1. Question 1 In System Dynamics, how do we define a feedback loop? Provide an example [2.5 pts] a. b. In causal Loop diagram, explain why you should not include correlations between variables. (explain difference between Causation vs. Correlation) [2.5 pts] 2. Question 2 a. Draw a Stock and Flow Diagram (SFD) of a manufacturer that builds a custom product and runs its own operations from online order to customer delivery. Assume there is a one-step manufacturing process (production) and one-step delivery. Only include stocks and flows here. [10 pts] b. Serially disaggregate the production process to include a quality control step. [5 pts] 3. Question 3 a. An investment manager is asking you to invest into her fund. She promises a 15% per year rate of return. In how many years will you double your investment if she keeps her promise? Explain how you derived the result. [5 pts] 4. Question 4 Fill in the blanks below with whether a variable is stock, flow, or parameter and the units: [20 pts] Example Question: A country's population is a Example Answer: A country's population is a and its units are and its units are people stock a. Population growth rate is a and its units are b. Fractional birth rate is a and its units are C. Fault detection rate in a production line is a and its units are d. Active twitter users is a and its units are e. Unemployment rate is and its units are 5. Question 5 Populate the stock and flow diagram and write the equations for the SFD of Question2a. Make sure that you include a control mechanism! (5 pts] 6. Question 6 a. Please draw the Susceptible-Infectious-Recovered (SIR) model. Include all necessary additional variables to complete it. [5 pts] b. What order is the SIR model? Is it linear or non-linear? Can it oscillate? Why or why not? [5 pts) C. Define epidemic for this model. Indicate under which conditions will an epidemic be avoided? (2 pts] 7. Question 7 A trainee for a small direct-to-consumer manufacturer proposes the following equation for setting the level of production: Production Output = Deliveries + Desired Inventory - Inventory a. Propose the units for each variable presented [5 pts] b. Is the formulation correct? If not, why not? [3 pts) 8. Question 8 You are given the diagram below: CarryingCapacity Population/Carrying Capacity Fractional Birth Rate Fractional Death Rate Population BirthRate Death Rate a. Complete the diagram by showing the polarities and whether the loops are reinforcing or balancing (5 pts] b. What is the order of the system? Is it linear or non-linear? [5 pts] FractionalBirth Rate Fractional Death Rate Population BirthRate Death Rate a. Complete the diagram by showing the polarities and whether the loops are reinforcing or balancing (5 pts] b. What is the order of the system? Is it linear or non-linear? [5 pts] c. What behaviors for the Population stock can it show? Mark with X all that apply, and for those that apply write for which value of P/CC they may occur [5 pts] S-Shape . Goal seeking Exponential decay Overshoot and collapse Steady state 9. Question 9 a. What is path dependence in System Dynamics? [3 pts] b. What characterizes path-dependent systems? [2 pts] C. Give two examples of path-dependent systems. [5 pts] 10. Question 10 a. What is delay in System Dynamics? (3 pts) b. Give one examples of a delay [2 pts]