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Question 1

5 out of 5 points


Fractional relationships between variables are not permitted in the standard form
of a linear program.

Answer

Selected Answer: True
Correct Answer: True

Question 2
5 out of 5 points


In a 0-1 integer programming problem involving a capital budgeting application
(where xj = 1, if project j is selected, xj = 0, otherwise) the constraint x1 x2 0
implies that if project 2 is selected, project 1 cannot be selected.

Answer

Selected Answer: False
Correct Answer: False

Question 3
5 out of 5 points


In an unbalanced transportation model, supply does not equal demand and one set
of constraints uses signs.

Answer

Selected Answer: True
Correct Answer: True

Question 4
5 out of 5 points


In a transshipment problem, items may be transported from destination to
destination and from source to source.

Answer

Selected Answer: True
Correct Answer: True

Question 5
5 out of 5 points


If we are solving a 0-1 integer programming problem, the constraint x1 = x2 is a
conditional constraint.


Answer
Selected Answer: False
Correct Answer: False

Question 6
5 out of 5 points


Validation of a simulation model occurs when the true steady state average
results have been reached.

Answer

Selected Answer: True
Correct Answer: True

Question 7
5 out of 5 points


In a break-even model, if all of the costs are held constant, how does an increase
in price affect the model?
Answer

Selected Answer:
Breakeven point decreases
Correct Answer:
Breakeven point decreases

Question 8
5 out of 5 points


An equation or inequality that expresses a resource restriction in a mathematical
model is called _____________________.
Answer

Selected Answer:
a constraint.

Correct Answer:
a constraint.


Question 9
5 out of 5 points


Using the maximin criterion to make a decision, you
Answer

Selected
Answer:
Look at the worst payoff for each possible decision and select the
decision with the largest worst payoff
Correct
Answer:

Look at the worst payoff for each possible decision and select the
decision with the largest worst payoff
Question 10
5 out of 5 points


The probability of observing x
successes in a fixed number of trials is a problem related to
Answer

Selected Answer:
the binomial distribution
Correct Answer:
the binomial distribution

Question 11
5 out of 5 points


In linear programming problems, multiple optimal solutions occur
Answer

Selected Answer:
when the objective function is parallel to a constraint line
Correct Answer:
when the objective function is parallel to a constraint line

Question 12
5 out of 5 points


Steinmetz furniture buys 2 products for resale: big shelves (B) and medium
shelves (M). Each big shelf costs $100 and requires 100 cubic feet of storage
space, and each medium shelf costs $50 and requires 80 cubic feet of storage
space. The company has $25000 to invest in shelves this week, and the
warehouse has 18000 cubic feet available for storage. Profit for each big shelf is
$85 and for each medium shelf is $75. What is the storage space constraint?
Answer

Selected Answer:
100B + 80M 18000
Correct Answer:
100B + 80M 18000

Question 13
5 out of 5 points


Steinmetz furniture buys 2 products for resale: big shelves (B) and medium
shelves (M). Each big shelf costs $100 and requires 100 cubic feet of storage
space, and each medium shelf costs $50 and requires 80 cubic feet of storage
space. The company has $25000 to invest in shelves this week, and the
warehouse has 18000 cubic feet available for storage. Profit for each big shelf is
$85 and for each medium shelf is $75. What is the objective function?
Answer

Selected Answer:
Max Z = 85B + 75M
Correct Answer:
Max Z = 85B + 75M

Question 14
5 out of 5 points


The following is an Excel Answer and Sensitivity reports of a linear
programming problem:

The Answer Report:


The Sensitivity Report:


Which additional resources would you recommend to be increased?
Answer

Selected Answer:
kiln
Correct Answer:
kiln

Question 15
5 out of 5 points


For a maximization problem, assume that a constraint is binding. If the original
amount of a resource is 4 lbs., and the range of feasibility (sensitivity range) for
this constraint is from 3 lbs. to 6 lbs., increasing the amount of this resource by 1
lb. will result in the:
Answer

Selected Answer:
same product mix, different total profit
Correct Answer:

same product mix, different total profit
Question 16
5 out of 5 points


Let xij = gallons of component i used in gasoline j. Assume that we have two
components and two types of gasoline. There are 8,000 gallons of component 1
available, and the demands for gasoline types 1 and 2 are 11,000 and 14,000
gallons respectively. Write the supply constraint for component 1.
Answer

Selected Answer:
x11 + x12 8000
Correct Answer:
x11 + x12 8000

Question 17
5 out of 5 points


In a portfolio problem, X1, X2, and X3 represent the number of shares purchased
of stocks 1, 2, an 3 which have selling prices of $15, $47.25, and $110,
respectively. The investor has up to $50,000 to invest. The investor stipulates
that stock 1 must not account for more than 35% of the number of shares
purchased. Which constraint is correct?
Answer

Selected Answer:
X1 0.35(X1 + X2 + X3)
Correct Answer:
X1 0.35(X1 + X2 + X3)

