Operations Management Final
A binomial probability distribution indicates the probability of r successes in n trials
True
A management science technique usually applies to a specific model type.
True
A model is a mathematical representation of a problem situation including variables, parameters, and equations
True
A succession of events that does not affect other events is independent
True
Business analytics brings together the disciples of information systems, management science, statistics, and mathematical modeling.
True
The divisibility assumption is violated by integer programming.
True
If f(x)= 2x, whats the equation for generating x, given the random number?
x = square root of r
Which of the following special cases does not require reformulation of the problem in order to obtain a solution?
Alternate optimality
In a binomial distribution, for each of n trials, the event:
Always has the same probability of occurring
The field of management science:
Concentrates on the use of quantitative methods to assist managers in decision making
If the price increases, but fixed and variable costs do not change, the break even point:
Decreases
An optimal solution to a nonlinear programming problem will always occur at the boundary of the feasible solution space formed by the constraint
False
Decision variables cannot be multiplied by each other in the objective function of a nonlinear program
False
Excel can only be used to simulate systems that can be represented by continuous random variables
False
If a nonlinear program has been correctly formulated, procedures guarantee a solution
False
If variable costs increase, but price and fixed costs are held constant, the break even point will decrease
False
In Bayesian analysis, additional information is used to alter the conditional probability of the occurrence of an event
False
In a mixed integer model, the solution values of the decision variables are 0 or 1.
False
In excel, the VLOOKUP function is used to determine values for continuous random variables
False
In general, an increase in price increases the break even point if all costs are held constant
False
Management science modeling techniques provide results that are known with certainty.
False
Probabilistic techniques assume that no uncertainty exists in model parameters
False
Proportionality means the slope of a constraint is proportional to the slope of the objective function
False
Sensitivity ranges can be computed only for the right hand sides of constraints
False
Simulation results will always equal analytical results if 30 trials of the simulation have been conducted
False
Starting conditions have no impact on the validity of a simulation model
False
Surplus variables are only associated with minimization problems
False
The optimal solution for a graphical linear programming problem is the corner point that is the farthest from the origin
False
The sensitivity range for a constraint quantity value is the range over which the optimal values of the decision variables do not change
False
The slope of a curve at its highest point equals 1
False
There is exactly one optimal solution point to a linear program
False
___________ is not part of a Monte Carlo simulation
Finding an optimal solution
________ are generally independent of the volume of units produced and sold
Fixed costs
__________ involves determining the functional relationship between variables, parameters, and equations
Model construction
The steps of the management science process are
Observation, problem definition, model construction, model solution, and implementation
Multiple optimal solutions can occur when the objective function is _______ a constraint line
Parallel to
The purpose of break even analysis is to determine the number of units of a product to sell that will:
Result in zero profit
The ______ and variance are derived from a subset of the population data and are used to make inferences about the population
Sample mean
The term _________ refers to testing how a problem solution reacts to changes in or more of the model parameters
Sensitivity analysis
If the feasible region for a linear programming problem is unbounded, then the solution to the corresponding linear programming problem is _______ unbounded
Sometimes
Variable cost does not include:
Staff and management salaries
A shadow price reflects which of the following in a maximization problem?
The marginal gain in the objective that would be realized by adding one unit of a resource
A conditional probability is the probability that an event occurs given that another event has already occurred
True
A linear programming constraint is a linear relationship representing a restriction on decision making
True
A long period of real time can be represented by a short period of simulated time
True
A management science solution can be either a recommended decision or information that helps a manager make a decision.
True
If we are solving a 0-1 integer programming problem, the constraint x1 + x2 <= 1 is a mutually exclusive constraint.
True
If we are solving a 0-1 integer programming problem, the constraint x1 <= x2 is a conditional constraint.
True
If we change the constraint quantity to a value outside the sensitivity range for that constraint quantity, the shadow price will change
True
In a total integer model, all decision variables have integer solution values.
True
In an unconstrained, nonlinear programming problem, we have a single nonlinear objective function and no constraints
True
In computer mathematical simulation, a system is replicated with a mathematical model that is analyzed with the computer
True
Linear programming is a model consisting of linear relationships representing a firm's decisions given an objective and resource constraints
True
Management science modeling techniques focus on model construction and problem solution
True
Manual simulation is limited because of the amount of real time required to simulate even one trial
True
Objective probabilities that can be stated prior to the occurrence of an event are classical or a priori
True
Parameters are known, constant values that are usually coefficients of variables in equations
True
Random numbers are equally likely to occur
True
Random numbers generated by a mathematical process instead of a physical process are pseudorandom numbers
True
Sensitivity analysis determines how a change in a parameter affects the optimal solution
True
The Lagrange multiplier is analogous to the dual variables in a linear programming problem
True
The Lagrange multiplier reflects the approximate change in the objective function resulting from a unit change in the quantity (right hand side) value of the constraint
True
The break even point is the volume that equates total revenue with total cost
True
The events in an experiment are mutually exclusive if only one can occur at a time
True
The feasible solution area contains infinite solutions to the linear program
True
The marginal value of any scarce resource is the dollar amount one should be willing to pay for one additional unit of that scarce resource
True
The sensitivity range for a constraint quantity value is the range over which the shadow price is valid
True
The term "sensitivity analysis" refers to testing how a problem solution reacts to changes in one or more of the model parameter
True
The terms in the objective function or constraints are additive
True
The three types of integer programming models are total, 0-1, and mixed.
True
Validation of a simulation model occurs when the true steady state average results have been reached
True
Variable costs depend on the number of times produced
True
Pseudorandom numbers exhibit a ________ in order to be considered truly random
Uniform distribution
What's the constraint: choose no fewer than 3 of the 5 possible projects
x1 + x2 + x3 + x4 + x4 >= 3
What's the constraint: if project 1 is chosen, project 5 must not be chosen
x1 + x2 <= 1
What's the constraint: If project 3 is chosen, project 4 must be chosen
x3 - x3 <= 0