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Quiz 3 Operations Management

Posted on Posted in MSC 337 Operations Management
Course Operations Management-16SP
Test Quiz 3
Started 2/4/16 7:42 PM
Submitted 2/4/16 8:27 PM
Status Completed
   
Time Elapsed 45 minutes.
Instructions
  • Question 1

5 out of 5 points

Ethical issues that may arise in projects large and small include:

Answer
Selected Answer:  

All of these.
Correct Answer:  

All of these.
  • Question 2

5 out of 5 points

Expected monetary value (EMV) is

Answer
Selected Answer:  

the average or expected monetary outcome of a decision if it can be repeated a large number of times.
Correct Answer:  

the average or expected monetary outcome of a decision if it can be repeated a large number of times.
  • Question 3

5 out of 5 points

Which of these statements regarding time-cost tradeoffs in CPM networks is true?

Answer
Selected Answer:  

Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
Correct Answer:  

Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
  • Question 4

5 out of 5 points

Which of the following statements about Bechtel is true?

Answer
Selected Answer:  

Bechtel is the world’s premier manager of massive construction and engineering projects.
Correct Answer:  

Bechtel is the world’s premier manager of massive construction and engineering projects.
  • Question 5

5 out of 5 points

Which of the following statements regarding PERT times is true?

Answer
Selected Answer:  

The optimistic time estimate is an estimate of the minimum time an activity will require.
Correct Answer:  

The optimistic time estimate is an estimate of the minimum time an activity will require.
  • Question 6

5 out of 5 points

The beta distribution is used in project management to:

Answer
Selected Answer:  

calculate expected activity times.
Correct Answer:  

calculate expected activity times.
  • Question 7

5 out of 5 points

Which of the following statements regarding CPM is true?

Answer
Selected Answer:  

All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.
Correct Answer:  

All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.
  • Question 8

5 out of 5 points

Pessimistic decision makers tend to

Answer
Selected Answer:  

discount favorable outcomes.
Correct Answer:  

discount favorable outcomes.
  • Question 9

5 out of 5 points

A market research survey is available for $10,000. Using a decision tree analysis, it is found that the expected monetary value with no survey is $62,000. If the expected value of sample information is -$7,000, what is the expected monetary value with the survey?

Answer
Selected Answer:  

$45,000
Correct Answer:  

$45,000
  • Question 10

5 out of 5 points

An activity on a PERT network has these time estimates: optimistic = 1, most likely = 2, and pessimistic = 5. What is its expected activity time?

Answer
Selected Answer:  

2.33
Correct Answer:  

2.33
  • Question 11

5 out of 5 points

The beta distribution is used in project management to:

Answer
Selected Answer:  

None of these
Correct Answer:  

None of these
  • Question 12

5 out of 5 points

Nick has plans to open some pizza restaurants, but he is not sure how many to open. He has prepared a payoff table to help analyze the situation.

Nick believes there is a 40 percent chance that the market will be good, a 30 percent chance that it will be fair, and a 30 percent chance that it will be poor. A market research firm will analyze market conditions and will provide a perfect forecast (they provide a money back guarantee). What is the most that should be paid for this forecast?

Answer
Selected Answer:  

$123,000
Correct Answer:  

$123,000
  • Question 13

5 out of 5 points

A utility curve showing utility increasing at an increasing rate as the monetary value increases represents

Answer
Selected Answer:  

a risk seeker.
Correct Answer:  

a risk seeker.
  • Question 14

0 out of 5 points

The following is a payoff table giving profits for various situations.

The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a person selected Alternative 1, what would the expected profit be?

Answer
Selected Answer:  

180
Correct Answer:  

126
  • Question 15

5 out of 5 points

An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and pessimistic = 10. What is its expected activity time?

Answer
Selected Answer:  

5.33
Correct Answer:  

5.33
  • Question 16

0 out of 5 points

A plant manager considers the operational cost per hour of five machine alternatives. The cost per hour is sensitive to three potential weather conditions: cold, mild, and warm. The following table represents the operations cost per hour for each alternative-state of nature combination:

Assume that for a randomly selected day, there is a 30% probability of cold weather, 50% probability of mild weather, and 20% probability of warm weather. What alternative is best using EMV?

Answer
Selected Answer:  

Machine 5
Correct Answer:  

Machine 4
  • Question 17

5 out of 5 points

The following is a payoff table giving profits for various situations.

What decision would an optimist make?

Answer
Selected Answer:  

Alternative 2
Correct Answer:  

Alternative 2
  • Question 18

0 out of 5 points

A market research survey is available for $10,000. Using a decision tree analysis, it is found that the expected monetary value with the survey is $75,000. The expected monetary value with no survey is $62,000. What is the expected value of sample information?

Answer
Selected Answer:  

$3,000
Correct Answer:  

None of these
  • Question 19

5 out of 5 points

The expected activity time in PERT analysis is calculated as:

Answer
Selected Answer:  

the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b.
Correct Answer:  

the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b.
  • Question 20

0 out of 5 points

Two critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. To cut one day from the project’s duration, activity ________ should be crashed first, adding ________ to project cost.
Answer
Selected Answer:  

B; $2,000
Correct Answer:  

C; $1,000

 

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