Introduction to Management Science, 13e (Taylor)

Chapter 14 Simulation

1) In computer mathematical simulation, a system is replicated with a mathematical model that is

analyzed with the computer.
Answer: TRUE
Diff: 1 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: computer mathematical simulation
AACSB: Application of knowledge

2) Monte Carlo is a technique for selecting numbers randomly from a probability distribution.
Answer: TRUE
Diff: 1 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

3) The Monte Carlo process is analogous to gambling devices.

Answer: TRUE
Diff: 2 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

4) In the Monte Carlo process, values for a random variable are generated by sampling from a
probability distribution.
Answer: TRUE
Diff: 2 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

5) A long period of real time can be represented by a short period of simulated time.
Answer: TRUE
Diff: 1 Page Ref: 656
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation, simulated time
AACSB: Application of knowledge

6) Random numbers are equally likely to occur.

Answer: TRUE
Diff: 1 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Application of knowledge

7) Simulation results will always equal analytical results if 30 trials of the simulation have been
conducted.
Answer: FALSE
Diff: 2 Page Ref: 659
Section Heading: The Monte Carlo Process
Keywords: steady state
AACSB: Application of knowledge

8) It's often difficult to validate that the results of a simulation truly replicate reality.
Answer: TRUE
Diff: 1 Page Ref: 659
Section Heading: The Monte Carlo Process
Keywords: simulation results
AACSB: Application of knowledge

9) Simulation applies mathematical models to determine optimal solutions to business problems.

Answer: FALSE
Diff: 2 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: simulations
AACSB: Application of knowledge

10) Validation of a simulation model occurs when the true steady state average results have been
reached.
Answer: TRUE
Diff: 1 Page Ref: 660
Section Heading: The Monte Carlo Process
Keywords: simulations, computer simulation
AACSB: Application of knowledge

11) Random numbers generated by a mathematical process instead of a physical process are
pseudorandom numbers.
Answer: TRUE
Diff: 2 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers
AACSB: Application of knowledge

12) Random numbers are typically generated on the computer using a numerical technique.
Answer: TRUE
Diff: 2 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers
AACSB: Application of knowledge
13) A table of random numbers must be normally distributed and efficiently generated.
Answer: FALSE
Diff: 2 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers
AACSB: Application of knowledge

14) When using Excel to simulate a system, it is necessary to compute only the probability
(relative frequency) distribution.
Answer: FALSE
Diff: 2 Page Ref: 661
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel
AACSB: Application of knowledge

15) Excel can only be used to simulate systems that can be represented by continuous random
variables.
Answer: FALSE
Diff: 2 Page Ref: 661
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel
AACSB: Application of knowledge

16) In Excel the VLOOKUP function is used to determine values for continuous random
variables.
Answer: FALSE
Diff: 2 Page Ref: 662
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel
AACSB: Application of knowledge

17) Developing the cumulative probability distribution helps to determine random number
ranges.
Answer: TRUE
Diff: 2 Page Ref: 666
Section Heading: Simulation of a Queuing System
Keywords: cumulative probability distribution
AACSB: Analytical thinking

18) Starting conditions have no impact on the validity of a simulation model.

Answer: FALSE
Diff: 2 Page Ref: 667
Section Heading: Simulation of a Queuing System
Keywords: simulation results, starting conditions
AACSB: Application of knowledge
19) Simulations should always be started with an empty system.
Answer: FALSE
Diff: 2 Page Ref: 683
Section Heading: Verification of the Simulation Model
Keywords: simulation results
AACSB: Application of knowledge

20) Manual simulation is limited because of the amount of real time required to simulate even
one trial.
Answer: TRUE
Diff: 3 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: manual simulation
AACSB: Application of knowledge

21) Applications of simulation models reflecting continuous distributions are more common than
those of models employing discrete distributions.
Answer: TRUE
Diff: 1 Page Ref: 669
Section Heading: Continuous Probability Distributions
Keywords: continuous random variables
AACSB: Application of knowledge

22) In a continuous probability function, the area under the curve represents the probability of
occurrence of the random variable.
Answer: TRUE
Diff: 2 Page Ref: 669
Section Heading: Continuous Probability Distributions
Keywords: continuous random variables
AACSB: Application of knowledge

23) Cumulative probabilities are analogous to the discrete ranges of random numbers used in the
Monte Carlo process.
Answer: TRUE
Diff: 2 Page Ref: 669
Section Heading: Continuous Probability Distributions
Keywords: continuous random variables
AACSB: Application of knowledge

24) Integrating a function from zero to any value of a random variable x is an important step in
determining the cumulative probability of that value of x.
Answer: TRUE
Diff: 2 Page Ref: 669
Section Heading: Continuous Probability Distributions
Keywords: continuous random variables
AACSB: Application of knowledge

25) ________ is a technique for selecting numbers randomly from a probability distribution.
Answer: The Monte Carlo process
Diff: 2 Page Ref: 655
Section Heading: Monte Carlo Simulation
Keywords: random numbers
AACSB: Application of knowledge

