Questions and Answers of Quantitative Analysis For Management

Network models such as PERT and CPM are useda. to plan large and complex projects.b. to schedule large and complex projects.c. to monitor large and complex projects.d. to control large and complex
The primary difference between PERT and CPM is thata. PERT uses one time estimate.b. CPM has three time estimates.c. PERT has three time estimates.d. with CPM, it is assumed that all activities can
Which of the following is the latest finish time (LF)?a. the latest time an activity can end without delaying the entire projectb. the latest time an activity can begin without delaying the entire
The latest finish time for an activity is found during the backward pass through the network. The latest finish time is equal toa. the largest LF of the activities for which it is an immediate
When PERT is used and probabilities are found, one of the assumptions that is made is thata. all activities are on the critical path.b. activity times are independent.c. all activities have the same
In PERT, the time estimate b representsa. the most optimistic time.b. the most likely time.c. the most pessimistic time.d. the expected time.e. none of the above.
In PERT, slack time equalsa. ES + t.b. LS - ES.c. 0.d. EF - ES.e. none of the above.
What is the first step of project crashing with linear programming?a. determine the objective functionb. define decision variable for the linear programc. determine crash constraintsd. determine
The critical path is thea. shortest path in a network.b. longest path in a network.c. path with the smallest variance.d. path with the largest variance.e. none of the above.
If the project completion time is normally distributed and the due date for the project is greater than the expected completion time, then the probability that the project will be finished by the due
If activity A is not on the critical path, then the slack for A will equala. LF - EF.b. EF - ES.c. 0.d. all of the above.
If a project is to be crashed at the minimum possible additional cost, then the first activity to be crashed must bea. on the critical path.b. the one with the shortest activity time.c. the one with
______________activities are ones that will delay the entire project if they are late or delayed.
CPM is ______________ a method.
Critical activities have no ______________ time.
PERT can use three estimates for activity time. These three estimates are ______________, ______________, and ______________.
The latest start time minus the earliest start time is called the ______________ time for any activity.
Computing project variance is done by ______________ activity variances along the ______________.
What are the six steps and procedures common to both PERT and CPM?
What are the time estimates in PERT? Why is beta probability distribution often used?
What are the two basic rules to follow when computing ES and EF times?
Describe the budgeting, monitoring, and controlling process of project cost.
Discuss the importance of resource leveling.
A goal of queuing theory is to find the best service level for an organization.a. Trueb. False
Queuing theory deals with the trade-off between the cost of providing good service and the hard to quantify cost of customer waiting time.a. Trueb. False
Total expected cost is obtained by taking the expected service costs minus the expected waiting costs.a. Trueb. False
Which of the following is not an assumption in M>M>1 models?a. Arrivals come from an infinite or very large population.b. Arrivals are Poisson distributed.c. Arrivals are treated on a FIFO basis and
Which components are to be considered in the calling population?a. its sizeb. its arrival patternc. the behaviour of the arrivalsd. all of the above
Cars enter the drive-through of a fast-food restaurant to place an order, and then they proceed to pay for the food and pick up the order. This is an example ofa. a multichannel system.b. a
The utilization factor for a system is defined asa. mean number of people served divided by the mean number of arrivals per time period.b. the average time a customer spends waiting in a queue.c.
Which of the following would not have a FIFO queue discipline?a. Fast-food restaurantb. Post officec. Checkout line at grocery stored. Emergency room at a hospital
A company has one computer technician who is responsible for repairs on the company’s 20 computers.As a computer breaks, the technician is called to make the repair. If the repairperson is busy,
In performing a cost analysis of a queuing system, the waiting time cost 1Cw2 is sometimes based on the time in the queue and sometimes based on the time in the system. The waiting cost should be
Customers enter the waiting line at a cafeteria on a first-come, first-served basis. The arrival rate follows a Poisson distribution, and service times follow an exponential distribution. If the
In queuing models, waiting cost plus ____________________ equal total cost.
The service time in the M/M/1 queuing model is assumed to be .
When managers find standard queuing formulas inadequate or the mathematics unsolvable, they often resort to ____________________ to obtain their solutions.
What are the three main components of any queuing system?
Why is it important to consider arrival characteristics in a queuing system?
What is balking? In which queuing system phase is it found?
What is the difference between single phase and multiphase in the service facilities phase?
What are the assumptions of the single-channel, single-phase queuing model?
Simulation is a technique to imitate real-world situations with mathematical models not affecting operations.a. Trueb. False
Simulation is relatively straightforward and flexible. It can be used to compare many different scenarios side by side.a. Trueb. False
While extremely flexible, simulation does not allow what-if type of questions.a. Trueb. False
Why is simulation so widely used among managers?a. It is relatively straightforward and flexible.b. Software makes simulation models very easy to develop.c. To analyze large and complex real-world
Which one can be a Monte Carlo simulation variable?a. lead time for inventory orders to arriveb. times between machine breakdownsc. number of absent employees at a certain timed. all of the above
Which of the following is an advantage of simulation?a. It allows time compression.b. It is always relatively simple and inexpensive.c. The results are usually transferable to other problems.d. It
Which of the following is a disadvantage of simulation?a. It is inexpensive even for the most complex problem.b. It always generates the optimal solution to a problem.c. The results are usually
A meteorologist was simulating the number of days that rain would occur in a month. The random number interval from 01 to 30 was used to indicate that rain occurred on a particular day, and the
Simulation is best thought of as a technique toa. give concrete numerical answers.b. increase understanding of a problem.c. provide rapid solutions to relatively simple problems.d. provide optimal
When simulating the Monte Carlo experiment, the average simulated demand over the long run should approximate thea. real demand.b. expected demand.c. sample demand.d. daily demand.
