THE INTERNATIONAL UNIVERSITY (IU) - VIETNAM NATIONAL UNIVERSITY HCMC

FINAL EXAMINATION
SAMPLE TEST 01
Duration:

QUANTITATIVE METHODS FOR BUSINESS

120 minutes
Date:

Student ID:

2013
Summer

Name:

PART I: MULTIPLE CHOICE QUESTIONS:

(30%)

1. Which of the following is not true about slack variables in a simplex tableau?
a. They are used to convert constraint inequalities to equations.
b. They require the addition of an artificial variable.
c. They represent unused resources.
d. They may represent machine time, labor hours, or warehouse space.
2. How should the constraint, 5X - 2Y 6, be converted into simplex tableau form?
a. 5X - 2Y - S + A = 6

c. 5X - 2Y + A = 6

b. 5X - 2Y + S = 6

d. 5X - 2Y + S - A = 6

3. Using the simplex method, we know we have an optimal solution when

a. all basic variables are negative.
b. when all the artificial variables have a positive value.
c. all slack variables have a zero value.
d. none of the above
4. If, in the optimal tableau of a linear programming problem, an artificial variable is present in the solution
mix, this implies
a. unboundedness.

c. alternate optimal solutions.

b. degeneracy.

d. infeasibility.

5. If, in the final optimal simplex tableau, the Cj - Zj value for a nonbasic variable is zero, this implies
a. alternate optimal solutions.

c. infeasibility.

b. unboundedness.

d. degeneracy.

Using the following data for next 3 questions

The following represents a project with known activity times. All times are in weeks.
Activity Immediate Processor Time
A
4
B
3

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THE INTERNATIONAL UNIVERSITY (IU) - VIETNAM NATIONAL UNIVERSITY HCMC

C
D
E
F

A
B
C,D
B

2
7
4
5

6. What is the minimum possible time required for completing the project?
a. 25

d. 8

b. 14

e. none of the above

c. 10
7. What is the critical path:
a. A-C-E

d. A-C-F

b. B-F

e. None of the above

c. B-D-E
8. Compute the slack time for activity F.
a. 5

d. 6

b. 3

e. none of the above

c. 0
9. Slack time in a network is the ________
a. shortest amount of time that could be required to complete the activity.
b. amount of time that you would expect it would take to complete the activity.
c. amount of time that an activity would take assuming very unfavorable conditions.
d. amount of time that an activity can be delayed without delaying the entire project.
10. Consider a project that has an expected completion time of 60 weeks and a standard deviation of 5 weeks.
What is the probability that the project is finished in 70 weeks or fewer? (Round to two decimals.)
a. 0.02

d. 0.98

b. 0.48

e. none of the above

c. 0.80
11. Given the following key factors and their importance weights, determine a total weighted evaluation for
A3.
Importance
Key Factor
A1 A2 A3
Weights
K1
0.2
0.2 0.9 0.7
K2
0.7
0.8 0.5 0.4
K3
0.1
0.9 0.6 0.8
a. 0.50

c. 0.69

b. 0.74

d. none of the above

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THE INTERNATIONAL UNIVERSITY (IU) - VIETNAM NATIONAL UNIVERSITY HCMC

12. In AHP method, higher values of the consistent ratio (CR) indicate
a. an indication of low consistency of the pairwise comparisons.
b. the greater the level of consistency of the pairwise comparisons.
c. a moderate consistency of the pairwise comparisons.
d. none of the above
13. Which of the following matrices is not a correct pairwise comparison matrix?

a. A

c. C

b. B

d. D

Using the following data for next 3 questions

Each table and each bookcase produced by ABC company yields a profit of $9 and $12 respectively. During
any given production period (of one week), 10 gallons of varnish and 12 length of high quality redwood are
available. Each table requires 1 gallon of varnish and 1 length of redwood. Each bookcase takes 1 gallon of
varnish and 2 lengths of wood.
T = number of tables produced each week
B = number of bookcases produced each week
14. if we were to frame this as a linear programming problem, the objective function would be
a. maximize 12T + 10B

c. maximize 9T + 12B

b. maximize 9B + 12T

d. none of the above

15. Which of the following constraints would be used?

a. 1T + 2B 12

d. a and b

b. 1T + 2B 12

e. b and c

c. 1T + 1B 10

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THE INTERNATIONAL UNIVERSITY (IU) - VIETNAM NATIONAL UNIVERSITY HCMC

PART II: WRITING: (70%)
Question 1:

(20 pts)

The following table contains the activities of a project, the predecessor activities and activity time estimate:
Time Estimate (in day)
Activity Predecessor
Optimistic Most Likely Pessimistic
6
10
17
A
A
4
6
9
B
A,B
11
14
20
C
B
7
16
22
D
B,C
5
8
10
E
C
3
12
22
F
D,E
1
4
8
G
F,G
9
15
20
H
a. (4pts) Draw the PERT diagram for this project.
b. (10pts) Determine earliest start and finish times, latest start and finish times, and slack for each
activity. Indicate the critical path.
c. (3pts) Compute the expected value and variance of project completion time.
d. (3pts) Determine the probability that the finished time will be less than or equal 50 days. Assume
that the project completion time follows normal distribution.
Question 2:

(15 pts)

A manufacturing company makes two categories of products including product X1 and product X2.
A pair of product X1 requires 2 man-hours for cutting, 1 man-hour for shaping and 3 man-hours for
finishing while a pair of product X2 requires 2 man-hours for cutting, 2 man-hours for shaping and 1
man-hour for finishing. Each day the company has available 140 man-hours for cutting, 120 manhours for shaping and 150 man-hours for finishing. How many numbers of each categories of
product should the company manufacture each day in order to maximize profit if a pair of product
X1 yields a profit of $10 and a pair of product X2 yields a profit of $8?
Question 3:

(20 pts)

A parent is finding a school for their son. They are considering and going to choose one of three schools: Hoa
Binh (HB), Dinh Tien Hoang (DTH) and Ky Dong (KD). The main factors that affect their choice are the
fame, the location and the facilities of school.
a. (5pts) Draw the Hierarchy structure of this problem.
b. (10pts) Give the pairwise comparison matrix of the factors as following:
Factors Fame Location Facilities
1
3
2
Fame
1
0.5
Location
1
Facilities
Determine the priority vector of these factors. Is the priority result consistent?
c. (5pts) Give the priority vectors of alternatives (schools) for each factor as following:
Fame Scores
Location Scores
Facilities Scores
0.347
0.234
0.429
HB
HB
HB
0.129
0.429
DTH 0.540
DTH
DTH
0.113
0.637
0.142
KD
KD
KD

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Which school is the best choice for their son?
Question 4:

(15 pts)

Solve the following LP problem by using Simplex method

Maximize Z 4 X 1 3 X 2
Subject to :
2 X 1 3 X 2 10
X1 2X 2 6
4 X 1 1X 2 14
X 1, X 2 0
a. (5pts) Transform the original LP model above to standard LP form (simplex form).
b. (7pts) Develop the initial simplex table and 2nd simplex table for this problem.
c. (3pts) Give the final simplex table as following:
4
3
0
0
-M
-M
Cj Sol. X1 X2 s1 s2 A1
A2
Qty.
4
X1
1
0
3
0
2
-3
2
3
X2
0
1
-2 0
-1
2
2
0
s2
0
0 -10 1
-7
10
4
Zj
4
3
6
0
5
-6
14
Cj-Zj 0
0
-6 0 -M-5 -M+6
Determine the ranges of coefficient of X1 and the RHS of constraint 4 X 1 1X 2 14 that the solution
is held.
GOOD LUCK!

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