Question 1

What function should be used for generating random numbers from a normal distribution with mean μ and standard deviation σ?

Accepted Answer

=PsiNormal

Question 2

The benefits)of simulation discussed in the text is/are

Accepted Answer

A) gaining better insight into a problem 
B) ability to make more informed decisions 
C) eliminating the need to build a system with fine-tuning occurring after the launch 
D) all of the above 
A) gaining better insight into a problem 
B) ability to make more informed decisions 
C) eliminating the need to build a system with fine-tuning occurring after the launch 
D) all of the above

Question 3

Which of the following probability distributions are associated with discrete outcomes?

Accepted Answer

A) Gamma 
B) Custom 
C) Normal 
D) Exponential 
A) Gamma 
B) Custom 
C) Normal 
D) Exponential

Question 4

Exhibit 12.4.
The following questions use the information below.
The manager of a Washington,DC sightseeing tour company is concerned about overbooking for one of his bus tours.The bus has 15 seats but sometimes there are empty seats.His records show that about 20% of ticket holders do not show up for their tour.Tickets cost $10 and are non-refundable.If the manager overbooks the tour and more than 15 passengers show up,some of them will be bumped to a later tour.This bumping costs the company $25 in various expenses to keep the customer happy until the next tour.The manager wants to see what happens to profits if 18 reservations are accepted.
  
-Using the information in Exhibit 12.4,what formula should go in cell C13 of the worksheet to determine the Opportunity Cost of Empty Seats?

Accepted Answer

A) =C5*MAXC4,C10) 
B) =C5*MAXC4,0) 
C) =MAXC4-C10,0) 
D) =C5*MAXC4-C10,0) 
A) =C5*MAXC4,C10) 
B) =C5*MAXC4,0) 
C) =MAXC4-C10,0) 
D) =C5*MAXC4-C10,0)

Question 5

Common continuous distributions available in Analytic Solver Platform are

Accepted Answer

A) exponential 
B) Normal 
C) truncated Normal 
D) all of the above 
A) exponential 
B) Normal 
C) truncated Normal 
D) all of the above

Question 6

University Florists makes bouquets from a variety of materials.The Daily Special Bouquet is priced at $20.The florist assembles this bouquet each day from a variety of low cost flowers he buys from his flower supplier.The actual cost of flowers ranges uniformly from $2 to $7,with all intermediate values being equally likely.The florist who studied management science many years ago)knows that the time to assemble a bouquet is normally distributed with a mean time of 5 minutes and standard deviation of 1 minute.This will be the time required for all of the Daily Special Bouquets for that day.The florist values his labor time at $10 per hour.Sales are normally distributed with a mean of 10 bouquets per day with a standard deviation of 1 bouquet.What formulas should go in cells B8:B14 to simulate daily profits for the store?
 \(\begin{array}{|c|c|c|c|c|c|c|}
\hline & \text { A } & \text { B } & \mathrm{C} & \mathrm{D} & \text { E } & \mathrm{F} \
\hline 1 & \text { Initial Conditions: } & & & & & \
\hline 2 & \text { Sales Price } & & \$ 20 & & & \text { Constant } \
\hline 3 & \text { Number of Bouquets: } & \text { Average } & 10 & \text { Std dev } & 1 & \text { Normal } \
\hline 4 & \text { Cost of Flowers } & \text { Lo } & \$ 2 & \mathrm{Hi} & \$ 7 & \text { Cont. Uniform } \
\hline 5 & \text { Labor Time } & \text { Average } & 5 & \text { Std dev } & 1 & \text { Normal } \
\hline 6 & \text { Labor Cost } & & \$ 10 & & & \text { Constant } \
\hline 7 & & & & & & \
\hline 8 & \text { Cost of Flowers } & \$ 4.41 & & & & \
\hline 9 & \text { Labor Time Min) } & 2.55 & & & & \
\hline 10 & \text { Labor Cost } & \$ 0.43 & & & & \
\hline 11 & \text { Total Cost } & 4.83 & & & & \
\hline 12 & \text { Profit/Bouquet } & \$ 15.17 & & & & \
\hline 13 & \text { \# Bouquets Sold } & 12.20 & & & & \
\hline 14 & \text { Total Profit } & \$ 184.99 & & & & \
\hline
\end{array}\)

Accepted Answer

Cell Formula
B8 =PsiUniform$C$

Question 7

Uncertainty

Accepted Answer

A) is the most difficult thing about decision-making 
B) simplifies decision-making 
C) is easy to capture with computers 
D) requires the use of quantitative models for supporting decision-making 
A) is the most difficult thing about decision-making 
B) simplifies decision-making 
C) is easy to capture with computers 
D) requires the use of quantitative models for supporting decision-making

Question 8

The average demand is 4.45 cases per day.Using the information in Exhibit 12.3,what formula should go in cell H4 to determine the average lost sales?

