# Multiple Choice Questions BCOM SECOND SEMESTER QUANTITATIVE OF BUSINES

## Multiple Choice Questions BCOM SECOND SEMESTER QUANTITATIVE OF BUSINES

1. The application of OR techniques involves ………… approach
a) Individual
b) Team
c) Critical
d) None of the above

2. Opportunity loss refers to
a) the expected value of a bad decision.
b) the expected loss from a bad decision.
c) the difference between the actual payoff and the optimal payoff.
d) the regret from not having made a decision.

3. All of the following are steps in the decision-making process EXCEPT:
a) Define the problem
b) Compute the posterior probabilities
c) Identify possible outcomes
d) List payoffs

4. Which of the following is (are) types of decision-making environments?
a) Decision making under uncertainty
b) Decision making under certainty
c) Decision making under risk
d) All of the above

5. A good decision always implies that we
a) will obtain the best final results
b) have used appropriate quantitative analysis.
c) have followed a logical process.
d) have based the decision on all available appropriate information.
Answer-: (c) have followed a logical process.

6. Which of the following might be viewed as an "optimistic" decision criterion?
a) Hurwicz criterion
b) Maximin
c) Maximax
d) Minimax

7. Decision alternatives
a) should be identified before decision criteria are established.
b) are limited to quantitative solutions
c) are evaluated as a part of the problem definition stage.
d) are best generated by brain-storming.

8. The equally likely decision criterion is also known as
a) Bayes'.
b) Laplace.
c) minimax.
d) Hurwicz.

9. Which of the following is a property of all linear programming problems?
a) alternate courses of action to choose from
b) minimization of some objective
c) a computer program
d) usage of graphs in the solution

10. A point that satisfies all of a problem's constraints simultaneously is a(n)
a) maximum profit point.
b) corner point.
c) intersection of the profit line and a constraint.
d) None of the above

11. The first step in formulating an LP problem is
a) Graph the problem.
b) Understand the managerial problem being faced.
c) Identify the objective and the constraints.
d) Define the decision variables.
Answer-:(b) understand the managerial problem being faced.

12. LP theory states that the optimal solution to any problem will lie at
a) the origin.
b) a corner point of the feasible region.
c) the highest point of the feasible region.
d) the lowest point in the feasible region.

13. Consider the following linear programming problem: Maximize 12X + 10Y Subject to:
4X + 3Y ch7 <= 480 2X + 3Y ch7 <= 360
all variables >= 0 Which of the following points (X,Y) could be a feasible corner point?
a) (40,48)
b) (120,0)
c) (180,120)
d) (30,36)

14. Management science and operations research both involve
a) qualitative managerial skills.
b) quantitative approaches to decision making.
c) operational management skills.
d) scientific research as opposed to applications.

15. Which of the following does not represent a factor a manager might consider when
employing linear programming for a production scheduling?
a) labor capacity
b) employee skill levels
c) warehouse limitations
d) none of the above
Answer-: (d) none of the above

16. The quantitative analysis approach requires
a) the manager's prior experience with a similar problem.
b) a relatively uncomplicated problem.
c) mathematical expressions for the relationships.
d) each of the above is true.

17. In labor planning formulation, how would you write the constraint that there are only 10 full-
time tellers (labeled as T) available?
a) T + 10 > 0
b) T > 10
c) T ≤10
d) All of the above are correct ways.

18. A type of linear programming problem that is used in marketing is called the
a) media selection problem.
c) marketing allocation problem.
d) all of the above

19. The maximization or minimization of a quantity is the
a) goal of management science.
b) decision for decision analysis.
c) constraint of operations research.
d) objective of linear programming.
Answer-: (d) objective of linear programming.

20. Decision variables
a) tell how much or how many of something to produce, invest, purchase, hire, etc.
b) represent the values of the constraints.
c) measure the objective function.
d) must exist for each constraint.

21. Which of the following is a valid objective function for a linear programming problem?
a) Max 5xy
b) Min 4x + 3y + (2/3)z
c) Max 5x2+ 6y2
d) Min (x1 + x2)/x3

22. Which of the following statements is NOT true?
a) A feasible solution satisfies all constraints.
b) An optimal solution satisfies all constraints.
c) An infeasible solution violates all constraints.
d) A feasible solution point does not have to lie on the boundary of the feasible region.

23. A solution that satisfies all the constraints of a linear programming problem except the non-
negativity constraints is called
a) optimal.
b) feasible.
c) infeasible.
d) semi-feasible.

24. In converting a less-than-or-equal constraint for use in a simplex table, we must add
a) a surplus variable.
b) a slack variable.
c) an artificial variable.
d) both a surplus and a slack variable.

25. Slack
a) Is the difference between the left and right sides of a constraint.
b) Is the amount by which the left side of a ≤ constraint is smaller than the right side.
c) Is the amount by which the left side of a ≥ constraint is larger than the right side.
d) Exists for each variable in a linear programming problem.

26. Unboundedness is usually a sign that the LP problem
a) has finite multiple solutions.
b) is degenerate.
c) contains too many redundant constraints.
d) has been formulated improperly.

27. To find the optimal solution to a linear programming problem using the graphical method
a) find the feasible point that is the farthest away from the origin.
b) find the feasible point that is at the highest location.
c) find the feasible point that is closest to the origin.
d) None of the alternatives is correct.

28. Which of the following special cases does not require reformulation of the problem in order
to obtain a solution?
a) alternate optimality
b) infeasibility
c) unboundedness
d) each case requires a reformulation.

29. Whenever all the constraints in a linear program are expressed as equalities, the linear
program is said to be written in
a) standard form.
b) bounded form.
c) feasible form.
d) alternative form.