MAT 540 MIDTERM (40 Questions)

Question 1

1. Deterministic techniques assume that no uncertainty exists in model parameters.
Answer

True

False

Question 2

2. An inspector correctly identifies defective products 90% of the time. For the next 10 products, the probability that he makes fewer than 2 incorrect inspections is 0.736.

Answer

True

False

Question 3

3. A continuous random variable may assume only integer values within a given interval.
Answer

True

False

Question 4

4. A decision tree is a diagram consisting of circles decision nodes, square probability nodes, and branches.

Answer

True

false

5. Question 5

Excel can only be used to simulate systems that can be represented by continuous random variables.

Answer

True

False

Question 6

Starting conditions have no impact on the validity of a simulation model.

Answer

True

False

Question 7

Data cannot exhibit both trend and cyclical patterns.
Answer

True

false

Question 8

Qualitative methods are the least common type of forecasting method for the long-term strategic planning process.

Answer

True

false

Question 9

Assume that it takes a college student an average of 5 minutes to find a parking spot in the main parking lot. Assume also that this time is normally distributed with a standard deviation of 2 minutes. What time is exceeded by approximately 75% of the college students when trying to find a parking spot in the main parking lot?

Answer

5.8 minutes

6.4 minutes

9.2 minutes

3.5 minutes

Question 10

__________ is a measure of dispersion of random variable values about the expected value.

Answer

Standard deviation

Range

The z-score (the standard score)

All of the above

Question 11

The __________ is the expected value of the regret for each decision.

Answer

expected value

expected opportunity loss

expected value of perfect information

none of the above

Question 12

Developing the cumulative probability distribution helps to determine

Answer

the coefficient of variation

data sets

random number ranges

all of the above

Question 13

Two hundred simulation runs were completed using the probability of a machine breakdown from the table below. The average number of breakdowns from the simulation trials was 1.93 with a standard deviation of 0.20.