Taylor Ims11 Tif ch14

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Introduction to Management Science, 11e (Taylor)

Chapter 14 Simulation

1) In computer mathematical simulation, a system is replicated with a mathematical model that is


analyzed with the computer.
Answer: TRUE
Diff: 1 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: computer mathematical simulation

2) Monte Carlo is a technique for selecting numbers randomly from a probability distribution.
Answer: TRUE
Diff: 1 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

3) The Monte Carlo process is analogous to gambling devices.


Answer: TRUE
Diff: 2 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

4) In the Monte Carlo process, values for a random variable are generated by sampling from a
probability distribution.
Answer: TRUE
Diff: 2 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

5) A long period of real time can be represented by a short period of simulated time.
Answer: TRUE
Diff: 1 Page Ref: 639
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation, simulated time

6) Random numbers are equally likely to occur.


Answer: TRUE
Diff: 1 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: random numbers

7) Simulation results will always equal analytical results if 30 trials of the simulation have been
conducted.
Answer: FALSE
Diff: 2 Page Ref: 642
Section Heading: The Monte Carlo Process
Keywords: steady state

1
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
8) It's often difficult to validate that the results of a simulation truly replicate reality.
Answer: TRUE
Diff: 1 Page Ref: 642
Section Heading: The Monte Carlo Process
Keywords: simulation results

9) Simulation applies mathematical models to determine optimal solutions to business problems.


Answer: FALSE
Diff: 2 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: simulations

10) Validation of a simulation model occurs when the true steady state average results have been
reached.
Answer: TRUE
Diff: 1 Page Ref: 643
Section Heading: The Monte Carlo Process
Keywords: simulations, computer simulation

11) Random numbers generated by a mathematical process instead of a physical process are
pseudorandom numbers.
Answer: TRUE
Diff: 2 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers

12) Random numbers are typically generated on the computer using a numerical technique.
Answer: TRUE
Diff: 2 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers

13) A table of random numbers must be normally distributed and efficiently generated.
Answer: FALSE
Diff: 2 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers

14) When using Excel to simulate a system, it is necessary to compute only the probability (relative
frequency) distribution.
Answer: FALSE
Diff: 2 Page Ref: 644
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel

15) Excel can only be used to simulate systems that can be represented by continuous random variables.
Answer: FALSE
Diff: 2 Page Ref: 644
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel
2
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
16) In Excel the VLOOKUP function is used to determine values for continuous random variables.
Answer: FALSE
Diff: 2 Page Ref: 645
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel

17) Developing the cumulative probability distribution helps to determine random number ranges.
Answer: TRUE
Diff: 2 Page Ref: 649
Section Heading: Simulation of a Queuing System
Keywords: cumulative probability distribution
AACSB: Analytic skills

18) Starting conditions have no impact on the validity of a simulation model.


Answer: FALSE
Diff: 2 Page Ref: 650
Section Heading: Simulation of a Queuing System
Keywords: simulation results, starting conditions

19) Simulations should always be started with an empty system.


Answer: FALSE
Diff: 2 Page Ref: 666
Section Heading: Verification of the Simulation Model
Keywords: simulation results

20) Manual simulation is limited because of the amount of real time required to simulate even one trial.
Answer: TRUE
Diff: 3 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: manual simulation

21) Applications of simulation models reflecting continuous distributions are more common than those
of models employing discrete distributions.
Answer: TRUE
Diff: 1 Page Ref: 652
Section Heading: Continuous Probability Distributions
Keywords: continuous random variables

22) In a continuous probability function, the area under the curve represents the probability of
occurrence of the random variable.
Answer: TRUE
Diff: 2 Page Ref: 652
Section Heading: Continuous Probability Distributions
Keywords: continuous random variables

3
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
23) Cumulative probabilities are analogous to the discrete ranges of random numbers used in the Monte
Carlo process.
Answer: TRUE
Diff: 2 Page Ref: 652
Section Heading: Continuous Probability Distributions
Keywords: continuous random variables

24) Integrating a function from zero to any value of a random variable x is an important step in
determining the cumulative probability of that value of x.
Answer: TRUE
Diff: 2 Page Ref: 652
Section Heading: Continuous Probability Distributions
Keywords: continuous random variables

