3. Define a network as an abstract mathematical object. Give 3 examples of real life networks. Give a list of 7 network problems (models) that we covered in the class (you don't need to define them to answer this question). What are 4 common characteristics of network problems?

14. Define the transshipment model. Define supply, demand, and transshipment nodes. What are the decision variables, the objective function and constraints? What is the difference between the balanced and unbalanced model?

15. Define the task assignment model. How is it related to the transportation model? What are the decision variables, the objective function and constraints. Provide a business case where this model is applicable.

16. Define Maximal-flow and shortest-path models. What are the decision variables, the objective function and constraints for each of them? Provide a business case for each of the two models.

Week 7

17. Discuss advantage of using integer linear programming when compared to rounding off solutions of LP. How one can find optimum of an integer program without a solver? Define and provide business case examples of general and binary integer variables.

18. Define covering problem, its objective function, decision variables and constraints. Define Mixed integer model and provide a business case application of the model. Provide corresponding objective function, decision variables and constraints

19. What problem doesgoal programming approach solves? Explain what is a deviation from the goal. Why would one use weighted goals? Provide one example of a business case application. Discuss goals, weights, objective function, decision variables and constraints.

20. Explain difference between linear and non-linear programs (NLP)? What are the difficulties involved in a solution of a NLP? Give an economic example of NLP. What are the objective function, decisions vars and constraints in the example.

Week 8

21. Explain how to represent a project as a network. What is earliest and latest start and finish times for a task? Explain the algorithm to compute the times. What is a slack time for an activity? What is acritical pathand how is related to the total time requirement for a project?

22. What is PERT and how it is used? What is the main modeling assumption about a random variable that represents an activity time ? Which parameters one needs to provide to determine expected time and variance for an activity? Explain how to compute the expected completion time for the entire project and the variance for the total time. How to estimate probability of project completion before a certain deadline.

23. What are the main three steps in budgeting process? Explain difference between budget using earliest latest starting times. How can one compute cost overrun in any given moment of project implementation?

24. What is project crushing ? What are the 4 steps involved in the project crushing? Explain. What is the LP formulation of the project crushing problem? What are the decision variables, constraints and the objective function of the LP formulation of crushing problem?

Week 9

25. What are the five steps in decision analysis? Illustrate the steps with a business case. List the three types of decision making environments. Explain the differences between them.

26. What is the difference between decision under uncertainty and risk? Define maximax, maximin , criterion of realism, and equally likely criterion. What are the underlying assumptions about the probabilities of the outcome, that correspond to each of these criteria?

27. What is the difference between decision under uncertainty and risk? Define expected monetary value decision model. How to transform payoffs to regrets? What is the value with perfect information? Why is it different from the expected monetary value ? What is the value with survey information?

28. What is the difference between the expected utility decision model and expected monetary value decision model? What characteristic of a decision maker does the shape of the utility function capture? Define a certainty equivalent for a lottery. Define the constant absolute risk aversion utility function.