B) data entry. C) performing sensitivity analysis. D) setting up a spreadsheet with complex models and formulas. Answer: Diff: 2 Page Ref: 12Section Heading: Computer SolutionKeywords: computer solution, spreadsheetsAACSB: Analytic skills

109) A technique that assumes certainty in its solution is referred to asA) stochastic.B) probabilistic.C) deterministic.D) parametric.Answer: Diff: 2 Page Ref: 17Section Heading: Management Science Modeling TechniquesKeywords: modeling, models, modeling techniquesAACSB: Analytic skills110) Classification of management science techniques does not recognizeA) linear mathematical programming. B) probabilistic techniques. C) network techniques. D) computer programming.Answer: Diff: 1 Page Ref: 16Section Heading: Management Science Modeling TechniquesKeywords: management science techniques, classification of techniquesAACSB: Analytic skills

111) Linear mathematical programming techniques assume that all parameters in the models are A) known with certainty. B) unknown. C) predictable. D) unpredictable. Answer: Diff: 2 Page Ref: 16Section Heading: Management Science Modeling TechniquesKeywords: management science techniquesAACSB: Analytic skills

112) Decision analysis is a ________ technique. A) linear mathematical programming B) probabilistic C) network D) non-linear programming technique Answer: Diff: 1 Page Ref: 17Section Heading: Management Science Modeling TechniquesKeywords: management science techniquesAACSB: Analytic skills

113) Which one of the following techniques is not a mathematical programming technique? A) linear programming models B) transportation models C) analytical hierarchy process D) integer linear programming technique Answer: Diff: 2 Page Ref: 17Section Heading: Management Science Modeling TechniquesKeywords: management science techniquesAACSB: Analytic skills114) Which one of the following management science methods is not a probabilistic technique? A) assignment models B) decision analysis C) queuing analysis D) statistical analysis Answer: Diff: 2 Page Ref: 17Section Heading: Management Science Modeling TechniquesKeywords: management science techniquesAACSB: Analytic skills

115) A baker uses organic flour from a local farmer in all of his baked goods. For each batch of bread (x1), he uses 4 pounds of flour. For a batch of cookies (x2), he uses 3 pounds, and for a batch of muffins (x3) he uses 2 pounds. The local farmer can supply him with no more than 24 pounds per week. The constraint that represents this condition is: A) x1 8, x2 8, x3 8 B) x1 + x2 + x3 24 C) x1 + x2 + x3 24 D) 4x1 + 3x2 + 2x3 24 Answer: Diff: 3 Page Ref: 16Section Heading: Management Science Modeling TechniquesKeywords: constraintsAACSB: Analytic skills

116) An objective function A) shows where the break-even point is.B) describes how much of a resource can be used.C) can represent costs or profits. D) describes something to be maximized.Answer: Diff: 2 Page Ref: 16Section Heading: Management Science Modeling TechniquesKeywords: objective function, model constructionAACSB: Analytic skills

117) Larry's Fish Market buys salmon (S) for $5 per pound and a local whitefish (W) for $3.50 per pound. Larry wants to minimize his cost, but he cannot spend more than $160. The objective function that minimizes these costs for Larry is: A) 5S + 3.5W 160 B) Min 5S + 3.5 W C) Max 5S + 3.5 W D) Min 5S + 3.5W 160 Answer: Diff: 3 Page Ref: 4Section Heading: Management Science Modeling TechniquesKeywords: objective function, model constructionAACSB: Analytic skills

118) It's time to buy pet food again and Lisa heads to the grocery store with $40 in her purse, leaving her seven hungry cats and four hungry dogs at home. Dog food costs $1 per can and cat food costs $0.50 per can. Dogs eat two full cans of food each day but cats eat only one can. Lisa would like to buy enough food to last through her three-day weekend. What is an appropriate objective function for this scenario?A) Min Z = 1D + 0.5CB) Min Z = 2D + 1CC) Min Z = D + C 40D) Min Z = D + C 3Answer: Diff: 3 Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: objective functionAACSB: Analytic skills