The idea behind simulation is toa. imitate a real-world situation.b. study the properties and operating characteristics of a real-world situation.c. draw conclusions and make action decisions based
Using simulation for a queuing problem would be appropriate ifa. the arrival rate follows a Poisson distribution.b. the service rate is constant.c. the FIFO queue discipline is assumed.d. there is a
A probability distribution has been developed, and the probability of 2 arrivals in the next hour is 0.20. A random number interval is to be assigned to this. Which of the following would not be an
In a Monte Carlo simulation, a variable that we might want to simulate isa. lead time for inventory orders to arrive.b. times between machine breakdowns.c. times between arrivals at a service
Use the following random numbers to simulate yes and no answers to 10 questions by starting in the first row and lettinga. the double-digit numbers 00–49 represent yes, and 50–99 represent no.b.
What are the required steps for setting up a simulation model?
Explain. Simulations do not interfere with the realworld system. This is one of the reasons for their popularity.
What are the main disadvantages of simulation?
What are the basis of and the prerequisites for every Monte Carlo simulation model? Explain and illustrate its rationale.
In which way are probability distributions for the variables selected?
Markov analysis is used to predict occurrences in the future on the basis of current probabilities. It has application in which of the following fields?a. market share analysisb. bad debt
The product of a vector of state probabilities and the matrix of transition probabilities will yielda. another vector of state probabilities.b. a meaningless mess.c. the inverse of the equilibrium
In the long run, the state probabilities will be 0 and 1a. in no instances.b. in all instances.c. in some instances.
To find equilibrium conditions,a. the first vector of state probabilities must be known.b. the matrix of transition probabilities is unnecessary.c. the general terms in the vector of state
Which of the following is not one of the assumptions of Markov analysis?a. There is a limited number of possible states.b. There is a limited number of possible future periods.c. A future state can
In Markov analysis, the state probabilities musta. sum to 1.b. be less than 0.c. be less than 0.01.d. be greater than 1.e. be greater than 0.01.
If the state probabilities do not change from one period to the next, thena. the system is in equilibrium.b. each state probability must equal 0.c. each state probability must equal 1.d. the system
What happens if a system goes into an absorbing state?a. It will evolve in multiple states.b. Its future states will be the same as its present state.c. It cannot go to another state in the future.d.
It is necessary to use the fundamental matrixa. to find the equilibrium conditions when there are no absorbing states.b. to find the equilibrium conditions when there is one or more absorbing
The matrix of _________________ can help illustrating, among others, the likelihood of change.
Equilibrium conditions exist when _________________are invariant in a large number of periods.
For a process, the probability of remaining in an absorbing state in the future is _________________.
What mathematical background is essential to tackle Markov analysis even at a basic level?
Discuss and explain with examples the four main assumptions for successfully applying a Markov analysis.
Why the sum of the row probabilities must always be equal to 1?
What is the equilibrium condition? Give a working definition of it.
What is the vector of state probabilities? Where can it be found in a process?
Which phases are included in a statistical process control for product or service being produced?a. establishing standardsb. monitoring standardsc. taking corrective actiond. all of the above
Probability distributions are defined by a certain number of parameters, different for each case. How many of them do characterize normal distributions?a. 1b. 2c. 3d. 4
The charts that measure the range between the biggest and the smallest items in a random sample area. c-chart.b. p-chart.c. R-chart.d. x-chart.
Which are common probability distributions for populations?a. normal distributionsb. beta distributionsc. uniform distributionsd. all of the above
The Poisson distribution is often used witha. R-charts.b. p-charts.c. c-charts.d. x-charts.
A type of variability that indicates that a process is out of control is calleda. natural variation.b. assignable variation.c. random variation.d. average variation.
A company is implementing a new quality control program. Items are sampled and classified as being defective or nondefective. The type of control chart that should be used isa. an R-chart.b. a
After a control chart (for means) has been developed, samples are taken and the average is computed for each sample. The process could be considered out of control ifa. one of the sample means is
A machine is supposed to fill soft drink cans to 12 ounces. It appears that although the average amount in the cans is about 12 ounces (based on sample means), there is a great deal of variability in
If a process consists exclusively of random variations, then 99.7% of the time the sample averages will fall withina. 1 standard deviation of the population mean.b. 2 standard deviations of the
Give a definition of total quality management (TQM) and some of its uses.
What is the objective of a process control system, and how does it work in practice?
How is the calculation of control limits often done in practice?
Why dispersion has to be taken into account?
In analyzing a problem, you should normally studya. the qualitative aspects.b. the quantitative aspects.c. both a and b.d. neither a nor b.
Quantitative analysis isa. a logical approach to decision making.b. a rational approach to decision making.c. a scientific approach to decision making.d. all of the above.
Qualitative factorsa. are less important than quantitative factors.b. are difficult or impossible to quantify.c. were first developed by Frederick W. Taylor.d. all of the above.
An input (such as variable cost per unit or fixed cost) for a model is an example ofa. a decision variable.b. a parameter.c. an algorithm.d. a stochastic variable.
The point at which the total revenue equals total cost(meaning zero profit) is called thea. zero-profit solution.b. optimal-profit solution.c. break-even point.d. fixed-cost solution.
The first step in a quantitative analysis approach will requirea. acquiring input data.b. producing a scale model.c. defining the problem.d. determining the break-even point.
Sensitivity analysis is most often associated with which step of the quantitative analysis approach?a. defining a problemb. acquiring input datac. implementing the resultsd. analyzing the results

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