An Introduction to Management Science

Test Bank

[Link]
21 Chapters
575 Verified Questions
 Chapter 1: Introduction
Available Study Resources on Examlex for this Chatper
30 Verified Questions
30 Flashcards
Source URL: [Link]

Sample Questions
Q1) The most successful quantitative analysis will separate the analyst from the
managerial team until after the problem is fully structured.
A)True
B)False
Answer: False

Q2) Inputs to a quantitative model

A)are a trivial part of the problem solving process.
B)are uncertain for a stochastic model.
C)are uncontrollable for the decision variables.
D)must all be deterministic if the problem is to have a solution.
Answer: B

Q3) Decision criteria

A)are the choices faced by the decision maker.
B)are the problems faced by the decision maker.
C)are the ways to evaluate the choices faced by the decision maker.
D)must be unique for a problem.
Answer: C

To view all questions and flashcards with answers, click on the resource link above.

Page 2
 Chapter 2: Introduction to Linear Programming
Available Study Resources on Examlex for this Chatper
28 Verified Questions
28 Flashcards
Source URL: [Link]

Sample Questions
Q1) An optimal solution to a linear programming problem can be found at an extreme
point of the feasible region for the problem.
A)True
B)False
Answer: True

Q2) Only binding constraints form the shape (boundaries) of the feasible region.
A)True
B)False
Answer: False

Q3) In a linear programming problem, the objective function and the constraints must
be linear functions of the decision variables.
A)True
B)False
Answer: True

Q4) No matter what value it has, each objective function line is parallel to every other
objective function line in a problem.
A)True
B)False
Answer: True

To view all questions and flashcards with answers, click on the resource link above.
Page 3
 Chapter 3: LP Sensitivity Analysis and Interpretation of

Solution
Available Study Resources on Examlex for this Chatper
31 Verified Questions
31 Flashcards
Source URL: [Link]

Sample Questions
Q1) Decreasing the objective function coefficient of a variable to its lower limit will create
a revised problem that is unbounded.
A)True
B)False
Answer: False

Q2) The 100% Rule compares

A)proposed changes to allowed changes.
B)new values to original values.
C)objective function changes to right-hand side changes.
D)dual prices to reduced costs.
Answer: A

Q3) The dual price for a percentage constraint provides a direct answer to questions
about the effect of increases or decreases in that percentage.
A)True
B)False
Answer: False

To view all questions and flashcards with answers, click on the resource link above.

Page 4
 Chapter 4: Linear Programming Applications
Available Study Resources on Examlex for this Chatper
21 Verified Questions
21 Flashcards
Source URL: [Link]

Sample Questions
Q1) Media selection problems usually determine
A)how many times to use each media source.
B)the coverage provided by each media source.
C)the cost of each advertising exposure.
D)the relative value of each medium.

Q2) A marketing research application uses the variable HD to represent the number of
homeowners interviewed during the [Link] objective function minimizes the cost of
interviewing this and other categories and there is a constraint that HD > [Link] solution
indicates that interviewing another homeowner during the day will increase costs by
[Link] do you know?
A)the objective function coefficient of HD is 10.
B)the dual price for the HD constraint is 10.
C)the objective function coefficient of HD is -10.
D)the dual price for the HD constraint is -10.

Q3) Portfolio selection problems should acknowledge both risk and return.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.

Page 5
 Chapter 5: Advanced Linear Programming Applications
Available Study Resources on Examlex for this Chatper
24 Verified Questions
24 Flashcards
Source URL: [Link]

Sample Questions
Q1) For a two-person, zero-sum, mixed-strategy game, it is necessary to solve the LP for
each player in order to learn both players' optimal strategies.
A)True
B)False

Q2) In general, every DEA linear programming model will include a constraint that
requires the weights for the operating units to sum to
A)1.
B)the number of operating units.
C)100.
D)any arbitrary value.

Q3) DEA is used to measure the relative efficiency of two (or more) units in different
industries, such as a bank and a school.
A)True
B)False

Q4) The goal of portfolio models is to create a portfolio that provides the best balance
between risk and return.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.

Page 6
 Chapter 6: Distribution and Network Problems
Available Study Resources on Examlex for this Chatper
31 Verified Questions
31 Flashcards
Source URL: [Link]

Sample Questions
Q1) Constraints in a transshipment problem
A)correspond to arcs.
B)include a variable for every arc.
C)require the sum of the shipments out of an origin node to equal supply.
D)All of the alternatives are correct.

Q2) Arcs in a transshipment problem

A)must connect every node to a transshipment node.
B)represent the cost of shipments.
C)indicate the direction of the flow.
D)All of the alternatives are correct.

