Bus 190 Exam Study
Pert stands for = project evaluation and review technique
1) which of the following is NOT a property of all LP problems = a computer program (not sure)
This is correct.
2) a feasible solution to a LP problem = must satisfy all of the problem’s constraints
simultaneously
6) If goal was to construct network where all points are connected & distance between them are
short as possible = Minimal-spanning tree.
7) A line in a network that may represent a path or route is called a = arc
9) Transportation models can be used for which decisions = facility location
10) when using general LP model for transportation problem, if 4 sources and 3 destinations =
There are typically 12 decision variables and 7 constraints
12) what is said to exist when total demand equals total supply in a transportation problem = a
balanced problem
13) the minimal-spanning technique would be best used = to determine powerline
communication network wiring within a building.
14) the shortest-route technique would be best used to = determine the path for a truck going
from origin to destination
16) the critical path of a network is the = Longest time path through the network.
17) in a PERT network, the earliest (activity) start time is the =
The earliest time that an activity can start without violation or precedence requirement .
18) the expected time in PERT =The weighted average of the most optimistic time, most
pessimistic time and four times the most likely time.
19) The critical path of a network is the = Path with zero slack or Longest time path through
the network.
(This was on that post by Tommy yesterday. And it is on there twice with different answers.)
20) In a pert network, the latest (activity) start time is the= latest time that an activity can
be started without delaying the entire project.
22) CPM stands for = critical path method
, Bus 190 Exam Study
23) random variable is a variable with values that are = based on probability distribution
24) when a project management network has multiple critical paths, reducing project completion
time by 1 unit = all critical paths
25) The best period of time to crash a project is when the benefit = Exceeds the cost the most
27) in project crashing, the following may happen = a non-critical activity becomes critical
28) value of the dual variable associated w/ constraint in LP solution is the change in = the
objective function from a unit increase in the limit of the constraint
29) the reason that the normal distribution is so prevalent is due to = the Central Limit
Theorem
30) when many independent probability distributions are summed together, which of following
statement is incorrect = The standard deviation of the sum equals to the sum of the
standard deviations.
31) When multiple activities go into finish, the latest finishing time for all activities = largest of
earliest finishing times
32) for the set of 10 normalized weights, which of the following is incorrect = the sum of the
weights equals 10.
*I see another question number 31. SO i put it below here
31) An investor wants to invest up to $100,000 as follows:
X amount into a Certificate of Deposit (CD) that yields an expected annual return of 1% with a
risk index of 2,
Y amount into a Bond with an expected annual return of 3% and a risk index of 4,
Z amounts into a Stock with an expected annual return of 5% and a risk index of 8.
The investors objective is to maximize the total expected annual return of the investment.
However, to be prudent, the investor requires that:
The fraction of the total investment in X must be at least 30%.
The fraction of the total investment in Y must be at least 40% but not exceed 60%.
The fraction of the total investment in Z must not exceed 70%.
The combined portfolio risk index must not exceed 5.
31a) Formulate this investment problem as a linear program by using decimal point numbers for
percentages of return & dollars for the investment amount.
Pert stands for = project evaluation and review technique
1) which of the following is NOT a property of all LP problems = a computer program (not sure)
This is correct.
2) a feasible solution to a LP problem = must satisfy all of the problem’s constraints
simultaneously
6) If goal was to construct network where all points are connected & distance between them are
short as possible = Minimal-spanning tree.
7) A line in a network that may represent a path or route is called a = arc
9) Transportation models can be used for which decisions = facility location
10) when using general LP model for transportation problem, if 4 sources and 3 destinations =
There are typically 12 decision variables and 7 constraints
12) what is said to exist when total demand equals total supply in a transportation problem = a
balanced problem
13) the minimal-spanning technique would be best used = to determine powerline
communication network wiring within a building.
14) the shortest-route technique would be best used to = determine the path for a truck going
from origin to destination
16) the critical path of a network is the = Longest time path through the network.
17) in a PERT network, the earliest (activity) start time is the =
The earliest time that an activity can start without violation or precedence requirement .
18) the expected time in PERT =The weighted average of the most optimistic time, most
pessimistic time and four times the most likely time.
19) The critical path of a network is the = Path with zero slack or Longest time path through
the network.
(This was on that post by Tommy yesterday. And it is on there twice with different answers.)
20) In a pert network, the latest (activity) start time is the= latest time that an activity can
be started without delaying the entire project.
22) CPM stands for = critical path method
, Bus 190 Exam Study
23) random variable is a variable with values that are = based on probability distribution
24) when a project management network has multiple critical paths, reducing project completion
time by 1 unit = all critical paths
25) The best period of time to crash a project is when the benefit = Exceeds the cost the most
27) in project crashing, the following may happen = a non-critical activity becomes critical
28) value of the dual variable associated w/ constraint in LP solution is the change in = the
objective function from a unit increase in the limit of the constraint
29) the reason that the normal distribution is so prevalent is due to = the Central Limit
Theorem
30) when many independent probability distributions are summed together, which of following
statement is incorrect = The standard deviation of the sum equals to the sum of the
standard deviations.
31) When multiple activities go into finish, the latest finishing time for all activities = largest of
earliest finishing times
32) for the set of 10 normalized weights, which of the following is incorrect = the sum of the
weights equals 10.
*I see another question number 31. SO i put it below here
31) An investor wants to invest up to $100,000 as follows:
X amount into a Certificate of Deposit (CD) that yields an expected annual return of 1% with a
risk index of 2,
Y amount into a Bond with an expected annual return of 3% and a risk index of 4,
Z amounts into a Stock with an expected annual return of 5% and a risk index of 8.
The investors objective is to maximize the total expected annual return of the investment.
However, to be prudent, the investor requires that:
The fraction of the total investment in X must be at least 30%.
The fraction of the total investment in Y must be at least 40% but not exceed 60%.
The fraction of the total investment in Z must not exceed 70%.
The combined portfolio risk index must not exceed 5.
31a) Formulate this investment problem as a linear program by using decimal point numbers for
percentages of return & dollars for the investment amount.