119) It's time to buy pet food again and Lisa heads to the grocery store with $40 in her purse, leaving her seven hungry cats and four hungry dogs at home. Dog food costs $1 per can and cat food costs $0.50 per can. Dogs eat two full cans of food each day but cats eat only one can. Lisa would like to buy enough food to last through her three-day weekend. What is one appropriate constraint for this scenario?A) 7C + 4D 3B) 1C + 2D 40C) .5C + 1D 40D) 7C + 4D 1.5Answer: Diff: 3 Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: constraintsAACSB: Analytic skills

120) Marriott used which of the following management science techniques to help improve profit by $120 million over two years?A) optimization, decision analysis, and forecastingB) forecasting, queuing theory, and inventory analysisC) queuing theory, optimization, and inventory analysisD) forecasting, simulation, and optimizationAnswer: Diff: 3 Page Ref: 6Section Heading: Management Science Modeling TechniquesKeywords: management science, management scientistAACSB: Analytic skills

121) Which of these decision support systems is the most comprehensive with respect to an entire organization?A) an Excel spreadsheetB) an ERPC) QM for WindowsD) OLAPAnswer: Diff: 2 Page Ref: 20Section Heading: Management Science Models in Decision Support SystemsKeywords: decision support systemsAACSB: Analytic skills

Introduction to Management Science, 11e (Taylor)Chapter 11 Probability and Statistics

1) Deterministic techniques assume that no uncertainty exists in model parameters. Answer: Diff: 1 Page Ref: 503Section Heading: Types of ProbabilityKeywords: deterministic techniques

2) Probabilistic techniques assume that no uncertainty exists in model parameters. Answer: Diff: 1 Page Ref: 503Section Heading: Types of ProbabilityKeywords: probabilistic techniques

3) Objective probabilities that can be stated prior to the occurrence of an event are classical or a priori. Answer: Diff: 2 Page Ref: 503Section Heading: Types of ProbabilityKeywords: objective probabilities, classical probabilities

4) Objective probabilities that are stated after the outcomes of an event have been observed are relative frequencies. Answer: Diff: 2 Page Ref: 503Section Heading: Types of ProbabilityKeywords: relative frequencies

5) Relative frequency is the more widely used definition of objective probability. Answer: Diff: 1 Page Ref: 504Section Heading: Types of ProbabilityKeywords: relative frequencies

6) Subjective probability is an estimate based on personal belief, experience, or knowledge of a situation. Answer: Diff: 2 Page Ref: 504Section Heading: Types of ProbabilityKeywords: subjective probability7) An experiment is an activity that results in one of several possible outcomes. Answer: Diff: 1 Page Ref: 505Section Heading: Fundamentals of ProbabilityKeywords: experiment

8) The events in an experiment are mutually exclusive if only one can occur at a time. Answer: Diff: 1 Page Ref: 505Section Heading: Fundamentals of ProbabilityKeywords: mutually exclusive events

9) In a given experiment, the probabilities of all mutually exclusive events sum to one. Answer: Diff: 1 Page Ref: 505Section Heading: Fundamentals of ProbabilityKeywords: mutually exclusive events, rules of probability

10) A set of events is collectively exhaustive when it includes all the events that can occur in an experiment. Answer: Diff: 2 Page Ref: 506Section Heading: Fundamentals of ProbabilityKeywords: collectively exhaustive events

11) A marginal probability is the probability of a single event occurring. Answer: Diff: 1 Page Ref: 506Section Heading: Fundamentals of ProbabilityKeywords: marginal probability

12) A Venn diagram visually displays mutually exclusive and non-mutually exclusive events. Answer: Diff: 2 Page Ref: 506Section Heading: Fundamentals of ProbabilityKeywords: Venn diagram