26) Developing the ________ probability distribution helps to determine random number ranges.
Answer: cumulative
Diff: 2 Page Ref: 666
Section Heading: Simulation of a Queuing System
Keywords: computer mathematical simulation
AACSB: Application of knowledge

27) Random numbers of a mathematical process instead of a physical process are ________
numbers.
Answer: pseudorandom
Diff: 2 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers, pseudo random numbers
AACSB: Application of knowledge

28) Simulation models must be ________ to make sure they are accurately replicating the system
being simulated.
Answer: validated or verified
Diff: 3 Page Ref: 683
Section Heading: Verification of the Simulation Model
Keywords: simulation models
AACSB: Application of knowledge

29) A table of random numbers must be ________ distributed, efficiently generated, and absent
of patterns.
Answer: uniformly
Diff: 1 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers
AACSB: Application of knowledge

30) The ________ command is used in generating the random numbers with Excel.
Answer: RAND( )
Diff: 2 Page Ref: 661
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel
AACSB: Application of knowledge
31) In order to determine the value of discrete demand in a simulation model using Excel, the
________ function is used to associate a specific value of demand with a random number.
Answer: VLOOKUP
Diff: 2 Page Ref: 662
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: simulation with Excel
AACSB: Application of knowledge

32) ________ is a risk analysis and forecasting program that uses Monte Carlo simulation.
Answer: Crystal Ball
Diff: 2 Page Ref: 676
Section Heading: Crystal Ball
Keywords: computer simulation
AACSB: Application of knowledge

33) ________, ________, and ________ are common applications of simulation.

Answer: There are many correct answers, including: queuing, inventory control,
production/manufacturing, finance, marketing, public service operations, environmental and
resource analysis.
Diff: 2 Page Ref: 684
Section Heading: Areas of Simulation Application
Keywords: simulation
AACSB: Application of knowledge

34) In the Monte Carlo process, values for a random variable are generated by sampling from
a(n) ________.
Answer: probability distribution
Diff: 2 Page Ref: 656
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

35) A long period of real time is represented by a short period of ________.

Answer: simulated time
Diff: 2 Page Ref: 656
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

36) The Monte Carlo process is analogous to and derives its name from ________.
Answer: gambling devices
Diff: 2 Page Ref: 656
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge
37) ________ are numbers equally likely to be chosen from a large population of numbers.
Answer: Random numbers
Diff: 2 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Application of knowledge

38) A random number table features numbers that are derived from a(n) ________ process.
Answer: artificial
Diff: 2 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Application of knowledge

39) Consider the following distribution and random numbers:

Demand Frequency Random Numbers: 62 13 25 40

0 0.15
1 0.30
2 0.25
3 0.15
4 0.15

If a simulation begins with the first random number, what would the first simulation value would
be ________.
Answer: 2
Diff: 2 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytical thinking

40) Analogue simulation replaces a physical system with an analogous physical system that is
________ to manipulate.
A) harder
B) easier
C) equally difficult
D) more expensive
Answer: B
Diff: 2 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: Analogue simulation, Monte Carlo simulation
AACSB: Application of knowledge
41) ________ is a technique for selecting numbers randomly from a probability distribution.
A) Marseille
B) Monaco
C) Monte Carlo
D) Analogue simulation
Answer: C
Diff: 1 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

42) In the Monte Carlo process, values for a random variable are generated by ________ a
probability distribution.
A) sampling from
B) running
C) integrating
D) implementing
Answer: A
Diff: 2 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

43) The ________ process is analogous to gambling devices.

A) Simulation
B) Monte Carlo
C) Monaco
D) none of the above
Answer: B
Diff: 2 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

44) ________ numbers are numbers derived from a mathematical process that appear to be
random.
A) Random
B) Pseudorandom
C) Randomized
D) Semi-random
Answer: B
Diff: 1 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: pseudorandom numbers
AACSB: Application of knowledge
45) Pseudorandom numbers exhibit a ________ in order to be considered truly random.
A) limited number of possible outcomes
B) uniform distribution
C) detectable pattern
D) detectable run of certain numbers
Answer: B
Diff: 3 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: pseudorandom numbers
AACSB: Application of knowledge

46) ________ is not part of a Monte Carlo simulation.

A) Analyzing results
B) Analyzing a real problem
C) Finding an optimal solution
D) Evaluating the results
Answer: C
Diff: 1 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

47) A seed value is a(n):

A) steady state solution of a simulation experiment.
B) number used to start a stream of random numbers.
C) first run of a simulation model.
D) analytic solution of a simulation experiment.
Answer: B
Diff: 2 Page Ref: 680
Section Heading: Crystal Ball
Keywords: random numbers
AACSB: Application of knowledge

48) In assigning random numbers to probabilistic events in a simulation:

A) several events are associated with the same random number.
B) every random number is associated with a particular event.
C) every event is associated with the same random number.
D) the events dictate the seed number of the random number stream.
Answer: B
Diff: 2 Page Ref: 656
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Application of knowledge
49) ________ are the values that express the state of the system being modeled at the beginning
of the Monte Carlo simulation.
A) Outputs
B) Random events
C) Initial conditions
D) Random numbers
Answer: C
Diff: 2 Page Ref: 659
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Application of knowledge

50) Simulation does not usually provide recommended decisions. Instead it provides:
A) operating characteristics.
B) optimal solutions.
C) realistic results.
D) system parameters.
Answer: A
Diff: 1 Page Ref: 655
Section Heading: The Monte Carlo Process
Keywords: simulation models, optimal solutions
AACSB: Application of knowledge

51) For the following frequency distribution of demand, the random number 0.23 would be
interpreted as a demand of:

A) 0
B) 1
C) 2
D) 3
Answer: A
Diff: 1 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytical thinking
Consider the following frequency of demand and random numbers:

Random numbers: 0.13, 0.81, 0.53.

