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

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Time Spent: 22 min , 13 secs

Points Received: 80 / 100 (80%)

Question Type: # Of Questions: # Correct:

Multiple Choice 20 16

Grade Details – All Questions

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

Student Answer: maximize

minimize

steady

maintain

Points Received: 5 of 5

Comments:

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

Student Answer: decreases.

increases.

remains the same.

may increase or decrease, depending on sales.

Points Received: 0 of 5

Comments:

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:

Student Answer: risk takers.

risk averters.

risk calculators.

risk predictors.

Points Received: 5 of 5

Comments:

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?

Student Answer: Model implementation

Problem definition

Model solution

Problem formulation

Points Received: 5 of 5

Comments:

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?

Student Answer: $12

$15

$18

$20

Points Received: 0 of 5

Comments:

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

Student Answer: Binomial

Subjective

Marginal

Joint

Points Received: 5 of 5

Comments:

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

Student Answer: increases.

decreases.

remains the same.

cannot be determined.

Points Received: 5 of 5

Comments:

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

Student Answer: Fixed costs

Variable costs

Profits

Average costs

Points Received: 5 of 5

Comments:

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

Student Answer: Longer-period moving averages

Shorter-period moving averages

Moving averages

Weighted moving averages

Points Received: 5 of 5

Comments:

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?

Student Answer: 8

6

4

2

Points Received: 5 of 5

Comments:

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.

Points Received: 5 of 5

Comments:

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.

Points Received: 5 of 5

Comments:

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.

Points Received: 0 of 5

Comments:

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.

Points Received: 5 of 5

Comments:

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

Student Answer: graphical solution

decision analysis

sensitivity analysis

break-even analysis

Points Received: 5 of 5

Comments:

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 _____.

Student Answer: 0.25

0.33

0.50

2.0

Points Received: 5 of 5

Comments:

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?

Student Answer: $120

$150

$175

$200

Points Received: 5 of 5

Comments:

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

Student Answer: expected value

expected opportunity loss

expected value of perfect information

none of the above

Points Received: 5 of 5

Comments:

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

Student Answer: a priori

posterior

joint

relative frequency

Points Received: 0 of 5

Comments:

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?

Student Answer: 0.2

0.3

0.5

0.6

Points Received: 5 of 5

Comments: