BUS-660 Quantitative Methods Study Guide Exam 2024, Exams of Business Research Methods for Managers

Download BUS-660 Quantitative Methods Study Guide Exam 2024 and more Exams Business Research Methods for Managers in PDF only on Docsity! BUS-660 Quantitative Methods Study Guide Exam 2024| Questions with 100% correct answers The difference between the transportation and assignment problems is that - Answer- each supply and demand value is 1 in the assignment problem In comparing different policies using simulation, one should use the same set of random numbers whenever possible. - Answer- True A quantity that is difficult to measure with certainty is called a - Answer- probabilistic input Models with a finite calling population - Answer- Use the size of the population as parameter in the operating characteristics formulas The number of units expected to be sold is uniformly distributed between 300 and 500. If r is a random number between 0 and 1, then the proper expression for sales is - Answer- 300 + r(200) In an all-integer linear program, - Answer- all variables must be integer. Blending problems arise whenever a manager must decide how to - Answer- mix two or more resources to produce one or more products. Revenue management methodology was originally developed for - Answer- an airline. A transshipment problem is a generalization of the transportation problem in which certain nodes are neither supply nodes nor destination nodes. - Answer- True A requirement that two 0-1 variables both be either in or out of a solution together is a - Answer- corequisite constraint Before waiting lines can be analyzed economically, the arrivals' cost of waiting must be estimated. - Answer- True If arrivals occur according to the Poisson distribution every 20 minutes, then which is NOT true? - Answer- λ = 20 arrivals per hour Let A, B, and C be the amounts invested in companies A, B, and C. If no more than 50% of the total investment can be in company B, then - Answer- −.5A + .5B − .5C ≤ 0 Which of the following is the most useful contribution of integer programming? - Answer- using 0-1 variables for modeling flexibility Which of the following statements is INCORRECT regarding the advantages of simulation? - Answer- Simulation guarantees an optimal solution. Simulation is a trial-and-error approach to problem solving. - Answer- True The classic assignment problem can be modeled as a 0-1 integer program. - Answer- True The composite unit in data envelopment analysis - Answer- All of the alternatives are correct. Which of the following is incorrect? - Answer- A global minimum is a local minimum in a convex nonlinear optimization problem. To develop a portfolio that provides the best return possible with a minimum risk, the linear programming model will have an objective function which - Answer- maximizes the minimum return. For many waiting line situations, the arrivals occur randomly and independently of other arrivals and it has been found that a good description of the arrival pattern is provided by - Answer- a Poisson probability distribution In a capacitated transshipment problem, some or all of the transfer points are subject to capacity restrictions. - Answer- False Revenue management methodology was originally developed for - Answer- an airline Multiple choice constraints involve binary variables. - Answer- True In general, every DEA linear programming model will include a constraint that requires the weights for the operating units to sum to - Answer- 1 Let A, B, and C be the amounts invested in companies A, B, and C. If no more than 50% of the total investment can be in company B, then - Answer- −.5A + .5B − .5C ≤ 0 Most practical applications of integer linear programming involve - Answer- only 0-1 integer variables and not ordinary integer variables. For an M/M/k system, the average number of customers in the system equals the customer arrival rate times the average time a customer spends waiting in the system. - Answer- True Adding more channels always improves the operating characteristics of the waiting line and reduces the waiting cost. - Answer- True The goal of portfolio models is to create a portfolio that provides the best balance between risk and return. - Answer- True In a transshipment problem, shipments - Answer- can occur between any two nodes. The product design and market share optimization problem presented in the textbook is formulated as a 0-1 integer linear programming model. - Answer- True Sensitivity analysis for integer linear programming - Answer- does not have the same interpretation and should be disregarded. Computer-generated random numbers are normally distributed. - Answer- False Revenue management methodology enables an airline to maximize the number of full-fare seats it sells on each flight. - Answer- False The production scheduling problem modeled in the textbook involves capacity constraints on all of the following types of resources except - Answer- material. The network flows into and out of demand nodes are what makes the production and inventory application modeled in the textbook a - Answer- transshipment model To develop a portfolio that provides the best return possible with a minimum risk, the linear programming model will have an objective function which - Answer- maximizes the minimum return. 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. - Answer- True Converting a transportation problem LP from cost minimization to profit maximization requires only changing the objective function; the conversion does not affect the constraints. - Answer- True Blending problems arise whenever a manager must decide how to - Answer- mix two or more resources to produce one or more products. In a transshipment problem, shipments - Answer- can occur between any two nodes. A graphical tool that helps describe the logic of the simulation model is a - Answer- flowchart. A convex function is - Answer- bowl-shaped up. A multiple choice constraint involves selecting k out of n alternatives, where k ≥ 2. - Answer- False Which of the following is not true regarding an LP model of the assignment problem? - Answer- All constraints are of the ≥ form. For a single-channel waiting line, the utilization factor is the probability that an arriving unit must wait for service. - Answer- True Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed, the objective function is - Answer- Min 2M + 3B Double-subscript notation for decision variables should be avoided unless the number of decision variables exceeds nine. - Answer- False 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. - Answer- True The interpretation of the dual price for nonlinear models is different than the interpretation of the dual price for linear models. - Answer- False In the LP formulation of a maximal flow problem, a conservation-of-flow constraint ensures that an arc's flow capacity is not exceeded. - Answer- False Before waiting lines can be analyzed economically, the arrivals' cost of waiting must be estimated. - Answer- True Simulation models that must take into account how the system changes or evolves over time are referred to as dynamic simulation models. - Answer- True We assume in the maximal flow problem that - Answer- the flow out of a node is equal to the flow into the node. The composite unit in data envelopment analysis - Answer- All of the alternatives are correct.