52) If the simulation begins with the first random number, the simulated value for demand would
be:
A) 0.
B) 1.
C) 2.
D) 3.
Answer: A
Diff: 1 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytical thinking

53) If the simulation begins with the second random number, the simulated value for demand
would be:
A) 1.
B) 2.
C) 3.
D) 4.
Answer: C
Diff: 1 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytical thinking
54) If the simulation begins with the third random number, the simulated value for demand
would be:
A) 0.
B) 1.
C) 2.
D) 3.
E) 4.
Answer: C
Diff: 2 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytical thinking
Quale Senso Alla Gelateria
Vacationers enter Giovanni's Gelateria that prides itself on its bizarre variety of flavors. The
owner, Giovanni, is the only employee, so if customer #2 arrives while customer #1 is being
served, customer #2 must wait patiently until customer #1 leaves the cash register, gelato in
hand. The gelato at Giovanni's is so delightful that customers are willing to wait regardless of
how long the line is. The interarrival and service times are distributed as shown in the table.

Range Interarrival Time (minutes) Service Time (minutes)

0.000-0.200 3 6
0.201-0.400 6 7
0.401-0.600 9 8
0.601-0.800 12 9
0.801-1.000 15 10

The stream of random numbers for a Monte Carlo simulation appears in this table:

Interarrival Service
.114 .979
.899 .297
.925 .162
.085 .574
.824 .235
.151 .593
.223 .956
.477 .845

55) What is the average interarrival time for the first four customers?
A) 7 minutes
B) 8 minutes
C) 9 minutes
D) 10 minutes
Answer: C
Diff: 1 Page Ref: 658
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking

56) What is the average service time for the first four customers?
A) 6 minutes
B) 6.5 minutes
C) 7 minutes
D) 7.5 minutes
Answer: B
Diff: 1 Page Ref: 658
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking
57) What time does the fifth customer exit the gelateria if Giovanni opens his business at 8:00
am to serve the morning gelato crowd?
A) 8:58 am
B) 8:38 am
C) 8:48 am
D) 9:08 am
Answer: A
Diff: 2 Page Ref: 658
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking

58) What time does the eighth customer exit Giovanni's if he opens promptly at 8:00 am for the
breakfast gelato rush?
A) 9:06
B) 9:09
C) 9:17
D) 9:26
Answer: D
Diff: 2 Page Ref: 658
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking

59) Giovanni sells his gelato at a $5 per customer profit but refunds $1 for each minute that a
customer must wait. How much profit does he make on the third customer?
A) $2.00
B) $3.00
C) $4.00
D) $5.00
Answer: D
Diff: 2 Page Ref: 658
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking

60) Giovanni sells his gelato at a $5 per customer profit but refunds 50¢ for each minute that a
customer must wait. How much profit does he make on the sixth customer?
A) $3.00
B) $3.50
C) $4.00
D) $4.50
Answer: A
Diff: 2 Page Ref: 658
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking
61) Giovanni sells his gelato at a $5 per customer profit but refunds $1 for each minute that a
customer must wait. How much profit does he make on the first eight customers of the day?
A) $16
B) $18
C) $20
D) $22
Answer: C
Diff: 3 Page Ref: 658
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking

62) Giovanni sells each cone for a $5 profit but offers a refund for each minute that a customer
has to wait before being served. How much of a refund would cause Giovanni to make exactly
$0 profit on his first eight customers of the day?
A) $1.50/minute
B) $2.00/minute
C) $2.50/minute
D) $3.00/minute
Answer: B
Diff: 3 Page Ref: 658
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking

63) Which of the following would not be considered a limitation of simulation modeling?
A) Models are typically unstructured.
B) Validation of simulation models can be difficult.
C) The cost of building simulation can be prohibitive.
D) Simulation allows flexibility in analyzing systems.
Answer: D
Diff: 1 Page Ref: 685
Section Heading: Verification of the Simulation Model
Keywords: simulation models, limitations
AACSB: Application of knowledge

64) Simulations are normally done:

A) manually.
B) in a casino.
C) by a spreadsheet.
D) on the computer.
Answer: D
Diff: 1 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: computer simulation
AACSB: Application of knowledge

65) Random numbers generated by a ________ process instead of a ________ process are
pseudorandom numbers.
A) physical, physical
B) physical, mathematical
C) mathematical, physical
D) mathematical, mathematical
Answer: C
Diff: 2 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers
AACSB: Application of knowledge

66) A table of random numbers must be:

