Question 1

The rapid growth of computing capability and power has led to a corresponding rapid growth of the management science discipline.

Accepted Answer

A) True 
 B)False  True

Question 2

Production has indicated that they can produce widgets at a cost of $4.00 each if they lease new equipment at a cost of $10,000. Marketing has estimated the number of units they can sell at a number of prices (shown below). Which price/volume option will allow the firm to avoid losing money on this project?

Accepted Answer

A)  4,000 units at $5.00 each. 
B)  3,000 units at $7.50 each. 
C)  1,500 units at $10.00 each. 
D)  1,000 units at $15.00 each 
E)  25,000 units. 
A)  4,000 units at $5.00 each. 
B)  3,000 units at $7.50 each. 
C)  1,500 units at $10.00 each. 
D)  1,000 units at $15.00 each 
E)  25,000 units. B

Question 3

The objective function for a model is a mathematical expression of the measure of performance for the problem in terms of the decision variables.

Accepted Answer

A) True 
 B)False  True

Question 4

The discovery of the simplex method in 1947 was the beginning of management science as a discipline.

Accepted Answer

A) True 
 B)False

Question 5

The rapid development of the management science discipline can be credited in part to:

Accepted Answer

A)  World War I. 
B)  George Dantzig. 
C)  the computer revolution. 
D)  George Dantzig and the computer revolution. 
E)  World War I, George Dantzig, and the computer revolution. 
A)  World War I. 
B)  George Dantzig. 
C)  the computer revolution. 
D)  George Dantzig and the computer revolution. 
E)  World War I, George Dantzig, and the computer revolution.

Question 6

A tour company is planning a bus trip to a local museum. The company will lease a bus from a local bus owner for $400 and estimates that it will spend $15.00 per person for admission and lunch. Which of the following volume/price alternatives will allow the firm to avoid losing money on the trip?

Accepted Answer

A)  20 customers at $30.00 each. 
B)  30 customers at $27.50 each. 
C)  40 customers at $25.00 each. 
D)  50 customers at $22.50 each 
E)  60 customers at $20.00 each. 
A)  20 customers at $30.00 each. 
B)  30 customers at $27.50 each. 
C)  40 customers at $25.00 each. 
D)  50 customers at $22.50 each 
E)  60 customers at $20.00 each.

Question 7

Investigating the potential outcomes when estimates turn out to be incorrect is known as "what-if analysis."

Accepted Answer

A) True 
 B)False

Question 8

Once management makes its decisions, the management science team typically is finished with its involvement in the problem.

Accepted Answer

A) True 
 B)False

Question 9

Management science is a discipline that attempts to aid managerial decision making by applying a scientific approach to managerial problems that involve quantitative factors.

Accepted Answer

A) True 
 B)False

Question 10

A manager has determined that a potential new product can be sold at a price of $100.00 each. The cost to produce the product is $75.00, but the equipment necessary for production must be leased for $175,000 per year. What is the break-even point?

Accepted Answer

A)  3,000 units. 
B)  5,000 units. 
C)  7,000 units. 
D)  10,000 units. 
E)  25,000 units. 
A)  3,000 units. 
B)  5,000 units. 
C)  7,000 units. 
D)  10,000 units. 
E)  25,000 units.

Question 11

A parameter in a model is a variable that represents a decision to be made.

Accepted Answer

A) True 
 B)False

Question 12

A cost that varies with the production volume would be a fixed cost.

Accepted Answer

A) True 
 B)False

Question 13

A training firm is planning to offer a one-day class at a local facility. The class is projected to have 50 students, each of whom will pay $25.00 to attend. The firm provides materials to each student (materials cost the firm $10.00 per student). What is the most the firm can afford to pay to rent the facility for one day?

Accepted Answer

A)  $250. 
B)  $500. 
C)  $750. 
D)  $1,000. 
E)  $1,250. 
A)  $250. 
B)  $500. 
C)  $750. 
D)  $1,000. 
E)  $1,250.

Question 14

A management science team will try to conduct a systematic investigation of a problem that includes careful data gathering, developing and testing hypotheses, and then applying sound logic in the analysis.

Accepted Answer

A) True 
 B)False

Question 15

A manager has determined that a potential new product can be sold at a price of $50.00 each. The cost to produce the product is $35.00, but the equipment necessary for production must be leased for $100,000 per year. What is the break-even point?

Accepted Answer

A)  3,333 units. 
B)  5,000 units. 
C)  6,667 units. 
D)  7,500 units. 
E)  8,167 units. 
A)  3,333 units. 
B)  5,000 units. 
C)  6,667 units. 
D)  7,500 units. 
E)  8,167 units.

Question 16

Which of the following is a constant in a mathematical model?

Accepted Answer

A)  Decision variable. 
B)  Parameter. 
C)  Objective function. 
D)  Constraint. 
E)  None of the answer choices are correct. 
A)  Decision variable. 
B)  Parameter. 
C)  Objective function. 
D)  Constraint. 
E)  None of the answer choices are correct.

Question 17

Spreadsheets allow many managers to conduct their own analyses in management science studies.

Accepted Answer

A) True 
 B)False

Question 18

A manager has determined that a potential new product can be sold at a price of $20.00 each. The cost to produce the product is $10.00, but the equipment necessary for production must be leased for $75,000 per year. What is the break-even point?

Accepted Answer

A)  2,500 units. 
B)  5,000 units. 
C)  7,500 units. 
D)  10,000 units. 
E)  25,000 units. 
A)  2,500 units. 
B)  5,000 units. 
C)  7,500 units. 
D)  10,000 units. 
E)  25,000 units.

