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Pickson Luthiers Corporation makes four models of electric guitars, ScarCT, Dela Mort,
Warax, and Invazen. Each guitar must flow through five departments, assembly,
painting, sound testing, inspection, and packaging. The table below shows the relevant
data. Production rates are shown in units/hour. (ScarCT is assembled elsewhere).
Pickson wants to determine how many guitars to make to maximize monthly profit.
According to the linear optimization model, what would be the total time spent for
sound testing the Warax model?
A) 5
B) 4
C) 6
D) 10.5
In an event X, the probability of rolling a sum of 8 on two dice is 5/36 while the
probability of
rolling an 11 is 2/36. In another event Y, the probability of rolling a 2 is 1/36, the
probability of
rolling a 9 is 4/36, and the probability of rolling a 4 is 3/36.
What is probability that neither X nor Y will occur?
A) 29/26
B) 1/36
C) 28/36
D) 21/36
Which of the following is the mathematical model for deriving the break-even volume?
A) Q = (C - V
C) + F
B) Q = F / (C -V)
C) Q = (V +
C) / F
D) Q = F / (VC -
C)
Skewness describes the lack of symmetry of data.
Bolton Computer's
Laptop
Pricing Decision
Inputs
Price
Model
Sales -3.85 price + 1150.9
Outputs
Total revenue sales price
According to the nonlinear model, which of the following is the total revenue expected
from the sales?
A) 22,340.91
B) 86,011.09
C) 107,571.78
D) 74,733.77
Which of the following describes periodic sampling?
A) It is a sampling method based solely on expert opinion.
B) It is a sampling method based on selecting a time and then sampling the products
after that time.
C) It is a sampling method based on selecting every nth item from a population.
D) It is a sampling method exclusively used for population that is divided into subsets.
Following is an extract from the Employee Payroll Database of HFR Informatics Inc.
What is the cumulative relative frequency of Ranks 1 and 2?
A) 0.80
B) 0.15
C) 0.30
D) 0.25
Below is a payoff table that lists three mortgage options:
What is the maximum opportunity loss incurred for the 25-year fixed decision?
A) $ 8,626
B) $ 13,716
C) $ 14,369
D) $ 10,581
The accuracy of the model on the test data gives a realistic estimate of the performance
of the model on completely unseen data.
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails,
rivets, and clips-which are machined on two CNC machining centers. The machining
centers have a capacity of 250,000 minutes per year. The gross margin per unit and
machining requirements are shown in the spreadsheet below.
What is the gross margin per minute of plugs manufactured?
A) $ 0.60
B) $ 0.73
C) $ 0.40
D) $ 0.27
Below is a spreadsheet for Trance Electronics.
Suppose that the project manager of Trance Electronics has identified the following
uncertain variables in the model and the distributions and parameters that describe
them, as follows: Market size: normal with mean of 20,000,000 units and standard
deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and
$800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation
$30,000,000. Annual market growth factor: triangular with minimum = 2%,
maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum =
25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run
the simulation and answer the following questions using the Risk Solver Platform.
What is the correlation of the market size with the NPV with reference to the sensitivity
chart?
A) 0.043
B) 0.888
C) -0.341
D) -0.026
Consider an event X comprised of three outcomes whose probabilities are 9/18, 1/18,
and 6/18. Compute the probability of the complement of the event.
A) 2/18
B) 1/2
C) 16/3
D) 16/18
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails,
rivets, and clips-which are machined on two CNC machining centers. The machining
centers have a capacity of 250,000 minutes per year. The gross margin per unit and
machining requirements are shown in the spreadsheet below.
What is the maximum production of clips based on the machine capacity?
A) 250,000.00
B) 83,333.33
C) 166,666.67
D) 125,000.00
Which of the following is true of logistic regression as a classifying method?
A) Its dependent variable is always categorical.
B) Its independent variable is always continuous or numerical.
C) It predicts the probability of output variables based on dependent variables.
D) It cannot be used when the dependent variable is binary.
Level of significance is the probability of:
A) incorrectly rejecting an actually true null hypothesis.
B) correctly failing to reject an actually true null hypothesis.
C) incorrectly failing to reject an actually false null hypothesis.
D) correctly rejecting an actually false null hypothesis.
