ITOM (operations management) exam 2

Which of the following statements about correlation is/are true?

- A correlation > 0 indicates a positive relationship. - A correlation close to +1 indicates a strong relationship between two variables. - A correlation close to -1 indicates a strong relationship between two variables.

Which of the following statements is/are true about the seasonal relative? (Check all that apply.)

- A seasonal relative of 1.25 indicates that the period is 25% above the average. - The seasonal percentages in the multiplicative model are referred to as as seasonal relatives.

Decisions that lend themselves to a decision theory approach tend to have which of the following elements?

- A set of possible future conditions that will have a bearing on the results of the decision. - A list of alternatives for the manager to choose from. - A known payoff for each alternative under each possible future condition.

What about location options is true?

- Adding new locations while keeping existing ones may draw demand from existing locations instead of increasing overall demand. - Expansion costs are often less than those of other alternatives.

Which of the following is/are true statements about simple linear regression?

- All data points carry equal weight. - If the correlation is small, the predictor variable is not of much value and another variable may be better.

Which of the following is/are disadvantages of the moving average forecast?

- All the values of the average are weighted equally. - Potential loss of information of less recent values by decreasing the number of values.

Which of the following statements is true about forecasting approaches?

- Associative models use explanatory variables to predict the future. - Qualitative forecasts allow personal opinions to be included in the forecast.

Which of the following is/are the disadvantages of using consumer surveys for forecasting?

- Consumer opinion may be temporarily influenced by outside factors like sales pitches. - A considerable amount of knowledge is required to correctly interpret the results for valid information. - There is no way to identify all potential customers.

What are some applications of linear programming in operations that involve problems of resource limitations?

- Determining optimal schedules for airlines for planes, pilots, and ground personnel - Developing shipping plans that will minimize shipping costs - Determining optimal blends of animal feed mixes given available inputs

Which of the following statements about forecast error is/are true?

- Forecast error is the difference between the actual and predicted values in a given period. - Positive errors occur when the forecast is too low. - Negative errors occur when the forecast is too high.

Which of the following are elements of good forecasts?

- Forecasts should be easy to understand and use. - Forecasts should be cost-effective. - Forecasts should be reliable. - Forecasts should be in meaningful (understandable) units. - Forecasts should be accurate.

Which of the following are true of good forecasts?

- Forecasts should be in meaningful (understandable) units. - Forecasts should be accurate. - Forecasts should be cost-effective.

Which of the following statements about time-series data is/are always true?

- Forecasts using time series data assume that past patterns will continue in the future. - Time series are observed at regular intervals.

Which of the following are implications of accurate short-term forecasts?

- Greater credibility throughout the organization. - Increased confidence, which would allow the diversion of resources to longer-term planning. - Increased profits through improved operations.

What are some applications of linear programming in operations that involve problems of resource limitations?

- Identifying the optimal mix of products in a factory - Developing optimal production schedules - Locating warehouses to minimize transportation costs

Which of the following is/are true statements about simple linear regression?

- If the correlation is small, the predictor variable is not of much value and another variable may be better. - All data points carry equal weight.

Which of the following are ways to improve forecast accuracy?

- Increase the flexibility of operations. - Maintain accurate and up-to-date information. - Shorten the lead time of responding to forecasts. - Shorten the forecasting time horizon.

Which of the following is/are true statements about simple linear regression?

- It applies only when one predictor variable is used. - It is important to plot the data to see if a linear model is appropriate.

Which of the following statements about product plant strategy are true?

- It can result in economies of scale, reducing costs. - Entire products or product lines are produced at in separate plants.

Which of the following statements are true of the center of gravity method for evaluating location alternatives?

- It finds a distribution center location to minimize distribution costs. - It treats distribution cost as a linear function of the distance and the quantity shipped.

Which of the following is/are true about forecasts?

- It is assumed that any patterns or causal systems that were in place in the past will continue in the future. - There will generally be some inaccuracy in the forecast, i.e., the actual values will differ from forecasted values. - The farther into the future we try to forecast, the less accurate the forecast becomes.

Which of the following is/are advantages of the moving average forecast?

- It is easy to understand. - It is easy to compute.

Which of the following is/are true statements about simple linear regression?

- It is important to plot the data to see if a linear model is appropriate. - It applies only when one predictor variable is used.

Which of the following is/are true statements about simple linear regression?

- It is important to plot the data to see if a linear model is appropriate. - It applies only when one predictor variable is used. All data points carry equal weight. - If the correlation is small, the predictor variable is not of much value and another variable may be better.

Which of the following statements about site selection are true?

- Land, transportation, and zoning are the primary considerations in site selection. - Customer service facilities could consider industrial parks as locations.

What are some applications of linear programming in operations that involve problems of resource limitations?

- Locating warehouses to minimize transportation costs - Identifying the optimal mix of products in a factory - Developing optimal production schedules

Which of the following are examples of constraints on decision variables?

- Make at least 10 units of product #1. - The ratio of product #1 to product #2 must be 3 to 2.

There are two ways to determine the expected value of perfect information (EVPI). What are they?

- Minimum expected regret - EVPI = Expected payoff under certainty - Expected payoff under risk

Which of the following statements about naive forecasting are true? (Check all that apply.)

- Naive forecasts can be used with stable time series, with seasonal variations, or with trends. - Naive forecasts are easy to understand. - Naive forecasts use a single previous value to forecast a future value.

Which of the following statements about forecast error is/are true?

- Negative errors occur when the forecast is too high. - Positive errors occur when the forecast is too low. - Forecast error is the difference between the actual and predicted values in a given period.

What are the two factors indicated on a payoff table?

- Possible states of nature - Possible alternatives

A number of different approaches can be used to obtain a starting forecast. Which of the following would be appropriate?

- Subjective value - Actual for the prior period - Average of first several periods

Which of the following are considerations to be taken into account when choosing a forecasting technique?

- The availability of data. - The type of data. - The accuracy of the method. - The cost of the method.

What are the key differences in graphically solving minimization problems (versus maximization ones)?

- The feasible solution space will not contain the origin point. - The optimal point is the one closest to the origin. - One of constraints must be of the ≥ or = variety.

Which of the following statements about the steps in the forecasting process are true?

- The forecast may not perform as desired, so it is necessary to monitor the process. - It is important to first determine the purpose of the forecast.

In the context of using salesforce opinion for forecasting, which of the following statements is true about salesforce opinions?

- The salesforce has a sense of what customers want because of their direct contact with customers. - The salesforce is often aware of any plans the customers may be considering for the future. - The salesforce is less likely to be able to distinguish between what customers would like to do and what they actually will do.

In the context of using salesforce opinion for forecasting, identify true statements about salesforce opinions as a source of information for the forecast.

- The salesforce is often aware of any plans the customers may be considering for the future. - The salesforce is less likely to be able to distinguish between what customers would like to do and what they actually will do.

Which of the following are conditions for indicators to be valid?

- There must be a logical explanation between the movement of the indicator and the variable. - The timing of the indicator's movement must make the prediction in time to be acted upon. - The correlation between the variables must be relatively high.

Which of the following statements about location planning is/are true?

- Transportation costs can be a major factor for manufacturing companies. - Abundant energy supplies can be important for manufacturing companies. - Services often try to locate in close proximity to their market.

Which of the following are components in time-series data?

- Trend - Random variation - Cycles - Irregular variation - Seasonality

Which of the following statements are true about starting exponential smoothing forecasts?

- Use a naive forecast for F2 to start off the forecast series. - Use an average of several values to start off the initial forecast for the forecast series.

Which of the following are the assumptions for the locational cost-profit-volume analysis?

- Variable costs are linear for the range of output. - Fixed costs are constant for the range of probable output.

what about location decisions is not true?

- Web-based business are just as dependent on location decisions as traditional businesses are. - A business at the end of the supply chain is often located near raw materials.

Which of the following is/are advantages of consumer surveys?

- You can get information that may be unavailable anywhere else. - Consumers are able to give direct feedback to companies.

Which of the following are possible sources of forecast errors?