Question 19

In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year at a price of $7.50. If the variable cost of production is $5.00 per unit, what is the most the firm can spend to lease the new equipment without losing money?

Accepted Answer

A)  $10,000. 
B)  $15,000. 
C)  $20,000. 
D)  $25,000. 
E)  $30,000. 
A)  $10,000. 
B)  $15,000. 
C)  $20,000. 
D)  $25,000. 
E)  $30,000.

Question 20

The best way to solve a break-even problem with a spreadsheet model is to try different production quantities until the quantity that leads to profits of zero is found.

Accepted Answer

A) True 
 B)False

The rapid growth of computing capability and power has led to a corresponding rapid growth of the management science discipline.

The objective function for a model is a mathematical expression of the measure of performance for the problem in terms of the decision variables.

The discovery of the simplex method in 1947 was the beginning of management science as a discipline.

The rapid development of the management science discipline can be credited in part to:

A tour company is planning a bus trip to a local museum. The company will lease a bus from a local bus owner for $400 and estimates that it will spend $15.00 per person for admission and lunch. Which of the following volume/price alternatives will allow the firm to avoid losing money on the trip?

Investigating the potential outcomes when estimates turn out to be incorrect is known as "what-if analysis."

Once management makes its decisions, the management science team typically is finished with its involvement in the problem.

Management science is a discipline that attempts to aid managerial decision making by applying a scientific approach to managerial problems that involve quantitative factors.

A manager has determined that a potential new product can be sold at a price of $100.00 each. The cost to produce the product is $75.00, but the equipment necessary for production must be leased for $175,000 per year. What is the break-even point?

A parameter in a model is a variable that represents a decision to be made.

A cost that varies with the production volume would be a fixed cost.

A management science team will try to conduct a systematic investigation of a problem that includes careful data gathering, developing and testing hypotheses, and then applying sound logic in the analysis.

A manager has determined that a potential new product can be sold at a price of $50.00 each. The cost to produce the product is $35.00, but the equipment necessary for production must be leased for $100,000 per year. What is the break-even point?

Which of the following is a constant in a mathematical model?

Spreadsheets allow many managers to conduct their own analyses in management science studies.

A manager has determined that a potential new product can be sold at a price of $20.00 each. The cost to produce the product is $10.00, but the equipment necessary for production must be leased for $75,000 per year. What is the break-even point?

In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year at a price of $7.50. If the variable cost of production is $5.00 per unit, what is the most the firm can spend to lease the new equipment without losing money?

The best way to solve a break-even problem with a spreadsheet model is to try different production quantities until the quantity that leads to profits of zero is found.

Linear Programming: Basic Concepts

Linear Programming: Formulation and Applications

The Art of Modeling With Spreadsheets

What-If Analysis for Linear Programming

Network Optimization Problems

Using Binary Integer Programming to Deal With Yes-Or-No Decisions

Nonlinear Programming

Decision Analysis

Forecasting

Queueing Models

Computer Simulation: Basic Concepts

Computer Simulation With Analytic Solver

Filters

Exam 1: Introduction

The rapid growth of computing capability and power has led to a corresponding rapid growth of the management science discipline.

The objective function for a model is a mathematical expression of the measure of performance for the problem in terms of the decision variables.

The discovery of the simplex method in 1947 was the beginning of management science as a discipline.

The rapid development of the management science discipline can be credited in part to:

A tour company is planning a bus trip to a local museum. The company will lease a bus from a local bus owner for $400 and estimates that it will spend $15.00 per person for admission and lunch. Which of the following volume/price alternatives will allow the firm to avoid losing money on the trip?

Investigating the potential outcomes when estimates turn out to be incorrect is known as "what-if analysis."

Once management makes its decisions, the management science team typically is finished with its involvement in the problem.

Management science is a discipline that attempts to aid managerial decision making by applying a scientific approach to managerial problems that involve quantitative factors.

A manager has determined that a potential new product can be sold at a price of $100.00 each. The cost to produce the product is $75.00, but the equipment necessary for production must be leased for $175,000 per year. What is the break-even point?

A parameter in a model is a variable that represents a decision to be made.

A cost that varies with the production volume would be a fixed cost.

A management science team will try to conduct a systematic investigation of a problem that includes careful data gathering, developing and testing hypotheses, and then applying sound logic in the analysis.

A manager has determined that a potential new product can be sold at a price of $50.00 each. The cost to produce the product is $35.00, but the equipment necessary for production must be leased for $100,000 per year. What is the break-even point?

Which of the following is a constant in a mathematical model?

Spreadsheets allow many managers to conduct their own analyses in management science studies.

A manager has determined that a potential new product can be sold at a price of $20.00 each. The cost to produce the product is $10.00, but the equipment necessary for production must be leased for $75,000 per year. What is the break-even point?

In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year at a price of $7.50. If the variable cost of production is $5.00 per unit, what is the most the firm can spend to lease the new equipment without losing money?

The best way to solve a break-even problem with a spreadsheet model is to try different production quantities until the quantity that leads to profits of zero is found.

Linear Programming: Basic Concepts

Linear Programming: Formulation and Applications

The Art of Modeling With Spreadsheets

What-If Analysis for Linear Programming

Network Optimization Problems

Using Binary Integer Programming to Deal With Yes-Or-No Decisions

Nonlinear Programming

Decision Analysis

Forecasting

Queueing Models

Computer Simulation: Basic Concepts

Computer Simulation With Analytic Solver

Filters