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Study Resources (Business Management)

54. Susan Winslow has two alternative routes to travel from her home in Olport to her office in Lewisburg. She can travel on Freeway 5 to Freeway 57 or on Freeway 55 to Freeway 91. The time distributions are as follows: Freeway 5 Freeway 57 Freeway 55 Freeway 91 Relative Relative Relative Relative Time Frequency Time Frequency Time Frequency Time Frequency 5 .30 4 .10 6 .20 3 .30 6 .20 5 .20 7 .20 4 .35 7 .40 6 .35 8 .40 5 .20 8 .10 7 .20 9 .20 6 .15 8 .15 ? Do a five-day simulation of each.
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93. ? A decision maker who is considered to be a risk taker is faced with this set of probabilities and payoffs ? ? State of Nature Decision s1 s2 s3 d1 5 10 20 d2 ?25 0 50 d3 ?50 ?10 80 Probability .30 .35 .35 ? For the lottery p(80) + (1 ? p)(?50), this decision maker has assessed the following indifference probabilities ? Payoff Probability 50 .60 20 .35 10 .25 5 .22 0 .20 ?10 .18 ?25 .10 ? Rank the decision alternatives on the basis.
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1. Objectives in multicriteria problems seldom conflict. a. True b. False 2. Target values will never be met precisely in a goal programming problem. a. True b. False 3. Goal equations consist of a function that defines goal achievement and deviation variables that measure the distance from the target. a. True b. False 4. There can only be one.
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51. ?Decision tree probabilities refer to the probability of a. ?an uncertain event occurring. b. ?the decision being made. c. ?finding an optimal value. d. ?overlooked choices. 52. ?Which of the following is not an advantage of using decision tree analysis? a. ?the ability to see clearly what decisions must be made b. ?the ability to see.
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76. A payoff table is given as ? ? State of Nature Decision s1 s2 s3 d1 10 8 6 d2 14 15 2 d3 7 8 9 a. What decision should be made by the optimistic decision maker? b. What decision should be made by the conservative decision maker? c. What decision should be made under minimax regret? d. ? If the probabilities of s1, s2, and s3 are .2, .4, and .4, respectively,.
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11. A static simulation model is used in situations where the state of the system affects how the system changes or evolves over time. a. True b. False 12. For any waiting line system, (Average number of units in waiting line) = (Total waiting time) divided by (Total time of simulation). a. True b. False 13..
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43. For the past 50 days, daily sales of laundry detergent in a large grocery store have been recorded (to the nearest 10). Units Sold Number of Times 30 8 40 12 50 15 60 10 70 5 ? a. Determine the relative frequency for each number of units sold. b. Suppose that the following random numbers were obtained using Excel: .12 .96.
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31. In a multiple channel system a. each server has its own queue. b. each server has the same service rate. c. μ > λ d. All of the alternatives are correct. 32. 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, Wq,.
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59. Quick Clean Rooter cleans out clogged drains. Due to the competitive nature of the drain cleaning business, if a customer calls Quick Clean and finds the line busy, they immediately try another company and Quick Clean loses the business.Quick Clean management estimates that on the average, a customer tries.
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56. Attendees at the National Management Science Society (NMSS) Conference register by first standing in line to pay their fees. They then proceed to a designated line based on the first letter of their last name to collect their conference materials. ? At the conference, it is planned to have three different.
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71. Super Cola is also considering the introduction of a root beer drink. The company feels that the probability that the product will be a success is .6. The payoff table is as follows: Success (s1) Failure (s2) Produce (d1) $250,000 −$300,000 Do Not Produce (d2) −$ 50,000 −$ 20,000 ? The company has a choice of two research.
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45. Greenfields is a mail order seed and plant business. The size of orders is uniformly distributed over the interval from $25 to $80. Use the following random numbers to generate the size of 10 orders. .41 .99 .07 .05 .38 .77 .19 .12 .58 .60 46. The time required to set up lighting for a portrait studio is uniformly distributed.
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96. ? Determine decision strategies based on expected value and on expected utility for this decision tree. Use the utility function ? Payoff Indifference Probability 500 1.00 350 .89 300 .84 180 .60 100 .43 40 .20 20 .13 0 0   ? 97. ? Burger Prince Restaurant is considering the purchase of a $100,000 fire insurance policy. The fire statistics indicate that in a given year the probability of property damage in a.
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11. 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 12. A consistency ratio greater than 0.10 indicates inconsistency in the pair-wise comparisons. a. True b. False 13. Calculating the priority of each criterion in terms of.
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47. In a waiting line situation, arrivals occur at a rate of 2 per minute, and the service times average 18 seconds. Assume the Poisson and exponential distributions. a. What is λ? b. What is μ? c. Find probability of no units in the system. d. Find average number of units in the system. e. Find average time in the.