A) in descending order.
B) efficiently generated.
C) normally distributed.
D) in ascending order.
Answer: B
Diff: 2 Page Ref: 660
Section Heading: Computer Simulation with Excel Spreadsheets
Keywords: random numbers
AACSB: Application of knowledge

67) Developing the cumulative probability distribution helps to determine:

A) simulation numbers.
B) data sets.
C) random number ranges.
D) mean of the distribution.
Answer: C
Diff: 2 Page Ref: 666
Section Heading: Simulation of a Queuing System
Keywords: cumulative probability distribution
AACSB: Application of knowledge
A graduate research assistant "moonlights" at the short order counter in the student union snack
bar in the evenings. He is considering asking for help taking orders, but needs to convince the
management that they should hire another student. Because he is taking a simulation class, he
thinks it may be the perfect way to convince management to hire more help if he can show that
customers have to wait a long time. When a customer arrives, he takes their order and their
payment, prepares the food, gives it to the customer, and then takes the order from the next
person in line. If someone arrives while he's cooking an order, they have to wait until he's
completed the current order. He has simulated 5 orders.

Customer Time of Time Order Order Prep Customer Customer Wait

Number Arrival Taken Time Receives Food Time
1 2 2 4 6 0
2 14 14 7
3 19 6
4 28 8
5 33 4

68) Average customer waiting time is:

A) 1 minute.
B) 2 minutes.
C) 2.5 minutes.
D) 3 minutes.
Answer: A
Diff: 3 Page Ref: 665
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytical thinking

69) Average utilization is:

A) 67%.
B) 72.5%.
C) 83.4%.
D) 95%.
Answer: B
Diff: 3 Page Ref: 665
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytical thinking
70) ________ simulation is limited because of the amount of real time required to simulate even
one trial.
A) Manual
B) Monte Carlo
C) Monaco
D) Any kind of
Answer: A
Diff: 3 Page Ref: 660
Section Heading: Continuous Probability Distributions
Keywords: manual simulation
AACSB: Application of knowledge

The Autorickshaw
A business professor wishes to model the duration of his commute through the busy streets of
Bangalore. He decides to model it based on the number of auto-rickshaws that he passes during
the first ten minutes of the drive. The continuous probability distribution 2x2 - 3x + 4 serves as a
good model.

71) What is the integral from 0 to 4 for this distribution?

A) 39
B) 43
C) 35
D) 28
Answer: A
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking

72) What is the integral from 0 to 5 for this distribution?

A) 83
B) 77
C) 69
D) 71
Answer: D
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking
73) What is the integral from 5 to 7 for this distribution?
A) 123
B) 112
C) 119
D) 107
Answer: C
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking

74) What is the integral from 8 to 9 for this distribution?

A) 107
B) 124
C) 116
D) 97
Answer: D
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking

Donuts Please
The number of donuts needed for department meetings at the start of the semester can be
modeled by the continuous probability distribution , which we can integrate from 0 to some
value x, which is the number of days before the actual beginning of the semester.

75) What is the equation for generating x given the random number r?
A) -2

B) er - 2
C) ln( ) - 2
D) ln(r) - 2
Answer: A
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking
76) What is the value for x when random number r is equal to two?
A) 0.117
B) 0.718
C) 2.482
D) 5.389
Answer: B
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking

77) What is the value for x when random number r is equal to ten?
A) 18.09
B) 52.59
C) 146.41
D) 401.43
Answer: C
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking

78) What is the value for x when random number r is equal to six?
A) 2
B) 5
C) 10
D) 18
Answer: D
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking

79) If the probability of an event is 0.36, what random number range specifies this properly?
A) 0.10 - 0.20
B) 0.20 - 0.30
C) 0.30 - 0.40
D) 0.40 - 0.50
Answer: C
Diff: 1 Page Ref: 665
Section Heading: Simulation of a Queuing System
Keywords: random numbers
AACSB: Analytical thinking
80) Sometimes manual simulation of several trials is ________ way to validate a simulation.
A) a good
B) a bad
C) no
D) the only
Answer: A
Diff: 2 Page Ref: 683
Section Heading: Verification of the Simulation Model
Keywords: manual simulation
AACSB: Application of knowledge

81) Unlike optimization models, simulation provides:

A) recommendations.
B) operating characteristics.
C) suggestions.
D) solutions.
Answer: B
Diff: 2 Page Ref: 685
Section Heading: Areas of Simulation Application
Keywords: operating characteristics
AACSB: Application of knowledge

82) A limitation of simulation is that:

A) models are typically well-structured and must be developed for problems that are also well-
structured.
B) it is usually possible to realistically validate simulation results.
C) model building is costly and time-consuming.
D) it is more difficult to manipulate the elements of a computer simulation than the actual
system.
Answer: C
Diff: 2 Page Ref: 685
Section Heading: Areas of Simulation Application
Keywords: simulation models
AACSB: Application of knowledge
The U.S. Department of Agriculture estimates that the yearly yield of limes per acre is
distributed as follows:

Yield, bushels
Probability
per acre
350 .10
400 .18
450 .50
500 .22

83) What is the expected yield of the crop?

