POM Final

A(n) __________ is a representation of reality or of a real-life situation. a) Model b) Variable c) Probability d) Binomial distribution

a) Model

The number of patients seen by a doctor each hour is a __________ random variable.

discrete

The _____ _____ for a constraint is the improvement in the objective function value that results from a one-unit increase in the right-hand side of the constraint.

dual price

Which of the following is considered a casual method of forecasting? a) exponential smoothing b) moving average c) Holt's method d) Delphi method e) none of the above

e) none of the above

3.) The __________ distribution often describes the time required to service a customer.

exponential

When a constraint line bounding a feasible region has the same slope as an Isoprofit line, A) There may be more than one optimum solution. B) The problem involves redundancy. C) An error has been made in the problem formulation. D) A condition of infeasibility exists. E) None of the above

A) There may be more than one optimum solution.

Who is credited with pioneering the principles of the scientific approach to management? A)Frederick W. Taylor B) Adam Smith C) Henri Fayol D) John R. Locke E) Charles Babbage

A)Frederick W. Taylor

A graphical plot with sales on the Y axis and time on the X axis is a A.) scatter diagram B.) trend projection C.) radar chart D.) line graph E.) bar graph

A.) scatter diagram

A set of logical and mathematical operations performed in a specific sequence is called a(n)...

Algorithm

Slack time in a network is the...

Amount of time that an activity can be delayed without delaying the entire project

The EOQ model A) Determines only how frequently to order. B) Considers total cost. C) Minimizes both ordering and holding costs. D) All of the alternatives are correct.

B) Considers total cost.

What is another name for blending problems? A) Diet problems B) Ingredient problems C) Feed mix problems D) Production mix problems E) Media selection problems

B) Ingredient problems

A(n)_____ is a representation of reality or a real-life situation. A) Objective B) Model C) Analysis D) Algorithm E) None of the above

B) Model

Which of the following will increase the breakeven point? A.) Increase selling price B.) Increase fixed cost C.) Decrease variable cost D.) Decrease fixed cost

B.) Increase fixed cost

Which of the following graphing techniques is used to monitor variation in product data collected sequentially over time? A.) Scatter-diagram B.) control chart C.) bar chart D.) pie chart

B.) control chart

If you are given a 10- year-period quarterly demand data for a particular product, which of the following best characterizes these values? A) Smoothed data B) Cross-sectional data C) Time series data D) Seasonal data

C) Time series data

The mathematical theory behind linear programming states that an optimal solution to any problem will lie at a (n) _____________ of the feasible region. A.) Interior point or center B.) Maximum point or minimum point C.) Corner point or extreme point D.) Interior point or extreme point

C.) Corner point or extreme point

Which of the following statements is true regarding the labor planning problem? A.) It is typically maximization problem. B.) Required labor hours translate into less-than-or-equal-to constraints. C.) The decision variables can include how many full-and part-time workers to use D.) The problem is only unique to banks.

C.) The decision variables can include how many full-and part-time workers to use

The length of time that it takes the tollbooth attendant to service each driver can typically be described by the A.) normal distribution B.) uniform distribution C.) exponential distribution D.) Poisson distribution

C.) exponential distribution

Extra inventory that is used to avoid stockouts is known as A.) planned shortages B.) quantity discounts C.) safety stock D.) service level E.) ABC analysis

C.) safety stock

A process is said to be out-of-control if: A.) the control process contains special causes of variation B.) the control process contains common causes of variation C.) the control process contains both common and special causes of variation D.) None of the above

C.) the control process contains both common and special causes of variation

What is another name for blending problems?

