Reference no: EM131497268

1. Which theory concerns making sound decisions under conditions of certainity, risk and uncertainty

Game Theory
Network Analysis
Decision Theory
Linear Programming

2. Every LPP is associated with another LPP is called _____________

Primal
Dual
Non Linear Programming
None of the above

3. A BFS of a LPP is said to be _____________ if at least one of the basic variable is zero

Degenerate
Optimal
Infeasible
Unbounded

4. In simplex method, if there is tie between a decision variable and a slack (or surplus) variable, ________________ should be selected

Slack variable
Surplus variable
Decision variable
None of the above

Use the following Information to answer Questions 5 through 11.

"A manufacturer produces two types of plastic cladding. These have the trade names Ankalor and Beslite. One yard of Ankalor requires 8 lb of polyamine, 2.5 lb of diurethane and 2 lb of monomer. A yard of Beslite needs 10 lb of polyamine, 1 lb of diurethane, and 4 lb of monomer. The company has in stock 80,000 lb of polyamine, 20,000 lb of diurethane, and 30,000 lb of monomer. Both plastics can be produced by alternate parameter settings of the production plant, which is able to produce sheeting at the rate of 12 yards per hour. A total of 750 production plant hours are available for the next planning period. The contribution to profit on Ankalor is $10/yard and on Beslite is $20/yard.

The company has a contract to deliver at least 3,000 yards of Ankalor. What production plan should be implemented in order to maximize the contribution to the firm's profit from this product division."

5. How many yards of Beslite should be manufactured?

3000 yards
1600 yards
5600 yards
400 yards

6. How much of the available diurethane will be used?

6900 pounds
1600 pounds
13100 pounds
400 pounds
Other:

7. How much of the available diurethane will be unused?

6900 pounds
1600 pounds
13100 pounds
400 pounds

8. Suppose that the company can purchase 2000 pounds of additional polyamine for $2.50 per pound. Should they make the purchase?

Yes
No
Can not be answered using the information given

9. Regardless of your answer in (8), suppose that they do purchase 2000 pounds of additional polyamine. This is equivalent to_____

decreasing the slack in row 2 by 2000
increasing the surplus in row 2 by 2000
increasing the slack in row 2 by 2000
decreasing the surplus in row 2 by 2000
none of the above

10. If the company purchases 2000 pounds of additional polyamine, what is the total amount of Beslite that theyshould deliver? (Choose nearest value?)

5500 yards
5600 yards
5700 yards
5800 yards
5900 yards

11. How will the decision to purchase 2000 pounds of additional polyamine change the quantity of diurethane usedduring the next planning period?

increase by 100 pounds
decrease by 100 pounds
increase by 200 pounds
decrease by 200 pounds
none of the above

12. The study of how changes in the coefficients of a linear programming problem affect the optimal solution is __________

Graph Theory
Decision Analysis
Monte Carlo Simulation
Sensitivity Analysis

13. A network flow problem that often involves the assignment of agents to tasks; it can be formulated as a linear program and is a special case of the transportation problem.

Assignment problem
Shortest route
Maximal flow
None of the above

14. An extension of the transportation problem to distribution problems involving transfer points and possible shipments between any pair of nodes.

Assignment problem
Transshipment problem
Shortest Route Problem
None of the above

15. A graphical representation of a problem consisting of numbered circles (nodes) interconnected by a series of lines (arcs); arrowheads on the arcs show the direction of flow.

Arc
Node
Network
None of the above

16. The queue discipline that serves waiting units on a first-come, first-served basis.

FIFO
LIFO
Appointment
Random

Use the following Information to answer Questions 17 through 21 .
Movies Tonight is a typical video and DVD movie rental outlet for home viewing customers. During the weeknight evenings, customers arrive at Movies Tonight with an arrival rate of 1.25 customers per minute. The checkout clerk has a service rate of 2 customers per minute. Assume Poisson arrivals and exponential service times.

17. What is the probability that no customers are in the system?

0.625
0.375
0.125
0.8333
Other:

18. What is the average number of customers waiting for service?

1.041667
1.6667
2
1.3333

19. What is the average time a customer waits for service to begin?

1.3333
0.8333
0.375
0.625

20. What is the probability that an arriving customer will have to wait for service?

0.375
0.625
0.8333
0.6667

21. Do the operating characteristics indicate that the one-clerk checkout system provides an acceptable level of service?

