BUSOBA 2321 Exam 2 Questions and
Correct Answers
Question 1
weakness of the maximin method
Correct Answer
short sighted, potentially high opportunity cost
Question 2
decision tree example problem
Correct Answer
Question 3
decision analysis methods -- criterion of realism (Hurwicz)
Correct Answer
compromise between maximax and maximin
uses the coefficient of realism (fancy a) to estimate the decision makers optimism
level, rather than all of nothing
~a is between 0 and 1
find the best and worst payoffs per alternative
find a realism payoff for each alternative:
[ (~a) x (max payoff for alternative) ] + [ (1 - ~a) x (min payoff for alternative) ] =
realism payoff for alternative
choose alternative with best realism payoff
Page 1 of 84
,Question 4
the shadow price is _______________ for a non-binding constraint. there is always some
amount (equal to the current ________________) by which the RHS value of a non-
binding constraint can change w/out affecting the optimal solution
Correct Answer
always zero; slack/surplus
Question 5
simulation modeling
Correct Answer
"replicates" the system or process under study
many applications and approaches
Question 6
goal programming models
Correct Answer
permit multiple objectives identified as "goals"
try to "satisfy" the collection of goals rather than optimize a single objective
there is still only ONE objection FUNCTION written to ensure the multiple objectives
are satisfied as possible, given the constraints
called satisficing
Question 7
sensitivity analysis report -- final value (TOP SECTION) = _____________________
Correct Answer
optimal solution
Page 2 of 84
,Question 8
creating soft constraints example
Correct Answer
Question 9
assignment model
Correct Answer
for making one-to-one assignments
binary decision variables (0 or 1)
small problems can be done w/ enumeration
Question 10
five steps in decision analysis
Correct Answer
1. define the problem
2. list all possible alternatives
3. identify the possible outcomes for each decision alternative
4. identify the payoff for each combination
5. select a decision analysis modeling techniques, apply the decision model and
make the decision
Page 3 of 84
, Question 11
simulation process
Correct Answer
1. define a problem
2. introduce variables associated w/ the problem
3. construct a mathematical model
4. set up possible courses of action (COAs) for testing
5. run the experiment
6. consider the results and make necessary modifications
7. decide upon the COA to take
Question 12
assignment model application examples
Correct Answer
staff to tasks
auditors to clients
salespeople to areas
classes to classrooms
jobs to machines
game scheduling
Question 13
does changing the RHS of a redundant constraint change the feasible region
Correct Answer
it depends on the size of the change
Question 14
LHS > RHS results in ...
Correct Answer
surplus
Page 4 of 84
Correct Answers
Question 1
weakness of the maximin method
Correct Answer
short sighted, potentially high opportunity cost
Question 2
decision tree example problem
Correct Answer
Question 3
decision analysis methods -- criterion of realism (Hurwicz)
Correct Answer
compromise between maximax and maximin
uses the coefficient of realism (fancy a) to estimate the decision makers optimism
level, rather than all of nothing
~a is between 0 and 1
find the best and worst payoffs per alternative
find a realism payoff for each alternative:
[ (~a) x (max payoff for alternative) ] + [ (1 - ~a) x (min payoff for alternative) ] =
realism payoff for alternative
choose alternative with best realism payoff
Page 1 of 84
,Question 4
the shadow price is _______________ for a non-binding constraint. there is always some
amount (equal to the current ________________) by which the RHS value of a non-
binding constraint can change w/out affecting the optimal solution
Correct Answer
always zero; slack/surplus
Question 5
simulation modeling
Correct Answer
"replicates" the system or process under study
many applications and approaches
Question 6
goal programming models
Correct Answer
permit multiple objectives identified as "goals"
try to "satisfy" the collection of goals rather than optimize a single objective
there is still only ONE objection FUNCTION written to ensure the multiple objectives
are satisfied as possible, given the constraints
called satisficing
Question 7
sensitivity analysis report -- final value (TOP SECTION) = _____________________
Correct Answer
optimal solution
Page 2 of 84
,Question 8
creating soft constraints example
Correct Answer
Question 9
assignment model
Correct Answer
for making one-to-one assignments
binary decision variables (0 or 1)
small problems can be done w/ enumeration
Question 10
five steps in decision analysis
Correct Answer
1. define the problem
2. list all possible alternatives
3. identify the possible outcomes for each decision alternative
4. identify the payoff for each combination
5. select a decision analysis modeling techniques, apply the decision model and
make the decision
Page 3 of 84
, Question 11
simulation process
Correct Answer
1. define a problem
2. introduce variables associated w/ the problem
3. construct a mathematical model
4. set up possible courses of action (COAs) for testing
5. run the experiment
6. consider the results and make necessary modifications
7. decide upon the COA to take
Question 12
assignment model application examples
Correct Answer
staff to tasks
auditors to clients
salespeople to areas
classes to classrooms
jobs to machines
game scheduling
Question 13
does changing the RHS of a redundant constraint change the feasible region
Correct Answer
it depends on the size of the change
Question 14
LHS > RHS results in ...
Correct Answer
surplus
Page 4 of 84