Question 18
5 out of 5 points


In a capital budgeting problem, if either project 1 or project 2 is selected, then
project 5 cannot be selected. Which of the alternatives listed below correctly
models this situation?
Answer

Selected Answer:
x1 + x5 1, x2 + x5 1
Correct Answer:
x1 + x5 1, x2 + x5 1

Question 19
5 out of 5 points


The Kirschner Company has a contract to produce garden hoses for a customer.
Kirschner has 5 different machines that can produce this kind of hose. Write a
constraint to ensure that if machine 4 is used, machine 1 will not be used.
Answer

Selected Answer:
Y
1
+ Y
4
1
Correct Answer:
Y
1
+ Y
4
1

Question 20
5 out of 5 points


The following table represents the cost to ship from Distribution Center 1, 2, or 3
to Customer A, B, or C.



The constraint that represents the quantity demanded by Customer B is:
Answer

Selected Answer:
X1B + X2B + X3B = 350

Correct Answer:
X1B + X2B + X3B = 350


Question 21
5 out of 5 points


The following table represents the cost to ship from Distribution Center 1, 2, or 3
to Customer A, B, or C.




The constraint that represents the quantity supplied by DC 1 is:
Answer

Selected Answer:
X1A + X1B + X1C 500
Correct Answer:
X1A + X1B + X1C 500

Question 22
5 out of 5 points


Assume that it takes a college student an average of 5 minutes to find a parking
spot in the main parking lot. Assume also that this time is normally distributed
with a standard deviation of 2 minutes. What percentage of the students will take
between 2 and 6 minutes to find a parking spot in the main parking lot?
Answer

Selected Answer:
62.47%

Correct Answer:
62.47%


Question 23
0 out of 5 points


Professor Dewey would like to assign grades such that 15% of students receive
As. If the exam average is 62 with a standard deviation of 13, what grade should
be the cutoff for an A? (Round your answer.)
Answer

Selected Answer:
79
Correct Answer:
75

Question 24
5 out of 5 points


Consider the following graph of sales.



Which of the following characteristics is exhibited by the data?
Answer

Selected Answer:
Trend plus irregular
Correct Answer:
Trend plus irregular

Question 25
0 out of 5 points


For the following frequency distribution of demand, the random number 0.8177
would be interpreted as a demand of:



Answer
Selected Answer:
0
Correct Answer:
2

Question 26
5 out of 5 points


A bakery is considering hiring another clerk to better serve customers. To help
with this decision, records were kept to determine how many customers arrived in
10-minute intervals. Based on 100 ten-minute intervals, the following probability
distribution and random number assignments developed.












Suppose the next three random numbers were .18, .89 and .67. How many
customers would have arrived during this 30-minute period?
Answer
Number of
Arrivals
Probability
Random
numbers
6 .1 .01 - .10
7 .3 .11 - .40
8 .3 .41 - .70
9 .2 .71 - .90
10 .1 .91 - .00

Selected Answer:
24
Correct Answer:
24

Question 27
5 out of 5 points


In the Monte Carlo process, values for a random variable are generated by
__________ a probability distribution.
Answer

Selected Answer:
sampling from
Correct Answer:

sampling from
Question 28
0 out of 5 points


Fords Bed & Breakfast breaks even if they sell 50 rooms each month. They
have a fixed cost of $6500 per month. The variable cost per room is $30. For
this model to work, what must be the revenue per room? (Note: The answer is a
whole dollar amount. Give the answer as a whole number, omitting the decimal
point. For instance, use 105 to write $105.00).
Answer

Selected Answer: 3250
Correct Answer: 160

Question 29
5 out of 5 points


Nixons Bed and Breakfast has a fixed cost of $5000 per month and the revenue
they receive from each booked room is $200. The variable cost per room is $75.
How many rooms do they have to sell each month to break even? (Note: The
answer is a whole number. Give the answer as a whole number, omitting the
decimal point. For instance, use 12 for twelve rooms).
Answer

Selected Answer: 40
Correct Answer: 40

Question 30
0 out of 5 points


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 $200 and the winning band
will receive $500. In order to guarantee that they break even, how much should
they charge for each ticket? (Note: Write your answer with two significant places
after the decimal and do not include the dollar $ sign. For instance, for five
dollars, write your answer as 5.00).

Answer

Selected Answer: 6.50
Correct Answer: 7.00

Question 31
5 out of 5 points


Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of $30
on each tractor and $30 on each lawn mower, and they sell all they can produce.
The time requirements in the machine shop, fabrication, and tractor assembly are

given in the table.



Formulation:
Let x = number of tractors produced per period
y = number of lawn mowers produced per period
MAX 30x + 30y
subject to 2 x + y 60
2 x + 3y 120
x 45
x, y 0
The graphical solution is shown below.




