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Random numbers generated by a mathematical process instead of a physical process

are pseudorandom numbers.


True
False

2. In the Monte Carlo process, values for a random variable are generated by
sampling from a probability distribution.

True
False

3. Two events that are independent cannot be mutually exclusive.


True
False

4. Experimental outcomes must occur as numerical values in order to define their


probability distribution.
True
False

5. A joint probability can have a value greater than 1.


True
False

6. A random variable that can take on any value along a line segment is a
continuous random variable.
True
False

7. Sample information with an efficiency rating of 100% is perfect information.


True
False

States of nature should be defined so that one and only one will actually occur.
True
False

9. Time series methods base forecasts only on past values of the variables.
True
False

10. Random variations are movements that are not predictable and follow no pattern.
True
False

11. The field of decision science


a-concentrates on the use of quantitative methods to assist in decision making.
b-approaches decision making rationally, with techniques based on the scientific
method.
c-is another name for management science and for operations research.
d-each of the above is true.

12. Identification and definition of a problem


a-cannot be done until alternatives are proposed.
b- is the first step of decision making.
c-is the final step of problem solving.
d-requires consideration of multiple criteria.

13. The appropriate decision criterion is dependent on


a-the risk personality of the decision maker.
b-the philosophy of the decision maker.
c-all of the above.
d-none of the above.

14. Decision criteria


a-are the choices faced by the decision maker.
b-are the problems faced by the decision maker.
c-are the ways to evaluate the choices faced by the decision maker.
d-must be unique for a problem.

15. The term opportunity loss is most closely related to

a-maximin regret.
b-maximax regret.
c-minimax regret.
d-minimin regret.

16. Which of the following is not a valid representation of a probability?


a-35%
b- 0
c-1.04
d- 3/8

17. A ___________ probability distribution indicates the probability of r successes


in n trials.

a- joint.
b- subjective.
c- marginal.
d- binomial.

18. 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.

a- .1667
b-.5
c- .6
d- .625
e- .7