Chapter 11 Study Guide

Introduction to Management Science, 10e (Taylor)
Chapter 11 Probability and Statistics

1) Deterministic techniques assume that no uncertainty exists in model parameters.
Answer: TRUE
Diff: 1 Page Ref: 489
Main Heading: Types of Probability
Key words: deterministic techniques

2) Probabilistic techniques assume that no uncertainty exists in model parameters.
Answer: FALSE
Diff: 1 Page Ref: 489
Main Heading: Types of Probability
Key words: probabilistic techniques

3) Objective probabilities that can be stated prior to the occurrence of an event are classical or a priori.
Answer: TRUE
Diff: 2 Page Ref: 489
Main Heading: Types of Probability
Key words: objective probabilities, classical probabilities

4) Objective probabilities that are stated after the outcomes of an event have been observed are relative frequencies.
Answer: TRUE
Diff: 2 Page Ref: 489
Main Heading: Types of Probability
Key words: relative frequencies

5) Relative frequency is the more widely used definition of objective probability.
Answer: TRUE
Diff: 1 Page Ref: 490
Main Heading: Types of Probability
Key words: relative frequencies

6) Subjective probability is an estimate based on personal belief, experience, or knowledge of a situation.
Answer: TRUE
Diff: 2 Page Ref: 490
Main Heading: Types of Probability
Key words: subjective probability

7) An experiment is an activity that results in one of several possible outcomes.
Answer: TRUE
Diff: 1 Page Ref: 491
Main Heading: Fundamentals of Probability
Key words: experiment

8) The events in an experiment are mutually exclusive if only one can occur at a time.
Answer: TRUE
Diff: 1 Page Ref: 491
Main Heading: Fundamentals of Probability
Key words: mutually exclusive events

9) In a given experiment, the probabilities of all mutually exclusive events sum to one.
Answer: TRUE
Diff: 1 Page Ref: 491
Main Heading: Fundamentals of Probability
Key words: mutually exclusive