# July 21, 2018 admin No Comments Uncategorized These are the automatically computed results of your..

These are the automatically computed results of your exam . Grades for essay questions, and comments from your instructor, are in the “Details” section below . Date Taken: 9/20/2014

Time Spent: 22 min , 13 secs

Points Received: 80 / 100 (80%)

Question Type: # Of Questions: # Correct:

Multiple Choice 20 16

Question 1 . Question : EOQ is the optimal order quantity that will ________ total inventory costs .

minimize

maintain

Question 2 . Question : If fixed costs increase, but variable cost and price remain the same, the break-even point:

increases .

remains the same .

may increase or decrease, depending on sales .

Question 3 . Question : People who take a chance on a bonanza with a very low probability of occurrence in lieu of a sure thing are:

risk averters .

risk calculators .

risk predictors .

Question 4 . Question : Which steps of the management science process can either be a recommended decision or information that helps a manager make a decision?

Problem definition

Model solution

Problem formulation

Question 5 . Question : EKA manufacturing company produces part #2206 for the aerospace industry . The unit production cost of part #2206 is \$3 . The fixed monthly cost of operating the production facility is \$3000 . Next month’s demand for part #2206 is 200 units . How much should the company charge for each unit of part #2206 to break even?

\$15

\$18

\$20

Question 6 . Question : ________ probability is an estimate based on personal belief, experience, or knowledge of a situation .

Subjective

Marginal

Joint

Question 7 . Question : In an EOQ model, as the carrying cost increases, the order quantity:

decreases .

remains the same .

cannot be determined .

Question 8 . Question : ________ are generally independent of the volume of units produced and sold .

Variable costs

Profits

Average costs

Question 9 . Question : ________ are good for stable demand with no pronounced behavioral patterns .

Shorter-period moving averages

Moving averages

Weighted moving averages

Question 10 . Question : A single-channel queuing system has an average service time of 8 minutes and an average time between arrivals of 10 minutes . What is the hourly arrival rate?

6

4

2

Question 11 . Question : Mutually exclusive events are:

Student Answer: events with identical probabilities .

events that have no outcomes in common .

events that have no effect on each other .

events that are represented in a Venn diagram by two overlapping circles .

Question 12 . Question : The maximin criterion results in the:

Student Answer: minimum of the maximum payoffs .

maximum of the maximum payoffs .

maximum of the minimum payoffs .

minimum of the minimum payoffs .

Question 13 . Question : In decision making, the choice of an appropriate criterion is dependent on:

Student Answer: the risk personality of the decision maker

the number of nodes in the decision tree .

the magnitude of the payoffs .

none of the above .

Question 14 . Question : The components of break-even analysis are:

Student Answer: cost and profit .

volume and cost .

volume, cost and profit .

volume and profit .

Question 15 . Question : The term ________ refers to testing how a problem solution reacts to changes in one or more of the model parameters .

decision analysis

sensitivity analysis

break-even analysis

Question 16 . Question : A single-server queuing system has average time between arrivals of 20 minutes and a service time of 10 minutes each . Assuming Poisson arrivals and exponential service times, the utilization factor is approximately _____ .

0 . 33

0 . 50

2 . 0

Question 17 . Question : A university is planning a seminar . It costs \$3000 to reserve a room, hire an instructor, and bring in the equipment . Assume it costs \$25 per student for the administrators to provide the course materials . If we know that 20 people will attend, what price should be charged per person to break even?

\$150

\$175

\$200

Question 18 . Question : The ________ is the expected value of the regret for each decision .

expected opportunity loss

expected value of perfect information

none of the above

Question 19 . Question : Bayesian analysis involves a(n) ________ probability .

posterior

joint

relative frequency

Question 20 . Question : A small entrepreneurial company is trying to decide between developing two different products that they believe they can sell to two potential companies, one large and one small . If they develop Product A, they have a 50% chance of selling it to the large company with annual purchases of about 20,000 units . If the large company won’t purchase it, then they think they have an 80% chance of placing it with a smaller company, with sales of 15,000 units . On the other hand if they develop Product B, they feel they have a 40% chance of selling it to the large company, resulting in annual sales of about 17,000 units . If the large company doesn’t buy it, they have a 50% chance of selling it to the small company with sales of 20,000 units . What is the probability that Product B will being purchased by the smaller company?