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##### 20 multiple choice questions

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Question;Multiple Choice;Identify the choice that best completes;the statement or answers the question.;____ 1. Microsoft?;Excel, Quattro Pro and Lotus 1-2-3 contain built-in optimizers called;a.;what-if engines.;b.;calculators.;c.;solvers.;d.;risk analyzers.;____ 2.;In the Solver dialog box simple upper and lower bounds for decision variables;are specified by;a.;referring directly to the decision variable cells.;b.;requiring the addition of the bounds above and below;the variable cells.;c.;resolving the problem with the bounds added.;d.;incorporating the bounds in the objective function.;____ 3. Which;button in the Solver parameters window is used to enter new constraints to a;model?;a.;Guess;b.;Add;c.;Change;d.;Delete;____ 4. Models;which are setup in an intuitively appealing, logical layout tend to be the most;a.;Reliable;b.;Modifiable;c.;Auditable;d.;Organized;____ 5. Numeric;constants should be;a.;embedded in formulas.;b.;placed in individual cells;c.;placed in separate workbooks.;d.;entered manually every time a model is solved.;____ 6. The;Auditing tool in Excel is useful for;a.;verifying the equations in a spreadsheet model.;b.;toggling between absolute and relative cell;referencing.;c.;executing the Excel spreadsheet layout Wizard.;d.;naming cells and cell ranges for easier modifiability.;____ 7. The;Guess button on the Solver Parameters box;a.;returns a heuristic solution to the problem.;b.;returns a guess as to the decision variable cells.;c.;determines the Target cell based on specified decision;variable cells.;d.;always works correctly.;____ 8. What;action is required to make Solver solve a specified problem?;a.;Type go in cell A1.;b.;Click the Solve button in the Solver Parameters dialog;box.;c.;Click the Close button in the Solver Parameters dialog;box.;d.;Click the Guess button in the Solver Parameters dialog;box.;____ 9. Problems;which have only integer solutions are called;a.;discrete programming problems;b.;integer programming problems;c.;discrete programming problems;d.;infeasible programming problems;____ 10. How;many decision variables are there in a transportation problem which has 5;supply points and 4 demand points?;a.;4;b.;5;c.;9;d.;20;____ 11. How;many constraints are there in a transportation problem which has 5 supply;points and 4 demand points? (ignore the non-negativity constraints);a.;4;b.;5;c.;9;d.;20;____ 12. A;heuristic solution is;a.;used by Solver when the Guess button is used.;b.;guaranteed to produce an optimal solution.;c.;used by Solver if Standard GRG Nonlinear method is;selected.;d.;a rule-of-thumb for making decisions.;____ 13. Which;of the following describes Data Envelopment Analysis (DEA).;a.;DEA finds the most effective company among some set of;companies.;b.;DEA determines if a company is converting inputs to;outputs as effectively as possible.;c.;DEA determines how effective a company converts inputs;to outputs compared to other companies.;d.;DEA compares how effective a company converts inputs to;outputs compared to a benchmark composite of all companies.;Scenario 3-2;The Byte computer company produces two models of computers, Plain and;Fancy. It wants to plan how many computers to produce next month to maximize;profits. Producing these computers requires wiring, assembly and inspection;time. Each computer produces a certain level of profits but faces only a;limited demand. There are also a limited number of wiring, assembly and;inspection hours available in each month. The data for this problem is;summarized in the following table.;Computer;Model;Profit per;Model ($);Maximum;demand;for product;Wiring;Hours;Required;Assembly;Hours;Required;Inspection;Hours;Required;Plain;30;80;.4;.5;.2;Fancy;40;90;.5;.4;.3;Hours;Available;50;50;22;Let;X1 = Number of Plain to produce;X2 = Number of Fancy to produce;MAX;30 X1 + 40 X2;Subject to;.4 X1 +.5 X2? 50 (wiring;hours);.5 X1 +.4 X2? 50 (assembly;hours);.2 X1 +.2 X2? 22 (inspection;hours);X1? 80 (Plain computers demand);X2? 90 (Fancy computers demand);X1, X2? 