25) ________ is a technique for selecting numbers randomly from a probability distribution.
Answer: The Monte Carlo process
Diff: 2 Page Ref: 638
Section Heading: Monte Carlo Simulation
Keywords: random numbers

26) Developing the ________ probability distribution helps to determine random number ranges.
Answer: cumulative
Diff: 2 Page Ref: 649
Section Heading: Simulation of a Queuing System
Keywords: computer mathematical simulation

27) Random numbers of a mathematical process instead of a physical process are ________ numbers.
Answer: pseudorandom
Diff: 2 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers, pseudo random numbers

28) Simulation models must be ________ to make sure they are accurately replicating the system being
simulated.
Answer: validated or verified
Diff: 3 Page Ref: 666
Section Heading: Verification of the Simulation Model
Keywords: simulation models

29) A table of random numbers must be ________ distributed, efficiently generated, and absent of
patterns.
Answer: uniformly
Diff: 1 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers

4
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
30) The ________ command is used in generating the random numbers with Excel.
Answer: RAND( )
Diff: 2 Page Ref: 644
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel

31) In order to determine the value of discrete demand in a simulation model using Excel, the ________
function is used to associate a specific value of demand with a random number.
Answer: VLOOKUP
Diff: 2 Page Ref: 645
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel

32) ________ is a risk analysis and forecasting program that uses Monte Carlo simulation.
Answer: Crystal Ball
Diff: 2 Page Ref: 659
Section Heading: Crystal Ball
Keywords: computer simulation

33) ________, ________, and ________ are common applications of simulation.


Answer: There are many correct answers, including: queuing, inventory control,
production/manufacturing, finance, marketing, public service operations, environmental and resource
analysis
Diff: 2 Page Ref: 667-667
Section Heading: Areas of Simulation Application
Keywords: simulation

34) In the Monte Carlo process, values for a random variable are generated by sampling from a(n)
________.
Answer: probability distribution
Diff: 2 Page Ref: 639
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

35) A long period of real time is represented by a short period of ________.


Answer: simulated time
Diff: 2 Page Ref: 639
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

36) The Monte Carlo process is analogous to and derives its name from ________.
Answer: gambling devices
Diff: 2 Page Ref: 639
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

5
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
37) ________ are numbers equally likely to be chosen from a large population of numbers.
Answer: Random numbers
Diff: 2 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: random numbers

38) A random number table features numbers that are derived from a(n) ________ process.
Answer: artificial
Diff: 2 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: random numbers

39) Consider the following distribution and random numbers:

If a simulation begins with the first random number, what would the first simulation value would be
________.
Answer: 2
Diff: 2 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytic skills

6
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
The drying rate in an industrial process is dependent on many factors and varies according to the
following distribution.

40) Determine the drying time for these 5 random numbers: 0.13, 0.09, 0.19, 0.81, and 0.12.
Answer:

Diff: 2 Page Ref: 640


Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytic skills

41) Determine the drying time for these 5 random numbers: 0.53, 0.95, 0.97, 0.96, and 0.07.
Answer:

Diff: 2 Page Ref: 630


Section Heading: The Monte Carlo Process
Keywords: simulation of a queuing system
AACSB: Analytic skills

7
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
42) The drying rate in an industrial process is dependent on many factors and varies according to the
following distribution.

What is the average drying time if you simulate 10 trials using these random numbers:
0.13, 0.09, 0.19, 0.81, 0.12, 0.53, 0.95, 0.97, 0.96, and 0.07.
Answer: 14.3
Diff: 3 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: simulation of a queuing system
AACSB: Analytic skills

43) Determine the random number ranges for the data set (start with 00).

Demand Frequency
5 0.15
6 0.3
7 0.25
8 0.15
9 0.15
Answer:
Random
Demand
Number Ranges
5 00-14
6 15-44
7 45-69
8 70-84
9 85-99

Diff: 3 Page Ref: 640


Section Heading: The Monte Carlo Process
Keywords: random number ranges
AACSB: Analytic skills

8
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
44) Given the following random number ranges and the following random number sequence: 62, 13, 25,
40, 86, 93, determine the average demand for the following distribution of demand.

Random
Demand
Number Ranges
5 00-14
6 15-44
7 45-69
8 70-84
9 85-99

Answer: 42/6 = 7
Diff: 2 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: random numbers, random number ranges
AACSB: Analytic skills

45) If f(x) = 2x, what is the equation for generating x, given the random number r?
Answer: x =
Diff: 2 Page Ref: 652
Section Heading: Continuous Probability Distributions
Keywords: random numbers
AACSB: Analytic skills

46) The drying rate in an industrial process is dependent on many factors and varies according to the
following distribution.

Compute the mean drying time.


Answer: 4.38
Diff: 3 Page Ref: 642
Section Heading: The Monte Carlo Process
Keywords: mean, expected value
AACSB: Analytic skills

9
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
47) A normal distribution has a mean of 500 and a standard deviation of 50. A manager wants to
simulate two values from this distribution and has drawn these random numbers: -0.6 and 1.4. What are
the two values, respectively?
Answer: 470 and 570
Diff: 3 Page Ref: 653
Section Heading: Continuous Probability Distributions
Keywords: normal distribution
AACSB: Analytic skills

48) The number of cars arriving at Joe Kelly's oil change and tune-up place during the last 200 hours of
operation is observed to be the following:

Determine the probability distribution of car arrivals.


Answer:
Number of
Probability of
Cars
Occurrence
Arriving
4 .05
5 .15
6 .35
7 .25
8 .20

Diff: 2 Page Ref: 630


Section Heading: The Monte Carlo Process
Keywords: probability distribution
AACSB: Analytic skills

10
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
49) The number of cars arriving at Joe Kelly's oil change and tune-up place during the last 200 hours of
operation is observed to be the following:

Based on the above frequencies, use two-digit random numbers, start with random number 00, and
determine the random number ranges for the data set given above.
Answer:
Number of
Random Number
Cars
of Ranges
Arriving
4 00-04
5 05-19
6 20-54
7 55-79
8 80-99

Diff: 2 Page Ref: 639


Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytic skills

11
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
50) Consider the following manual simulation of machine breakdowns and repair.

Time between
breakdowns, Repair time, Cost
Breakdowns x (weeks) y (days) ($2,000 y)
1 4 1 $2000
2 5.7 2 $4000
3 5.5 2 $4000
4 2.5 1 $2000
5 5.2 2 $4000
6 5.8 2 $4000
7 1.6 1 $2000
8 2.3 2 $4000
9 1.2 2 $4000
10 3.3 2 $4000

What operating charactistics can be obtained from this simulation?


Answer: Average time between breakdowns, average repair time, average cost. Depending on the
length of the simulation run (quarterly, annual), total breakdowns and costs per time period could also be
determined.
Diff: 2 Page Ref: 649-650
Section Heading: Simulation of a Queuing System
Keywords: simulation of a queuing system
AACSB: Analytic skills

51) George Pourbabaee owns a gas station. The cars arrive at the gas station according to the following
inter-arrival time distribution. The time to service a car is given by the following service time
distribution.

Interarrival
Random Service Time Random
time (in P(X) P (X)
Numbers (in minutes) Numbers
minutes)
4 .35 00-34 2 .30 00-29
7 .25 35-59 4 .40 30-69
10 .30 60-89 6 .20 70-89
20 .10 90-99 8 .10 90-99

Using the following random number sequence: 92, 44, 15, 97, 21, 80, 38, 64, 74, 08, estimate the
average customer waiting time, average idle time of the assistant, and the average time a car spends in
the system.
Answer: Average idle time: 23/5 = 4.6 minutes
Average waiting time = 7/5 = 1.4 minutes
Average time in the system = 6.2 minutes
Diff: 3 Page Ref: 650
Section Heading: Simulation of a Queuing System
Keywords: Monte Carlo simulation
AACSB: Analytic skills

52) An answering service for a doctor's office wants to evaluate the service by simulation calls. They
12
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used past data to determine the distributions for the time between calls and the time spent on the phone
with patients.

Use the table below to manually simulate 8 calls. The time of the call and the service time have already
been determined.