13) A joint probability is the probability that two or more events that are mutually exclusive can occur simultaneously. Answer: Diff: 2 Page Ref: 506Section Heading: Fundamentals of ProbabilityKeywords: joint probability14) A conditional probability is the probability that an event occurs given that another event has already occurred. Answer: Diff: 1 Page Ref: 508Section Heading: Statistical Independence and DependenceKeywords: conditional probability

15) Conditional probabilities are shown in Venn diagrams. Answer: Diff: 1 Page Ref: 506Section Heading: Fundamentals of ProbabilityKeywords: conditional probability

16) Probability trees are used only to compute conditional probabilities. Answer: Diff: 2 Page Ref: 509Section Heading: Statistical Independence and DependenceKeywords: probability tree, conditional probability

17) A succession of events that does not affect other events is independent. Answer: Diff: 1 Page Ref: 508Section Heading: Statistical Independence and DependenceKeywords: independence

18) A binomial probability distribution indicates the probability of r successes in n trials. Answer: Diff: 2 Page Ref: 510Section Heading: Statistical Independence and DependenceKeywords: binomial probability distributionAACSB: Analytic skills

19) A continuous random variable may assume only integer values within a given interval. Answer: Diff: 1 Page Ref: 517Section Heading: The Normal DistributionKeywords: continuous random variablesAACSB: Analytic skills

20) Seventy-two percent of all observations fall within one standard deviation of the mean if the data is normally distributed. Answer: Diff: 1 Page Ref: 519Section Heading: The Normal DistributionKeywords: normal distributionAACSB: Analytic skills21) Another name for the mean of a probability distribution is its expected value.Answer: Diff: 1 Page Ref: 516Section Heading: Expected ValueKeywords: expected valueAACSB: Analytic skills

22) The expected value of a discrete random variable is greater than or equal to zero.Answer: Diff: 1 Page Ref: 516Section Heading: Expected ValueKeywords: expected value

23) The variance of a discrete random variable is always greater than or equal to zero.Answer: Diff: 1 Page Ref: 516Section Heading: Expected ValueKeywords: expected value

24) The expected value of a random variable is computed by multiplying the sum of each possible value of the variable by the probability of that random variable.Answer: Diff: 1 Page Ref: 516Section Heading: Expected ValueKeywords: expected valueAACSB: Analytic skills

25) The variance of a random variable is computed by multiplying each possible value of the variable by its probability and summing these products.Answer: Diff: 1 Page Ref: 516Section Heading: Expected ValueKeywords: varianceAACSB: Analytic skills

26) For a typical normally distributed random variable, the standard deviation is equal to the variance.Answer: Diff: 1 Page Ref: 518Section Heading: The Normal DistributionKeywords: normal distribution27) A normally distributed random variable has a mean of zero and a standard deviation of one.Answer: Diff: 1 Page Ref: 517-518Section Heading: The Normal DistributionKeywords: normal distribution

28) The standard normal distribution has a mean of one and a standard deviation of zero.Answer: Diff: 1 Page Ref: 519Section Heading: The Normal DistributionKeywords: standard normal distribution

29) The area under the normal curve represents probability.Answer: Diff: 1 Page Ref: 518Section Heading: The Normal DistributionKeywords: norm distrib, probability calculations with normal distribution

30) There is just as great a chance of a normally distributed random variable being over one standard deviation above the mean as there is being one standard deviation below the mean.Answer: Diff: 1 Page Ref: 518Section Heading: The Normal DistributionKeywords: norm distrib, probability calculations with normal distributionAACSB: Analytic skills

31) An inspector correctly identifies defective products 90% of the time. For the next 10 products, the probability that he makes fewer than two incorrect inspections is 0.736.Answer: Diff: 2 Page Ref: 510Section Heading: Statistical Independence and DependenceKeywords: binomial distributionAACSB: Analytic skills

32) In Bayesian analysis, additional information is used to alter the conditional probability of the occurence of an event.Answer: Diff: 1 Page Ref: 514Section Heading: Statistical Independence and DependenceKeywords: conditional probability