- irregular variations - Changes in the variables or relationships - Incorrect forecasting method or interpretation - Random variation

Predictor variables are:

- used in regression to predict values of the variable of interest. - related to the variable of interest.

location decision

1. Decide on evaluation criteria 2. Identify important factors 3. Develop location alternatives 4. Evaluate alternatives and make a decision

Locational cost profit volume analysis

1. Determine the fixed and variable costs associated with each alternative 2. Plot the total cost lines for all alternatives on the same graph 3. Determine which location has the lowest total cost (or highest profit) at the expected output levels

Forecasting Process

1. Determine the purpose of the forecast 2. Establish a time horizon 3. Obtain, clean, and analyze data 4. Select a forecasting technique 5. Make the forecast 6. Monitor the forecast

the decision process

1. Identify the problem. 2. specify objectives and criteria for a solution 3. develop suitable alternatives. 4. analyze and compare alternatives 5. select the best alternative 6. implement the solution

graphical approach

1. set up the objective function and constraints in mathematical format 2. plot the constraints 3. identify the feasible solution space 4. plot the objective function 5. determine the optimum solution

Which of the following expresses the constraint, "the ratio of x1 to x2 must be at least 5 to 3," in a mathematically suitable format for use in linear programming?

3x1 - 5x2 ≥ 0

Which of the following is a correct definition of graphical linear programming?

A method for finding optimal solutions to two-variable problems.

Deviations around the average value (i.e., the line) should be normally distributed. Which of the following supports the assumption of normality?

A small proportion of larger deviations A concentration of values close to the line

What are reasons for rising automation?

Advances in automation Poor safety in developing countries Shorter domestic transportation times

definition of sensitivity analysis.

Assessing the impact of potential changes to the numerical values of an LP model.

Forecasting technique that uses explanatory variables to predict future demand.

Associative

A firm is forecasting the sales of carpets based on the number of building permits issued in their county. Which technique are they using?

Associative model

Which of the following are possible benefits of globalizign operations?

Avoid the impact of fluctuations in currency exchanges. Market expansion leading to greater demand.

Which of the following statements is correct?

Both forecast accuracy and cost are important factors to consider in choosing a forecasting method

Which of the following statements about location planning is not true?

Both manufacturing and service focus primarily on traffic patterns and competitor locations.

The limitations on decision making caused by costs, human abilities, time, technology, and availability of information.

Bounded rationality

In a decision tree, what does a circular node represent?

Chance events

Given a constraint of 4x1 + 10x2 ≤ 100, what is the step-by-step procedure for plotting it on a graph?

Change the inequality sign to an equal sign and set each variable alternately to zero to solve for the other.

decision variables

Choices available to the decision maker in terms of amounts of either inputs or outputs

How are decisions made under certainty?

Choose the alternative that has the best payoff under that state of nature.

Geographic Information Systems are ____________ tools that are used to display data on ____________.

Computer Maps

What is an alternate term for linear programming in operations management?

Constrained optimization

Which of the following statements about labor factors in regional identification is not true?

Cost of labor is the overriding factor.

__________ in the areas of transportation, labor, and raw material are benefits of globalization.

Cost savings

Which of the following statements are not true about market location?

Customer proximity to the market is critical irrespective of business type

Which of the following is an assumption regarding variations around the line for simple regression?

Data contain only random variation.

In a decision tree, what does a square node represent?

Decision points

What is a schematic representation of the available alternatives and their possible consequences?

Decision trees

r2 measures the degree of variation in the values of the _____ variable that is "explained" by the _________ variable.

Dependent Independent

Which of the following are potential issues in managing global operations?

Differences in work ethics Bribery Corruption

Which of the following statements about a process plant strategy are true?

Different plants focus on different product components. It allows for greater specialization, which leads to economies of scale.

Which of the following are the main options generally considered by managers in location planning of existing companies?

Do nothing. Shut down one location and move to another. Add new locations while keeping existing ones. Expand existing facilities

Linear programming requires a single overriding goal or objective be chosen. What are the two choices generally used?

Either maximization or minimization

Calculating the expected gain due to delaying a decision results in the ______.

Expected value of perfect information

Minimum expected regret is another way of calculating ______.

Expected value of perfect information

Which of the following is the correct formula for the linear trend equation?

F=a+bt

In linear programming, what is the set of combinations of the decision variables that satisfy all constraints?

Feasible solution space

State incentives, and workforce and land availability and cost, helped convince Nissan to build a huge assembly plant in Canton, Mississippi. What kind of a benefit is this?

Financial benefit

Which of the following statements about forecasts is/are correct?

Forecasts enable managers to plan for the future. Forecasts are the basis for virtually all decisions made in a business.

A computer-based tool for collecting, storing, retrieving and displaying demographic data on maps is ______.

GIS

In a ___ planet strategy, plants have the flexibility and capability to produce a range of products. This leads to greater responsiveness to market changes, though at a slightly lower level of productivity.

