The maximin decision rule chooses the option with the best what?
A Average regret
B Highest probability
C Worst-case payoff
D Lowest cost always
Answer: C. Worst-case payoff. Maximin selects the alternative with the highest minimum payoff.
Minimax regret minimizes what maximum quantity?
A Expected value
B Service rate
C Inventory level
D Regret
Answer: D. Regret. Minimax regret chooses the option whose largest opportunity loss is smallest.
Expected monetary value uses payoffs weighted by what?
A Machine capacities
B Inventory levels
C Constraint counts
D State probabilities
Answer: D. State probabilities. EMV sums outcomes weighted by their probabilities.
EVPI measures the value of what information?
A Perfect future information
B No information
C Historical inventory
D Machine condition only
Answer: A. Perfect future information. EVPI is the expected value gained by knowing the future state before deciding.
A zero-sum game has total payoff across players equal to what?
A Zero
B One
C Infinity
D The larger payoff
Answer: A. Zero. In a zero-sum game, one player’s gain equals another’s loss.
A saddle point exists when maximin equals what?
A Minimax
B Expected value
C Dominant strategy
D Mixed strategy
Answer: A. Minimax. A pure-strategy saddle point occurs when maximin and minimax values agree.
Dominance in a payoff matrix can eliminate what?
A Feasible strategies
B All constraints
C Inferior strategies
D Chance events
Answer: C. Inferior strategies. A dominated strategy is never better than another strategy and can be removed.
A mixed strategy assigns probabilities to what?
A Decision variables
B Project tasks
C Inventory items
D Pure strategies
Answer: D. Pure strategies. Players randomize among pure strategies according to a probability distribution.
A Markov process has future state depending on what?
A Entire past history
B Only initial state
C Current state
D Random objective
Answer: C. Current state. The Markov property makes the next state conditionally independent of earlier history given the current state.
A transition matrix contains probabilities of what?
A Project durations
B State changes
C Shipping costs
D Demand quantities
Answer: B. State changes. Transition probabilities describe movement from each current state to each next state.
A steady-state distribution is unchanged after what transition?
A A decision change
B An inventory order
C One more step
D A project crash
Answer: C. One more step. A stationary distribution remains the same after multiplication by the transition matrix.
Dynamic programming divides a problem into what?
A Stages or subproblems
B Single constraint
C Random samples
D Queue disciplines
Answer: A. Stages or subproblems. Dynamic programming solves a multistage problem using linked subproblems.
Bellman’s principle states an optimal policy has what property?
A Only one decision
B No state transitions
C Constant rewards
D Optimal subpolicies
Answer: D. Optimal subpolicies. An optimal policy remains optimal from any reached state for the remaining stages.
Replacement analysis compares keeping equipment with what?
A Increasing inventory
B Replacing it
C Hiring workers
D Changing layout only
Answer: B. Replacing it. Replacement models compare operating an asset with acquiring a substitute.
Economic life is the service duration that minimizes what?
A Equivalent annual cost
B Initial purchase price
C Downtime only
D Maximum salvage value
Answer: A. Equivalent annual cost. Economic life minimizes average or equivalent annual ownership and operating cost.
Group replacement is used when many items have what failure pattern?
A No failures
B Similar age-related failures
C Independent demand
D No replacement cost
Answer: B. Similar age-related failures. Group replacement can be economical when many similar items deteriorate with age.
A reliability model estimates probability of what?
A Successful operation
B Maximum throughput
C Minimum cost only
D Inventory balance
Answer: A. Successful operation. Reliability is the probability a system performs its required function for a stated time.
A series system functions only if what?
A Any component works
B Every component works
C Half components work
D No component works
Answer: B. Every component works. A series system fails if any required component fails.
A parallel redundant system can function if what?
A All paths fail
B Only one component exists
C No component is active
D At least one path works
Answer: D. At least one path works. Parallel redundancy allows operation while at least one required path remains functional.
Integer branch-and-bound solves discrete models by what?
A Random sampling only
B Graphical method only
C Partitioning and bounding
D Removing all constraints
Answer: C. Partitioning and bounding. Branch-and-bound creates subproblems and uses bounds to prune search.
A cutting-plane method adds what to an LP relaxation?
A Valid inequalities
B New objective variables only
C Random constraints
D Queue states
Answer: A. Valid inequalities. Cutting planes exclude fractional solutions while preserving all integer-feasible solutions.
Goal programming minimizes deviations from what?
A Only one shipping cost
B Multiple target levels
C Maximum flow
D Queue length only
Answer: B. Multiple target levels. Goal programming handles multiple goals by penalizing deviations from targets.
A shadow price is the marginal value of relaxing what?
A Decision variable name
B Objective label
C Solution method
D Constraint resource
Answer: D. Constraint resource. The shadow price measures objective improvement per unit change in a constraint right-hand side.
A dominance relation in game theory removes what strategy?
A Equilibrium strategy
B Never-best alternative
C Mixed strategy only
D Random outcome
Answer: B. Never-best alternative. Dominated strategies are inferior for every opponent action and can be eliminated.
A sensitivity range shows where a model change preserves what?
A All feasible solutions
B Every objective value
C Current optimal basis
D The constraint count
Answer: C. Current optimal basis. Allowable ranges indicate coefficient or RHS changes for which the current basis remains optimal.