A) 425
B) 442
C) 440
D) 475
Answer: B
Diff: 2 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: expected value
AACSB: Analytical thinking

84) Use the following random numbers to simulation crop yield for 10 years: 37, 23, 92, 01, 69,
50, 72, 12, 46, 81. What is the estimated crop yield from the simulation?
A) 425
B) 442
C) 440
D) 475
Answer: C
Diff: 2 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: simulation results
AACSB: Analytical thinking
A bakery is considering hiring another clerk to better serve customers. To help with this decision,
records were kept to determine how many customers arrived in 10-minute intervals. Based on
100 10-minute intervals, the following probability distribution and random number assignments
developed.

Number of Random
Probability
Arrivals numbers
6 .2 .01 - .20
7 .3 .21 - .50
8 .3 .51 - .80
9 .1 .81 - .90
10 .1 .91 - .00

85) Suppose the next three random numbers were .18, .89 and .67. How many customers would
have arrived during this 30-minute period?
A) 22
B) 23
C) 24
D) 25
Answer: B
Diff: 2 Page Ref: 665
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytical thinking

86) Suppose the next three random numbers were .08, .50 and .69. How many customers would
have arrived during this 30-minute period?
A) 20
B) 21
C) 22
D) 23
Answer: B
Diff: 2 Page Ref: 665
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytical thinking
87) Suppose the next three random numbers were .11, .42 and .84. Use these values to simulate
arrivals into the bakery and determine the average number of arrivals per 10-minute period based
on these occurrences. The average number of arrivals per 10-minute period is:
A) 6.66
B) 7.33
C) 8.25
D) 9.50
Answer: B
Diff: 3 Page Ref: 665
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, waiting time
AACSB: Analytical thinking

Two hundred simulation runs were completed using the probability of a machine breakdown
from the table below. The average number of breakdowns from the simulation trials was 1.76
with a standard deviation of 1.11.

No. of breakdowns
Probability
per week
0 .15
1 .25
2 .36
3 .17
4 .07

88) What is the probability of 2 or fewer breakdowns?

A) .25
B) .36
C) .40
D) .76
Answer: D
Diff: 1 Page Ref: 666
Section Heading: Simulation of a Queuing System
Keywords: simulation results
AACSB: Analytical thinking

89) What is the probability that there are more than 2 breakdowns?
A) .07
B) .17
C) .24
D) .76
Answer: C
Diff: 1 Page Ref: 666
Section Heading: Simulation of a Queuing System
Keywords: simulation results
AACSB: Analytical thinking

90) Construct a 95% confidence interval for the average number of machine breakdowns.
A) 1.685 to 1.835
B) 1.702 to 1.758
C) 1.677 to 1.743
D) 1.607 to 1.753
Answer: A
Diff: 3 Page Ref: 674
Section Heading: Statistical Analysis of Simulation Results
Keywords: simulation results
AACSB: Analytical thinking

91) A 95% confidence interval is (54.82, 57.18) based on a sample size of 100. What is the
sample standard deviation?
A) 4
B) 5
C) 6
D) 7
Answer: A
Diff: 3 Page Ref: 674
Section Heading: Statistical Analysis of Simulation Results
Keywords: confidence interval
AACSB: Analytical thinking

92) What is the 95% confidence interval width for a sample with a mean of 125 and a standard
deviation of 25 based on 50 observations?
A) (131.9, 118.1)
B) (125.9, 124)
C) (129.9, 120.1)
D) (130.6, 119.3)
Answer: A
Diff: 3 Page Ref: 674
Section Heading: Statistical Analysis of Simulation Results
Keywords: confidence interval
AACSB: Analytical thinking

93) The use of simulation to determine the impact of projects such as nuclear power plants,
reservoirs and dams is known as:
A) public service operation.
B) environmental and resource analysis.
C) cost benefit analysis.
D) project management.
Answer: B
Diff: 1 Page Ref: 684
Section Heading: Areas of Simulation Application
Keywords: simulation applications
AACSB: Application of knowledge

94) The use of simulation to analyze airport operations, and fire or police department operations
are known as:
A) public service operation.
B) environmental and resource analysis.
C) cost benefit analysis.
D) operations management.
Answer: A
Diff: 1 Page Ref: 684
Section Heading: Areas of Simulation Application
Keywords: simulation applications
AACSB: Application of knowledge

The drying rate in an industrial process is dependent on many factors and varies according to the
following distribution.

95) Determine the drying time for these 5 random numbers: 0.13, 0.09, 0.19, 0.81, and 0.12.
Answer:

Diff: 2 Page Ref: 657

Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytical thinking
96) Determine the drying time for these 5 random numbers: 0.53, 0.95, 0.97, 0.96, and 0.07.
Answer:

Diff: 2 Page Ref: 657

Section Heading: The Monte Carlo Process
Keywords: simulation of a queuing system
AACSB: Analytical thinking

97) The drying rate in an industrial process is dependent on many factors and varies according to
the following distribution.

What is the average drying time if you simulate 10 trials using these random numbers:
0.13, 0.09, 0.19, 0.81, 0.12, 0.53, 0.95, 0.97, 0.96, and 0.07.
Answer: 14.3
Diff: 3 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: simulation of a queuing system
AACSB: Analytical thinking
98) Determine the random number ranges for the data set (start with 00).

