Chapter 3 MCQ - Practice MCQ PDF

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QUEUEING THEORY1 of the following best describes queuing theory? a. The study of arrival rates. b .The study of service times. c. The study of waiting lines. d. The evaluation of service time costs.2 of the following is a reason to employ queuing theory? a. To reduce customer wait time in line. b. T...

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QUEUEING THEORY 1.Which of the following best describes queuing theory? a. The study of arrival rates. b .The study of service times. c. The study of waiting lines. d. The evaluation of service time costs. 2.Which of the following is a reason to employ queuing theory? a. To reduce customer wait time in line. b. To reduce service times. c. To generate more arrivals to the system. d . To reduce worker idle time in line. 3.If the service rate decreases as the arrival rate remains constant, then, in general a. customer waiting time increases. b. customer waiting time decreases. c. service costs increase. d. customer dissatisfaction decreases. 4. Which type of queuing system are you likely to encounter at an ATM? a. Single waiting line, single service station. b. Multiple waiting lines, single service station. c. Single waiting line, multiple service stations. d. Multiple waiting lines, multiple service stations. 5. Which type of queuing system are you likely to encounter at a grocery store? a. Single waiting line, single service station. b. Multiple waiting lines, single service station. c. Single waiting line, multiple service stations. d. Multiple waiting lines, multiple service stations. 6.If the arrival process is modeled as a Poisson random variable with arrival rateλ, then the average time between arrivals is a. 1/μ b. 1/λ c. 1/λ2 d. σ 7.For a Poisson random variable, λ represents the ____ number of arrivals per time period a. maximum b. minimum c. average d. standard deviation of 8.A Poisson distribution shape can be described as

a. slightly skewed to the left. b. symmetric around the parameter. c. skewed to the right. d. discrete so it lacks any definable shape. 9.If the number of arrivals in a time period follow a Poisson distribution with mean λ then the inter-arrival times follow a(n) ____ distribution with mean________. a. normal;μ b. constant;λ c. exponential;λ d. exponential; 1/λ 10. Times between two successive requests arriving, called the a. Inter arrival time b. Arrival time c. Poisson distribution d. Average residual service time 11. One of most widely used exponential distributions is called a a. Passion distribution b. Possible distribution c. Poisson distribution d. Poisson association 12. Customer behavior in which he moves from one queue to another in a multiple channel situation is a. Balking b. Reneging c. Jockeying d. Alternating 13. Which of the following characteristics apply to queuing system a. Customer population b. Arrival process c. Both a and b d. Neither a nor b 14. Priority queue discipline may be classified as a. Finite or infinite b. Limited and Unlimited c. Pre-emptive or non-pre-emptive d. All of the above 15. The calling population is assumed to be infinite when a. Arrivals are independent of each other b. Capacity of the system is infinite

c. Service rate is faster than arrival rate d. All of the above 16. Which of the cost estimates and performance measures are not used for economic analysis of a queuing system? a. Cost per server per unit of time b. Cost per unit of time for a customer waiting in the system c. Average number of customers in the system d. Average waiting time of customers in the system 17. A calling population is considered to be infinite when a. All customers arrive at once b. Arrivals are independent of each other c. Arrivals are dependent upon each other d. All of the above 18. Service mechanism in a queuing system is characterized by a. Server’s behavior b. Customer’s behavior c. Customer’s in the system d. All of the above 19. A queue is formed when a. Customers wait for services b. Service facilities stand idle and wait for customers c. Either a or b d. Both 20. Once a queue model has been constructed, analysis of the model can be performed in a. Through analytical solution b. Through simulation c. Either a or b d. None 21.Which of the following does not apply to the basic queuing model a. Finite time horizon b. Exponentially distributed arrivals c. Exponentially distributed service times d. Unlimited queue size

22. A major goal of queuing is to a. Minimize the cost of providing service b. provide models which help the manager to trade off the cost of service c. Maximize expected return d. Optimize system characteristics

23. A three-step repair service with one server at each step would be an example of a: a. multiple-phase, multiple-channel system. b. single-phase, multiple-channel system. c. multiple-phase, single-channel system. d. none of these. 24. A system with an arrival rate of two per hour, a service time of 20 minutes, and one server, would have a utilization of. a. 10% b. 33% c. 40% d. 67% 25. The term "queue discipline" refers to: a. customers waiting in a single line for service. b. processing order. c. the willingness of customers to wait in line. d. well-behaved customers. 26. As the system utilization increases, the average number waiting a. doesn't change. b. increases. c. decreases. d. impossible to say. 27. Waiting lines tend to form in underloaded systems because: a. capacity always exceeds demand. b. capacity sometimes exceeds demand. c. demand always exceeds capacity. d. demand sometimes exceeds capacity. 28. Which of these would not increase system utilization? a. a decrease in the number of servers b. a decrease in the service rate c. a decrease in the arrival rate d. an increase in the arrival rate 29. For an infinite-source system with an arrival rate of 6 per hour (Poisson) and service time of 6 minutes per customer (exponential), the average number being served is: a. 0.10 b. 0.60 c.1.0 d. none of these 30. Which one of these would illustrate a finite-source system?

a. Supermarket b. Bakery c. Drug store d. none of these

Game Theory 1. A common assumption about the players in a game is that a. Neither player knows the payoff matrix b. The players have different information about the payoff matrix c. Only one of the players pursues a rational strategy d. The specific identity of the players is irrelevant to the play of the game. 2. In a zero sum game a. What one player wins, the other loses b. The sum of each player’s winnings if the game is played many times must be zero c. The game is fair- each person has an equal chance of winning. d. Long-run profits must be zero . 3. Game models are classified by the a. Sum of all pay-offs b. Size of the pay-off c. Nature of strategies employed d. None of the above 4. Each player should follow the same strategy regardless of the other player's strategy in which of the following games? a. Mixed strategy b. Constant strategy c. Pure Strategy d. Dominance strategy 5. Consider the following two-person game, and determine the saddle point if it exists. Y1 Y2 X1 4 6 X2 5 -3 a. X2Y2 b.X1Y1 c.X1Y2 d. There is no saddle point.

6. The saddle point in a payoff matrix is always the __________. a. largest number in the matrix b. largest number in its column and the smallest number in its row c. smallest number in the matrix d. smallest number in its column and the smallest number in its row 7. In a mixed strategy, each player should optimize the a. minimum loss. b. expected gain. c. maximum loss d. maximum pay-offs 8. Consider the following two-person game. What strategy will Y play?

X1 X2

Y1 52 26

Y2 37 18

a. Y1 b. Y2 c. X1 d. X2 9. Considering the following two-person game, what percentage of the time should Y play strategy Y1? Y1 X1 6 X2 2 a.1/3 b. 2/3 c. 4/9 d. 5/9

Y2 3 8

10. Considering the following two-person game, what is Y’s best strategy? Y1 Y2 X1 3 6 X2 2 -2 a. X1 b. X2 c. Y1 d. Y2 11. Given the following two-person game, which strategy can be eliminated by use of dominance? Y1 Y2

X1 9 13 X2 12 8 X3 6 14 a. X1 b.X2 c.X3 d. None of the above 12. A game is said to be fair if a. Both upper and lower values of the game are same and zero b. Upper and lower values of the game are not equal c. Upper value is more than lower value of the game d. None of the above 13. What happens when maximin and minimax values of the game are same? a. No solution exists b. Solution is mixed c. Saddle point exists d. None of the above 14. A mixed strategy game can be solved by a. Algebraic Method b. Matrix Method c. Graphical Method d. All of the above 15. The size of the payoff matrix of a game can be reduced by using the principle of a. Game inversion b. Rotation reduction c. Dominance d. Game transpose 16. The pay- off value for which each player in a game always selects the same strategy is called the a. Saddle point b. Equilibrium point c. Both a and b d. None of the above 17. Games which involve more than 2 players are called a. Conflicting games b. Negotiable games c. N-person games d. All of the above 18.When no saddle point is found in a pay-off matrix of a game, the value of the game is then found by

a. Knowing joint probabilities of each row and column combination to calculate expected pay-off for that combination and adding all such values b. Reducing size of the game to apply algebraic method c. Both a and b d. None of the above 19.A saddle point exists when a. Maximin value= Maximax value b. Minimax value=Minimin value c. Minimax value=Maximin value d. None of the above 20. In a pure strategy game a. Any strategy may be selected arbitrarily b. A particular strategy is selected by each player c. Both players select their optimal strategy d. None of the above 21. In a mixed strategy game a. No saddle point exist b. Each player selects the same strategy without considering other player’s choice c. Each player always selects same strategy d. All of the above 22. Linear Programming Method should be used to determine value of the game when size of pay-off matrix is a. 2x2 b. 3x4 c. mx2 d. 2xn 23. Game Theory is the study of a. Selecting optimal strategies b. Resolving conflict between players c. Both a and b d. None of the above . Decision Theory 1.Decision theory is concerned with a. The amount of information that is available b. Criteria for measuring the goodness of a decision c. selecting optimal decisions in sequential problems d. All of the above