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34. Durham Designs manufactures home furnishings for department stores. Planning is underway for the production of items in the "Wildflower" fabric pattern during the next production period. Bedspread Curtains Dust Ruffle Fabric required (yds) 7 4 9 Time required (hrs) 1.5 2 .5 Packaging material 3 2 1 Profit 12 10 8 ? Inventory of the Wildflower fabric is 3000 yards. Five hundred hours of production.
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1. Simulation is an excellent technique to use when a situation is too complicated to use standard analytical procedures. a. True b. False 2. Simulation is a trial-and-error approach to problem solving. a. True b. False 3. The degree of risk is associated with the probability or magnitude of loss. a. True b. False 4. To use Excel to.
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11. A decision strategy is a sequence of decisions and chance outcomes, where the decisions chosen depend on the yet to be determined outcomes of chance events. a. True b. False 12. EVPI equals the expected regret associated with the minimax decision. a. True b. False 13. The expected value approach is more appropriate for a.
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49. An airline reservation system first asks customers whether they want to schedule a domestic or an international flight. Sixty-five percent of the reservations are for domestic flights. The time distribution of advance sales is also important, and it is given below. Domestic Flights International Flights Make Reservations Rel. Freq. RN Range Make Reservations Rel. Freq. RN Range Less.
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49. The Sea View Resort uses a multiple-channel queue registration system. If the average service time is 8 minutes, there are three registration clerks, and guests arrive at the rate of one every 5 minutes, find a. λ and μ. b. the probability all three clerks are idle. c. the probability a guest will have to.
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43. During summer weekdays, boats arrive at the inlet drawbridge according to the Poisson distribution at a rate of 3 per hour. In a 2-hour period, a. what is the probability that no boats arrive? b. what is the probability that 2 boats arrive? c. what is the probability that 8 boats arrive? 44. The time to.
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1. Sample information with an efficiency rating of 100% is perfect information. a. True b. False 2. States of nature should be defined so that one and only one will actually occur. a. True b. False 3. Decision alternatives are structured so that several could occur simultaneously. a. True b. False 4. Square nodes in a decision tree indicate.
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47. Estimates of the financial information for a new product show the following information: Units Sold Probability Fixed cost $8,000 600 .35 Variable cost $6 / unit 800 .45 Revenue $22 / unit 1000 .20 ? Use the random numbers .51, .97, .58, .22, and .16 to simulate five trials. What is the net profit for each trial? 48. Seventy-five percent.
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74. Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands. ? ? Demand Order Size Low Medium High 1 lot 12 15 15 2 lots 9 25 35 3 lots 6 35 60 ? a. What decision should be made by the optimist? b. What decision should be made by.
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21. One disadvantage of simulation is that it is limited in the variety of probability distributions that can be used in modeling a system. a. True b. False 22. A simulation model provides a convenient experimental laboratory for the real system. a. True b. False 23. ?Simulation allows the user to specify certain desired results (for.
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11. If service time follows an exponential probability distribution, approximately 63% of the service times are less than the mean service time. a. True b. False 12. Queue discipline refers to the manner in which waiting units are arranged for service. a. True b. False 13. Waiting line models describe the transient-period operating characteristics of a.
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21. For a single-server queuing system, the average number of customers in the waiting line is one less than the average number in the system. a. True b. False 22. In waiting line applications, the exponential probability distribution indicates that approximately 63 percent of the service times are less than the mean service.
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84. Dollar Department Stores has received an offer from Harris Diamonds to purchase Dollar's store on Grove Street for $120,000. Dollar has determined probability estimates of the store's future profitability, based on economic outcomes, as: P($80,000) = .2, P($100,000) = .3, P($120,000) = .1, and P($140,000) = .4. a. Should Dollar sell.
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51. Using the spreadsheet below, give the cell address which would have the formula shown. Cell Formula Belongs in Cell =VLOOKUP(B18,$B$10:$C$12,2) =VLOOKUP(D23,$F$11:$G$14,2) =K19*($I$16-I19) =VLOOKUP(H27,$B$10:$C$12,2) =AVERAGE(L18:L27) ? 52. As the owner of a rent-a-car agency you have determined the following statistics: PotentialRentals Daily Probability RentalDuration Probability 0 .10 1 day .50 1 .15 2 day .30 2 .20 3 days .15 3 .30 4 days .05 4 .25 The gross profit is $40 per car per day rented..
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41. To find the EVSI, a. use the EVPI to calculate sample information probabilities. b. use indicator probabilities to calculate prior probabilities. c. use prior and sample information probabilities to calculate revised probabilities. d. use sample information to revise the sample information probabilities. 42. If P(high) = .3, P(low) = .7, P(favorable | high) =.
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31. 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 32. In order to verify a simulation model a. compare results from several simulation.
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89. ? A manufacturing company is considering expanding its production capacity to meet a growing demand for its product line of air fresheners. The alternatives are to build a new plant, expand the old plant, or do nothing. The marketing department estimates a 35 percent probability of a market upturn, a.
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