What is the shadow price for assembly? Write your answers with two significant
places after the decimal and do not include the dollar $ sign.

Answer
Selected Answer: 0
Correct Answer: 0

Question 32
5 out of 5 points


Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of $30
on each tractor and $30 on each lawn mower, and they sell all they can produce.
The time requirements in the machine shop, fabrication, and tractor assembly are
given in the table.



Formulation:
Let x = number of tractors produced per period
y = number of lawn mowers produced per period
MAX 30x + 30y
subject to 2 x + y 60
2 x + 3y 120
x 45
x, y 0
The graphical solution is shown below.






What is the shadow price for fabrication? Write your answers with two
significant places after the decimal and do not include the dollar $ sign.

Answer
Selected Answer: 7.50
Correct Answer: 7.50

Question 33
0 out of 5 points


Klein Kennels provides overnight lodging for a variety of pets. An attractive
feature is the quality of care the pets receive, including well balanced nutrition.
The kennels cat food is made by mixing two types of cat food to obtain the
nutritionally balanced cat diet. The data for the two cat foods are as follows:

Cat Food Cost/oz protien (%) fat (%)
Partner's Choice $0.20 45 20
Feline Excel $0.15 15 30


Klein Kennels wants to be sure that the cats receive at least 5 ounces of protein
and at least 3 ounces of fat per day. What is the optimal cost of this plan? Note:
Please write your answers with two significant places after the decimal and do
not include the dollar $ sign. For instance, $9.45 (nine dollars and fortyfive
cents) should be written as 9.45

Answer

Selected Answer: 3.50
Correct Answer: 2.50

Question 34
5 out of 5 points


Find the optimal Z value for the following problem. Do not include the dollar $
sign with your answer.

MAX Z = 5x1 + 8x2
s.t. x1 + x2 6
5x1 + 9x2 45
x1, x2 0 and integer
Answer

Selected Answer: 40
Correct Answer: 40

Question 35
0 out of 5 points


Let us take as a given that x is normally distributed with a mean of 8.5 and a
standard deviation of 2, what is P(x 6)? Note: Round your answer, if
necessary, to two places after the decimal. Please express your answer with two
places after the decimal.
Answer

Selected Answer: -2.5/2
Correct Answer: 0.10
0.11
.10
.11

Question 36
0 out of 5 points


Mr. Sartre is considering four different opportunities, A, B, C, or D. The payoff
for each opportunity will depend on the economic conditions, represented in the
payoff table below.


Investment
Economic Conditions
Poor
(S1)
Average
(S2)
Good
(S3)
Excellent
(S4)
A 38 25 33 10
B 10 15 20 85
C 20 100 20 -25
D 25 25 100 25



Suppose all states of the world are equally likely (each state has a probability of
0.25). What is the expected value of perfect information? Note: Report your
answer as an integer, rounding to the nearest integer, if applicable
Answer

Selected Answer: 45
Correct Answer: 37

Question 37
0 out of 5 points


The local operations manager for the IRS must decide whether to hire 1, 2, or 3
temporary workers. He estimates that net revenues will vary with how well
taxpayers comply with the new tax code. The probabilities of low, medium, and
high compliance are 0.20, 0.30, and 0.50 respectively. What is the expected value
of perfect information? Do not include the dollar $ sign with your answer. The
following payoff table is given in thousands of dollars (e.g. 50 =
$50,000). Note: Please express your answer as a whole number in thousands of
dollars (e.g. 50 = $50,000). Round to the nearest whole number, if necessary.



Answer

Selected Answer: 50
Correct Answer: 26

Question 38
5 out of 5 points


The local operations manager for the IRS must decide whether to hire 1, 2, or 3
temporary workers. He estimates that net revenues will vary with how well
taxpayers comply with the new tax code. The probabilities of low, medium, and
high compliance are 0.20, 0.30, and 0.50 respectively. What are the expected net
revenues for the number of workers he will decide to hire? The following payoff
table is given in thousands of dollars (e.g. 50 = $50,000). Note: Please express
your answer as a whole number in thousands of dollars (e.g. 50 = $50,000).
Round to the nearest whole number, if necessary.




Answer

Selected Answer: 50
Correct Answer: 50

Question 39
0 out of 5 points


The following sales data are available for 2003-2008 :

Year Sales Forecast
2003 7 7
2004 8 8.5
2005 12 10.5
2006 14 13
2007 16 15
2008 18 16



Calculate the MAPD and express it in decimal notation. Please express the result
as a number with 4 decimal places. If necessary, round your result accordingly.
For instance, 9.14677, should be expressed as 9.1468
Answer
Selected Answer: 9.1468
Correct Answer: 0.0800

Question 40
5 out of 5 points


Consider the following decision tree. The objective is to choose the best decision
among the two available decisions A and B. Find the expected value of the best
decision. Do not include the dollar $ sign with your answer.

Answer

Selected Answer: 2100
Correct Answer: 2100
2,100