Decision Science | Chapter 2 | Part 1 | MBA MCQs | DS

Decision Science MCQs

  

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1. Values for the probabilistic inputs to a simulation
   1.   are controlled by the decision maker.
   2.   are randomly generated based on historical information.
   3.   are calculated by fixed mathematical formulas.
   4.   are selected by the decision maker.
2. Except to be used to minimized the costs associated with distributing good, transportation model can also be used in
   1.   comparison of location alternative
   2.   production planning
   3.   capacity planning
   4.   transshipment problem
   5.   all of the above
3. The following data consists of a matrix of transition probabilities (P) of three competing companies, the initial market share state 16_10.gif(1), and the equilibrium probability states.
   Assume that each state represents a firm (Company 1, Company 2, and Company 3, respectively) and the transition probabilities represent changes from one month to the next. The market share of Company 1 in the next period is
   1.   0.42
   2.   0.20
   3.   0.47
   4.   0.10
4. Goods are received at all of the following except
   1.   docks
   2.   departments
   3.   warehouses
   4.   factories
5. A simulation model uses the mathematical expressions and logical relationships of the
   1.   computer model.
   2.   performance measures.
   3.   estimated inferences.
   4.   real system.
6. Markov analysis assumes that the states are both __________ and __________.
   1.   generally inclusive, always independent
   2.   collectively exhaustive, mutually exclusive
   3.   finite, recurrent
   4.   infinite, absorbing
7. The method for finding the lowest-cost plan for distributing stocks of goods or supplies from multiple origins to multiple destinations that demand the goods is
   1.   MODI analysis
   2.   linear regression analysis
   3.   transportation model analysis
   4.   cost-volume analysis
8. The objective function of the transportation model is to
   1.   none of the above
   2.   minimize costs
   3.   reduce shipping costs
   4.   maximize costs
9. The following transportation model is a programming model
   1.   analytical
   2.   linear
   3.   variable
   4.   non-linear
10. Before the analyst of the transportation model can begin, what data would they need to collect?
    1.   A list of destinations
    2.   Unit cost to ship
    3.   All of the above
    4.   A list of origins
11. Which one of the following is a linear programming model ?
    1.   Cost-volume analysis
    2.   Linear regression analysis
    3.   MODI analysis
    4.   Transportation model analysis
12. The basis for the transportation model is
    1.   a method to arrive at the lowest total shipping cost
    2.   a way to provide a map for people to see results
    3.   to provide data for use in other areas
    4.   so delivery drivers know where to go
13. The ________ determine(s) the equilibrium of a Markov process.
    1.   state vector
    2.   transition matrix
    3.   original state probabilities
    4.   fundamental matrix F
14. Destination points are
    1.   points that receive goods from factories, warehouses, and departments.
    2.   none of the above
    3.   supply points
    4.   points where goods are sent from factories, warehouses, and departments
15. A quantity that is difficult to measure with certainty is called a
    1.   project determinant.
    2.   profit/loss process.
    3.   probabilistic input.
    4.   risk analysis.
16. What does the transportation problem involve finding:
    1.   lowest cost-plan
    2.   highest cost-plan
    3.   closest destinations
    4.   farthest destinations
17. Transportation problems be solved
    1.   all of the above
    2.   with a table
    3.   with excel
    4.   manually
    5.   with software packages
18. Transportation problems can be solved manually in a straightforward manner except for
    1.   medium problems
    2.   all of the above
    3.   large problems
    4.   very small, but time consuming problems
19. Goods are not sent from
    1.   department stores
    2.   warehouses.
    3.   goods are sent from all of these locations
    4.   grocery stores
20. value for probabilistic input from a discrete probability distribution
    1.   is the value given by the RAND() function.
    2.   is between 0 and 1.
    3.   must be non-negative.
    4.   is given by matching the probabilistic input with an interval of random numbers.