General purpose

Better serving existing customers by having a quicker response time when problems occur is a benefit of _______.

Globalization

The increased dispersion of manufacturing and service operations around the world was brought about by

Globalization

What are some commonly encountered nonlinear trend types?

Growth curve Exponential trend Parabolic trend Life cycle trend

Which of the following is not a cause of failure in the decision making process?

Having suitable alternatives

Focus forecasting uses the forecasting technique that has the__________ accuracy for the given data set among a set of possible forecasting methods.

Highest

When applying focus forecasting, the most with the ____ is chosen to forecast the next time period

Highest accuracy

What is not a cause of poor decisions in the decision process?

Identifying prior negative results

Which of the following statements is NOT true about forecasts?

If done carefully, forecasts very rarely are inaccurate.

What is not a strategic implication of location decisions?

Impact availability of finished goods.

Which of the following is not a strategic implication of location decisions?

Impact availability of finished goods.

Which of the following are possible disadvantages of globalizing operations?

Import restriction Ethical concerns about labor practices Increased security costs

In the range of feasibility,how does the shadow price change?

Is constant

Which of the following statements about the standard error of the estimate is true?

It measures the scatter of the data points around the line.

The delphi method is an _____ process which seeks to find a _____ forecast

Iterative Consensus

What is a necessary condition of a redundant constraint?

Its removal does not alter the feasible solution space

Forecasts that use subjective inputs such as opinions from consumer surveys, sales staff, managers, executives, and experts.

Judgmental forecasts

Automation has the greatest impact on which of an organization's costs.

Labor

Diffusion models tend to have lower accuracy than quantitative models. Given that, why might a firm use a diffusion model?

Lack of historical data

In a decision-making environment with uncertainty, what is the alternative with the best average payoff of any of the alternatives?

Laplace

Executive opinions are often used to develop _____ - ______ plans and ____ product development

Long range New

Executive opinions are generally used for what type of forecasts?

Long-range

What are reasons companies may choose to NOT locate manufacturing facilities in other countries?

Longer transportation times Increased inventory

Which of the following are reasons some firms locate near the markets?

Low distribution costs Firms requiring close customer contact Perishability of a finished product

Which of the following is not a risk associated with globalizing operations?

Low labor productivity Increased security at borders can slow shipments.

Which of the following are reasons companies may choose to locate manufacturing facilities in other countries?

Low wage rates Avoid taxes through transfer pricing rules Delay paying taxes on profits

Which is the correct interpretation for MAD?

MAD represents the average absolute forecast error.

Which is the correct interpretation of MAPE?

MAPE is the average absolute percent error.

Linear programming problems involve limitations or restrictions on multiple variables. What are some of those constraints?

Machine time Labor Materials Budgets

Forecasts are the basis for many decisions and an essential input for what?

Matching supply with demand

In a decision-making environment with uncertainty, what is the alternative that has the best of the worst regrets?

Minimax regret

What is the main advantage of using a computer program to do linear programming versus graphing the equations manually?

More than two variables can be analyzed using a computer program.

Internet-based retail businesses such as Netflix are ______ location decisions than a distribution-based business such as Amazon.

Much less dependent on

Which of the following are the three primary reasons companies locate near the source of raw materials?

Necessity, perishability, transportation costs

Which of the following is not an issue associated with managing global operations?

Need to operate using the local currency

Which of the following is an assumption when using a linear programming (LP) model?

Noninteger values of decision variables are acceptable.

What are the four components of a linear programming model which must be specified in order to solve the mathematical problem?

Objective function Constraints Decision variables Parameters

Short term forecasts pertain to ongoing ____. Long term forecasts are an important _____ planning tool

Operations Strategic

Which are the four general plant strategies when a company has multiple manufacturing plants?

Product plant, market area plant, process plant, general-purpose plant

The range of coefficient values over which the solution quantities of all the decision values remains the same is called what?

Range of optimality

In diffusion models, on what basis are predictions made?

Rate of adoption of new technology

Which of the following are the primary regional factors in identifying regions?

Raw materials, markets, labor

A constraint that does not form a unique boundary of the feasible solution space.

Redundant constraint

What are the three types of potential changes used in sensitivity analysis?

Right-hand values of constraints Objective function coefficients Constraint coefficients

The expected monetary value approach is most appropriate when a decision maker is _____

Risk neutral

In the context of identifying a suitable site, land costs can be ______ to other site-related factors, such as room for future ______.