Accepted Answer

A) =H3*4.45*10*30 
B) =1-H3)*4.45*10 
C) =1-H3)*4.45*30 
D) =1-H3)*4.45*10*30 
A) =H3*4.45*10*30 
B) =1-H3)*4.45*10 
C) =1-H3)*4.45*30 
D) =1-H3)*4.45*10*30

Question 9

A variable whose value cannot be predicted or set with certainty is a

Accepted Answer

A) discrete variable 
B) random variable 
C) realistic variable 
D) simulation variable 
A) discrete variable 
B) random variable 
C) realistic variable 
D) simulation variable

Question 10

Best case analysis is an)view of the problem.

Accepted Answer

A) pessimistic 
B) optimistic 
C) risky 
D) certain 
A) pessimistic 
B) optimistic 
C) risky 
D) certain

Question 11

What function should be used for generating random numbers from a normal distribution with mean μ and standard deviation σ between the values of a and b only?

Accepted Answer

=PsiNormal

Question 12

What function should be used for generating random numbers between 1 and 12 from a continuous uniform distribution?

Accepted Answer

The answer of What function should be used for generating...

Question 13

What function should be used for generating random integer numbers between 2 and 8?

Accepted Answer

The answer of What function should be used for generating...

Question 14

Inventory position is defined as

Accepted Answer

A) ending inventory + outstanding orders 
B) ending inventory − backorders 
C) outstanding orders − on hand inventory 
D) ending inventory 
A) ending inventory + outstanding orders 
B) ending inventory − backorders 
C) outstanding orders − on hand inventory 
D) ending inventory

Question 15

Exhibit 12.3
The following questions use the information below.
An auto parts store wants to simulate its inventory system for engine oil.The company has collected data on the shipping time for oil and the daily demand for cases of oil.A case of oil generates a $10 profit.Customers can buy oil at any auto parts store so there are no backorders the company loses the sale and profit).The company orders 30 cases whenever the inventory position falls below the reorder point of 15 cases.Orders are placed at the beginning of the day and delivered at the beginning of the day so the oil is available on the arrival day.An average service level of 99% is desired.The following spreadsheets have been developed for this problem.The company has simulated 2 weeks of operation for their inventory system.The current level of on-hand inventory is 25 units and no orders are pending.
 $$\begin{array} { | l | l | l | l | l | l | l | l | } 
\hline & \mathbf { A } & \mathbf { B } & \mathbf { C } & \mathbf { D } & \mathbf { E } & \mathbf { F } & \mathbf { G } \
\hline 1 & & & & & & & \
\hline
\end{array}$$  
-Using the information in Exhibit 12.3,what formula should go in cell C9 and copied to C10:C21 of the MODEL sheet to compute units received?

Accepted Answer

A) =COUNT$J$8:J8,A9)*$D$4 
B) =COUNTIF$J$8:J8,A8)*$C$4 
C) =COUNTIF$J$8:J8,A9)*$D$5 
D) =COUNTIF$J$8:J8,A9)*$D$4 
A) =COUNT$J$8:J8,A9)*$D$4 
B) =COUNTIF$J$8:J8,A8)*$C$4 
C) =COUNTIF$J$8:J8,A9)*$D$5 
D) =COUNTIF$J$8:J8,A9)*$D$4

Question 16

What function should be used for generating random numbers between a and b from a symmetric triangular distribution when the most likely value is a + b)/2?

Accepted Answer

=PsiTriang

Question 17

Exhibit 12.5
The following questions use the information below.
The owner of Sal's Italian Restaurant wants to study the growth of his business using simulation.He is interested in simulating the number of customers and the amount ordered by customers each month.He currently serves 1000 customers per month and feels this can vary uniformly between a decrease of as much as 5% and an increase of up to 9%.The bill for each customer is a normally distributed random variable with a mean of $20 and a standard deviation of $5.The average order has been increasing steadily over the years and the owner expects the mean order will increase by 2% per month.You have created the following spreadsheet to simulate the problem.
-Sal,from Exhibit 12.5,has produced the following spreadsheet to compute confidence intervals on his income.What formula should go in cell B8 to compute the upper limit on a 95% confidence interval for the true population mean?
 $\begin{array}{|c|c|c|}
\hline & \text { A } & \mathrm{B} \
\hline 1 & & \
\hline 2 & \text { Sample Size: } & 300 \
\hline 3 & & \
\hline 4 & \text { Sample Mean } & \begin{array}{l}
309,773.5 \
6
\end{array} \
\hline 5 & \text { Sample StandardDeviation } & \begin{array}{l}
33,831.4 \
4
\end{array} \
\hline 6 & & \
\hline 7 & \text { 95\% LCL for the population mean: } & \begin{array}{l}
305,945.1 \
7
\end{array} \
\hline 8 & \text { 95\% UCL for the population mean: } & \begin{array}{l}
313,601.9 \
5 \
\end{array} \
\hline 9 & & \
\hline 10 & \text { Target Proportion } & 0.900 \
\hline 11 & \text { 95\% Lower Confidence Limit: } & 0.866 \
\hline 12 & \text { 95\% Upper Confidence Limit: } & 0.934 \
\hline
\end{array}$

Accepted Answer

The answer of Exhibit 12.5
The following questions use the information...

