BUS 660 Quantitative Methods Study Guide
Questions with complete solutions
The difference between the transportation and assignment problems is that - CORRECT ANSWER-✔✔✅each
supply and demand value is 1 in the assignment problem
In comparing different policies using simulation, one should use the same set of random numbers whenever
possible. - CORRECT ANSWER-✔✔✅True
A quantity that is difficult to measure with certainty is called a - CORRECT ANSWER-✔✔✅probabilistic input
Models with a finite calling population - CORRECT ANSWER-✔✔✅Use the size of the population as
parameter in the operating characteristics formulas
The number of units expected to be sold is uniformly distributed between 300 and 500. If r is a random number
between 0 and 1, then the proper expression for sales is - CORRECT ANSWER-✔✔✅300 + r(200)
In an all-integer linear program, - CORRECT ANSWER-✔✔✅all variables must be integer.
Blending problems arise whenever a manager must decide how to - CORRECT ANSWER-✔✔✅mix two or
more resources to produce one or more products.
Revenue management methodology was originally developed for - CORRECT ANSWER-✔✔✅an airline.
A transshipment problem is a generalization of the transportation problem in which certain nodes are neither
supply nodes nor destination nodes. - CORRECT ANSWER-✔✔✅True
A requirement that two 0-1 variables both be either in or out of a solution together is a - CORRECT ANSWER-
✔✔✅corequisite constraint
Before waiting lines can be analyzed economically, the arrivals' cost of waiting must be estimated. - CORRECT
ANSWER-✔✔✅True
If arrivals occur according to the Poisson distribution every 20 minutes, then which is NOT true? - CORRECT
ANSWER-✔✔✅λ = 20 arrivals per hour
Let A, B, and C be the amounts invested in companies A, B, and C. If no more than 50% of the total investment
can be in company B, then - CORRECT ANSWER-✔✔✅−.5A + .5B − .5C ≤ 0
Which of the following is the most useful contribution of integer programming? - CORRECT ANSWER-
✔✔✅using 0-1 variables for modeling flexibility
Which of the following statements is INCORRECT regarding the advantages of simulation? - CORRECT
ANSWER-✔✔✅Simulation guarantees an optimal solution.
Simulation is a trial-and-error approach to problem solving. - CORRECT ANSWER-✔✔✅True
The classic assignment problem can be modeled as a 0-1 integer program. - CORRECT ANSWER-✔✔✅True
The composite unit in data envelopment analysis - CORRECT ANSWER-✔✔✅All of the alternatives are
correct.
Which of the following is incorrect? - CORRECT ANSWER-✔✔✅A global minimum is a local minimum in a
, convex nonlinear optimization problem.
To develop a portfolio that provides the best return possible with a minimum risk, the linear programming model
will have an objective function which - CORRECT ANSWER-✔✔✅maximizes the minimum return.
For many waiting line situations, the arrivals occur randomly and independently of other arrivals and it has been
found that a good description of the arrival pattern is provided by - CORRECT ANSWER-✔✔✅a Poisson
probability distribution
The number of units expected to be sold is uniformly distributed between 300 and 500. If r is a random number
between 0 and 1, then the proper expression for sales is - CORRECT ANSWER-✔✔✅300 + r(200)
Before waiting lines can be analyzed economically, the arrivals' cost of waiting must be estimated. - CORRECT
ANSWER-✔✔✅True
Because most nonlinear optimization codes will terminate with a local optimum, the solution returned by the
codes will be the best solution. - CORRECT ANSWER-✔✔✅False
The network flows into and out of demand nodes are what makes the production and inventory application
modeled in the textbook a - CORRECT ANSWER-✔✔✅transshipment model
Little's flow equations apply to any waiting line model. - CORRECT ANSWER-✔✔✅True
A requirement that two 0-1 variables both be either in or out of a solution together is a - CORRECT ANSWER-
✔✔✅corequisite constraint
In a transshipment problem, shipments - CORRECT ANSWER-✔✔✅can occur between any two nodes.
In an all-integer linear program, - CORRECT ANSWER-✔✔✅all variables must be integer.
A nonlinear optimization problem is any optimization problem in which at least one term in the objective function
or a constraint is nonlinear. - CORRECT ANSWER-✔✔✅True
In the LP formulation of a maximal flow problem, a conservation-of-flow constraint ensures that an arc's flow
capacity is not exceeded. - CORRECT ANSWER-✔✔✅False
The goal of portfolio models is to create a portfolio that provides the best balance between risk and return. -
CORRECT ANSWER-✔✔✅True
A static simulation model is used in situations where the state of the system affects how the system changes or
evolves over time. - CORRECT ANSWER-✔✔✅False
The process of ensuring that the simulation model provides an accurate representation of a real system is called -
CORRECT ANSWER-✔✔✅validation
The production scheduling problem modeled in the textbook involves capacity constraints on all of the following
types of resources except - CORRECT ANSWER-✔✔✅material.
The difference between the transportation and assignment problems is that - CORRECT ANSWER-✔✔✅each
supply and demand value is 1 in the assignment problem
Most practical applications of integer linear programming involve - CORRECT ANSWER-✔✔✅only 0-1
integer variables and not ordinary integer variables.
The shortest-route problem finds the shortest-route - CORRECT ANSWER-✔✔✅from the source to any other
node.
A transshipment problem is a generalization of the transportation problem in which certain nodes are neither
Questions with complete solutions
The difference between the transportation and assignment problems is that - CORRECT ANSWER-✔✔✅each
supply and demand value is 1 in the assignment problem
In comparing different policies using simulation, one should use the same set of random numbers whenever
possible. - CORRECT ANSWER-✔✔✅True
A quantity that is difficult to measure with certainty is called a - CORRECT ANSWER-✔✔✅probabilistic input
Models with a finite calling population - CORRECT ANSWER-✔✔✅Use the size of the population as
parameter in the operating characteristics formulas
The number of units expected to be sold is uniformly distributed between 300 and 500. If r is a random number
between 0 and 1, then the proper expression for sales is - CORRECT ANSWER-✔✔✅300 + r(200)
In an all-integer linear program, - CORRECT ANSWER-✔✔✅all variables must be integer.
Blending problems arise whenever a manager must decide how to - CORRECT ANSWER-✔✔✅mix two or
more resources to produce one or more products.
Revenue management methodology was originally developed for - CORRECT ANSWER-✔✔✅an airline.
A transshipment problem is a generalization of the transportation problem in which certain nodes are neither
supply nodes nor destination nodes. - CORRECT ANSWER-✔✔✅True
A requirement that two 0-1 variables both be either in or out of a solution together is a - CORRECT ANSWER-
✔✔✅corequisite constraint
Before waiting lines can be analyzed economically, the arrivals' cost of waiting must be estimated. - CORRECT
ANSWER-✔✔✅True
If arrivals occur according to the Poisson distribution every 20 minutes, then which is NOT true? - CORRECT
ANSWER-✔✔✅λ = 20 arrivals per hour
Let A, B, and C be the amounts invested in companies A, B, and C. If no more than 50% of the total investment
can be in company B, then - CORRECT ANSWER-✔✔✅−.5A + .5B − .5C ≤ 0
Which of the following is the most useful contribution of integer programming? - CORRECT ANSWER-
✔✔✅using 0-1 variables for modeling flexibility
Which of the following statements is INCORRECT regarding the advantages of simulation? - CORRECT
ANSWER-✔✔✅Simulation guarantees an optimal solution.
Simulation is a trial-and-error approach to problem solving. - CORRECT ANSWER-✔✔✅True
The classic assignment problem can be modeled as a 0-1 integer program. - CORRECT ANSWER-✔✔✅True
The composite unit in data envelopment analysis - CORRECT ANSWER-✔✔✅All of the alternatives are
correct.
Which of the following is incorrect? - CORRECT ANSWER-✔✔✅A global minimum is a local minimum in a
, convex nonlinear optimization problem.
To develop a portfolio that provides the best return possible with a minimum risk, the linear programming model
will have an objective function which - CORRECT ANSWER-✔✔✅maximizes the minimum return.
For many waiting line situations, the arrivals occur randomly and independently of other arrivals and it has been
found that a good description of the arrival pattern is provided by - CORRECT ANSWER-✔✔✅a Poisson
probability distribution
The number of units expected to be sold is uniformly distributed between 300 and 500. If r is a random number
between 0 and 1, then the proper expression for sales is - CORRECT ANSWER-✔✔✅300 + r(200)
Before waiting lines can be analyzed economically, the arrivals' cost of waiting must be estimated. - CORRECT
ANSWER-✔✔✅True
Because most nonlinear optimization codes will terminate with a local optimum, the solution returned by the
codes will be the best solution. - CORRECT ANSWER-✔✔✅False
The network flows into and out of demand nodes are what makes the production and inventory application
modeled in the textbook a - CORRECT ANSWER-✔✔✅transshipment model
Little's flow equations apply to any waiting line model. - CORRECT ANSWER-✔✔✅True
A requirement that two 0-1 variables both be either in or out of a solution together is a - CORRECT ANSWER-
✔✔✅corequisite constraint
In a transshipment problem, shipments - CORRECT ANSWER-✔✔✅can occur between any two nodes.
In an all-integer linear program, - CORRECT ANSWER-✔✔✅all variables must be integer.
A nonlinear optimization problem is any optimization problem in which at least one term in the objective function
or a constraint is nonlinear. - CORRECT ANSWER-✔✔✅True
In the LP formulation of a maximal flow problem, a conservation-of-flow constraint ensures that an arc's flow
capacity is not exceeded. - CORRECT ANSWER-✔✔✅False
The goal of portfolio models is to create a portfolio that provides the best balance between risk and return. -
CORRECT ANSWER-✔✔✅True
A static simulation model is used in situations where the state of the system affects how the system changes or
evolves over time. - CORRECT ANSWER-✔✔✅False
The process of ensuring that the simulation model provides an accurate representation of a real system is called -
CORRECT ANSWER-✔✔✅validation
The production scheduling problem modeled in the textbook involves capacity constraints on all of the following
types of resources except - CORRECT ANSWER-✔✔✅material.
The difference between the transportation and assignment problems is that - CORRECT ANSWER-✔✔✅each
supply and demand value is 1 in the assignment problem
Most practical applications of integer linear programming involve - CORRECT ANSWER-✔✔✅only 0-1
integer variables and not ordinary integer variables.
The shortest-route problem finds the shortest-route - CORRECT ANSWER-✔✔✅from the source to any other
node.
A transshipment problem is a generalization of the transportation problem in which certain nodes are neither
