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BUS-660 QUANTITATIVE METHODS STUDY
GUIDE QUESTIONS AND 100% ACCURATE
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"The production scheduling problem modeled in the textbook involves capacity constraints on all of the
following types of resources except - CORRECT ANSWER=> material."
"The network flows into and out of demand nodes are what makes the production and inventory
application modeled in the textbook a - CORRECT 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 - CORRECT 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. - CORRECT 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. - CORRECT ANSWER=>
True"
"Blending problems arise whenever a manager must decide how to - CORRECT ANSWER=> mix two or
more resources to produce one or more products."
"Revenue management methodology was originally developed for - CORRECT ANSWER=> an airline."
"A transshipment problem is a generalization of the transportation problem in which certain nodes are
neither supply nodes nor destination nodes. - CORRECT ANSWER=> True"
"A requirement that two 0-1 variables both be either in or out of a solution together is a - CORRECT
ANSWER=> corequisite constraint"
"Before waiting lines can be analyzed economically, the arrivals' cost of waiting must be estimated. -
CORRECT ANSWER=> True"
"If arrivals occur according to the Poisson distribution every 20 minutes, then which is NOT true? -
CORRECT 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 - CORRECT ANSWER=> −.5A + .5B − .5C ≤ 0"
"Which of the following is the most useful contribution of integer programming? - CORRECT
ANSWER=> using 0-1 variables for modeling flexibility"
"Which of the following statements is INCORRECT regarding the advantages of simulation? - CORRECT
ANSWER=> Simulation guarantees an optimal solution."
"Simulation is a trial-and-error approach to problem solving. - CORRECT ANSWER=> True"
"The classic assignment problem can be modeled as a 0-1 integer program. - CORRECT ANSWER=>
True"
"The composite unit in data envelopment analysis - CORRECT ANSWER=> All of the alternatives are
correct."
"Which of the following is incorrect? - CORRECT ANSWER=> A global minimum is a local minimum in a
convex nonlinear optimization problem."
“The difference between the transportation and assignment problems is that - CORRECT 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. - CORRECT ANSWER=> True"
"A quantity that is difficult to measure with certainty is called a - CORRECT ANSWER=> probabilistic
input"
"Models with a finite calling population - CORRECT 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 - CORRECT ANSWER=> 300 + r(200)"
"In an all-integer linear program, - CORRECT ANSWER=> all variables must be integer."
"Before waiting lines can be analyzed economically, the arrivals' cost of waiting must be estimated. -
CORRECT ANSWER=> True"
"Because most nonlinear optimization codes will terminate with a local optimum, the solution returned
by the codes will be the best solution. - CORRECT 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. - CORRECT ANSWER=> False"
"If an LP problem is not correctly formulated, the computer software will indicate it is infeasible when
trying to solve it. - CORRECT ANSWER=> True"
"The marketing research model presented in the textbook involves minimizing total interview cost
subject to interview quota guidelines. - CORRECT ANSWER=> True"
"Little's flow equations apply to any waiting line model. - CORRECT ANSWER=> True"
"When the number of agents exceeds the number of tasks in an assignment problem, one or more dummy tasks must be introduced in the LP formulation or else the LP will not have a feasible solution. -
CORRECT ANSWER=> False"
"In a capacitated transshipment problem, some or all of the transfer points are subject to capacity
restrictions. - CORRECT ANSWER=> False"
"Revenue management methodology was originally developed for - CORRECT ANSWER=> an airline"
"Multiple choice constraints involve binary variables. - CORRECT ANSWER=> True"
"In general, every DEA linear programming model will include a constraint that requires the weights for
the operating units to sum to - CORRECT 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 - CORRECT ANSWER=> −.5A + .5B − .5C ≤ 0"
"Most practical applications of integer linear programming involve - CORRECT ANSWER=> only 0-
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. - CORRECT ANSWER=> True"
"Adding more channels always improves the operating characteristics of the waiting line and reduces the
waiting cost. - CORRECT ANSWER=> True"
"The goal of portfolio models is to create a portfolio that provides the best balance between risk and
return. - CORRECT ANSWER=> True"
"In a transshipment problem, shipments - CORRECT 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. - CORRECT ANSWER=> True"
"Sensitivity analysis for integer linear programming - CORRECT ANSWER=> does not have the same
interpretation and should be disregarded."
