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MC Theories 2020
MC Theories 2020
Probability Distribution
1. If only one event may occur on any one trial, then the events are said to be
a. independent.
b. exhaustive.
c. mutually exclusive.
d. continuous.
2. New probabilities that have been found using Bayes’ theorem are called
a. prior probabilities.
b. posterior probabilities.
c. Bayesian probabilities.
d. joint probabilities.
a. expected value.
b. variance.
c. standard deviation.
a. expected value.
b. standard deviation.
distribution?
d. the Z distribution
a. 1.
b. 0.
c. 0.5.
c. must sum to 1.
a. 1.
b. 0.
c. the variance.
a. marginal probability.
b. simple probability.
c. conditional probability.
d. joint probability.
12. If a normal distribution has a mean of 200 and a standard deviation of 10, 99.7% of the
population falls within what range of values?
a. 170–230
b. 180–220
c. 190–210
d. 175–225
e. 170–220
13. If two events are mutually exclusive, then the probability of the intersection of these two
events will equal
a. 0.
b. 0.5.
c. 1.0.
14. If P(A) =0.4 and P(B) = 0.5 and P(A and B) = 0.2, then P(B\A) = _____.
a. 0.80.
b. 0.50.
c. 0.10
d. 0.40.
15. If P(A) =0.4 and P(B) = 0.5 and P(A and B) = 0.2, then P(A or B) = _____.
a. 0.7.
b. 0.9.
c. 1.1.
d. 0.2.
2. Decision Analysis
1. Which one of the following statements best describes a difference between basic PERT
and the Critical Path Method (CPM) of network analysis?
A. PERT uses probability distribution on the activity times while CPM uses point estimates
for the activity times.
B. PERT does not allow for slack times on the activities while CPM does.
C. PERT considers only activity cost while CPM considers only activity time.
D. PERT determines the least-cost path through a network while CPM determines the least-
time path through a network.
2. Critical Path Method (CPM) is a technique for analyzing, planning, and scheduling
large, complex projects by determining the critical path from a single time estimate for
each event in a project. The critical path:
A. Is the shortest path from the first event to the last event for a project?
B. Is an activity within the path that requires the most number of times?
C. Has completion that reflects the earliest time to complete the project.
D. Is the maximum amount of time an activity may be delayed without delaying the total
project beyond its target completion time
A. optimistic time
B. pessimistic time
A. Dummy
B. Event
C. Activity
D. Contract.
A. event
B. dummy
C. duration
D. Float.
8. If D is the duration, ES and EF are the earliest start and finish, LS and LF are latest
start and latest finish time, and then the following relation holds good
A. EF = ES + D
B. LS = LF ? D
C. LF = LS + D
9. If TL is the latest allowable event occurrence time, total activity slack(s), is equal to
A. LST-EST
B. LFT- EFT
C. TL-EFT
A. The early start time of an activity is the maximum of the early finish times of all its
immediate predecessors
B. The sequence of the activities on the longest path in the network, is the project's
critical path
C. The procedure of finding the early start and early finish times of each of the beginning
activities, then those of their successors, their successors' successors, and so on is
called the forward pass through the network
A. Earliest time that an activity can be finished without delaying the entire project.
B. Latest time that an activity can be started without delaying the entire project.
C. Earliest time that an activity can start without violation of precedence requirements.
D. Latest time that an activity can be finished without delaying the entire project.
15. The artificial activity which indicates that an activity following it, cannot be started
unless the preceding activity is complete, is known as:
A. Free float
B. Event
C. Dummy
D. Constant
4. Linear Programming
9. One of two subsets for solution set, one subset satisfies equality part of equation and
other subset solves
A. range part of equation
B. domain part of equation
C. equality part of equation
D. in-equality part of equation
10. For linear inequalities, solution set for a group of inequalities is classified as
A. concave set
B. convex set
C. loss set
D. profit set
12. In maximization problem, optimal solution occurring at corner point yields the
A. mean values of z
B. highest value of z
C. lowest value of z
D. mid values of z
13. In linear programming, oil companies used to implement resources available is classified
as
A. Implementation modeling
B. transportation models
C. oil model
D. resources modeling
14. Linear programming model which involves funds allocation of limited investment is
classified as
A. Ordination budgeting model
B. capital budgeting models
C. Funds investment models
D. funds origin models
5. Queuing Analysis
True or False:
TRUE 1. If the customers are served in the order of their arrival, then this is known as the first-
come, first-served (FCFS) service discipline.
TRUE 2. Under Served in random order (SIRO) rule, customers are selected for service at
random, irrespective of their arrivals in the service system. In this every customer in the queue
is equally likely to be selected. The time of arrival of the customers is, therefore, of no
relevance in such a case.
FALSE 3. L = probability of exactly n customers in queuing system.
