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

Decision Science MCQs

  

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