Customer Operator
Customer Time of Time call Service Time call
Wait Wait
Number Call answered Time ends
Time Time
1 15 15 25 40 0 15
2 45 45 25 70 0 5
3 70 15
4 95 45
5 125 15 155
6 150 35
7 175 190 25 15 0
8 205 25 240 10 0

Calculate the average waiting time per customer.


Calculate the utilization of the operator.

Answer:
Customer Operator
Arrival Time of Timecall Service Time call
Wait Wait
Number Call answered Time end
Time Time
1 15 15 25 40 0 15
2 45 45 25 70 0 5
3 70 70 15 85 0 0
4 95 95 45 140 0 10
5 125 140 15 155 15 0
6 150 155 35 190 5 0
7 175 190 25 215 15 0
8 205 215 25 240 10 0

Average waiting time per customer = 5.625 minutes


Utilization of operator = 87.5%
Diff: 3 Page Ref: 650
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, operating characteristics
AACSB: Analytic skills

13
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
A graduate research assistant "moonlights" at the short order counter in the student union snack bar in
the evenings. He is considering asking for help taking orders, but needs to convince the management
that they should hire another student. Because he is taking a simulation class, he thinks it may be the
perfect way to convince management to hire more help if he can show that customers have to wait a
long time. When a customer arrives, he takes their order and their payment, prepares the food, gives it to
the customer, and then takes the order from the next person in line. If someone arrives while he's
cooking an order, they have to wait until he's completed the current order. He is working on the
simulation and a portion is shown below.

53) Complete the table below and determine the average customer wait time.

Time Order Customer Customer


Customer Time of
Order Prep Receives Wait
Number Arrival
Taken Time Food Time
1 2 2 4 6 0
2 14 14 7
3 19 6
4 28 8
5 33 4

Answer:
Time Order Customer Customer
Customer Time of
Order Prep Receives Wait
Number Arrival
Taken Time Food Time
1 2 2 4 6 0
2 14 14 7 21 0
3 19 21 6 27 2
4 28 28 8 36 0
5 33 36 4 40 3

Average wait time = 1 minute


Diff: 2 Page Ref: 650
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, operating characteristics

14
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54) Complete the table and determine the average customer waiting time and the utilization of the cook.

Time Order Customer Customer Cook


Customer Time of
Order Prep Receives Wait "Idle"
Number Arrival
Taken Time Food Time TIme
1 2 2 4 6 0 2
2 14 14 7
3 19 6
4 28 8
5 33 4

Complete the table and determine the average customer waiting time and the utilization of the cook.
Answer:
Time Order Customer Customer Cook
Customer Time of
Order Prep Receives Wait "Idle"
Number Arrival
Taken Time Food Time TIme
1 2 2 4 6 0 2
2 14 14 7 21 0 8
3 19 21 6 27 2 0
4 28 28 8 36 0 1
5 33 36 4 40 3 0

Average customer waiting time = 1 minute, utilization = 72.5%


Diff: 2 Page Ref: 650
Section Heading: Simulation of a Queuing System
Keywords: manual simulation
AACSB: Analytic skills

15
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
55) Assume that order prep time is based on the following distribution:

Prep Time Probability


3 .10
4 .20
5 .25
6 .20
7 .15
8 .10

Complete the following table given that the random numbers for order prep time for customers 3, 4, and
5 are 62, 93, and 26, respectively.

Time Order Customer Customer Cook


Arrival Time of
Order Prep Receives Wait "Idle"
Number Arrival
Taken Time Food Time Time
1 1 1 4 5 0 1
2 5 5 7 12 0 0
3 7
4 10
5 18

What is the average customer waiting time and the graduate student's utilization?

Answer:
Time Order Customer Customer Cook
Arrival Time of
Order Prep Receives Wait "Idle"
Number Arrival
Taken Time Food Time Time
1 1 1 4 5 0 1
2 5 5 7 12 0 0
3 7 12 6 18 5 0
4 10 18 8 26 8 0
5 18 26 4 30 8 0

Average wait time = 4.2 minutes; utilization = 96.67%


Diff: 3 Page Ref: 650
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, utilization
AACSB: Analytic skills

16
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
A business professor wishes to model the duration of his commute through the busy streets of
Bangalore. He decides to model it based on the number of auto-rickshaws that he passes during the first
ten minutes of the drive. The continuous probability distribution 7x - 2 serves as a good model.

56) What is the integral from 0 to 4 for this distribution?


Answer: The integral is 3.5x2 - 2x. When evaluated at 4 and 0, the values are 48 and 0, resulting in

Diff: 3 Page Ref: 652


Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytic skills

After plowing through contracts for a decade, the contract writer knew about how long it took to crank
out the material necessary to satisfy a contract's requirements. The distribution could be modeled using
the data provided in this table.

Number of Random Number


Weeks Range
2 0-5
3 6-15
4 16-35
5 36-80
6 81-99

57) If the first four random numbers are 17, 33, 64, and 8, what is the average number of weeks?
Answer: The lookups are 4, 4, 5, and 3, for an average of 16/4 = 4 weeks.
Diff: 1 Page Ref: 641
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation.
AACSB: Analytic skills

58) If each contract is worth $4000 but it costs $200 per week to work on a contract, what is the profit
resulting from a simulation drawing of the numbers 72, 36, 8, 71, and 94?
Answer: $15,200 is the profit; revenues are $20,000 and expenses are 24 weeks @ $200/week
Diff: 2 Page Ref: 641
Section Heading: Monte Carlo Simulation
Keywords: Monte Carlo simulation.
AACSB: Analytic skills

59) If the ten numbers generated are 87, 84, 99, 18, 81, 75, 32, 87, 46, and 35, what is the resultant
expected average completion time?
Answer: The average completion time is 5.2 weeks.
Diff: 2 Page Ref: 641
Section Heading: Monte Carlo Simulation
Keywords: Monte Carlo simulation.
AACSB: Analytic skills

17
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
60) If each contract is worth $5000 but it costs $300 per week to work on a contract, what is the profit
resulting from a simulation drawing of the numbers 72, 36, 8, 71, and 94 to represent contract durations?
Answer: The total expenses are $7200 and the total revenue is 5 ∗ $5000, for a profit of $17,800.
Diff: 2 Page Ref: 641
Section Heading: Monte Carlo Simulation
Keywords: Monte Carlo simulation.
AACSB: Analytic skills

A newsboy sells newspapers and his goal is to maximize profit. He kept a record of his sales for 125
days with the following result:

Newspapers Number
demand per day of days
15 10
16 20
17 42
18 31
19 12
20 10
Total 125

His ordering policy is to order an amount each day that is equal to the previous day's demand.

A newspaper costs the carrier 50 cents and he sells it for $1.00. Unsold papers are returned and he
receives 25 cents (for a loss of 25 cents).

18
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61) Develop the cumulative distribution table and the corresponding random numbers.

Newspapers
Number of Cumulative
demanded Probability
Days Probability
per day
15 10
16 20
17 42
18 31
19 12
20 10
Total

Answer:
Newspapers
demanded Number
per day of days Pr Cum Pr.
15 10 0.08 0.08
16 20 0.16 0.24
17 42 0.336 0.58
18 31 0.248 0.82
19 12 0.096 0.92
20 10 0.08 1.00
Total 125

Diff: 2 Page Ref: 640


Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytic skills

19
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
62) Use the information and random numbers given in the table below to simulate the sale of
newspapers for 10 days.

Random Quantity Unsatisfied Unsold


Day Demand Sales
Number Ordered Demand Papers
1 .78 18
2 .43
3 .93
4 .87
5 .48
6 .84
7 .87
8 .27
9 .20
10 .52

After completing the simulation, determine his total revenue for the ten days as well as monetary losses
that result from unmet demand and unsold papers.

Answer:
Random Quantity Unsatisfied Unsold
Day Demand Number Ordered Sales Demand papers
1 18 0.78 18 18 0 0
2 17 0.43 18 17 0 1
3 20 0.93 17 20 3 0
4 19 0.87 20 19 0 1
5 17 0.48 19 17 0 2
6 19 0.84 17 19 2 0
7 19 0.87 19 19 0 0
8 17 0.27 19 17 0 2
9 16 0.2 17 16 0 1
10 17 0.52 16 17 1 0
Total 179 6 7
Revenue $179.00
Cost of
unsold
papers $1.75
Cost of
unmet
demand $3.00

Diff: 3 Page Ref: 642


Section Heading: Monte Carlo Simulation
Keywords: Monte Carlo simulation
AACSB: Analytic skills

20
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
63) Analogue simulation replaces a physical system with an analogous physical system that is ________
to manipulate.
A) harder
B) easier
C) equally difficult
D) more expensive
Answer: B
Diff: 2 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: Analogue simulation, Monte Carlo simulation

64) ________ is a technique for selecting numbers randomly from a probability distribution.
A) Marseille
B) Monaco
C) Monte Carlo
D) Analogue simulation
Answer: C
Diff: 1 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

65) In the Monte Carlo process, values for a random variable are generated by ________ a probability
distribution.
A) sampling from
B) running
C) integrating
D) implementing
Answer: A
Diff: 2 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

66) The ________ process is analogous to gambling devices.


A) Simulation
B) Monte Carlo
C) Monaco
D) none of the above
Answer: B
Diff: 2 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

21
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
67) ________ numbers are numbers derived from a mathematical process that appear to be random.
A) Random
B) Pseudorandom
C) Randomized
D) Semi-random
Answer: B
Diff: 1 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: pseudorandom numbers

68) Pseudorandom numbers exhibit a ________ in order to be considered truly random.


A) limited number of possible outcomes
B) uniform distribution
C) detectable pattern
D) detectable run of certain numbers
Answer: B
Diff: 3 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: pseudorandom numbers

69) ________ is not part of a Monte Carlo simulation.


A) Analyzing results
B) Analyzing a real problem
C) Finding an optimal solution
D) Evaluating the results
Answer: C
Diff: 1 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation

70) A seed value is a(n)


A) steady state solution of a simulation experiment.
B) number used to start a stream of random numbers.
C) first run of a simulation model.
D) analytic solution of a simulation experiment.
Answer: B
Diff: 2 Page Ref: 663
Section Heading: Crystal Ball
Keywords: random numbers

71) In assigning random numbers to probabilistic events in a simulation,


A) several events are associated with the same random number.
B) every random number is associated with a particular event.
C) every event is associated with the same random number.
D) the events dictate the seed number of the random number stream.
Answer: B
Diff: 2 Page Ref: 639
Section Heading: The Monte Carlo Process
Keywords: random numbers

22
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
72) ________ are the values that express the state of the system being modeled at the beginning of the
Monte Carlo simulation.
A) Outputs
B) Random events
C) Initial conditions
D) Random numbers
Answer: C
Diff: 2 Page Ref: 642
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation.

73) Simulation does not usually provide recommended decisions. Instead it provides
A) operating characteristics.
B) optimal solutions.
C) realistic results.
D) system parameters.
Answer: A
Diff: 1 Page Ref: 638
Section Heading: The Monte Carlo Process
Keywords: simulation models, optimal solutions

74) For the following frequency distribution of demand, the random number 0.23 would be interpreted
as a demand of:

A) 0
B) 1
C) 2
D) 3
Answer: A
Diff: 1 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytic skills

23
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
Consider the following frequency of demand and random numbers:

Random numbers: 0.13, 0.81, 0.53.

75) If the simulation begins with the first random number, the simulated value for demand would be:
A) 0
B) 1
C) 2
D) 3
Answer: A
Diff: 1 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytic skills

76) If the simulation begins with the second random number, the simulated value for demand would be:
A) 1
B) 2
C) 3
D) 4
Answer: C
Diff: 1 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytic skills

77) If the simulation begins with the third random number, the simulated value for demand would be:
A) 0
B) 1
C) 2
D) 3
E) 4
Answer: C
Diff: 2 Page Ref: 640
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytic skills

24
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
78) Which of the following would not be considered a limitation of simulation modeling?
A) Models are typically unstructured.
B) Validation of simulation models can be difficult.
C) The cost of building simulation can be prohibitive.
D) Simulation allows flexibility in analyzing systems.
Answer: D
Diff: 1 Page Ref: 668
Section Heading: Verification of the Simulation Model
Keywords: simulation models, limitations

79) Simulations are normally done


A) manually.
B) in a casino.
C) by a spreadsheet.
D) on the computer.
Answer: D
Diff: 1 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: computer simulation

80) Random numbers generated by a ________ process instead of a ________ process are
pseudorandom numbers.
A) physical, physical
B) physical, mathematical
C) mathematical, physical
D) mathematical, mathematical
Answer: C
Diff: 2 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers

81) A table of random numbers must be


A) in descending order.
B) efficiently generated.
C) normally distributed.
D) in ascending order.
Answer: B
Diff: 2 Page Ref: 643
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers

82) Developing the cumulative probability distribution helps to determine


A) simulation numbers.
B) data sets.
C) random number ranges.
D) mean of the distribution.
Answer: C
Diff: 2 Page Ref: 649
Section Heading: Simulation of a Queuing System
Keywords: cumulative probability distribution
25
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
A graduate research assistant "moonlights" at the short order counter in the student union snack bar in
the evenings. He is considering asking for help taking orders, but needs to convince the management
that they should hire another student. Because he is taking a simulation class, he thinks it may be the
perfect way to convince management to hire more help if he can show that customers have to wait a
long time. When a customer arrives, he takes their order and their payment, prepares the food, gives it to
the customer, and then takes the order from the next person in line. If someone arrives while he's
cooking an order, they have to wait until he's completed the current order. He has simulated 5 orders.

Time Order Customer Customer


Customer Time of
Order Prep Receives Wait
Number Arrival
Taken Time Food Time
1 2 2 4 6 0
2 14 14 7
3 19 6
4 28 8
5 33 4

83) Average customer waiting time is:


A) 1 minute
B) 2 minutes
C) 2.5 minutes
D) 3 minutes
Answer: A
Diff: 3 Page Ref: 648-652
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytic skills

84) Average utilization is:


A) 67%
B) 72.5%
C) 83.4%
D) 95%
Answer: B
Diff: 3 Page Ref: 648-652
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytic skills

85) ________ simulation is limited because of the amount of real time required to simulate even one
trial.
A) Manual
B) Monte Carlo
C) Monaco
D) Any kind of
Answer: A
Diff: 3 Page Ref: 643
Section Heading: Continuous Probability Distributions
Keywords: manual simulation

26
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
86) If the probability of an event is 0.36, what random number range specifies this properly?
A) 0.10 - 0.20
B) 0.20 - 0.30
C) 0.30 - 0.40
D) 0.40 - 0.50
Answer: C
Diff: 1 Page Ref: 648
Section Heading: Simulation of a Queuing System
Keywords: random numbers
AACSB: Analytic skills

87) Sometimes manual simulation of several trials is ________ way to validate a simulation.
A) a good
B) a bad
C) no
D) the only
Answer: A
Diff: 2 Page Ref: 666
Section Heading: Verification of the Simulation Model
Keywords: manual simulation

88) Unlike optimization models, simulation provides


A) recommendations.
B) operating characteristics.
C) suggestions.
D) solutions .
Answer: B
Diff: 2 Page Ref: 668
Section Heading: Areas of Simulation Application
Keywords: operating characteristics

89) A limitation of simulation is that


A) models are typically well-structured and must be developed for problems that are also well-
structured.
B) it is usually possible to realistically validate simulation results.
C) model building is costly and time-consuming.
D) it is more difficult to manipulate the elements of a computer simulation than the actual system.
Answer: C
Diff: 2 Page Ref: 668
Section Heading: Areas of Simulation Application
Keywords: simulation models

27
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
The U.S. Department of Agriculture estimates that the yearly yield of limes per acre is distributed as
follows:

Yield, bushels
Probability
per acre
350 .10
400 .18
450 .50
500 .22

The estimated average price per bushel is $16.80.

90) What is the expected yield of the crop?


A) 425
B) 442
C) 440
D) 475
Answer: B
Diff: 2 Page Ref: 650
Section Heading: Simulation of a Queuing System
Keywords: expected value
AACSB: Analytic skills

91) Use the following random numbers to simulation crop yield for 10 years: 37, 23, 92, 01, 69, 50, 72,
12, 46, 81. What is the estimated crop yield from the simulation?
A) 425
B) 442
C) 440
D) 475
Answer: C
Diff: 2 Page Ref: 654
Section Heading: Continuous Probability Distributions
Keywords: simulation results
AACSB: Analytic skills

28
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
A bakery is considering hiring another clerk to better serve customers. To help with this decision,
records were kept to determine how many customers arrived in 10-minute intervals. Based on 100 10-
minute intervals, the following probability distribution and random number assignments developed.