Secondary Expansion

Which of the following are disadvantages of globalizing operations?

Security costs Import restrictions Transportation costs

______ provides a range of probability over which the choice of alternatives would remain the same

Sensitivity analysis

What are the first steps used to plot the optimal objective function line?

Set it equal to an arbitrary amount to find the slope. Plot the parallel line in the feasible space that either maximizes or minimizes.

What is the first step in the graphical approach to linear programming?

Set up the objective function and constraints in mathematical format.

The amount by which the value of the objective function would change by a one-unit change in the right hand value of a constraint is called what?

Shadow price

Which action is likely to lead to a poor outcome in the decision-making process?

Skipping a step in the process

The result of different departments each attempting to reach a solution that is optimum for that department.

Suboptimization

How is the expected value of perfect information (EVPI) calculated?

Subtract expected payoff under risk from expected payoff under certainty

Identify the factors that affect location decisions while identifying a community

Taxes Pollution Environmental regulations

As a forecasting tool, the Delphi method is useful for what type of forecasting?

Technological forecasting

Which of the following is not a supply chain consideration for location decisions?

The adaptability of customers for product preferences.

What is the expected monetary value criterion?

The best expected value among the alternatives.

In the formula for correlation, what does the r represent?

The correlation coefficient

Which of the following statements about the steps in the forecasting process are true? It is important to first determine the purpose of the forecast.

The forecast may not perform as desired, so it is necessary to monitor the process.

linearity

The impact of decision variables is linear in constraints and in the objective function

Which of the following statements about global locations is not true?

The main reason for global locations is a decrease in labor costs.

In the formula for correlation, what does the n represent?

The sample size

The importance of factors in location decisions will differ depending on ______.

The type of facility

In the formula for correlation, what does the x represent?

The value for one of the variable

Which of the following statements about service and retail locations are true?

They are usually found near the center of the markets they serve. They are usually revenue-focused. Customer safety and security can be important factors.

What is true of location decisions?

They can affect revenue and operations. They have an impact on investment requirements.

Which of the following statements is true about long-term forecasts?

They pertain to items that will take a long while to implement.

Which of the following statements about a market area plant strategy are true?

This strategy enables greater responsiveness to local needs. Individual plants produce most/all of a company's products for a specific area. It requires centralized coordination between all plants.

Time series data is a _____-_____ sequence of observations taken at regular intervals.

Time ordered

From the list of forecasting approaches identify all those that are the quantitative type.

Time series Associative

When goods will be shipped from multiple sending points to multiple receiving points, which method should be used in deciding where to add a new shipping or receiving location?

Transportation model

In graphical linear programming how do you solve for x1 and x2 decision variables where two constraint lines cross at the objective function line?

Use algebra to solve for simultaneous equations using the constraint lines

What about location decisions is not true?

Web-based business are just as dependent on location decisions as traditional businesses are.

Which of the following statements about location decisions is not true?

Web-based business are just as dependent on location decisions as traditional businesses are.

Given a constraint of 4x1 + 10x2 ≤ 100, what are the axes intercepts when plotting it on a graph?

X1 = 25 when X2 = 0; X2 = 10 when X1 = 0.

Which of the following is the correct equation for the least squares regressionline?

Yc=a+bx

Which are the correct interpretations of a and b in the trend equation F=a+bt?

a is the intercept, b is the slope of the line.

objective function

a mathematical expression that can be used to determine the cost or profit for a given solution

The simplex method uses a(n) _______________ to solve a linear programming problem.

algorithm

A constraint that forms the optimal corner point of the feasible solution space is called a ____________ constraint.

binding

Correlation measures

both the strength and direction of the relationship between two variables

Which decision environment exists in this scenario? The customer states that they will order 100 units. Profit per unit is 50 cents.

certainty

Which ribbon in excel contains solver?

data

Which is the correct formula for the standard error of the estimate?

dividing the standard deviation by the sample sizes square root

The technique of substituting the coordinates of each corner point into the objective function to determine which corner point is optimal is called what?

enumeration approach

Trade agreements and technology are ______ in globalization.

facilitating factors

True or false: A change in the value of a constraint will cause a change in the optimal solution of a problem.

false

True or false: In a graphical minimization problem, slide the objective function isocost line away from the origin point to find the optimal solution

false

True or false: It is not possible to find more than one additional location at a time using the transportation model.

false

True or false: When making location decisions, most organizations set out to identify the one best location and search until they find it.

false

The limited range of values over which the value of the shadow price remains constant is known as the range of

feasibility

Using graphical linear programming, the set of all points that satisfies all constraints is called what?

feasible solution space

Many communities try to attract new businesses because they are viewed as potential sources of:

future tax revenues. new job opportunities.

