Business Analytics Exam 2 Questions

"Customer waiting time" would most likely be a metric in a inventory simulation model. -True -False

False

A company thinks that the demand for a new product has a 20% probabilty of being 10,000 units, a 40% probability of being 20,000, and 40% of being 30,000. This is an example of uniform probability distribution. -True -False

False

A simulation is a "sample" from a finite population. -True -False

False

In an inventory model, holding cost occur when demand exceeds inventory levels. -True -False

False

A decision strategy is a sequence of decisions and chance outcomes, where the decisions chosen depend on the yet to be determined outcomes of chance events -True -False

True

A random variable is an uncertain number. -True -False

True

In a "monte carlo" simulation "trails" are independent -True -False

True

In a decision tree, the sum of the probabilities of the branches for an event (chance) node must equal one. -True -False

True

Which of the following is a goal of decision analysis? a. Help individuals make good decisions. b. Ensure decisions lead to good outcomes. c. Avoiding decisions leading to bad outcomes. d. Reduce the role of luck in a decision.

a. Help individuals make good decisions.

Which type of queuing system are you likely to encounter at an ATM? a. Single waiting line, single service station. b. Multiple waiting lines, single service station. c. Single waiting line, multiple service stations. d. Multiple waiting lines, multiple service stations.

a. Single waiting line, single service station.

Which of the following is a reason to employ queuing theory? a. To reduce customer wait time in line. b. To reduce service times. c. To generate more arrivals to the system. d. To reduce worker idle time in line.

a. To reduce customer wait time in line.

A course of action intended to solve a problem is called a(n) a. alternative. b. option. c. decision. d. criteria.

a. alternative

A square node in a decision tree is called a __________ node. a. decision b. chance c. random d. event

a. decision

As the number of replicates in a simulation increases the width of a confidence interval computed from the simulation results will a. decrease. b. increase. c. remain the same. d. change depends on standard deviation.

a. decrease.

The decision rule which determines the minimum payoff for each alternative and then selects the alternative associated with the largest minimum payoff is the a. maximin decision rule. b. minimax regret decision rule. c. maximax decision rule. d. minimin decision rule.

a. maximin decision rule.

IF P(X=10,000) = .7 and P(X=3000)=.3 then the expected value of this distribution is: a. can not be detemined. b. 7900 c. 10000 d. 13000

b. 7900

Expected regret is also called a. EMV. b. EOL. c. EPA. d. EOQ.

b. EOL.

A variable whose value cannot be predicted or set with certainty is a a. discrete variable b. random variable c. realistic variable d. simulation variable

b. random variable

The ____ correspond to future events that are not under the control of the decision maker. a. payoffs b. states of nature c. criteria d. alternatives

b. states of nature

Leaves of a decision tree are also called ____ nodes. a. end b. terminal c. decision d. payoff

b. terminal

The excel random fucntion generates random numbers that are: a. discretely distributed b. uniformly distributed c. none of these d. normally distributed

b. uniformly distributed

Which type of queuing system are you likely to encounter at a Wendy's restaurant? a. Single waiting line, single service station. b. Multiple waiting lines, single service station. c. Single waiting line, multiple service stations. d. Multiple waiting lines, multiple service stations.

c. Single waiting line, multiple service stations.

Which of the following best describes queuing theory? a. The study of arrival rates. b. The study of service times. c. The study of waiting lines. d. The evaluation of service time costs.

c. The study of waiting lines.

The ____ in a decision problem represent factors that are important to the decision maker. a. payoffs b. states of nature c. criteria d. alternatives

c. criteria

A square node in a decision tree is called a(n) ____ node. a. chance b. random c. decision d. event

c. decision

A payoff matrix depicts ____ versus ____ with payoffs for each intersection cell. a. decision criteria; states of nature. b. decision alternatives; potential outcomes. c. decision alternatives; states of nature. d. decision criteria; potential outcomes.

c. decision alternatives; states of nature.

Simulation is used to a. find possible worst case values for the dependent variable(s). b. find worst case and best case values for the dependent variable(s). c. find distribution information for the dependent variable(s). d. find median values for the dependent variable(s).

c. find distribution information for the dependent variable(s).

The decision rule which determines the maximum payoff for each alternative and then selects the alternative associated with the largest payoff is the a. minimin decision rule. b. maximin decision rule. c. maximax decision rule. d. minimax regret decision rule.

c. maximax decision rule.

Best case analysis is a ____ view of the problem. a. risky b. pessimistic c. optimistic d. certain

c. optimistic

What method is used to generate observations from a distribution? a. steady state generator b. problem generator c. random number generator d. sample generator

c. random number generator

The amount of time a customer spends with the server is referred to as a. system time. b. queue time. c. service time. d. served time.

c. service time.

How are states of nature assigned probabilities? a. Use historical data. b. Use best judgements. c. Use interview results. d. All of these.

d. All of these.

Which type of queuing system are you likely to encounter at a grocery store? a. Single waiting line, single service station. b. Multiple waiting lines, single service station. c. Single waiting line, multiple service stations. d. Multiple waiting lines, multiple service stations.

d. Multiple waiting lines, multiple service stations.

A circular node in a decision tree is called a(n) __________ node. a. random b. decision c. chance d. event

d. event

Worst case analysis is a ____ view of the problem. a. risky b. optimistic c. certain d. pessimistic

d. pessimistic

The amount of opportunity lost in making a decision is called a. loss. b. frustration. c. negative profit. d. regret.

d. regret.

If chance or uncertainty is present in a system then there is an element of ____ in the decision-making problem. a. difficulty b. security c. danger d. risk

d. risk

In a retirement investment (financial) simulation which variable would most likely be probabilistically determined? a. age b. percentage contributed from salary c. initial portfolio value d. salary increase

d. salary increase