FALSE 4. Pn = expected (avg.) number of customers in queuing system. .
FALSE 5. Lt = expected (avg.) queue length (excludes customers being served) or no of
Customers.
FALSE 6. Wt = expected waiting time in system (includes service time) for each individual
customer or time a customer spends in the system.
TRUE 7. Wq = waiting time in queue (excludes service time) for each individual customer or
Expected time a customer spends in a queue.
TRUE 8. Queuing theory is the mathematical study of the congestion and delays of waiting in
line.
FALSE 9. Service mechanism is the first element of the queuing structure that relates to the
information about the arrival of the population in the system, whether they come individually or
in groups.
TRUE 10. Library counter, hotel reception are examples of Single Service Facility.
FALSE 11. In M/M/N model, the arrival times and service rates follow Markovian distribution or
exponential distribution which are probabilistic distributions.
FALSE 12. Queue model is a parameter that explains how the customers arrive at a service
facility.
TRUE 13. The difference between the earlier model and this model is the number of servers.
TRUE 14. By applying queuing theory, a business can develop more efficient queuing systems,
processes, pricing mechanisms, staffing solutions and arrival management strategies to reduce
customer wait times and increase the number of customers that can be served.
FALSE 15. The simplest arrival process is one where we have completely irregular arrivals (i.e.
the same constant time interval between successive arrivals).
6. Learning Curve
FALSE 1. Experience curves may be valid for industrial applications, but have no role in services
such as health care procedures.
FALSE 2. Experience curves are the opposite of learning curves—as one rises, the other falls.
TRUE 3. Learning curves are based on the premise that people and organizations become
better at their tasks as the tasks are repeated.
FALSE 4. The earliest application of learning curves appears in the work of architect Frank
Lloyd Wright.
FALSE 5. Learning curves can only be applied to labor.
TRUE 6. If the learning rate for a process is 100 percent, then each unit in a series of units will
have the same labor requirements.
TRUE 7. If the first unit in a series of units takes 200 days to complete, and the learning rate is
80%, then the second unit will take 160 days.
FALSE 8. An 80% learning curve means that with each unit increase in production, labor
requirements fall by 20%.
TRUE 9. A 90% learning curve implies that each time the production volume is doubled the
direct time per unit is reduced to 90% of its previous value.
TRUE 10. The learning rate in the steel industry and the learning rate in heart surgery have
both been estimated at 79 percent.
TRUE 11. A project manager bases his time and labor estimates on a learning rate of 86%. The
actual learning rate turns out to be 89%. The manager, because of the decreased learning, will
complete his project in more time and with more labor use.
TRUE 12. The learning curve may not be permanent; it can be disrupted by changes in
process, personnel, or product.
TRUE 13. Learning curves can be used to establish budgets.
FALSE 14. The arithmetic approach (or successive doubling approach) to learning curve
calculations allows us to determine the hours required for any unit.
TRUE 15. The logarithmic approach to learning curve calculations allows us to determine the
hours required for any unit.
7. Economics
1. Economics is a social science that studies the choices that individuals, businesses,
governments, and entire societies make in the presence of ____________.
A. Necessity
B. Scarcity
C. Efficiency
D. Poverty
2. Which of the following questions is an example of a microeconomic question?
A. What is the effect of an increase in the quantity of money on the price level?
B. What is the effect of a decrease in the price of chocolate chip cookies on the
quantity purchased of doughnuts?
C. What is the effect of an increase in government spending on economic growth?
D. What is the relationship between the unemployment rate and the inflation rate?
5. __________ is the level of consumption that people enjoy, on the average, and is measured
by average income per person.
8. The highest valued alternative that we give up to get something is the ____________.
A. opportunity cost
B. incentive
C. marginal cost
D. marginal benefit
9. A graphical relationship between two variables that move in the same direction is
called a ____________ relationship.
A. Positive
B. Negative
C. Linear
D. Inverse
11. The amount that consumers plan to buy during a given time period at a particular
price is the ____________.
A. quantity demanded
B. demand
C. quantity supplied
D. Supply
12. When the price of a good or service rises, ceteris paribus, its opportunity cost
____________.
A. falls
B. cannot be determined
C. remains the same
D. rises
13. When the price of a good rises, ceteris paribus, people cannot afford to buy all the
things they previously bought so they buy less. This is called the ____________ effect.
A. substitution
B. quantity
C. price
D. Income
A. decrease
B. remain the same
C. decrease initially and then increase
D. increase
17. If the price of a good falls, ceteris paribus, there is a _______________ the supply curve.
A. movement down along
B. leftward shift of
C. movement up along
D. rightward shift of
18. All of the following are likely to cause an increase in the supply of beef except
____________.
A. Supply
B. Demand
C. Price
D. Incentives
20. In the market for chocolate chip cookies, an increase in demand will result in ___________.