Demand Frequency
5 0.15
6 0.3
7 0.25
8 0.15
9 0.15
Answer:
Random
Demand
Number Ranges
5 00-14
6 15-44
7 45-69
8 70-84
9 85-99
Diff: 3 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random number ranges
AACSB: Analytical thinking

99) Given the following random number ranges and the following random number sequence: 62,
13, 25, 40, 86, 93, determine the average demand for the following distribution of demand.

Random
Demand
Number Ranges
5 00-14
6 15-44
7 45-69
8 70-84
9 85-99

Answer: 42/6 = 7
Diff: 2 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: random numbers, random number ranges
AACSB: Analytical thinking

100) If f(x) = 2x, what is the equation for generating x, given the random number r?
Answer: x =
Diff: 2 Page Ref: 669
Section Heading: Continuous Probability Distributions
Keywords: random numbers
AACSB: Analytical thinking
101) The drying rate in an industrial process is dependent on many factors and varies according
to the following distribution.

Compute the mean drying time.

Answer: 4.38
Diff: 3 Page Ref: 659
Section Heading: The Monte Carlo Process
Keywords: mean, expected value
AACSB: Analytical thinking

102) A normal distribution has a mean of 500 and a standard deviation of 50. A manager wants to
simulate two values from this distribution and has drawn these random numbers: -0.6 and 1.4.
What are the two values, respectively?
Answer: 470 and 570
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: normal distribution
AACSB: Analytical thinking
103) The number of cars arriving at Joe Kelly's oil change and tune-up place during the last 200
hours of operation is observed to be the following:

Determine the probability distribution of car arrivals.

Answer:
Number of Probability of
Cars Arriving Occurrence
4 .05
5 .15
6 .35
7 .25
8 .20
Diff: 2 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: probability distribution
AACSB: Analytical thinking
104) The number of cars arriving at Joe Kelly's oil change and tune-up place during the last 200
hours of operation is observed to be the following:

Based on the above frequencies, use two-digit random numbers, start with random number 00,
and determine the random number ranges for the data set given above.
Answer:
Number of Random Number
Cars Arriving of Ranges
4 00-04
5 05-19
6 20-54
7 55-79
8 80-99

Diff: 2 Page Ref: 656

Section Heading: The Monte Carlo Process
Keywords: random numbers
AACSB: Analytical thinking
105) Consider the following manual simulation of machine breakdowns and repair.

Time between
breakdowns, Repair time, Cost
Breakdowns x (weeks) y (days) ($2,000 y)
1 4 1 $2000
2 5.7 2 $4000
3 5.5 2 $4000
4 2.5 1 $2000
5 5.2 2 $4000
6 5.8 2 $4000
7 1.6 1 $2000
8 2.3 2 $4000
9 1.2 2 $4000
10 3.3 2 $4000

What operating characteristics can be obtained from this simulation?

Answer: Average time between breakdowns, average repair time, average cost. Depending on
the length of the simulation run (quarterly, annual), total breakdowns and costs per time period
could also be determined.
Diff: 2 Page Ref: 667
Section Heading: Simulation of a Queuing System
Keywords: simulation of a queuing system
AACSB: Analytical thinking

106) George Pourbabaee owns a gas station. The cars arrive at the gas station according to the
following inter-arrival time distribution. The time to service a car is given by the following
service time distribution.

Interarrival time Random Service Time Random

P(X) P (X)
(in minutes) Numbers (in minutes) Numbers
4 .35 00-34 2 .30 00-29
7 .25 35-59 4 .40 30-69
10 .30 60-89 6 .20 70-89
20 .10 90-99 8 .10 90-99

Using the following random number sequence: 92, 44, 15, 97, 21, 80, 38, 64, 74, 08, estimate the
average customer waiting time, average idle time of the assistant, and the average time a car
spends in the system.
Answer: Average idle time: 23/5 = 4.6 minutes
Average waiting time = 7/5 = 1.4 minutes
Average time in the system = 6.2 minutes
Diff: 3 Page Ref: 667
Section Heading: Simulation of a Queuing System
Keywords: Monte Carlo simulation
AACSB: Analytical thinking

107) An answering service for a doctor's office wants to evaluate the service by simulation calls.
They used past data to determine the distributions for the time between calls and the time spent
on the phone with patients.

Use the table below to manually simulate 8 calls. The time of the call and the service time have
already been determined.

Customer Time of Time call Service Time call Customer Operator

Number Call answered Time ends Wait Time Wait Time
1 15 15 25 40 0 15
2 45 45 25 70 0 5
3 70 15
4 95 45
5 125 15 155
6 150 35
7 175 190 25 15 0
8 205 25 240 10 0

A) Calculate the average waiting time per customer.

