OM pre test 2

A decision-maker using the maximax criterion on the problem below would choose Alternative __________ because the maximum of the row maximums is __________.

140

Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand?

A) causal models

What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding the six Orlando parks? A) yesterday's forecasted attendance and yesterday's actual attendance B) yesterday's actual attendance and today's forecasted attendance C) yesterday's forecasted attendance and today's forecasted attendance D) yesterday's actual attendance and last year's actual attendance E) yesterday's forecasted attendance and the year-to-date average daily forecast error

A) yesterday's forecasted attendance and yesterday's actual attendance

A plant manager wants to know how much he should be willing to pay for perfect market research. Currently there are two states of nature facing his decision to expand or do nothing. Under favorable market conditions the manager would make $100,000 for the large plant and $5,000 for the small plant. Under unfavorable market conditions the large plant would lose $50,000 and the small plant would make $0. If the two states of nature are equally likely, how much should he pay for perfect information? A) $0 B) $25,000 C) $50,000 D) $100,000 E) unable to determine

B) $25,000

A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three previous July values were 110, 150, and 130. The average over all months is 190. The approximate seasonal index for July is A) 0.487 B) 0.684 C) 1.462 D) 2.053 E) cannot be calculated with the information given

B) 0.684

What is the expected value of perfect information of the following decision table? A) 0 B) 20 C) 50 D) 150 E) 200

B) 20

What is the EMV for Option 1 in the following decision table? A) 200 B) 240 C) 250 D) 260 E) 300

B) 240

A decision maker who uses the maximin criterion when solving a problem under conditions of uncertainty is A) an optimist B) a pessimist C) an economist D) an optometrist E) making a serious mistake; maximin is not appropriate for conditions of uncertainty

B) a pessimist

Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a A) Pareto chart B) flowchart C) check sheet D) Taguchi map E) poka-yoke

B) flowchart

Which of the following is not present in a time series? A) seasonality B) operational variations C) trend D) cycles E) random variations

B) operational variations

The last four months of sales were 8, 10, 15, and 9 units. The last four forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is A) 2 B) -10 C) 3.5 D) 9 E) 10.5

C) 3.5

What is the expected value with perfect information (EVwPI) of the following decision table? A) 5,000 B) 10,000 C) 40,000 D) 60,000 E) 70,000

C) 40,000

PDCA is most often applied in regard to which aspect of TQM? A) Six Sigma B) Employee Empowerment C) Continuous Improvement D) Benchmarking E) JIT

C) Continuous Improvement

All of the following steps are taken to analyze problems with decision trees except A) define the problem B) structure or draw a decision tree C) assign probabilities to the alternatives D) estimate payoffs for each possible alternative/state of nature combination E) solve the problem by computing expected monetary values for each state of nature node

C) assign probabilities to the alternatives

The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as

C) benchmarking

The difference between the expected payoff under perfect information and the maximum expected payoff under risk is

C) expected value of perfect information

Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize

C) long-range time horizon

A forecasting method has produced the following over the past five months. What is the mean absolute deviation? A) -0.2 B) -1.0 C) 0.0 D) 1.2 E) 8.6

D) 1.2

If the seasonal index for the summer quarter is 0.9 and the forecast for next year is for 600 units, the forecast demand for the summer quarter is: A) 667 B) 167 C) 150 D) 135 E) none of the above.

D) 135

A Three Sigma program has how many defects per million? A) 34 B) 3 C) 3 times the standard deviation D) 2700 E) 1500

D) 2700

A time series trend equation is 25.3 + 2.1 X. What is your forecast for period 7? A) 23.2 B) 25.3 C) 27.4 D) 40.0 E) cannot be determined

D) 40.0

What is the approximate forecast for May using a four-month moving average? nov. 39, dec.36, Jan. 40, Feb. 42, mar. 48, april 46. A) 38 B) 42 C) 43 D) 44 E) 47

D) 44

Which of the following statements best describes the relationship between quality management and product strategy?

D) Managing quality helps build successful product strategies

"Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of A) Vilfredo Pareto B) Armand Feigenbaum C) Joseph M. Juran D) W. Edwards Deming E) Philip B. Crosby

D) W. Edwards Deming

A square node on a decision tree infers that A) the node splits into various states of nature, of which only one will occur B) there are several alternatives available C) the manager must choose an alternative D) both B and C E) A, B, and C

D) both B and C B) there are several alternatives available C) the manager must choose an alternative

The tracking signal is the

D) ratio of cumulative error/MAD

\ are especially powerful when a sequence of decisions must be made

Decision trees

Taco Bell's unique employee scheduling practices are partly the result of using

E) A and C are both correct. point-of-sale computers to track food sales in 15 minute intervals a six-week moving average forecasting technique

The role of quality in limiting a firm's product liability is illustrated by A) ensuring that contaminated products such as impure foods do not reach customers B) ensuring that products meet standards such as those of the Consumer Product Safety Act C) designing safe products to limit possible harm to consumers D) using processes that make products as safe or as durable as their design specifications call for E) All of the above are valid.

E) All of the above are valid.

Which of the following is not a typical inspection point? A) upon receipt of goods from your supplier B) when production or service is complete C) before the product is shipped to the customer D) at the supplier's plant while the supplier is producing E) after a costly process

E) after a costly process

Which of the following statements comparing the weighted moving average technique and exponential smoothing is true?

Exponential smoothing typically requires less record keeping of past data.

A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do you suggest they use to organize their findings?

Ishikawa diagram

Which of the following is not considered a step in the decision-making process? A) Clearly identify the problem. B) Select the best alternative. C) Develop objectives. D) Evaluate alternatives. E) Minimize costs whenever possible.

Minimize costs whenever possible.

What is the EMV for Option 1 in the following decision table? A) 15,000 B) 17,000 C) 17,500 D) 18,500 E) 20,000

d) 18,500

A fundamental distinction between trend projection and linear regression is that

in trend projection the independent variable is time; in linear regression the independent

15) One use of short-range forecasts is to determine

job assignments

A tabular presentation that shows the outcome for each decision alternative under the various possible states of nature is called a(n)

payoff table

In a Classical Decomposition Method of Forecasting, the actual forecasting is obtained immediately after

projecting the deasonalized data on a trend line.

Three broad categories of definitions of quality are

user-based, manufacturing-based, and product-based