0;A;B;C;D;E;1;Byte Computer Company;2;3;Plain;Fancy;4;Number to make;Total Profit;5;Unit profit;30;40;6;7;Constraints;Used;Available;8;Wiring;0.4;0.5;50;9;Assembly;0.5;0.4;50;10;Inspection;0.2;0.3;22;11;Plain Demand;1;80;12;Fancy Demand;1;90;____ 14. Refer;to Scenario 3-2. What formula should be entered in cell E5 in the accompanying;Excel spreadsheet to compute total profit?;a.;=B4*C4+B5*C5;b.;=SUMPRODUCT(B4:C4,B5:C5);c.;=SUM(B5:C5);d.;=SUM(E8:E10);____ 15. Refer;to Scenario 3-2. Which cells should be changing cells in this problem?;a.;B4:C4;b.;E5;c.;D8:D10;d.;E8:E10;____ 16. Refer;to Scenario 3-2. Which cells should be the constraint cells in this problem?;a.;B4:C4;b.;E5;c.;D8:D12;d.;E8:E12;Scenario 3-4;A financial planner wants to design a portfolio of investments for a;client. The client has $300,000 to invest and the planner has identified four;investment options for the money. The following requirements have been placed;on the planner. No more than 25% of the money in any one investment, at least;one third should be invested in long-term bonds which mature in seven or more;years, and no more than 25% of the total money should be invested in C or D;since they are riskier investments. The planner has developed the following LP;model based on the data in this table and the requirements of the client. The;objective is to maximize the total return of the portfolio.;Investment;Return;Years to Maturity;Rating;A;6.45%;9;1-Excellent;B;7.10%;8;2-Very Good;C;8.20%;5;4-Fair;D;9.00%;8;3-Good;Let;X1 = Dollars invested in A;X2 = Dollars invested in B;X3 = Dollars invested in C;X4 = Dollars invested in D;MAX;.0645 X1 +.071 X2 +.082 X3;+.09 X4;Subject to;X1 + X2 + X3 + X4;? 300000;X1? 75000;X2? 75000;X3? 75000;X4? 75000;X1 + X2 + X4? 100000;X3 + X4? 75000;X1, X2, X3, X4;? 0;A;B;C;D;E;F;G;H;1;Amount;Maximum;Years to;7+ years?;Good or;worse?;2;Bond;Invested;25.0%;Return;Maturity;(1-yes, 0-no);Rating;(1-yes, 0-no);3;A;$0;$75,000;6.45%;9;1;1-Excellent;0;4;B;$0;$75,000;7.10%;8;1;2-Very Good;0;5;C;$0;$75,000;8.20%;5;0;4-Fair;1;6;D;$0;$75,000;9.00%;8;1;3-Good;1;7;Total;Invested;$0;Total;$0;Total;$0;Total;$0;8;Total;Available;$300,000;Required;$100,000;Allowed;$75,000;____ 17. Refer;to Scenario 3-4. Which cells are changing cells in the accompanying Excel;spreadsheet?;a.;B3:B6;b.;B7:I7;c.;C7;d.;E7;Scenario 3-5;A company is planning production for the next 4 quarters. They want to;minimize the cost of production. The production cost is stable but demand and;production capacity vary from quarter to quarter. The maximum amount of;inventory which can be held is 12,000 units and management wants to keep at;least 3,000 units on hand. Quarterly inventory holding cost is 3% of the cost;of production. The company estimates the number of units carried in inventory;each month by averaging the beginning and ending inventory for each month.;There are currently 5,000 units in inventory. The company wants to produce at;no less than one half of its maximum capacity in any quarter.;Quarter;1;2;3;4;Unit Production Cost;$ 300;$ 300;$ 300;$ 300;Units Demanded;2,000;9,000;12,000;11,000;Maximum Production;8,000;7,000;8,000;9,000;Let;Pi = number of units produced in quarter i;i=1,..., 4;Bi = beginning inventory for quarter i;MIN;300 P1 + 300 P2 + 300 P3;+ 300 P4 +;9(B1 + B2)/2 + 9(B2 +;B3)/2 + 9(B3 + B4)/2 + 9(B4 + B5)/2;Subject to;4000? P1? 8000;3500? P2? 7000;4000? P3? 8000;4500? P4? 9000;3000? B1 + P1 - 2000? 12000;3000? B2 + P2 - 9000? 12000;3000? B3 + P3 - 12000? 12000;3000? B4 + P4 - 11000? 12000;B2 = B1 + P1 - 2000;B3 = B2 + P2 - 9000;B4 = B3 + P3 - 12000;B 5 = B4 + P4 - 11000;Pi, Bi? 0;A;B;C;D;E;F;1;Quarter;2;1;2;3;4;3;Beginning Inventory;5,000;11,000;9,000;5,000;4;Units Produced;8,000;7,000;8,000;9,000;5;Units Demanded;2,000;9,000;12,000;11,000;6;Ending Inventory;11,000;9,000;5,000;3,000;7;8;Minimum Production;4,000;3,500;4,000;4,500;9;Maximum Production;8,000;7,000;8,000;9,000;10;11;Minimum Inventory;3,000;3,000;3,000;3,000;12;Maximum Inventory;12,000;12,000;12,000;12,000;13;14;Unit Production Cost;$300;$300;$300;$300;15;Unit Carrying Cost;3.0%;$9.00;$9.00;$9.00;$9.00;16;17;Monthly Production Cost;$2,400,000;$2,100,000;$2,400,000;$2,700,000;18;Monthly Carrying Cost;$72,000;$90,000;$63,000;$36,000;19;20;Total Cost;$9,861,000;____ 18. Refer;to Scenario 3-5. What formula should be entered in cell C6 in the accompanying;Excel spreadsheet to compute ending inventory?;a.;=C3-C4+C5;b.;=C3+C4-C5;c.;=C3-(C4-C5);d.;=C5-C4-C3;____ 19. Refer;to Scenario 3-5. What formula should be entered in cell C18 in the accompanying;Excel spreadsheet to compute the monthly carrying costs?;a.;=C15*C3+C6;b.;=C15*(C3+C6);c.;=C15*C3/2;d.;=C15*(C3+C6)/2;____ 20. Refer;to Scenario 3-5. Which cells are changing cells in the accompanying Excel;spreadsheet?;a.;C4:F4;b.;C9:F9;c.;F20;d.;C12:F12

Paper#45929 | Written in 18-Jul-2015

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