B) Calculate the utilization of the operator.
Answer:
Time of Time call Service Time call Customer Operator
Arrival
Call answered Time ends Wait Time Wait Time
1 15 15 25 40 0 15
2 45 45 25 70 0 5
3 70 70 15 85 0 0
4 95 95 45 140 0 10
5 125 140 15 155 15 0
6 150 155 35 190 5 0
7 175 190 25 215 15 0
8 205 215 25 240 10 0

Average waiting time per customer = 5.625 minutes

Utilization of operator = 87.5%
Diff: 3 Page Ref: 667
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, operating characteristics
AACSB: Analytical thinking
A graduate research assistant "moonlights" at the short order counter in the student union snack
bar in the evenings. He is considering asking for help taking orders, but needs to convince the
management that they should hire another student. Because he is taking a simulation class, he
thinks it may be the perfect way to convince management to hire more help if he can show that
customers have to wait a long time. When a customer arrives, he takes their order and their
payment, prepares the food, gives it to the customer, and then takes the order from the next
person in line. If someone arrives while he's cooking an order, they have to wait until he's
completed the current order. He is working on the simulation and a portion is shown below.

108) Complete the table below and determine the average customer wait time.

Time Customer
Customer Time of Order Prep Customer
Order Receives
Number Arrival Time Wait Time
Taken Food
1 2 2 4 6 0
2 14 14 7
3 19 6
4 28 8
5 33 4

Answer:
Time Customer
Customer Time of Order Prep Customer
Order Receives
Number Arrival Time Wait Time
Taken Food
1 2 2 4 6 0
2 14 14 7 21 0
3 19 21 6 27 2
4 28 28 8 36 0
5 33 36 4 40 3

Average wait time = 1 minute

Diff: 2 Page Ref: 667
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, operating characteristics
AACSB: Analytical thinking
109) Complete the table and determine the average customer waiting time and the utilization of
the cook.
Answer:
Time Customer Cook
Customer Time of Order Prep Customer
Order Receives "Idle"
Number Arrival Time Wait Time
Taken Food Time
1 2 2 4 6 0 2
2 14 14 7 21 0 8
3 19 21 6 27 2 0
4 28 28 8 36 0 1
5 33 36 4 40 3 0

Average customer waiting time = 1 minute, utilization = 72.5%

Diff: 2 Page Ref: 667
Section Heading: Simulation of a Queuing System
Keywords: manual simulation
AACSB: Analytical thinking
110) Assume that order prep time is based on the following distribution:

Prep Time Probability

3 .10
4 .20
5 .25
6 .20
7 .15
8 .10

Complete the following table given that the random numbers for order prep time for customers 3,
4, and 5 are 62, 93, and 26, respectively.

Time Customer Cook

Arrival Time of Order Prep Customer
Order Receives "Idle"
Number Arrival Time Wait Time
Taken Food Time
1 1 1 4 5 0 1
2 5 5 7 12 0 0
3 7
4 10
5 18

What is the average customer waiting time and the graduate student's utilization?
Answer:
Time Customer Cook
Arrival Time of Order Prep Customer
Order Receives "Idle"
Number Arrival Time Wait Time
Taken Food Time
1 1 1 4 5 0 1
2 5 5 7 12 0 0
3 7 12 6 18 5 0
4 10 18 8 26 8 0
5 18 26 4 30 8 0

Average wait time = 4.2 minutes; utilization = 96.67%

Diff: 3 Page Ref: 667
Section Heading: Simulation of a Queuing System
Keywords: manual simulation, utilization
AACSB: Analytical thinking
111) A business professor wishes to model the duration of his commute through the busy streets
of Bangalore. He decides to model it based on the number of auto-rickshaws that he passes
during the first ten minutes of the drive. The continuous probability distribution 7x - 2 serves as a
good model.

What is the integral from 0 to 4 for this distribution?

Answer: The integral is 3.5x2 - 2x. When evaluated at 4 and 0, the values are 48 and 0, resulting
in
48 - 0 = 48.
Diff: 3 Page Ref: 669
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking
Quale Senso Alla Gelateria
Vacationers enter Giovanni's Gelateria that prides itself on its bizarre variety of flavors. The
owner, Giovanni, is the only employee, so if customer #2 arrives while customer #1 is being
served, customer #2 must wait patiently until customer #1 leaves the cash register, gelato in
hand. The gelato at Giovanni's is so delightful that customers are willing to wait regardless of
how long the line is. The interarrival and service times are distributed as shown in the table.

Interarrival Time Service Time

Range (minutes) (minutes)
0.000-0.200 3 6
0.201-0.400 6 7
0.401-0.600 9 8
0.601-0.800 12 9
0.801-1.000 15 10

The stream of random numbers for a Monte Carlo simulation appears in this table:

Interarrival Service
.114 .979
.899 .297
.925 .162
.085 .574
.824 .235
.151 .593
.223 .956
.477 .845

112) What are the interarrival and service times for the first four customers if Giovanni opens at
8:00 am for the breakfast rush?
Answer: The first customer arrives at 8:03 (3 minutes interarrival) and takes 10 minutes, the
second customer arrives at 8:18 (15 minute interarrival) and takes 7 minutes, the third customer
arrives at 8:33 (15 minute interarrival) and takes 6 minutes, and the fourth customer arrives at
8:36 (3 minute interarrival) and takes 8 minutes.
Diff: 1 Page Ref: 658
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking
113) What time does each of the first 8 customers exit the gelateria if the doors open promptly at
8:00 am for the breakfast gelato crowd?
Answer: Arrival times, service times, and departure times are shown in the table. The rightmost
column displays exit times for the first eight customers of the day.