"Computer-generated random numbers are normally distributed. - CORRECT ANSWER=> False"
"Revenue management methodology enables an airline to maximize the number of full-fare seats it sells
on each flight. - CORRECT ANSWER=> False"
"Blending problems arise whenever a manager must decide how to - CORRECT ANSWER=> mix two or
more resources to produce one or more products."
"In a transshipment problem, shipments - CORRECT ANSWER=> can occur between any two nodes."
"A graphical tool that helps describe the logic of the simulation model is a - CORRECT ANSWER=>
flowchart."
"A convex function is - CORRECT ANSWER=> bowl-shaped up."
"A multiple choice constraint involves selecting k out of n alternatives, where k ≥ 2. - CORRECT
ANSWER=> False"
"Which of the following is not true regarding an LP model of the assignment problem? - CORRECT
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. - CORRECT 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 - CORRECT ANSWER=> Min
2M + 3B"
"Double-subscript notation for decision variables should be avoided unless the number of decision
variables exceeds nine. - CORRECT 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. - CORRECT ANSWER=> True"
"The interpretation of the dual price for nonlinear models is different than the interpretation of the dual
price for linear models. - CORRECT ANSWER=> False"
"The marketing research model presented in the textbook involves minimizing total interview cost
subject to interview quota guidelines. - CORRECT ANSWER=> True"
"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 - CORRECT ANSWER=> −.5A + .5B − .5C ≤ 0"
"In general, rounding large values of decision variables to the nearest integer value causes fewer
problems than rounding small values. - CORRECT ANSWER=> True"
"In general, every DEA linear programming model will include a constraint that requires the weights for
the operating units to sum to - CORRECT ANSWER=> 1"
"Which of the following is the most useful contribution of integer programming? - CORRECT
ANSWER=> using 0-1 variables for modeling flexibility"
"Question Content Area
The machine repair problem is an application of the M/M/1 model with - CORRECT ANSWER=> a finite
calling population." "The production scheduling problem modeled in the textbook involves capacity constraints on all of the
following types of resources except - CORRECT ANSWER=> material."
"Models with a finite calling population - CORRECT ANSWER=> use the size of the population as a
parameter in the operating characteristics formulas." "A feasible solution is a global optimum if there are no other feasible solutions with a better objective
function value in the immediate neighborhood. - CORRECT ANSWER=> False"
"The objective of the transportation problem is to - CORRECT ANSWER=> minimize the cost of shipping
products from several origins to several destinations." "A key trade-off in most portfolio optimization models must be made between risk and return. -
CORRECT ANSWER=> True"
"One disadvantage of simulation is that it is limited in the variety of probability distributions that can be
used in modeling a system. - CORRECT ANSWER=> False"
"Question Content Area The marketing research model presented in the textbook involves minimizing total interview cost subject
to interview quota guidelines. - CORRECT ANSWER=> True"
"Question Content Area
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 - CORRECT ANSWER=> −.5A + .5B − .5C ≤ 0"
"The goal of portfolio models is to create a portfolio that provides the best balance between risk and
return. - CORRECT ANSWER=> True"
"A simulation model used in situations where the state of the system at one point in time does not affect
the state of the system at future points in time is called a - CORRECT ANSWER=> static simulation
model."
"Use of the Poisson probability distribution assumes that arrivals are not random. - CORRECT
ANSWER=> False"
"Each point on the efficient frontier graph associated with the Markowitz portfolio model is the -
CORRECT ANSWER=> minimum possible risk for the given return."
"Question Content Area
The assignment problem constraint x31 + x32 + x33 + x34 ≤ 2 means - CORRECT ANSWER=> agent 3
can be assigned to 2 tasks.0" "To develop a portfolio that provides the best return possible with a minimum risk, the linear
programming model will have an objective function which - CORRECT 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 - CORRECT ANSWER=> a
Poisson probability distribution" "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 - CORRECT ANSWER=> 300 + r(200)"
