50 Multiple Choice Questions on Quantitative Methods

Question 1
In a balanced transportation model where supply equals demand,
a. all constraints are equalities
b. none of the constraints are equalities
c. all constraints are inequalities
d. none of the constraints are inequalities

Question 2
In a transportation problem, items are allocated from sources to destinations
a. at a maximum cost
b. at a minimum cost
c. at a minimum profit
d. at a minimum revenue

Question 3
The assignment model is a special case of the ________ model.
a. maximum-flow
b. transportation
c. shortest-route
d. none of the above

Question 4
The linear programming model for a transportation problem has constraints for supply at each ______ and _______ at each destination.
a. destination / source
b. source / destination
c. demand / source
d. source / demand

Question 5
An assignment problem is a special form of transportation problem where all supply and demand values equal
a. 0
b. 1
c. 2
d. 3

Question 6
The transshipment model is an extension of the transportation model in which intermediate transshipment points are ______ between the sources and destinations.
a. decreased
b. deleted
c. subtracted
d. added

Question 7
Inventory costs include
a. carrying
b. ordering
c. shortage costs
d. all of the above

Question 8
In a(an) ____________ inventory system a constant amount is ordered when inventory declines to a predetermined level.
a. optional
b. economic
c. periodic
d. continuous

Question 9
EOQ is a(an) _________ inventory system.
a. periodic
b. continuous
c. optimal
d. economic

Question 10
As order size increases, total
a. inventory costs will increase, reach a maximum and then quickly decrease.
b. inventory cost will decrease, reach a minimum and then increase.
c. ordering costs will initially increase while total carrying cost will continue to decrease
d. carrying cost decreases while the total ordering cost increases

Question 11
If we roll 1 die the probability of any 1 of the 6 possible outcomes' occurring is 1/6. This is an example of a
a. subjective probability
b. classical probability
c. conditional probability
d. relative frequency probability

Question 12
A _________ probability is the probability that an event will occur given that another event has already occurred.
a. subjective
b. objective
c. conditional
d. binomial

Question 13
Farmer Green has a herd of cattle. Twenty percent of his herd are bulls. He has three different breeds of bulls--10 are Jerseys, 20 are Holsteins, and 20 are Guernseys. Given that you have selected a bull, what is the probability that the bull is also a Holstein?
a. 0.02
b. 0.20
c. 0.40
d. 0.80

Question 14
The events in an experiment are _________ if only one can occur at a time.
a. mutually exclusive
b. non-mutually exclusive
c. mutually inclusive
d. non-mutually inclusive

Question 15
Bayesian Analysis enables one to calculate posterior probabilities.
a. True
b. False

Question 16
A subjective probability reflects the feelings or opinions regarding the likelihood that an outcome will occur.
a. True
b. False

Question 17
The shipping company manager wants to determine the best routes for the trucks to take to reach their destinations. The problem can be solved using the
a. shortest route solution technique
b. minimum spanning tree solution method
c. maximal flow solution method
d. minimal flow solution method

Question 18
In the linear programming formulation of the shortest route problem, there is one constraint for each node indicating
a. capacity on each path
b. whatever comes into a node must also go out
c. capacity on each arc
d. a maximum capacity on a path

Question 19
The minimal spanning tree problem determines the ___________ total branch lengths connecting all nodes in the network
a. selected
b. maximum
c. minimum
d. divided

Question 20
The objective of the maximal flow solution approach is to _________ the total amount of flow from an origin to a destination
a. minimize
b. maximize
c. discriminate
d. divide

Question 21
Once a project is underway, the project manager is responsible for the
a. people
b. cost
c. time
d. all of the above

Question 22
If an activity cannot be delayed without affecting the entire project, it is a _______ activity
a. completed
b. critical
c. conjugated
d. none of the above

Question 23
A ____________ represents the beginning and end of activities, referred to as events.
a. path
b. arc
c. branch
d. node

