The VLOOKUP function in Excel can be used to generate outcomes from any discrete
distribution.
In a minimin strategy, the decision which minimizes the minimum payoff is chosen.
Convenience sampling is an example of a probabilistic sampling method.
A confidence interval is a range of values between which the value of the population
parameter is believed to be.
Measure is the act of obtaining data associated with a metric. Measurements are the
numerical values associated with a metric.
According to the interquartile range, extreme outliers are more than 3*IQR away from
the left of Q1 or to the right of Q3.
Rectilinear distance is the measure of distance as a straight line between two points.
The Holt-Winters additive model applies to time series whose amplitude increases or
decreases over time.
Degeneracy does not impact the interpretation of sensitivity analysis information.
A confidence interval is a range of values between which the value of the population
parameter is believed to be.
To use the VLOOKUP(lookup_value, table_array, col_index_num), the table must be
sorted in descending order.
Convenience sampling is an example of a probabilistic sampling method.
In a database file, which is organized in a two-dimensional table, the rows represent
records of related data elements.
The beta distribution is a function of three parameters, the minimum, a; maximum, b;
and most likely, c.
The Holt-Winters additive model applies to time series whose amplitude increases or
decreases over time.
In the average linkage clustering, the distance between two clusters is defined as the
average of distances between all pairs of objects, where each pair is made up of one
object from each group.
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
What is the total amount shipped by the Detroit plant to the distribution centers?
A) 750
B) 1,000
C) 1,400
D) 1,300
Below is the spreadsheet for a newsvendor model.
Answer the following question(s) using multiple parameterized simulations. The range
for the historical demand is 40-51. Assume a uniform integer distribution for demand,
and run 12 simulations for different purchase quantities. Use 5,000 trials and 1 for
random seed.
Which of the following values of purchase quantity shows the least mean profit?
A) 42
B) 45
C) 48
D) 51
Below is the spreadsheet for an economic order quantity model.
Assume that the distribution of demand is normal with a mean of 20,000 and standard
deviation of 2,000.
What is the value of safety stock at a 95% service level?
A) 45
B) 71
C) 120
D) 95
Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters
as part of the winter collection for $65 with an inventory of 1500. The main selling
season is 60 days between November and December. The store then sells the remaining
units in a clearance sale at 65 percent discount. Out of the 60 main retail days, Fiberia
sells the sweaters at full retail price for only 45 days, while giving a discount of 25
percent for the remaining 15 days. The demand functions a, and b are given as 79.5 and
1.1 respectively.
Calculate the total units sold during the discount sales period.
A) 388.13
B) 25.88
C) 133.3
D) 39.28
Which of the following equations correctly expresses the relationship between the two
variables?
A) Value = (-181.16) + 13.493 Number of years
B) Number of years = Value / 12.537
C) Value = (459.34 / Number of years) 4.536
D) Number of years = (17.538 Value) / (-157.49)
Validation data sets differ from training data sets in that validation data sets ________.
A) have known outcomes
B) test a model with unseen data
C) are used to teach data-mining algorithms
D) provide the most realistic test for models with known data
Which of the following distributions is appropriate when the probability of zero is very
low, but the most likely value is just greater than zero?
A) triangular distribution
B) exponential distribution
C) lognormal distribution
D) beta distribution
Which of the following is true about cross-tabulation?
A) All subcategories together must constitute the complete data set.
B) A cross-tabulation table is often called a latent class model.
C) Each observation can be classified into many subcategories.
D) The table displays the number of categorical variables between two observations.
The payoff table given below lists four mortgage options:
The probability of rates rising is 0.6, rates stable is 0.3, and rates falling is 0.1.
What is the expected payoff of the 5-year ARM?
A) $ 17,872.90
B) $ 53,618.60
C) $ 48,805.20
D) $ 20,081.80
Jonathan Reese is considering three stocks in which to invest with a fixed budget. The
table below provides information on Jonathan’s expected returns for each stock. The
table also provides information, collected from market researchers, on the
variance-covariance matrix of the individual stocks. He expects a total return of at least
10%.
Develop a quadratic optimization model to find the optimal allocation of the budget to
each stock, and variance calculations for squared terms and cross-products based on the
variance-covariance matrix.
According to the model, what percentage of the budget should be allocated to Stock 3?
A) 40%
B) 20%
C) 25%
D) 75%
In the spreadsheet below, there is data on the price, cost, demand, and quantity
produced for an item. There are also different “what if” values that can help a manager
to calculate costs and revenue with variability in demand.
From the “what if” values, calculate the revenue if the demand is 60,000 units.
A) $2,750,000
B) $825,000
C) $75,000
D) $1,375,000
Below is the spreadsheet for an economic order quantity model.
Assume that the distribution of demand is normal with a mean of 20,000 and standard
deviation of 2,000.
What is the value of standard deviation obtained from the simulation results?
A) 35.0
B) 49.0
C) 56.0
D) 41.0
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the binary constraint at the end of the third quarter?
A) 75
B) 200
C) 450
D) 0
Which of the following is true of cluster analysis?
A) It is a cause-and-modeling type of analytic model.
B) It does not provide a definitive answer from analyzing the data.
C) It is primarily a prescriptive analytical method.
D) It uses clustered data that are not affected by the specific method used.
________ is a collection of techniques that seek to group or segment a collection of
objects or observations into subsets, such that those within each subset are more closely
related to one another than objects assigned to different subsets.
A) Association rule mining
B) Discriminant analysis
C) Cluster analysis
D) Logistic regression
Below is the table showing rate of shoes sold per day and the highest-priced shoe sold
that day for a one-week period. The rate of shoes sold per day (X) and the price of the
shoes (Y).
Use Excel to calculate the coefficient of variation of X.
A) 0.42
B) 0.31
C) 7.04
D) 16.47
When a scatter chart of data shows a nonlinear relationship, the nonlinear model can be
expressed as:
A) Y = β0 + β1X + β2X2 + ε
B) Y = β0 + β1X + (β2X)2 + ε
C) Y = β0 + β1X + β2X
D) Y = β0 + β1X2 + β2X2 + ε
Below is a payoff table that lists four mortgage options:
The probability of rates rising is 0.6, rates stable is 0.3, and rates falling is 0.1. Answer
the following questions by creating a decision tree.
Which of the following is considered the best expected value decision?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
If the actual value of a time series at time t and the forecast value for time t is denoted
by At and Ft respectively, then the formula for the mean absolute deviation over a range
of forecasted values is ________.
A) MAD =
B) MAD =
C) MAD =
D) MAD =
Below is a spreadsheet for a hotel overbooking model.
Answer the following question(s) using multiple parameterized simulations. The range
of historical customer demand is 400-430. Assume a uniform integer distribution for
customer demand, and run parameterized simulations for different reservation limits.
Use 5,000 trials and 1 for random seed.
If 425 reservations are made, and there are 20 cancellations, what is the mean net
revenue generated by the simulation?
A) $ 58,000
B) $ 58,500
C) $ 59,000
D) $58,995
The payoff table given below lists four mortgage options:
The probability of rates rising is 0.6, rates stable is 0.3, and rates falling is 0.1.
What is the expected payoff of the 5-year ARM?
A) $ 17,872.90
B) $ 53,618.60
C) $ 48,805.20
D) $ 20,081.80
A company makes standard 130- inch-wide rolls of thin sheet metal and slits them into
smaller rolls to meet customer orders for widths of 10, 14, and 25 inches. Suppose that
the company has proposed the following cutting patterns:
Demands for the coming week are 950 10-inch rolls, 725 14-inch roles, and 640
25-inch rolls. Develop a model using the Analytic Solver Platform that will determine
how many 130-inch rolls to cut into each of the six patterns in order to meet demand
and minimize scrap.
What is the total scrap produced?
A) 1,389
B) 1,390
C) 1,427
D) 1,445
Below are four options for an investment decision.
Based on the average utility, which of the following is considered the worst decision?
A) Bank CD
B) Bond fund
C) Index fund
D) Growth fund
A(n) ________ is an extreme value that is different from the rest of the data.
A) critical value
B) standard error
C) expected value
D) outlier
What is a random number? How is it generated in Excel?
The table below is the data set of the Shiller Real Home Price Index for the years
1946-1956.
Setting k = 3, determine the value of mean absolute percentage of error.
Discuss how overbooking decisions are made by service businesses.
Following is an extract from a firm’s database detailing the number of hours spent on
the job by employees and their corresponding pay. (Note: Assume a level of
significance of 0.05 wherever necessary.)
Construct a scatter diagram and use the Excel Trendline tool to find the best-fitting
simple linear regression model.
What is a random number? How is it generated in Excel?
What are the assumptions made when developing an economic order quantity (EOQ)
model?
The table below shows the number of goals scored by the Huntington Soccer Club in
their league for the past 12 years. Calculate the standard error of the mean of the data
given that the variance of the data is 50.45
The Blue Sunset Band is planning to record a new album. A major decision to be made
is if the band can record the album on their own, or if they should hire a studio to record
it with. The
fixed cost for recording at the studio is $100,000 plus the manufacturing cost per CD,
which is at
$250. If they record the album in-house, the cost per CD is $350. They plan to produce
3000 copies of the album regardless of the place of recording. The band plans to record
with the cheaper option. Below is the spreadsheet of the Recording Decision.
Using the spreadsheet below, provide the steps in using Excel formulas in finding the
cost of the first order for Item number 1345, and the total cost of all Item numbers
1345, using the
MatchandIndexfunctionsinExcel.ColumnBissortedby itemnumberinascendingorder.