33) Objective probabilities that can be stated prior to the occurrence of an event are ________. Answer: lassical or a priori Diff: 1 Page Ref: 503Section Heading: Types of ProbabilityKeywords: probabilistic techniques, objective/classical probabilities34) ________ probability is an estimate based on a personal belief, experience, and knowledge of a situation. Answer:

35) The events in an experiment are ________ if only one can occur at a time. Answer:

36) The term for including all possible events that can occur in an experiment is ________.Answer:

37) The cumulative probability for all six outcomes of tossing a fair die should end with the value ________.Answer:

38) The fact that the first toss of a coin has no effect on the outcome of the second toss of the coin suggests that these events are ________.Answer:

39) The collectively exhaustive set of events for flipping a coin is ________.Answer:

40) A ________ organizes numerical data to describe the events of an experiment. Answer:

41) A Venn diagram depicting two circles that do not overlap or touch in any way represents events that are ________.Answer:

42) A ________ is the probability of occurence of a single event. Answer:

43) ________ can enable one to improve marginal probabilities of the occurrence of an event by gathering additional information. Answer:

44) A succession of events that do not affect each other are ________. Answer:

45) A ________ probability is the probability that an event will occur given that another event has already occurred. Answer:

46) In a binomial distribution process, there are ________ possible outcomes. Answer

47) One of the properties of the ________ distribution is that the probability of success remains constant over time. Answer:

48) Altered marginal probability of an event based on additional information is a ________ probability. Answer:

49) The ________ of a random variable is computed by multiplying each possible value of the variable by its probability and summing these products. Answer:

50) If events A and B are independent, then P(AB) = ________.Answer:

51) If events A and B are independent, then P(A|B) = ________.Answer:

52) If two events A and B are not mutually exclusive, then P(A or B) = ________.Answer:

53) ________ is a measure of dispersion of random variable values about the expected value. Answer:

54) A continuous random variable can take on a(n) ________ number of values within a given interval. Answer:

55) The ________ test is a statistical test to see if an observed data fit a particular probability distribution. Answer:

56) The ________ normal distribution has a mean of 0 and a standard deviation of 1. Answer:

57) Almost all of the data from a normal distribution fall within ________ standard deviations of the mean.Answer:

58) The expected value of the standard normal distribution is equal to ________. Answer:

59) The standard deviation of the standard normal distribution is equal to ________. Answer: Jim is considering pursuing an MS in Information Systems degree. He has applied to two different universities. The acceptance rate for applicants with similar qualifications is 20% for University X and 45% for University Y.

60) What is the probability that Jim will be accepted at both universities? Answer

61) What is the probability that Jim will not be accepted at either university? Answer:

62) What is the probability that Jim will be accepted by at least one of the two universities? Answer:

Employees of a local company are classified according to gender and job type. The following table summarizes the number of people in each job category.

Male (M)Female (F) Job Administrative (AD)11010Salaried staff (SS)3050Hourly staff (HS)6040

63) If an employee is selected at random, what is the probability that the employee is male? Answer:

64) If an employee is selected at random, what is the probability that the employee is male and salaried staff? Answer:

65) If an employee is selected at random, what is the probability that the employee is female given that the employee is a salaried staff member? Answer:

66) If an employee is selected at random, what is the probability that the employee is female or works as a member of the administration Answer:

The Dean's Office keeps tracks of student complaints received each week. The probability distribution for complaints can be represented as a table as shown below. The random variable xi represents the number of complaints, and p(xi) is the probability of receiving xi complaints.

0123456

p().10.15.18.20.20.10.07

67) What is the probability that they receive less than 3 complaints in a week? Answer:

68) What is the average number of complaints received per week? Answer:

69) A fair die is rolled nine times. What is the probability that an odd number (1, 3, or 5) will occur less than 3 times? Answer:

70) A fair die is rolled 8 times. What is the probability that an even number (2, 4, or 6) will occur between 2 and 4 times? Answer

A company markets educational software products, and is ready to place three new products on the market. Past experience has shown that for this particular software, the chance of "success" is 80%. Assume that the probability of success is independent for each product.