Question 24
When an activity is completed at a node, it has been
a. finished
b. ended
c. realized
d. completed

Question 25
Project management differs from management for more traditional activities mainly because of
a. its limited time frame
b. its unique set of activities
c. a and b
d. none of the above

Question 26
The critical path is the ____________ time the network can be completed.
a. maximum
b. minimum
c. longest
d. shortest

Question 27
Attributes of decision-making techniques include all of the following except:
a. payoffs
b. constraints
c. alternatives
d. states of nature

Question 28
With the criterion ____________, the decision maker attempts to avoid regret.
a. minimax regret
b. equal likelihood
c. Hurwicz
d. maximin

Question 29
To lose the opportunity to make a defined profit by making the best decision is referred to as:
a. equal likelihood criterion
b. state
c. payoff
d. regret

Question 30
When is it most appropriate to use a decision tree?
a. if the decision maker wishes to minimize opportunity loss
b. if a decision situation requires a series of decisions
c. if the decision maker must use perfect information
d. if all states of nature are equally likely to occur

Question 31
The coefficient of optimism may be selected to being a value between:
a. 0 and -1
b. 0 and +1
c. -1 and +1
d. -6 and +6

Question 32
According to the _____, the defensive player will select the strategy that has the smallest of the maximum payoffs.
a. maximax strategy
b. minimin strategy
c. maximin strategy
d. minimax strategy

Question 33
The expected opportunity loss criterion will always result in the same decision as the expected value criterion.
a. True
b. False

Question 34
A cereal company that is planning on marketing a new low-cholesterol cereal should be concerned about the states of nature--that is the probability that people will stay interested in eating healthy foods.
a. True
b. False

Question 35
The length of a queue
a. could be finite
b. could be infinite
c. can constantly change
d. all of the above

Question 36
Items may be taken from a queue
a. on a first-come-first-serve basis
b. on a last-come-first-serve basis
c. according to the due date of the item
d. all of the above

Question 37
Which of the following items is not a part of the queuing system?
a. arrival rate
b. service facility
c. waiting line
d. activity flow

Question 38
In a single-server queuing model, the average number customers in the queuing system is calculated by dividing the arrival rate by:
a. service rate
b. service time
c. service rate minus arrival rate
d. service rate plus arrival rate

Question 39
The most important factors to consider in analyzing a queuing system are
a. the service and arrival rate
b. the nature of the calling population
c. the queue discipline
d. all of the above

Question 40
Queuing analysis is a deterministic technique.
a. True
b. False

Question 41
The operating characteristics of a queuing system provide information rather than an optimization of a queuing system.
a. True
b. False

Question 42
The applicability of forecasting methods depends on
a. the time frame of the forecast
b. the existence of patterns in the forecast
c. the number of variables to which the forecast is related
d. all of the above

Question 43
_________ is a gradual, long-term, up or down movement of demand.
a. seasonal pattern
b. cycle
c. trend
d. prediction

Question 44
___________ is good for stable demand with no pronounced behavioral patterns.
a. longer-period moving average
b. shorter-period moving average
c. moving average
d. weighted moving average

Question 45
The Delphi method for acquiring informed judgments and opinions from knowledgeable individuals uses a series of questionnaires to develop a consensus forecast about what will occur in the future.
a. True
b. False

Question 46
___________ methods assume that what has occurred in the past will continue to occur in the future.
a. Time series
b. Regression
c. Quantitative
d. Qualitative

Question 47
In exponential smoothing, the closer alpha is to ___________, the greater the reaction to the most recent demand.
a. -1
b. 0
c. 1
d. 5

Question 48
Time series methods tend to be most useful for short-range forecasting.
a. True
b. False

Question 49
An exponential smoothing forecast will react more strongly to immediate changes in the data than the moving average.
a. True
b. False

Question 50
Longer-period moving averages react more quickly to recent demand changes than do shorter-period moving averages.
a. True
b. False

Solution Summary

Answers to 50 Multiple Choice Questions on Quantitative Methods