What are the two general-purpose linear programming solution techniques covered in this chapter?

graphical linear programming and computer solutions

For an indicator to be valid, there should be ______ correlation between the two variables.

high

In the formula for correlation, the term n appears _____.

in the numerator and denominator

The seasonal relative, also known as the seasonal ____, is the seasonal percentage applied in the ______ model.

index multiplicative

constraints

limitations that restrict the alternatives available to decision makers in the form of > = or <

Trend analysis develops an equation that will describe the trend present in data. The trend may be ______ or non linear

linear

Trend analysis develops an equation that will describe the trend present in data. The trend may be_____________or non-linear.

linear

In a decision-making environment with uncertainty, what is the alternative with the best possible payoff?

maxima

The least squares line is the line that___________________ the sum of the___________________vertical deviations of the data points from the line.

minimizes;squared

A(n) _____ uses a single previous value of a time series as the basis of a forecast. This approach can be used with a stable series, with seasonal variations, or with trend.

naive forecast

Nonnegativity

negative values of decision variables are unacceptable

If a constraint is _______________, its shadow price is zero.

non binding

divisibility

non-integer values of decision variables are acceptable

parameters

numerical values representing the fixed amount of quantity available or required

In decision theory, what shows the expected payoffs for each alternative in every possible state of nature?

payoff table

The feasible solution space forms what type of shape typically?

polygon

A low value, say .25 or less, of r2 would most likely indicate that the independent variable is a ______ predictor of values of the dependent variable.

poor

The essence of associative techniques is the development of an equation that summarizes the effects of _____.

predictor variables

Factor rating is an approach that can be used to evaluate location alternatives. It includes both ______ and _____ inputs.

qualitative, quantitative

A binding constraint limits the value of the objective function. If it could be ______________, an improved solution would be possible.

relaxed

Which decision environment exists in this scenario? A customer estimates a 25 percent chance of needing 50 items, a 25 percent chance of needing 60 items and a 50 percent chance of needing 100 items.

risk

Which decision environment is characterized by probabilities attached to potential future events?

risk

In time-series data, _____ are regularly repeating upward or downward movements in series values that can be tied to recurring events.

seasonal variations

Decision trees are particularly useful for analyzing situations that have ______ decisions.

sequential

Clustering refers to ____________ types of businesses locating in the same area.

similar

The simplex method can be used in a spreadsheet software such as Microsoft Excel. The routine needed to calculate the solution is called what?

solver

Which of the following represents an error of zero on a control chart?

the center line

What is plotted on a control chart

the errors

What is plotted on a control chart?

the errors

Two key factors that have made globalization attractive to many organizations are _____ and _____.

trade agreements technological advances

With respect to the patterns formed by time-series data, _____ refers to a long-term upward or downward movement in the data.

trend

Sensitivity analysis determines the range of probability for which an alternative has the best expected payoff.

true

True or false: Forecasts are the basis of an organization's schedules.

true

True or false: Forecasts covering a shorter time horizon tend to be more accurate than long-term forecasts.

true

True or false: In linear programming the solution is always at one of the corner points of the feasible solution space polygon.

true

True or false: Labor costs are a very important factor in location decisions in the case of a manufacturing organization.

true

True or false: Making a decision under certainty is straightforward.

true

True or false: Seasonal variation can occur on a daily or weekly basis, not just a monthly or quarterly basis.

true

True or false: The two most important aspects of a forecast are the expected level of demand and the degree of accuracy that can be assigned to the forecast.

true

Graphical linear programming is a method for finding optimal solutions _____-variable problems.

two

The simplex method of linear programming is typically chosen over the graphical method because it can solve problems with more than ______ decision variables.

two

Which decision environment exists in this scenario? A new product has a profit of 50 cents per item. As it is a new product, unit demand is unknown.

uncertainty

Which decision environment is characterized by being unable to assess the likelihood of various future events?

uncertainty

certainty

values of parameters are known and constant