Course  Operations Management16SP 
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 


 Question 2
5 out of 5 points
Expected monetary value (EMV) is
Answer 


 Question 3
5 out of 5 points
Which of these statements regarding timecost tradeoffs in CPM networks is true?
Answer 


 Question 4
5 out of 5 points
Which of the following statements about Bechtel is true?
Answer 


 Question 5
5 out of 5 points
Which of the following statements regarding PERT times is true?
Answer 


 Question 6
5 out of 5 points
The beta distribution is used in project management to:
Answer 


 Question 7
5 out of 5 points
Which of the following statements regarding CPM is true?
Answer 


 Question 8
5 out of 5 points
Pessimistic decision makers tend to
Answer 


 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 


 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 


 Question 11
5 out of 5 points
The beta distribution is used in project management to:
Answer 


 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 


 Question 13
5 out of 5 points
A utility curve showing utility increasing at an increasing rate as the monetary value increases represents
Answer 


 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 


 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 


 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 alternativestate 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 


 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 


 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 


 Question 19
5 out of 5 points
The expected activity time in PERT analysis is calculated as:
Answer 


 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 