Yes
No
Insufficient Information

22. The possible outcomes for chance events that affect the payoff associated with a decision alternative are called

States of nature
Decision Variables
Probability events
none of the above

23. A tabular representation of the payoffs for a decision problem.

Contigency Table
Payoff Table
Simplex table
None of the above
Other:

Use the following sequential decision tree to answer question 24

24. Determine which is the optimal investment

Investment A with Expected payoff of 724000
Investment A with Expected payoff of 1224000
Investment B with Expected payoff of 724000
Investment B with Expected payoff of 23300

25. The management of First American Bank was concerned about the potential loss that might occur in the event of a physical catastrophe such as a power failure or a fire. The bank estimated that the loss from one of these incidents could be as much as $100 million, including losses due to interrupted service and customer relations. One project the bank is considering is the installation of an emergency power generator at its operations headquarters. The cost of the emergency generator is $800,000, and if it is installed, no losses from this type of incident will be incurred. However, if the generator is not installed, there is a 10% chance that a power outage will occur during the next year. If there is an outage, there is a .05 probability that the resulting losses will be very large, or approximately $80 million in lost earnings.Alternatively, it is estimated that there is a .95 probability of only slight losses of around$1 million. Using decision tree analysis, determine best option for the bank.

bank should install the new power generator.
bank should not install the new power generator.
The expected loss is the same

26. Fenton and Farrah Friendly, husband-and-wife car dealers, are soon going to open a new dealership.They have three offers: from a foreign compact car company, from a U.S.- producer of full-sized cars, and from a truck company. The success of each type of dealership will depend on how much gasoline is going to be available during the next few years. The profit from each type of dealership, given the availability of gas, is shown in the following payoff table below. Determine which type of dealership the couple should purchase.

Compact Cars
Full Sized Cars
Trucks
None of the above

Use the information below to answer questions 27 through to 30
The Oakland Bombers professional basketball team just missed making the playoffs last season and believes it needs to sign only one very good free agent to make the playoffs next season.
The team is considering four players: Barry Byrd, Rayneal O'Neil, Marvin Johnson, and Michael Gordan. Each player differs according to position, ability, and attractiveness to fans.
The payoffs (in $1,000,000s) to the team for each player, based on the contract, profits from attendance, and team product sales for several different season outcomes, are provided in the following table:

27. Determine the best decision, using the maximax decision criteria.

Byrd
O'Neil
Johnson
Gordon

28. Determine the best decision, using the minimax decision criteria

Byrd
O'Neil
Johnson
Gordon

29. Determine the best decision, using the minimax regret decision criteria

Byrd
O'Neil
Johnson
Gordon

30. Determine the best decision, using the Equal likelihood decision criteria

Byrd
O'Neil
Johnson
Gordon

Use the information below to answer questions 31 through to 33

The local Burger Doodle fast-food restaurant has a drive-through window. Customers in cars arrive at the window at the rate of 220 per hour (Poisson distributed). It requires an average of 4 minutes (exponentially distributed) to take and fill an order. The restaurant chain has a service goal of an average waiting time of 3 minutes.

31. Will the current system meet the restaurant's service goal?

Yes
No

32. If the restaurant is not meeting its service goal, it can add a second drive-through window that will reduce the service time per customer to 2.5 minutes. Will the additional window enable the restaurant to meet its service goal?

The Restaurant meets the required goals
Yes a second drive through window will enable the goal to be met
No a second window will still not cut it

33. During the 2-hour lunch period, the arrival rate of drive-in customers increases to 250 per hour. Will the two-window system be able to achieve the restaurant's service goal during this rush period?

Yes
No

Use the information below to answer questions 34 through to 37
The Acme Machine Shop has five machines that periodically break down and require service. The average time between breakdowns is 4 days, distributed according to an exponential distribution. The average time to repair a machine is 1 day, distributed according to an exponential distribution. One mechanic repairs the machines in the order in which they break down.

34. Determine the probability that the mechanic is idle.

0.25
0.75
0.333
0.08333

35. Determine the mean number of machines waiting to be repaired.

0.25
2
1
0.08333

36. Determine the mean time machines wait to be repaired.

0.083333
0.3333
0.0117
1

37. Determine the probability that three machines are not operating (are being repaired or waiting to be repaired).

0.083
0.333
0.25
0.0117

38. Consider the following problem with 2 factories and 3 warehouses: Is this balanced transportation problem?

Yes it is
No it is not
insufficient Information

39. Oranges are grown, picked, and then stored in warehouses in Tampa, Miami, and Fresno. These warehouses supply oranges to markets in New York, Philadelphia, Chicago, and Boston. The table below shows the shipping costs per truckload (in hundreds of dollars), supply, and demand.m Because of an agreement between distributors, shipments are prohibited from Miami to Chicago as shown in the table below. Solve this problem using a linear programming solver or software package.

Z = 4500
Z = 4000
Z = 8000
Z = 20000
Z = 2680