Ingredient problems

2.) If two events (A,B) are dependent, what is the conditional probability of P(A|B)? __________

P(A|B)=P(AB)/P(B)

A formula that is used to REVISED probabilities based on new information. a) Discrete random variable b) Bayes theorem c) Poisson distribution d) Break-even point

b) Bayes theorem

The three time estimates used in PERT are: a) Immediate, most likely, and network times b) Optimistic, pessimistic, and most likely times c) Arc, breakeven, and linear times d) Beta, event, and critical times

b) Optimistic, pessimistic, and most likely times

A(n) ______ is a representation of reality or a real-life situation. a) objective b) model c) analysis d) algorithm e) none of the above

b) model

The equation P(A|B) = P(AB)|P(B) is a) the marginal probability b) the formula for a conditional probability c) the formula for a joint probability d) only relevant when events A and B are collectively exhausted e) none of the above

b) the formula for a conditional probability

Which of the following is the mathematical technique used to help management decide how to make the most effective use of an organization's resources? a) Objective programming b) Simultaneous programming c) Linear programming d) Surplus programming

c) Linear programming

The classical method of determining probability is a) subjective probability b) marginal probability c) objective probability d) joint probability e) conditional probability

c) objective probability

A conditional probability P(B|A) is equal to its marginal probability P(B) if a) it is a joint probability b) statistical dependence exists c) statistical independence exists d) the events are mutually exclusive e) P(A)=P(B)

c) statistical independence exists

Shortening a project is called __________.

crashing

The __________ path has no slack time.

critical

The components of a time series model include: a) Cyclical component b) Trend component c) Seasonal component d) All of the above

d) All of the above

The _________ is the amount you would lose by not picking the best alternative. a) Expected monetary value b) Break-even point c) Mean squared error d) Opportunity loss

d) Opportunity loss

The ________ models are forecasting techniques based on judgmental or subjective factors. a) Feasible b) Breakeven c) Optimistic d) Qualitative

d) Qualitative

Which of the following is not considered a criterion for decision making under uncertainty? a) Optimistic b) Pessimistic c) Equally likely d) Random selection e) Minimax regret

d) Random selection

Decision trees are particularly useful when a) perfect information is available b) formulating a conditional values table c) the opportunity loss table is available d) a sequence of decisions must be made e) all possible outcomes and alternatives are not known

d) a sequence of decisions must be made

Queuing Theory makes use of the a) normal probability distribution b) uniform probability distribution c) binomial probability distribution d) poisson probability distribution e) none of the above

d) poisson probability distribution

The first step in planning and scheduling a project is to develop the a) employee scheduling plan b) PERT/CPM network diagram c) critical path d) work breakdown structure e) variance calculations for each activity

d) work breakdown structure

The __________ is the long- run average value of that decision and is considered the weighted sum of possible payoffs for each alternative.

expected monetary value

The __________ distribution often describes the time required to service a customer.

exponential

The __________ start time is the latest time that an activity can be started without delaying the entire project.

latest

__________ programming helps managers with scheduling and decision making related to resource allocation.

linear

__________ selection problems can be approached with LP that have the objective to maximize audience exposure or to minimize advertising costs.

media

The __________ regret is the criterion that minimizes the maximum opportunity loss.

minimax

Events are said to be __________ if only one of the events can occur on any one trial. They are called __________ if the list of outcomes includes every possible outcome.

mutually exclusive; collectively exhaustive

The mean and standard deviation are two parameters of the __________ distribution.

normal

If two events (A,B) are independent, then the conditional probability of P(A|B) = _____

P(A)

__________ occurs when a linear program has no finite solution. The result implies that the formulation is missing one or more crucial constraints.

Unboundedness

There are 5 steps in the decision making process.

False

There is no limitation on the number of constraints or variables that can be graphed to solve an LP problem.

False

A medium term forecast is considered to cover what length of time?

1 month to a year

Business analytics is often broken down into three main categories: 1. descriptive, predictive, and prescriptive 2. prescriptive, managerial, and descriptive 3. predictive, mathematical, and variable 4. descriptive, prescriptive, and analytical

1. descriptive, predictive, and prescriptive

The scientific approach to managerial decision making is known as 1. business analytics 2. prescriptive analytics 3. quantitative analysis 4. input data

3. quantitative analysis

Assigns a real number to every possible outcome or event in an experiment. 1. discrete random variable 2. continuous random variable 3. random variable 4. input data

3. random variable

Which of the following terms is interchangeable with quantitative analysis? A) Management science B) Economics C) Financial analysis D) Statistics E) None of the above

A) Management science

A graphical plot with sales on the Y axis and time on the X axis is a A) Scatter diagram B) Trend projection C) Radar chart D) Line graph E) Bar chart

A) Scatter diagram

Properties of the normal distribution include...

