Question 1

The composite unit in DEA

Accepted Answer

A)  has as output a weighted average of the outputs of the individual units.
B)  has as input a weighted average of the inputs of the individual units.
C)  has outputs greater than or equal to the outputs of any individual unit.
D)  All of the alternatives are correct. D

Question 2

To develop a portfolio that provides the best return possible with a minimum risk, the linear programming model will have an objective function which

Accepted Answer

A)  minimizes the maximum risk.
B)  minimizes total risk.
C)  maximizes return and minimizes risk.
D)  maximizes the minimum return. D

Question 3

If a pure strategy solution exists for a two-person, zero-sum game, it is the optimal solution to the game.

Accepted Answer

A) True 
 B)False  True

Question 4

DEA is used to measure the relative efficiency of two (or more) units in different industries, such as a bank and a school.

Accepted Answer

A) True 
 B)False

Question 5

In data envelopment analysis, the percentage of an individual operating unit's resources that are available to the composite operating unit is the

Accepted Answer

A)  efficiency index.
B)  saddle point.
C)  maximin.
D)  minimax.

Question 6

A DEA linear programming model involving 4 input measures and 3 output measures will have

Accepted Answer

A)  7 constraints.
B)  8 constraints.
C)  12 constraints.
D)  13 constraints.

Question 7

In a two-person, zero-sum, pure-strategy game, there is no advantage to either player to switch from its strategy even if one of the players discovers the other player's strategy in advance.

Accepted Answer

A) True 
 B)False

Question 8

In portfolio models, risk is minimized by diversification.

Accepted Answer

A) True 
 B)False

Question 9

For a two-person, zero-sum, mixed-strategy game, each player selects its strategy according to

Accepted Answer

A)  what strategy the other player used last.
B)  a fixed rotation of strategies.
C)  a probability distribution.
D)  the outcome of the previous game.

Question 10

If it is optimal for both players in a two-person, zero-sum game to select one strategy and stay with that strategy regardless of what the other player does, the game

Accepted Answer

A)  has more than one equilibrium point.
B)  will have alternating winners.
C)  will have no winner.
D)  has a pure strategy solution.

Question 11

Revenue management methodology can be applied in the case of nonperishable assets.

Accepted Answer

A) True 
 B)False

Question 12

For a two-person, zero-sum, mixed-strategy game, it is necessary to solve the LP for only one of the players to learn the optimal strategies for both players.

Accepted Answer

A)  1.
B)  the number of operating units.
C)  100.
D)  any arbitrary value.

Question 13

For a two-person, zero-sum, mixed-strategy game, it is necessary to solve the LP for each player in order to learn both players' optimal strategies.

Accepted Answer

A) True 
 B)False

Question 14

DEA does not necessarily identify the operating units that are relatively efficient.

Accepted Answer

A) True 
 B)False

Question 15

Revenue management methodology was originally developed for

Accepted Answer

A)  a cruise line.
B)  an airline.
C)  a car rental company.
D)  a hotel chain.

Question 16

The goal of portfolio models is to create a portfolio that provides the best balance between risk and return.

Accepted Answer

A) True 
 B)False

Question 17

Modern revenue management systems maximize revenue potential for an organization by helping to manage

Accepted Answer

A)  pricing strategies.
B)  reservation policies.
C)  short-term supply decisions.
D)  All of the alternatives are correct.

Question 18

In general, every DEA linear programming model will include a constraint that requires the weights for the operating units to sum to

Accepted Answer

A)  1.
B)  the number of operating units.
C)  100.
D)  any arbitrary value.

Question 19

The overall goal of portfolio models is to create a portfolio that provides the best balance between

Accepted Answer

A)  short-term and long-term investments.
B)  gains and losses.
C)  risk and return.
D)  liquidity and stability.

Question 20

A linear programming application used to measure the relative efficiency of operating units with the same goals and objectives is

Accepted Answer

A)  game theory.
B)  asset allocation.
C)  data envelopment analysis.
D)  revenue management.

Exam 5: Advanced Linear Programming Applications

The composite unit in DEA

To develop a portfolio that provides the best return possible with a minimum risk, the linear programming model will have an objective function which

If a pure strategy solution exists for a two-person, zero-sum game, it is the optimal solution to the game.

DEA is used to measure the relative efficiency of two (or more) units in different industries, such as a bank and a school.

In data envelopment analysis, the percentage of an individual operating unit's resources that are available to the composite operating unit is the

A DEA linear programming model involving 4 input measures and 3 output measures will have

In a two-person, zero-sum, pure-strategy game, there is no advantage to either player to switch from its strategy even if one of the players discovers the other player's strategy in advance.

In portfolio models, risk is minimized by diversification.

For a two-person, zero-sum, mixed-strategy game, each player selects its strategy according to

If it is optimal for both players in a two-person, zero-sum game to select one strategy and stay with that strategy regardless of what the other player does, the game

Revenue management methodology can be applied in the case of nonperishable assets.

For a two-person, zero-sum, mixed-strategy game, it is necessary to solve the LP for only one of the players to learn the optimal strategies for both players.

For a two-person, zero-sum, mixed-strategy game, it is necessary to solve the LP for each player in order to learn both players' optimal strategies.

DEA does not necessarily identify the operating units that are relatively efficient.

Revenue management methodology was originally developed for

The goal of portfolio models is to create a portfolio that provides the best balance between risk and return.

Modern revenue management systems maximize revenue potential for an organization by helping to manage

In general, every DEA linear programming model will include a constraint that requires the weights for the operating units to sum to

The overall goal of portfolio models is to create a portfolio that provides the best balance between

A linear programming application used to measure the relative efficiency of operating units with the same goals and objectives is