Multiplying each decision outcome under each state of nature by the probability of its occurrence

Question 1.1.The events in an experiment are ________ if only one can occur at a time. (Points : 5)

mutually exclusive

non-mutually exclusive

mutually inclusive

independent

Question 2.2.A single-channel queuing system has an average service time of 8 minutes and an average time between arrivals of 10 minutes. What is the hourly arrival rate? (Points : 5)

Question 3.3.The ________ is computed by multiplying each decision outcome under each state of nature by the probability of its occurrence. (Points : 5)

expected value

expected value of perfect information

expected opportunity loss

none of the above

Question 4.4.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.

Job	Male (M)	Female (F)
Administrative (AD)	110	10
Salaried staff (SS)	30	50
Hourly staff (HS)	60	40

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? (Points : 5)

.50

.60

.625 è 50/80 = 0.625

.70

Question 5.5.The manager of the Quick Stop Corner convenience store (which is open 360 days per year) sells four cases of Stein soda each day (1440 cases per year). Order costs are $8.00 per order. The lead time for an order is three days. Annual holding costs are equal to $57.60 per case. If the manager orders 16 cases each time she places an order, what is the average inventory level? (Points : 5)

4 cases

8 cases

12 cases

20 cases

Question 6.6.The maximin approach to decision making refers to: (Points : 5)

minimizing the maximum return.

maximizing the minimum return.

maximizing the maximum return.

minimizing the minimum return.

Question 7.7.In the basic EOQ model, if D=60 per month, C_o=$12, and C_c=$10 per unit per month, what is the EOQ? (Points : 5)

Question 8.8.________ is a category of statistical techniques that uses historical data to predict future behavior. (Points : 5)

Qualitative methods

Regression

Time series

Quantitative methods

Question 9.9.________ is a measure of the dispersion of random variable values about the expected value or mean. (Points : 5)

Standard deviation

Sample mean

Population mean

Expected value

Question 10.10.In an EOQ model, as the carrying cost increases, the order quantity: (Points : 5)

increases.

decreases.

remains the same.

cannot be determined.

Question 11.11.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? (Points : 5)

$120

$150

$175

$200

Question 12.12.A small entrepreneurial company is trying to decide between developing two different products that they believe they can sell to two potential companies, one large and one small. If they develop Product A, they have a 50% chance of selling it to the large company with annual purchases of about 20,000 units. If the large company won’t purchase it, then they think they have an 80% chance of placing it with a smaller company, with sales of 15,000 units. On the other hand if they develop Product B, they feel they have a 40% chance of selling it to the large company, resulting in annual sales of about 17,000 units. If the large company doesn’t buy it, they have a 50% chance of selling it to the small company with sales of 20,000 units. What is the probability that Product A will being purchased by the smaller company? (Points : 5)

0.3

0.4

0.5

0.8

Question 13.13.A difficult aspect of using spreadsheets to solve management science problems is: (Points : 5)

obtaining the solution to standard management science problems.

data entry.

performing sensitivity analysis.

setting up a spreadsheet with complex models and formulas.

Question 14.14.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. (Points : 5)

observation

definition

solution

implementation

Question 15.15.Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model? (Points : 5)

Decision variable

Objective function

Constraint

Parameter

Question 16.16.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? (Points : 5)

Question 17.17.A single-server queuing system has average time between arrivals of 20 minutes and a service time of 10 minutes each. Assuming Poisson arrivals and exponential service times, the utilization factor is approximately _____. (Points : 5)

0.25

0.33

0.50

2.0

Question 18.18.________ is a linear regression model relating demand to time. (Points : 5)

Linear trend

Linear regression

Forecast demand

Linear equation

Question 19.19.A ________ probability is the probability that an event will occur given that another event has already occurred. (Points : 5)

posterior

conditional

marginal

low

Question 20.20.Bayesian analysis involves a(n) ________ probability. (Points : 5)

a priori

posterior

joint

relative frequency