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**MAT 540 Midterm Exam**

1. ___________ is a technique for selecting numbers randomly from a probability distribution.

2. Monte Carlo is a technique for selecting numbers randomly from a probability distribution.

3. Analogue simulation replaces a physical system with an analogous physical system that is _____________ to manipulate.

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

5. Regret is the difference between the payoff from the best decision and all other decision payoffs.

6. The maximin criterion results in the

7. A payoff table is a means of organizing a decision situation, including the payoffs from different decisions given the various states of nature.

8. In a weighted moving average, weights are assigned to most __________ data.

9. The maximin criterion results in the maximum of the minimum payoffs.

10. A state of nature is an actual event that may occur in the future.

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

12. A _________ period of real time is represented by a __________ period of simulated time.

13. Simulation results will not equal analytical results unless ___________ trials of the simulation have been conducted to reach steady state.

14. The minimax regret criterion

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

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

17. The steps of the scientific method are:

18. A seasonal pattern is an up-and-down repetitive movement within a trend occurring periodically.

19. The maximax criterion results in the

20. ____________ techniques include uncertainty and assume that there can be more than one model solution.

21. The maximax criterion results in the maximum of the minimum payoffs.

22. Regret is the difference between the payoff from the

23. A long period of real time is represented by a short period of simulated time.

24. A trend is a gradual, long-term, up or down movement of demand.

25. ____________ use management judgment, expertise, and opinion to make forecasts.

26. ____________ moving averages react more slowly to recent demand changes than do ____________ moving averages.

27. In computer mathematical simulation a system is replicated with a mathematical model that is analyzed.

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

29. Analogue simulation replaces a physical system with an analogous physical system that is easier to manipulate.

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

31. Random numbers are equally likely to occur.

32. An example of forecasting is

33. The ______________ minimizes the maximum regret.

34. ____________ is an up-and-down repetitive movement in demand.

35. It’s often ____________ to validate that the results of a simulation truly replicate reality.

36. A short period of real time is represented by a long period of simulated time.

37. In computer mathematical simulation, a system is replicated with a mathematical model that is analyzed with the computer.

38. A cycle is an up-and-down repetitive movement in demand.

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

40. A model is a functional relationship and include: