DOWNLOAD ANSWERS 1. Regret is the difference between the payoff from the best decision and all other decision payoffs. 2. Variable costs are independent of volume and remain constant. 3. Regret is the difference between the payoff from the 4 A _________ period of real time is represented by a __________ period of simulated time. 5. A seasonal pattern is an up-and-down repetitive movement within a trend occurring periodically 6. A trend is a gradual, long-term, up or down movement of demand. 7. A model is a functional relationship and include 8. Random numbers are equally likely to occur. 9. Which of the following is not an alternative name for management science? 10. It's often ____________ to validate that the results of a simulation truly replicate reality. 11. ____________ moving averages react more slowly to recent demand changes than do ____________ moving averages. 12. The maximin criterion results in the maximum of the minimum payoffs. 13. ___________ is a technique for selecting numbers randomly from a probability distribution. 14. Which of the following is incorrect with respect to the use of models in decision making? 15. In computer mathematical simulation a system is replicated with a mathematical model that is analyzed 16. The maximin criterion results in the 17. Analogue simulation replaces a physical system with an analogous physical system that is easier to manipulate. 18. In a weighted moving average, weights are assigned to most __________ data.

19. An example of forecasting is 20. In computer mathematical simulation, a system is replicated with a mathematical model that is analyzed with the computer. 21. Monte Carlo is a technique for selecting numbers randomly from a probability distribution. 22. A long period of real time is represented by a short period of simulated time. 23. An experiment is an activity that results in one of several possible outcomes. 24. The maximax criterion results in the maximum of the minimum payoffs. 25. A state of nature is an actual event that may occur in the future. 26. Profit is the difference between total revenue and total cost. 27. ____________ is an up-and-down repetitive movement in demand. 28. ____________ techniques include uncertainty and assume that there can be more than one model solution. 29. Objective probabilities that can be stated prior to the occurrence of an event are 30. The maximax criterion results in the 31. The steps of the scientific method are: 32. A short period of real time is represented by a long period of simulated time. 33. The minimax regret criterion 34. ____________ use management judgment, expertise, and opinion to make forecasts. 35. A cycle is an up-and-down repetitive movement in demand. 36. Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model? 37. Simulation results will not equal analytical results unless ___________ trials of the simulation have been conducted to reach steady state.

38. Analogue simulation replaces a physical system with an analogous physical system that is _____________ to manipulate. 39. A payoff table is a means of organizing a decision situation, including the payoffs from different decisions given the various states of nature. 40. The ______________ minimizes the maximum regret.