Customer # Arrival Service Time Exit Time

1 8:03 10 8:13
2 8:18 7 8:25
3 8:33 6 8:39
4 8:36 8 8:47
5 8:51 7 8:58
6 8:54 8 9:06
7 9:00 10 9:16
8 9:09 10 9:26
Diff: 2 Page Ref: 658
Section Heading: Monte Carlo Simulation
Keywords: Monte Carlo simulation
AACSB: Analytical thinking

114) Giovanni sells each cone for a $5 profit but refunds 50¢ for each minute that a customer has
to wait before being served. How much profit does he make on the first 8 customers?
Answer: $20 profit

Customer # Arrival Service Time Exit Time Refund Profit

1 8:03 10 8:13 0 $5
2 8:18 7 8:25 0 $5
3 8:33 6 8:39 0 $5
4 8:36 8 8:47 $3 $2
5 8:51 7 8:58 0 $5
6 8:54 8 9:06 $4 $1
7 9:00 10 9:16 $6 -$1
8 9:09 10 9:26 $7 -$2
Net Profit $20
Diff: 2 Page Ref: 658
Section Heading: Monte Carlo Simulation
Keywords: Monte Carlo simulation
AACSB: Analytical thinking
115) Giovanni sells each cone for a $5 profit but offers a refund for each minute that a customer
has to wait before being served. How much of a refund would cause Giovanni to make exactly
$0 profit on his first eight customers of the day?
Answer: Eight customers generate $40 profit if no waiting takes place; with a total of 20
minutes of waiting, a refund of $2/minute to wait would result in $0 profit for Giovanni.

Customer # Arrival Service Time Exit Time Wait Time

1 8:03 10 8:13 0
2 8:18 7 8:25 0
3 8:33 6 8:39 0
4 8:36 8 8:47 3
5 8:51 7 8:58 0
6 8:54 8 9:06 4
7 9:00 10 9:16 6
8 9:09 10 9:26 7
Total 20
Diff: 3 Page Ref: 658
Section Heading: Monte Carlo Simulation
Keywords: Monte Carlo simulation
AACSB: Analytical thinking
A newsboy sells newspapers and his goal is to maximize profit. He kept a record of his sales for
125 days with the following result:

Newspapers demand Number

per day of days
15 10
16 20
17 42
18 31
19 12
20 10
Total 125

His ordering policy is to order an amount each day that is equal to the previous day's demand.

A newspaper costs the carrier 50 cents and he sells it for $1.00. Unsold papers are returned and
he receives 25 cents (for a loss of 25 cents).

116) Develop the cumulative distribution table and the corresponding random numbers.

Newspapers
Number of Cumulative
demanded Probability
Days Probability
per day
15 10
16 20
17 42
18 31
19 12
20 10
Total

Answer:
Newspapers
Number of Cumulative
demanded Probability
Days Probability
per day
15 10 0.08 0.08
16 20 0.16 0.24
17 42 0.336 0.58
18 31 0.248 0.82
19 12 0.096 0.92
20 10 0.08 1.00
Total 125
Diff: 2 Page Ref: 657
Section Heading: The Monte Carlo Process
Keywords: Monte Carlo simulation
AACSB: Analytical thinking
117) Use the information and random numbers given in the table below to simulate the sale of
newspapers for 10 days.

Random Quantity Unsatisfied Unsold

Day Demand Sales
Number Ordered Demand Papers
1 .78 18
2 .43
3 .93
4 .87
5 .48
6 .84
7 .87
8 .27
9 .20
10 .52

After completing the simulation, determine his total revenue for the ten days as well as monetary
losses that result from unmet demand and unsold papers.
Answer:
Random Quantity Unsatisfied Unsold
Day Demand Sales
Number Ordered Demand Papers
1 18 0.78 18 18 0 0
2 17 0.43 18 17 0 1
3 20 0.93 17 20 3 0
4 19 0.87 20 19 0 1
5 17 0.48 19 17 0 2
6 19 0.84 17 19 2 0
7 19 0.87 19 19 0 0
8 17 0.27 19 17 0 2
9 16 0.2 17 16 0 1
10 17 0.52 16 17 1 0
Total 179 6 7
Revenue $179
Cost of unsold papers $1.75
Cost of unmet demand $3.00
Diff: 3 Page Ref: 659
Section Heading: Monte Carlo Simulation
Keywords: Monte Carlo simulation
AACSB: Analytical thinking
Donuts Please
The number of donuts needed for department meetings at the start of the semester can be
modeled by the continuous probability distribution , which we can integrate from 0 to some
value x, which is the number of days before the actual beginning of the semester.

118) What is the equation for generating x given the random number r?
Answer: -2
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking

119) What is the value for x when random number r is equal to six?
Answer: 18, a dozen and a half of delicious donuts.
Diff: 3 Page Ref: 670
Section Heading: Continuous Probability Distributions
Keywords: continuous probability distributions, continuous random variables
AACSB: Analytical thinking