IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 711:

  A company experiences both variable usage rates and variable lead times for its inventory' items. The probability distributions for both usage and lead times are known. A technique the company could use for determining the optimal safety stock levels for an inventory item is

  A. Queuing theory.

  B. Linear programming.

  C. Decision tree analysis.

  D. The Monte Carlo method.

  Correct Answer: D

  Simulation is a technique for experimenting with mathematical models using a computer. The Monte Carlo method is a technique used to generate the individual values for a random variable. This simulates the uncertainly inherent in real-world situations. The model is then run a large number of times, and the variance of the probability' distribution of the results and the average performance are determined.

• Question 712:

  Simulation, a widely used technique in decision modeling, is a

  A. Process of modeling in which real activities are represented in mathematical form.

  B. Tool used for allocating scarce resources.

  C. Technique used to add random behavior to simulate uncertain.

  D. Technique used to map out possible actions given probabilistic events.

  Correct Answer: A

  Computer simulation is used when an optimization model cannot be developed, e.g., because the variables exceed the equations describing them. Simulation involves constructing a mathematical/logical model incorporating most of the features of the problem. This model is tested in a variedly of hypothetical situations, and the modeled responses can then be measured.

• Question 713:

  Which of the following statements is/are true about choosing a course of action?

  I. Future cash flows of the potential courses of action must be compared.

  II.

  Qualitative factors must be considered.

  Ill. Nonfinancial quantitative factors do not have to be considered.

  A.

  lonly.

  B.

  l and ll.

  C.

  Ill only.

  D.

  l,ll and lll.

  Correct Answer: B

  The selection of the best available solution is the objective of the decision-making process. The choice involves not only comparing the future cash flows of the potential courses of action1 but also considering qualitative and nonfinancial quantitative factors. Qualitative factors include relationships with employees, suppliers, and customers. Nonfinancial quantitative factors include rate of defective output and manufacturing lead time.

• Question 714:

  The modeling technique to be used for situations involving a sequence of events with several possible outcomes associated with each event is

  A. Queuing theory.

  B. Simulation.

  C. Linear programming.

  D. Decision tree analysis.

  Correct Answer: D

  Decision tree analysis is useful when the most beneficial series of decisions is to be chosen. The possible decisions for each decision point, the events that might follow from each decision, the probabilities of these events, and the quantified outcomes should be known.

• Question 715:

  The use of a decision tree is appropriate for decision making under conditions of

  A. Uncertainty and risk.

  B. Uncertainly and subjective likelihoods.

  C. Certainty'.

  D. Risk.

  Correct Answer: D

  Decision tree analysis is used when various options of certainty', their consequences, and the probabilities of those consequences can be ascertained with a high degree of confidence. Under conditions of uncertainty', however, probabilities are unknown.

• Question 716:

  A decision maker is operating in an environment in which all the facts surrounding a decision are known exactly, and each alternative is associated with only one possible outcome. The environment is known as

  A. Certainly.

  B. Risk.

  C. Uncertainly.

  D. Probability.

  Correct Answer: A

  The less the variability of the future results of a decision, the smaller the risk involved. If each choice is associated with only one possible outcome, no variability exists. Such a condition is one of certainly (zero variance).

• Question 717:

  When choosing the best available solution to a problem, human aspects of the choice must be considered. Which is a true statement regarding human aspects of the choice?

  A. The opinions and attitudes of the people involved do not require consideration.

  B. The people involved do not have to be convinced of the decision's value.

  C. Decisions do not have unexpected effects.

  D. Implementing change is a critical part of the decision-making process.

  Correct Answer: D

  The selection of the best available solution is the objective of the decision-making process. Human aspects of the choice must be considered. The multistep process of decision making must be followed when making organizational changes. Implementing change is a critical part of the decision-making process because people are crucial to the effectiveness of the choice.

• Question 718:

  Epaulets perception may preclude the decision maker from seeing the correct problem. Which of the following is an example of faulty perception?

  A. A person's needs do not influence what is observed.

  B. A person does not see what (s) he is trained to see.

  C. Group pressure may influence which problems are perceived.

  D. A person does not see what (s) he expects to see.

  Correct Answer: C

  The inability to see all aspects of a situation may prevent accurate problem definition. This inability may be caused by faulty perception. Faulty perception includes group pressure influencing which problems are perceived or how the problems are defined.

• Question 719:

  Under the Monte Carlo method,

  A. The model is run once.

  B. Uncertainly is simulated.

  C. Total performance is determined.

  D. Probability distribution is not used.

  Correct Answer: B

  The Monte Carlo method is a tool used to evaluate problem solutions. Random behavior may be added to otherwise deterministic models to simulate the uncertainly inherent in real-world situations. The model is run a large number of times1 and the variance of the probability distribution of the results and the average performance are determined.

• Question 720:

  The Delphi technique is used during which step of the decision-making process?

  A. Defining the problem.

  B. Obtaining information.

  C. Identifying alternative courses of action.

  D. Evaluating the different problem solutions.

  Correct Answer: C

  The Delphi technique is used in identifying alternative courses of action. It is an approach in which the manager solicits opinions on a problem from experts in the field, summarizes the opinions, and feeds the summaries back to the experts.