71) Find the probability that exactly 1 of the 3 products is successful. Answer:

72) Find the probability that none of the 3 products is successful. Answer:

73) If X has the following probability distribution

X 1 2 3 4P(X) .1 .5 .2.2

Compute the expected value of X. Answer:

74) Assume X has the following probability distribution :

X 1 2 3 4P(X) .1 .5 .2.2

Compute the standard deviation of X. Answer:

75) If x is normally distributed with a mean of 10 and a standard deviation of 3, then P(x 6) is equal to P( Z _____)? Answer:

76) For a standard normal distribution, what is the probability that z is greater than 1.75? Answer

Two psychology majors, in two different sections of Clinical Psychology, were comparing test scores. The following gives the students' scores, class mean, and standard deviation for each section:

Section 1Section 2 Student score 8475 Mean7560 Standard deviation78

77) What is the z-score of the student from section 1 and what is the probability that a student in section 1 will score higher than 84? Answer:

78) What is the z-score of the student from section 2 and what is the probability that a student in section 2 will score higher than 75? Answer:

79) Which student scored better compared to the rest of their section? Answer:

80) The weight of a loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a loaf is larger than 21 oz? Answer:

81) The weight of a loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a loaf of bread is larger than 23 oz? Answer:

82) The weight of a loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a loaf is less than 24 oz? Answer:

83) The weight of a loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a loaf is between 20.75 and 23.25 oz? Answer:

84) The weight of a loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a loaf is between 21.75 and 22.25 oz? Answer:

85) The weight of a loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a loaf is more than 24 oz? Answer:

86) The weight of a loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a loaf is more than 22.25 oz? Answer:

87) A life insurance company wants to estimate its annual payouts. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 4 years. What proportion of the plan recipients would receive payments beyond age 75?Answer:

88) A life insurance company wants to estimate its annual payouts. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 4 years. What proportion of the participants die before they reach the age of 65?Answer:

89) A life insurance company wants to estimate its annual payouts. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 4 years. By what age have 80% of the plan participants passed away?Answer:

90) For the normal distribution, the mean plus and minus 1.96 standard deviations will include what percent of the observations? Answer:

91) What is the area under the normal curve for Z 1.79? Answer:

92) A study of a company's practice regarding the payment of invoices revealed that on the average an invoice was paid 20 days after it was received. The standard deviation equaled 5 days. Assuming that the distribution is normal, what percent of the invoices is paid within 15 days of receipt? Answer:

93) The owner of a seafood market determined that the average weight for a crab is 1.6 pounds with a standard deviation of 0.4 pound. Assuming the weights of the crabs are normally distributed, what is the probability that a randomly selected crab will weigh more than 2.2 pounds?Answer:

94) The owner of a seafood market determined that the average weight for a crab is 1.6 pounds with a standard deviation of 0.4 pound. Assuming the weights of crabs are normally distributed, what is the probability that a randomly selected crab will weigh between 1 and 2 pounds?Answer:

95) The owner of a seafood market determined that the average weight for a crab is 1.6 pounds with a standard deviation of 0.4 pound. Assuming the weights of crabs are normally distributed, the probability that a randomly selected crab will weigh less than 1.2 pounds is ________.Answer:

96) A research scientist has observed the monkeys of the Nandi Hills outside of Bangalore for the last twenty years, carefully cataloging their preferences for a number of food items. An unsuspecting tourist leaves his can of soda unattended. Describe the type of probability the research scientist can assign to the likelihood that the soda will become the monkey's next meal. Then contrast this type of probability with the other of the two basic types.Answer:

97) What are the differences between deterministic and probabilistic techniques?Answer:

Horatio Oscar Vineeth Lane (HOV Lane for short) records his commute times for a period of one month and assigned them to five different categories as shown in the table.

Commute LengthNumber of Observations

commute time