Continuous bell-shaped distribution

A______ is a numerical statement about the likelihood that an event will occur. A) Mutually exclusive construct B) Collectively exhaustive construct C) Variance D) Probability E) Standard deviation

D) Probability

Which of the following is not a use of inventory? A) The decoupling function B) Quantity discounts C) Irregular supply and demand D) The translucent function E) To avoid stockouts and shortages

D) The translucent function

Pessimistic decision makers tend to...

Discount favorable outcomes

Which of the following is not a characteristic of a good decision? A.) Based on logic B.) Considers all available data C.) Considers all possible alternatives D.) Employs appropriate quantitative techniques E.) Always results in a favorable outcome

E.) Always results in a favorable outcome

Deterministic means with uncertainty.

False

Managers do not need to be familiar with the limitations, assumptions, and/or specific applicability of the quantitative analysis technique to use it for accurate decision making.

False

McCarthy's theorem is the formula used to revise probabilities based on new information

False

Shortening a project is called breaking

False

TIME SERIES models rely on judgement in an attempt to incorporate qualitative or subjective factors into the forecasting model.

False

The maximum decision criterion is used by pessimistic decision makers and minimizes the maximum outcome for every alternative.

False

The standard deviation equals the square of the variance.

False

The three categories of forecasting models are time series, quantitative, and qualitative.

False

Who is credited with pioneering the principles of the scientific approach to management?

Fredrick W. Taylor

__________ forecasting models make use of historical data.

Time Series

Constraints limit the degree to which the objective can be obtained

True

Expected monetary value (EMV) is the average or expected monetary outcome of a decision if it can be repeated a large number of times.

True

Interviews, statistical sampling and company reports provide input data for quantitative analysis models.

True

Inventory is any stored resource that is used to satisfy a current or future need.

True

Mutually exclusive events exist if only one of the events can occur on any one trial.

True

PERT and CPM are quantitative analysis tools designed to schedule and control large projects.

True

Quantitative analysis is the scientific approach to managerial decision making

True

Saying that a set of events is collectively exhausted implies that one of the events must occur.

True

Sensitivity analysis determines how the solutions will change with a different model or input data.

True

The concept of inventory is applicable to both manufacturing and service organizations.

True

The expected value of a binomial distribution is expressed as np, where n equals the number of trials and p equals the probability of success of any individual trial.

True

The expected value of a discrete distribution is a weighted average of the values of the random variable.

True

The four components of a time series model include random, trend, seasonal, and cyclical

True

The set of solution points that satisfies all of a linear programming problem's constraints simultaneously is defined as the feasible region in graphical linear programming.

True

The ________ region is the area where the set of points satisfy all of the constraints a) Feasible b) Linear c) Breakeven d) Beta

a) Feasible

With the ________ inventory approach, the inventory arrives just in time to be used in the manufacturing process. a) JIT b) EOQ c) ERP d) ABC

a) JIT

_________ time is the amount of time that an activity can be delayed without delaying the entire project. a) Slack b) Variance c) Beta d) Immediate

a) Slack

A graphical plot with sales on the Y axis and time on the X axis is a a) scatter diagram b) trend projection c) radar chart d) line graph e) bar chart

a) scatter diagram

Maximax is a(n) __________ approach.

pessimistic

In making a decision, both __________ and quantitative factors must be considered.

qualitative

List three general categories of inventory.

raw materials, work-in-process, finished goods

Extra inventory that is used to avoid stockouts is known as...

safety stock

A graphical plot with sales on the Y axis and time on the X axis is a...

scatter diagram

_____ _____ forecasting models make use of historical data.

time series