# Mat 540 Week 1 Quiz

Topics: Decision theory, Costs, Variable cost Pages: 6 (440 words) Published: April 28, 2013
Week 1 quiz
Week 1, Quiz 1Points Received 40/40 (100%)

1. Total cost equal the fixed cost plus the variable cost per unit divided by volume

• True

• False

2. Objective probabilities that can be stated prior to the occurrence of an event are

• Subjective

• A priori

• Classical or a priori

• None of the above

3. An experiment is an activity that results in one of several possible outcomes.

• True

• False

4. Variable costs are independent of volume and remain constant.

• True

• False

5. Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model?

• Decision variable

• Data

• An objective function

• A constraint

• A parameter

6. Which of the following is incorrect with respect to the use of models in decision making?

• they improve understanding of the problem

• they promote subjectivity in decision making

• they are generally easy to use

• they provide a systematic approach to problem solving

7. The steps of the scientific method are:

• Problem definition, model construction, observation, model solution implementation

• Observation, problem definition, model construction, model solution Implementation

• model construction, problem definition, observation, model solution implementation

• Observation, implementation, problem definition, model construction, model solution

8. A frequency distribution is an organization of numerical data about the events in an experiment.

• True

• False

9. The events in an experiment are mutually exclusive if only one can occur at a time

• True

• False

10. The probabilities of mutually exclusive events sum to zero.

• True

• False

11. Which of the following is not an alternative name for management science ?

• decision sciences

• quantitative methods

• quantitative analysis

• operations research

• decision support systems

12. In a given experiment the probabilities of mutually exclusive events sum to

• 0

• 0.5

• 1

• Non of the above

13.____________techniques includes uncertainty and assume that there can be more than one model solution

• Deterministic

• Probabilistic

• Distribution

• Probability

14. A set of events is collectively exhaustive when it includes_________ the events that can occur in an experiment.

• Some of

• One of

• All

• Any of

15. A__________ probability is the probability that two or more events that are not mutually exclusive can occur simultaneously.

• Joint

• Marginal

• Subjective

• Binomial

16. In a given experiment, the probabilities of all mutually exclusive events sum to one

• True

• False

17. Profit is the difference between total revenue and total cost.

• True

• False

18. Fixed costs depend on the number of items produced

• True

• False

19. A model is a functional and include

• Variable

• Parameters

• Equations

• All of the above

20. The term decision analysis refers to testing how a problem solution reacts to changes in one or more of the model parameters

• True

• False

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