Number of Random
Probability
Arrivals numbers
6 .1 .01 - .10
7 .3 .11 - .40
8 .3 .41 - .70
9 .2 .71 - .90
10 .1 .91 - .00

92) Suppose the next three random numbers were .18, .89 and .67. How many customers would have
arrived during this 30-minute period?
A) 22
B) 23
C) 24
D) 25
Answer: C
Diff: 2 Page Ref: 648-652
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytic skills

93) Suppose the next three random numbers were .08, .50 and .69. How many customers would have
arrived during this 30-minute period?
A) 22
B) 23
C) 24
D) 25
Answer: A
Diff: 2 Page Ref: 648-652
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytic skills

94) Suppose the next three random numbers were .11, .42 and .84. Use these values to simulate arrivals
into the bakery and determine the average number of arrivals per 10-minute period based on these
occurrences. The average number of arrivals per 10-minute period is:
A) 6
B) 7
C) 8
D) 9
Answer: C
Diff: 3 Page Ref: 648-652
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytic skills

29
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
Two hundred simulation runs were completed using the probability of a machine breakdown from the
table below. The average number of breakdowns from the simulation trials was 1.93 with a standard
deviation of 0.20.

No. of
Cumulative
breakdowns Probability
probability
per week
0 .10 .10
1 .25 .35
2 .36 .71
3 .22 .93
4 .07 1.00

95) What is the probability of 2 or fewer breakdowns?


A) .25
B) .35
C) .36
D) .71
Answer: D
Diff: 1 Page Ref: 649
Section Heading: Simulation of a Queuing System
Keywords: simulation results
AACSB: Analytic skills

96) What is the probability that there are more than 3 breakdowns?
A) .07
B) .10
C) .22
D) .25
Answer: A
Diff: 1 Page Ref: 649
Section Heading: Simulation of a Queuing System
Keywords: simulation results
AACSB: Analytic skills

97) Construct a 95% confidence interval for the average number of machine breakdowns.
A) 1.896 to 1.938
B) 1.902 to 1.958
C) .1.877 to 1.943
D) 1.907 to 1.953
Answer: B
Diff: 3 Page Ref: 657
Section Heading: Statistical Analysis of Simulation Results
Keywords: simulation results
AACSB: Analytic skills

30
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall
98) A 95% confidence interval is (54.5, 57.5) based on a sample size of 25. What is the sample standard
deviation?
A) 3.826
B) 19.132
C) 8.973
D) 11.646
Answer: A
Diff: 3 Page Ref: 657
Section Heading: Statistical Analysis of Simulation Results
Keywords: confidence interval
AACSB: Analytic skills

99) What is the 95% confidence interval width for a sample with a mean of 50 and a standard deviation
of 14 based on 75 observations?
A) (44.13, 55.87)
B) (46.83, 53.17)
C) (40.67, 59.32)
D) (48.22, 51.78)
Answer: B
Diff: 3 Page Ref: 657
Section Heading: Statistical Analysis of Simulation Results
Keywords: confidence interval
AACSB: Analytic skills

100) The use of simulation to determine the impact of projects such as nuclear power plants, reservoirs
and dams is known as
A) public service operation.
B) environmental and resource analysis.
C) cost benefit analysis.
D) project management.
Answer: B
Diff: 1 Page Ref: 667
Section Heading: Areas of Simulation Application
Keywords: simulation applications

101) The use of simulation to analyze airport operations, and fire or police department operations are
known as
A) public service operation.
B) environmental and resource analysis.
C) cost benefit analysis.
D) operations management.
Answer: A
Diff: 1 Page Ref: 667
Section Heading: Areas of Simulation Application
Keywords: simulation applications

31
Copyright © 2013 Pearson Higher Education, Inc. Publishing as Prentice Hall

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