Question 1
5 out of 5 points

A cycle is an up and down movement in demand that repeats itself in less than 1 year. Answer

Selected Answer: False
Correct Answer: False

Question 2
5 out of 5 points

Validation of a simulation model occurs when the true steady state average results have been reached. Answer

Selected Answer: True
Correct Answer: True

Question 3
5 out of 5 points

If we are solving a 0-1 integer programming problem, the constraint x1 = x2 is a conditional constraint. Answer

Selected Answer: False
Correct Answer: False

Question 4
5 out of 5 points

In a total integer model, all decision variables have integer solution values. Answer

Selected Answer: True
Correct Answer: True

Question 5
5 out of 5 points

Excel can be used to simulate systems that can be represented by both discrete and continuous random variables. Answer

Selected Answer: True
Correct Answer: True

Question 6
5 out of 5 points

Fractional relationships between variables are not permitted in the standard form of a linear program. Answer

Selected Answer: True
Correct Answer: True

Question 7
5 out of 5 points

A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.

The conservative (maximin) strategy is:
Answer

Selected Answer: Lease
Correct Answer: Lease

Question 8
5 out of 5 points

Using the minimax regret criterion to make a decision, you
Answer

Selected Answer: Construct a table of regrets. Look at the maximum regret for each decision. Select the decision with the smallest maximum regret.
Correct Answer: Construct a table of regrets. Look at the maximum regret for each decision. Select the decision with the smallest maximum regret.

Question 9
5 out of 5 points

The probability of observing x successes in a fixed number of trials is a problem related to
Answer

Selected Answer: the binomial distribution
Correct Answer: the binomial distribution

Question 10
5 out of 5 points

Using the maximin criterion to make a decision, you
Answer

Selected Answer: Look at the worst payoff for each possible decision and select the decision with the largest worst payoff
Correct Answer: Look at the worst payoff for each possible decision and select the decision with the largest worst payoff

Question 11
5 out of 5 points

A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.

If the probability of brisk business is .40 and for slow business is .60, the expected value of perfect information is:
Answer

Selected Answer: 12
Correct Answer: 12

Question 12
5 out of 5 points

Steinmetz furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $100 and requires 100 cubic feet of storage space, and each medium shelf costs $50 and requires 80 cubic feet of storage space. The company has $25000 to invest in shelves this week, and the warehouse has 18000 cubic feet available for storage. Profit for each big shelf is $85 and for each medium shelf is $75. In order to maximize profit, how many big shelves (B) and how many medium shelves (M) should be purchased?
Answer

Selected Answer: B = 0, M = 225
Correct Answer: B = 0, M = 225

Question 13
5 out of 5 points

Steinmetz furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $100 and requires 100 cubic feet of storage space, and each medium shelf costs $50 and requires 80 cubic feet of storage space. The company has $25000 to invest in shelves this week, and the warehouse has 18000 cubic feet available for storage. Profit for each big shelf is $85 and