Complete the following:
True/False
Indicate whether the sentence or statement is true or false.
Q1 Management science involves the philosophy of approaching a problem in a subjective manner.
Q2 Once management scientist makes his or her decision and recommendation to management, then typically, his or her involvement with the problem is finished.
Q3 Probabilistic techniques assume that no uncertainty exists in model parameters.
Q4 A joint probability is the probability that two or more events that are mutually exclusive can occur simultaneously.
Q5 A payoff table is a means of organizing a decision situation, including the payoffs from different decisions given the various states of nature.
Q6 The Hurwicz criterion multiplies the best payoff by the coefficient of optimism.
Q7 Monte Carlo is a technique for selecting numbers randomly from a probability distribution.
Q8 A table of random numbers must be uniform, efficiently generated, and absent of patterns.
Q9 A cycle is an up-and-down repetitive movement in demand.
Q10 Time series methods relate the forecast to time as the only factor.
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
Q11 Which of the following is not an alternative name for management science?
a. decision sciences
b. quantitative methods
c. quantitative analysis
d. operations research
e. decision support systems
Q12 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?
a. 100
b. 120
c. 150
d. 175
e. 200
Q13 ____________ techniques include uncertainty and assume that there can be more than one model solution.
a. Deterministic
b. Probabilistic
c. Distribution
d. Probability
Q14 A frequency distribution is an organization of _________ data about the events in an experiment.
a. quantitative
b. numerical
c. qualitative
d. a and b
Q15 Regret is the difference between the payoff from the
a. best decision and all other decision payoffs
b. worst decision and all other decision payoffs
c. best decision and the worst decision payoffs
d. none of the above
Q16 The expected value and expected opportunity loss criteria result in
a. the same decision
b. different decisions
c. similar decisions
d. all of the above
Q17 A seed value is a(n)
a. steady state solution of a simulation experiment
b. number used to start a stream of random numbers
c. first run of a simulation model
d. analytic solution of a simulation experiment
Q18 Simulations are normally done
a. manually
b. in a casino
c. by a spreadsheet
d. on the computer
Q19 Managers use _______________ in forecasting.
a. judgment
b. opinion
c. past experience
d. all of the above
Q20 Random variations are movements that are
a. not predictable
b. not following a pattern
c. none of the above
d. all of the above
Sentence Completion
Q21 ___________ depend on the number of items produced.
Q22 A ____________ is a symbol used to represent an item that can take on any value.
Q23 ______________________ probability is an estimate based on a personal belief, experience, and knowledge of a situation.
Q24 A ________________________ is an organization of numerical data about the events of an experiment.
Q25 When the _____________________ criterion is used, the minimum of the maximum payoffs is observed
Q26 When the _____________________ criterion is used, the maximum of the maximum payoffs is observed.
Q27 In a computer mathematical simulation a system is replicated with a _______________model that is analyzed with the computer.
Q28 The _______________ command is used in generating the random numbers with Excel.
Q29 ____________________ is a gradual long term upward or downward movement of demand.
Q30 In using simple exponential smoothing the _____________ is to one, the greater the reaction of the forecast to the most recent demand.