Q3) The parts of a network that represent the origins are

A)the capacities
B)the flows
C)the nodes
D)the arcs

Q4) If a transportation problem has four origins and five destinations, the LP formulation
of the problem will have nine constraints.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.
Page 7
 Chapter 7: Integer Linear Programming
Available Study Resources on Examlex for this Chatper
30 Verified Questions
30 Flashcards
Source URL: [Link]

Sample Questions
Q1) In a model involving fixed costs, the 0 - 1 variable guarantees that the capacity is not
available unless the cost has been incurred.
A)True
B)False

Q2) The product design and market share optimization problem presented in the
textbook is formulated as a 0-1 integer linear programming model.
A)True
B)False

Q3) Sensitivity analysis for integer linear programming

A)can be provided only by computer.
B)has precisely the same interpretation as that from linear programming.
C)does not have the same interpretation and should be disregarded.
D)is most useful for 0 - 1 models.

Q4) If a problem has only less-than-or-equal-to constraints with positive coefficients for
the variables, rounding down will always provide a feasible integer solution.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.

Page 8
 Chapter 8: Nonlinear Optimization Models
Available Study Resources on Examlex for this Chatper
33 Verified Questions
33 Flashcards
Source URL: [Link]

Sample Questions
Q1) An investor can pick the mean-variance tradeoff that he or she is most comfortable
with by looking at a graph of the
A)feasible region.
B)pooled components.
C)rolling horizon.
D)efficient frontier.

Q2) Any feasible solution to a blending problem without pooled components is feasible
to the problem with pooled components.
A)True
B)False

Q3) Any feasible solution to a blending problem with pooled components is feasible to
the problem with no pooling.
A)True
B)False

Q4) Which of the following is not true regarding a concave function?

A)It is bowl-shaped down.
B)It is relatively easy to maximize.
C)It has multiple local maxima.
D)It has a single global maximum.

To view all questions and flashcards with answers, click on the resource link above.
Page 9
 Chapter 9: Project Scheduling: Pertcpm
Available Study Resources on Examlex for this Chatper
32 Verified Questions
32 Flashcards
Source URL: [Link]

Sample Questions
Q1) PERT and CPM
A)are most valuable when a small number of activities must be scheduled.
B)have different features and are not applied to the same situation.
C)do not require a chronological relationship among activities.
D)have been combined to develop a procedure that uses the best of each.

Q2) The project manager should monitor the progress of any activity with a large time
variance even if the expected time does not identify the activity as a critical activity.
A)True
B)False

Q3) The variance in the project completion time is the sum of the variances of all
activities in the project.
A)True
B)False

Q4) When activity times are uncertain, an activity's most likely time is the same as its
expected time.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.

Page 10
 Chapter 10: Inventory Models
Available Study Resources on Examlex for this Chatper
33 Verified Questions
33 Flashcards
Source URL: [Link]

Sample Questions
Q1) If the optimal production lot size decreases, average inventory increases.
A)True
B)False

Q2) The time between placing orders is the lead time.

A)True
B)False

Q3) Periodic review inventory systems

A)are less subject to stockouts than corresponding continuous review systems.
B)require larger safety stock levels than corresponding continuous review systems.
C)have constant order quantities.
D)make the coordination of orders for multiple products more difficult.

Q4) In the periodic review model, the order quantity at each review period must be
sufficient to cover demand for the review period plus the demand for the following lead
time.
A)True
B)False

Q5) Constant demand is a key assumption of the EOQ model.

A)True
B)False

To view all questions and flashcards with Page 11 click on the resource link above.
answers,
 Chapter 11: Waiting Line Models
Available Study Resources on Examlex for this Chatper
33 Verified Questions
33 Flashcards
Source URL: [Link]

Sample Questions
Q1) Before waiting lines can be analyzed economically, the arrivals' cost of waiting must
be estimated.
A)True
B)False

Q2) Little's flow equations

A)require Poisson and exponential assumptions.
B)are applicable to any waiting line model.
C)require independent calculation of W, L, W_q, and L_q.
D)All of the alternatives are correct.

Q3) For an M/M/1 queuing system, if the service rate, µ, is doubled, the average wait in
the system, W, is cut in half.
A)True
B)False

Q4) The assumption of exponentially distributed service times indicates that

A)37% of the service times are less than the mean service time.
B)50% of the service times are less than the mean service time.
C)63% of the service times are less than the mean service time.
D)service time increase at an exponential rate as the waiting line grows.

To view all questions and flashcards with answers, click on the resource link above.

Page 12
 Chapter 12: Simulation
Available Study Resources on Examlex for this Chatper
33 Verified Questions
33 Flashcards
Source URL: [Link]

Sample Questions
Q1) Trials of a simulation show what would happen when values of the probabilistic input
change.
A)True
B)False

Q2) In a Monte Carlo simulation, each simulation trial is dependent upon the result of a
previous trial.
A)True
B)False

Q3) Using simulation to perform risk analysis is like playing out many what-if scenarios
by randomly generating values for the probabilistic inputs.
A)True
B)False

Q4) Common features of simulations--generating values from probability distributions,

maintaining records, recording data and summarizing results--led to the development
of
A)Excel and Lotus.
B)BASIC, FORTRAN, PASCAL, and C.
C)GPSS, SIMSCRIPT, SLAM, and Arena
D)LINDO and The Management Scientist

To view all questions and flashcards with answers, click on the resource link above.
Page 13
 Chapter 13: Decision Analysis
Available Study Resources on Examlex for this Chatper
24 Verified Questions
24 Flashcards
Source URL: [Link]

Sample Questions
Q1) Expected value is the sum of the weighted payoff possibilities at a circular node in a
decision tree.
A)True
B)False

Q2) For a maximization problem, the conservative approach is often referred to as the
A)minimax approach
B)maximin approach
C)maximax approach
D)minimin approach

Q3) Risk analysis helps the decision maker recognize the difference between the
expected value of a decision alternative and the payoff that may actually occur.
A)True
B)False

Q4) EVPI equals the expected regret associated with the minimax decision.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.

Page 14
 Chapter 14: Multicriteria Decisions
Available Study Resources on Examlex for this Chatper
30 Verified Questions
30 Flashcards
Source URL: [Link]

Sample Questions
Q1) One limitation of a scoring model is that it uses arbitrary weights that do not
necessarily reflect the preferences of the individual decision maker.
A)True
B)False

Q2) Computing the consistency ratio for a criterion's pair-wise comparison matrix is the
next step after
A)developing the criterion's pair-wise comparison matrix.
B)converting the criterion's pair-wise comparison matrix to a normalized matrix.
C)developing the criterion's priority vector.
D)developing the overall priority vector.

Q3) Inconsistency in the pair-wise judgments is indicated by a consistency ratio that is

A)less than zero
B)greater than 0.10
C)greater than 0.50
D)greater than 1.00

Q4) Objectives in multicriteria problems seldom conflict.

A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.

Page 15
 Chapter 15: Forecasting
Available Study Resources on Examlex for this Chatper
34 Verified Questions
34 Flashcards
Source URL: [Link]

Sample Questions
Q1) Using exponential smoothing, the demand forecast for time period 10 equals the
demand forecast for time period 9 plus
A)\(\alpha\) times (the demand forecast for time period 8)
B)\(\alpha\) times (the error in the demand forecast for time period 9)
C)\(\alpha\) times (the observed demand in time period 9)
D)\(\alpha\) times (the demand forecast for time period 9)

Q2) Forecast errors

A)are the difference in successive values of a time series
B)are the differences between actual and forecast values
C)should all be nonnegative
D)should be summed to judge the goodness of a forecasting model

Q3) Which of the following forecasting methods puts the least weight on the most recent
time series value?
A)exponential smoothing with\(\alpha\) = .3
B)exponential smoothing with \(\alpha\) = .2
C)moving average using the most recent 4 periods
D)moving average using the most recent 3 periods

Q4) Time series methods base forecasts only on past values of the variables.
A)True
B)False

Page 16
To view all questions and flashcards with answers, click on the resource link above.
 Chapter 16: Markov Processes
Available Study Resources on Examlex for this Chatper
25 Verified Questions
25 Flashcards
Source URL: [Link]

Sample Questions
Q1) For a situation with weekly dining at either an Italian or Mexican restaurant,
A)the weekly visit is the trial and the restaurant is the state.
B)the weekly visit is the state and the restaurant is the trial.
C)the weekly visit is the trend and the restaurant is the transition.
D)the weekly visit is the transition and the restaurant is the trend.

Q2) Markov processes use historical probabilities.

A)True
B)False

Q3) Absorbing state probabilities are the same as

A)steady state probabilities.
B)transition probabilities.
C)fundamental probabilities.
D)None of the alternatives is true.

Q4) A unique matrix of transition probabilities should be developed for each customer.
A)True
B)False

Q5) All Markov chain transition matrices have the same number of rows as columns.
A)True
B)False

To view all questions and flashcards withPage 17 click on the resource link above.
answers,
 Chapter 17: LP: Simplex Method
Available Study Resources on Examlex for this Chatper
29 Verified Questions
29 Flashcards
Source URL: [Link]

Sample Questions
Q1) Algebraic methods such as the simplex method are used to solve
A)nonlinear programming problems.
B)any size linear programming problem.
C)programming problems under uncertainty.
D)graphical models.

Q2) A solution is optimal when all values in the c_j - z_j row of the
simplex tableau are either zero or positive.
A)True
B)False

Q3) The variable to enter into the basis is the variable with the largest positive
c_j - z_j value.
A)True
B)False

Q4) A minimization problem with four decision variables, two greater-than-or-equal-to

constraints, and one equality constraint will have
A)2 surplus variables, 3 artificial variables, and 3 variables in the basis.
B)4 surplus variables, 2 artificial variables, and 4 variables in the basis.
C)3 surplus variables, 3 artificial variables, and 4 variables in the basis.
D)2 surplus variables, 2 artificial variables, and 3 variables in the basis.

To view all questions and flashcards with answers, click on the resource link above.
Page 18
 Chapter 18: Simplex-Based Sensitivity Analysis and Duality
Available Study Resources on Examlex for this Chatper
20 Verified Questions
20 Flashcards
Source URL: [Link]

Sample Questions
Q1) The entries in the associated slack column of the final tableau indicate the changes
in the values of the current basic variables corresponding to a one-unit increase in the
right-hand side.
A)True
B)False

Q2) Given the simplex tableau for the optimal primal solution
A)the values of the dual variables can be found from the c_j - z_j
values of the slack/surplus variable columns.
B)the values of the dual surplus variables can be found from the c_j -
z_j values of the primal decision variable columns.
C)the value of the dual objective function will be the same as the objective function
value for the primal problem.
D)each of the above is true.

Q3) The range of optimality is calculated by considering changes in the c_j -

z_j value of the variable in question.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.

Page 19
 Chapter 19: Solution Procedures for Transportation and

Assignment Problems
Available Study Resources on Examlex for this Chatper
23 Verified Questions
23 Flashcards
Source URL: [Link]

Sample Questions
Q1) The transportation simplex method is more efficient than general-purpose linear
programming for solving large-sized transportation problems.
A)True
B)False

Q2) A dummy origin in a transportation problem is used when supply exceeds demand.
A)True
B)False

Q3) Using the transportation simplex method, the optimal solution to the transportation
problem has been found when
A)there is a shipment in every cell.
B)more than one stepping-stone path is available.
C)there is a tie for outgoing cell.
D)the net evaluation index for each unoccupied cell is > 0.

Q4) When an assignment problem involves an unacceptable assignment, a dummy

agent or task must be introduced.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.
Page 20
 Chapter 20: Minimal Spanning Tree
Available Study Resources on Examlex for this Chatper
12 Verified Questions
12 Flashcards
Source URL: [Link]

Sample Questions
Q1) Consider a minimal spanning tree problem in which pipe must be laid to connect
sprinklers on a golf [Link] represented with a network,
A)the pipes are the arcs and the sprinklers are the nodes.
B)the pipes are the nodes and the sprinklers are the arcs.
C)the pipes and the sprinklers are the tree.
D)each sprinkler must be connected to every other sprinkler.

Q2) The minimal spanning tree algorithm will:

A)sometimes fail to produce a feasible solution.
B)always produce a feasible, but not necessarily optimal, solution.
C)always produce an optimal solution.
D)always produce an optimal, but not necessarily feasible, solution.

Q3) The minimal spanning tree algorithm will lead to an optimal solution regardless of
which node is chosen at the start of the algorithm.
A)True
B)False

Q4) It is possible for minimal spanning tree problems to have alternative optimal
solutions.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.
Page 21
 Chapter 21: Dynamic Programming
Available Study Resources on Examlex for this Chatper
19 Verified Questions
19 Flashcards
Source URL: [Link]

Sample Questions
Q1) State variables in a shortest route problem represent
A)decisions.
B)locations in the network.
C)the minimum distance between nodes.
D)None of the alternatives is true.

Q2) The solution of stage k of a dynamic programming problem is dependent upon the
solution of stage k?1.
A)True
B)False

Q3) If x₃ = t₄(x₄,d₄) = x₄

? 2d₄ and r₄(x₄,d₄) =
16d₄ the state variable is
A)t
B)x
C)r
D)d

Q4) Dynamic programming requires that its subproblems be independent of one

another.
A)True
B)False

Page 22
To view all questions and flashcards with answers, click on the resource link above.