Question 18

Methods for analyzing risk that are discussed in the textbook include

Accepted Answer

A) best-case/worst case analysis 
B) what-if analysis 
C) simulation 
D) all of the above 
A) best-case/worst case analysis 
B) what-if analysis 
C) simulation 
D) all of the above

Question 19

If chance or uncertainty is present in a system then there is an element of in the decision-making problem.

Accepted Answer

A) danger 
B) security 
C) risk 
D) difficulty 
A) danger 
B) security 
C) risk 
D) difficulty

Question 20

Exhibit 12.3
The following questions use the information below.
An auto parts store wants to simulate its inventory system for engine oil.The company has collected data on the shipping time for oil and the daily demand for cases of oil.A case of oil generates a $10 profit.Customers can buy oil at any auto parts store so there are no backorders the company loses the sale and profit).The company orders 30 cases whenever the inventory position falls below the reorder point of 15 cases.Orders are placed at the beginning of the day and delivered at the beginning of the day so the oil is available on the arrival day.An average service level of 99% is desired.The following spreadsheets have been developed for this problem.The company has simulated 2 weeks of operation for their inventory system.The current level of on-hand inventory is 25 units and no orders are pending.
 $$\begin{array} { | l | l | l | l | l | l | l | l | } 
\hline & \mathbf { A } & \mathbf { B } & \mathbf { C } & \mathbf { D } & \mathbf { E } & \mathbf { F } & \mathbf { G } \
\hline 1 & & & & & & & \
\hline
\end{array}$$  
-Using the information in Exhibit 12.3,what Analytic Solver Platform function should be used in cell I8 to determine the lead time for an order?

Accepted Answer

A) =PsiDiscrete$B$6:$B$8,$C$6:$C$8) 
B) =PsiPoissonData!$B$6:$B$8,$Data!$C$6:$C$8) 
C) =PsiBinomialData!$B$6:$B$8,$Data!$C$6:$C$8) 
D) =PsiNormal$B$6:$C$8) 
A) =PsiDiscrete$B$6:$B$8,$C$6:$C$8) 
B) =PsiPoissonData!$B$6:$B$8,$Data!$C$6:$C$8) 
C) =PsiBinomialData!$B$6:$B$8,$Data!$C$6:$C$8) 
D) =PsiNormal$B$6:$C$8)

What function should be used for generating random numbers from a normal distribution with mean μ and standard deviation σ?

The benefits)of simulation discussed in the text is/are

Which of the following probability distributions are associated with discrete outcomes?

Common continuous distributions available in Analytic Solver Platform are

Uncertainty

The average demand is 4.45 cases per day.Using the information in Exhibit 12.3,what formula should go in cell H4 to determine the average lost sales?

A variable whose value cannot be predicted or set with certainty is a

Best case analysis is an)view of the problem.

What function should be used for generating random numbers from a normal distribution with mean μ and standard deviation σ between the values of a and b only?

What function should be used for generating random numbers between 1 and 12 from a continuous uniform distribution?

What function should be used for generating random integer numbers between 2 and 8?

Inventory position is defined as

What function should be used for generating random numbers between a and b from a symmetric triangular distribution when the most likely value is a + b)/2?

Methods for analyzing risk that are discussed in the textbook include

If chance or uncertainty is present in a system then there is an element of in the decision-making problem.

Introduction to Modeling and Decision Analysis

Introduction to Optimization and Linear Programming

Modeling and Solving Lp Problems in a Spreadsheet

Sensitivity Analysis and the Simplex Method

Network Modeling

Integer Linear Programming

Goal Programming and Multiple Objective Optimization

Nonlinear Programming and Evolutionary Optimization

Regression Analysis

Data Mining

Time Series Forecasting

Queuing Theory

Decision Analysis

Project Management Online

Filters

Exam 12: Introduction to Simulation Using Analytic Solver Platform

What function should be used for generating random numbers from a normal distribution with mean μ and standard deviation σ?

The benefits)of simulation discussed in the text is/are

Which of the following probability distributions are associated with discrete outcomes?

Common continuous distributions available in Analytic Solver Platform are

Uncertainty

The average demand is 4.45 cases per day.Using the information in Exhibit 12.3,what formula should go in cell H4 to determine the average lost sales?

A variable whose value cannot be predicted or set with certainty is a

Best case analysis is an)view of the problem.

What function should be used for generating random numbers from a normal distribution with mean μ and standard deviation σ between the values of a and b only?

What function should be used for generating random numbers between 1 and 12 from a continuous uniform distribution?

What function should be used for generating random integer numbers between 2 and 8?

Inventory position is defined as

What function should be used for generating random numbers between a and b from a symmetric triangular distribution when the most likely value is a + b)/2?

Methods for analyzing risk that are discussed in the textbook include

If chance or uncertainty is present in a system then there is an element of in the decision-making problem.

Introduction to Modeling and Decision Analysis

Introduction to Optimization and Linear Programming

Modeling and Solving Lp Problems in a Spreadsheet

Sensitivity Analysis and the Simplex Method

Network Modeling

Integer Linear Programming

Goal Programming and Multiple Objective Optimization

Nonlinear Programming and Evolutionary Optimization

Regression Analysis

Data Mining

Time Series Forecasting

Queuing Theory

Decision Analysis

Project Management Online

Filters