2. Concerning decision making under risk which of the following is not true? a. We assume that the decision maker knows the probability with which each state of nature will occur b. We use the criterion of maximizing return c. We use the criterion of maximizing expected return d. We use the criterion of minimizing expected regret 3. Which of the following criteria does not apply to decision making under uncertainity? a. Maximin return b. Maximax return c. Minimax regret d. Maximize expected return 4. Maximin return, Maximax return and minimax regret are criteria that a. Lead to the same optimal decision b. Can be used without probabilities c. Both a and b d. None of the above 5. The Expected Value of Perfect Information(EVPI) a. Places two-sided bounds(upper and lower) on how much should be spent in gathering information b. Can be determined without using probabilities c. Refers to the utility of additional information d. Equals the expected regret of the optimal decision under risk 6. The concept of utility is a way to a. Measure the attractiveness of money b. Take into account aversion to risk c. Take into account inclination to take risk d. All of the above 7. Which of the following does not apply to a decision tree? a. A square node is a point at which a decision must be made b. A circular node represents an encounter with uncertainity c. One chooses a sequence of decisions which have the greatest probability of success d. One attempts to maximize expected return 8. The EVPI a. Shows the cost necessary to produce prefect information about the future b. Shows the maximum possible increase in expected return with sample information c. Shows the expected increase in information required to select the optimal decision d. All of the above 9. When computing the EVPI it is important that the payment is made

a. In advance of receiving the information b. After receiving the information c. In an irrevocable way d. Both a and c 10. The criterion which selects the action for which maximum pay-off is lowest is known as a. Max-min criterion b. Min-max criterion c. Max-max criterion d. None of the above 11. When decisions are made sequentially in time a. Decision trees cannot be employed b. Baye’s theorem must be used c. The terminal value at the end of each sequence of branches is the net of the cash flows on that sequence d. Terminal value at the end of each sequence of branches is an expected net cash flow 12. A type of decision making environment is a. Certainity b. Uncertainity c. Risk d. All of the above 13. Which of the following criterion is not used for decision making under uncertainity? a. Maximin b. Maximax c. Minimax d. Minimize expected loss 14 . Which of the following criterion is not applicable to decision making under risk? a. Maximize return b. Maximize expected return c. Minimize expect regret d. Knowledge of likelihood occurrence of each state 15. The value of the coefficient of optimism is needed while using the criterion of a. Equally likely b. Maximin c. Realism d. Minimax 16. The difference between the expected profit under conditions of risk and the expected profit with perfect information is called a. Expected value of perfect information b. Expected marginal loss c. Expected opportunity loss

d. None of the above 17. The decision maker’s knowledge and experience may influence the decision making process when using the criterion of a. Maximax b. Minimax regret c. Realism d. Maximin 18. Essential characteristic of a decision model are a. States of nature b. Decision alternatives c. Pay off d. All of the above 19. While using hurwicz criterion the coefficient of realism a. Represent the degree of optimism b. Represent the degree of pessimism c. is the probability of a state of nature d. None of the above 20. The decision making criterion that should be used to achieve maximum long term payoff is a. EOL b. EMV c. Hurwicz d. Maximax 21. Decision theory provides a rational and logical way of making decisions. a. True b. False 22. Decision theory always guarantees optimal solution. a. True b. False 23.In evaluating a decision tree, you write the expected payoff at a random outcome node inside the circle or square representing that node.. a. True b. False 24. Which of the following is not a part of decision tree problem specification. a. A list of alternatives. b. A list of possible states of nature. c. Expected value of perfect information. d. Payoffs associated with alternative/state of nature combination.

25. What decision-making condition must exist in order for the decision tree to be a valuable tool a. Risk b. Uncertainity c. Certainity d. All of the above 26. Construction of a decision tree requires the drawing of a series of nodes and branches. Which statement describes one error check possible at a chance node? a. No error checks are possible b. Review the data and problem statement three times c. Probabilities for all branches leaving a chance node must sum to 1.0 d. The expected pay off must equal to zero 27. For decision making with little uncertainty, where managers can estimate the probabilities of the events, the most widely used decision rule is: a. Maximin b. Maximax c. Minimax regret d. Expected payoff 28. The formal procedure that helps the manager choose the best alternative when outcomes are uncertain is which of the following procedures? a. Break-even analysis b. Decision theory c. Preference matrix d. Decision tree 29. Identify the formal procedure that helps the manager determine how much change in volume or demand is necessary before a second alternative becomes better than the first one. a. Preference matrix b. Decision theory c. Decision tree d. None of the above 30. Decision theory uses which of the following steps to help managers make decisions? a. List the feasible alternatives b. List the events that impact upon the outcome of the choice c. Calculate the payoff of each alternative in each event d. All of the above...