If all the variables in a model are under the control of the decision maker, then the model is considered to be (Points :

1. If all the variables in a model are under the control of the decision maker, then the model is considered to be (Points : 3)probabilisticrandommathematicalschematicdeterministic2. A decision model has the following input variables: Historical sales data; and historical advertising budget. This model is considered to be probabilistic. (Points : 3)TrueFalse3. If all the values of the input variables in a decision model are known with certainty, then the model is considered to be deterministic. (Points : 3)TrueFalse4. Which of the following variables is considered to be qualitative? (Points : 3)annual salesearnings per shareagemethod of payment (e.g., cash or credit card)price5. Suppose that the breakeven point (BEP) for a given product is 200 units. This means that if 198 units are produced, then this product is not profitable. (Points : 3)TrueFalse6. Determining how much the solution will change if there are changes in the input data is part of (Points : 3)model formulationmodel solutionmodel interpretationmodel developmentmodel assessment7. The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. Suppose that ABC would like to realize a monthly profit of $50,000. How many units must they sell each month to realize this profit? (Points : 3)500 units450 units4500 units5000 units5500 units8. Which of the following is an equation to determine the break-even point (BEP) in units? (Points : 3)BEP = Fixed cost/Selling price per unit - Variable cost per unitBEP = Fixed cost/(Selling price per unit - Variable cost per unit)BEP = Variable cost/(Selling price per unit - Fixed cost)BEP = Variable cost/(Fixed cost - selling price per unit)BEP = Fixed cost/Selling price per unit + Variable cost per unit9. Which of the following is an equation to determine the break-even point in dollars? (Points : 3)(BEP) * (total variable cost)(BEP) * (variable cost per unit)(BEP) / (selling price)(BEP) * (selling price) / (variable cost per unit)(BEP) * (selling price)10. Which of the following variables is considered random or probabilistic? (Points : 3)future interest rateslast year's advertising budgetlast week's sales datahistorical stock priceshistorical interest rates11. If a decision model has one variable with a certain/deterministic input value and another variable with a random/probabilistic input, then the outcome of this model which is based on both variables will be probabilistic. (Points : 3)TrueFalse12. Suppose that the breakeven point (BEP) for a product is 300 units. This means if 310 units are produced, then this product is profitable. (Points : 3)TrueFalse13. At the Breakeven Point (BEP), total profit is typically greater than zero. (Points : 3)TrueFalse14. Acquiring input data is part of (Points : 3)model solutionmodel formulationmodel interpretationmodel testingmodel identification15. An isoprofit line represents a line whereby all profits are the same along the line. (Points : 3)TrueFalse16. Refer to Figure 1. What cell reference designates the Target Cell in "Solver"?Figure 1:(Points : 3)E4B3C3D8:D10E8:E1017. If an isoprofit line can be moved outward such that the objective function value can be made to reach infinity, then this problem has an unbounded solution. (Points : 3)TrueFalse18. When using Solver, the parameter Changing Cells is typically associated with the objective function. (Points : 3)TrueFalse19. Consider the following linear programming model:Max X12 + X2 + 3X3Subject to:X1 + X2 3X1 + X2 1X1, X2 0This problem violates which of the following assumptions? (Points : 3)certaintyproportionalitydivisibilitylinearityintegrality20. When using Solver, the parameter Set Target Cell is typically associated with decision variables. (Points : 3)TrueFalse21. Consider the following linear programming modelMax 2X1 + 3X2Subject to:X1 + X2 4X1 2X1, X2 0This linear programming model has (Points : 3)redundant constraintsinfeasible solutionalternate optimal solutionunique solutionunbounded solution22. A linear programming model generates an optimal solution with fractional values. This solution satisfies which basic linear programming assumption? (Points : 3)certaintydivisibilityproportionalitylinearitynon-negativity23. If a linear programming problem has alternate optimal solutions, then the objective function value will vary according to each alternate optimal point (Points : 3)TrueFalse24. It is possible to solve graphically a linear programming model with 4 decision variables. (Points : 3)TrueFalse25. The constraint for a given resource is given by the following equation:2X1 + 3X2 20If X1 = 5 and X2 = 4 how many units of this resource are unused? (Points : 3)202220926. A linear programming model has the following two constraints: X1 3 and X1 4. This model has a redundant constraint. (Points : 3)TrueFalse27. Consider the following linear programming model:Min 2X1 + 3X2Subject to:X1 + 2X2 1X2 1X1 0, X2 0This problem violates which of the following assumptions? (Points : 3)additivitydivisibilitynon-negativityproportionalitylinearity28. In a multi-period production scheduling application, the decision variables typically designate (Points : 3)the number of units to produce in a given periodminimizing inventory and production coststhe number of units held in inventory in a given periodthe number of inventory units to produce in a given periodnumber of units to produce in a given period, along with the number of units to hold in inventory at the end of each period29. Consider the following linear programming problem and its associated spreadsheet model.Which equation should be entered in cell F8 to compute the amount by which the minimal requirement of constraint #3 has been exceeded? (Points : 3)=SUMPRODUCT(B2:C2,D3:E3)D8 - E8E8 - D8F8 - E8E8 - F830. Production, inventory, and demand are typical decision variables in a production scheduling, multi-period linear programming application. (Points : 3)TrueFalse31. The "Transportation" problem involves determining the amount of goods to be transported from a number of origins to a number of destinations. (Points : 3)TrueFalse32. Alternate optimal solutions are not common in linear programming applications. (Points : 3)TrueFalse33. A company produces two products, X1, and X2. The constraint that illustrates the consumption of a given resource in making the two products is given by: 2X1+3X2 10. This relationship implies that each unit of X1 consumes 3 units of that resource. (Points : 3)TrueFalse34. The non-negativity constraint can be specified in "Solver" by (Points : 3)checking the "Assume Non-Negative" check box in the "Options" tab.creating a separate constraint to ensure that all the decision variables are greater than or equal to zero.checking the "Assume Linear Model" option.a and b onlyall of these35. The "Sinking Fund" problem can be classified as a multi-period linear programming application. (Points : 3)TrueFalse36. The "Portfolio Selection" problem may be viewed as a "product mix" application. (Points : 3)TrueFalse37. Which of the following linear programming applications can be viewed as a generalized product mix problem? (Points : 3)media selectionportfolio selectionmake-buy decision problemmedia selection and portfolio selection onlyall of these38. Consider the following constraint: X140. This implies that at most 40 units of product X1 can be produced. (Points : 3)TrueFalse39. When setting up linear programming models in Excel, the right-hand side of constraints may include decision variables and constants. (Points : 3)TrueFalse40. In a multi-period production scheduling application, the decision choices in later periods are directly dependent on the decision made in earlier periods. (Points : 3)TrueFalse