The worldwide sales of cars from 1981-1990 are shown in the table below. Given: α =
0.2 and β = 0.15 (Hint: Use XLMiner)
Using the double exponential smoothing, find the value of the root mean square error
for the given data.
A) 8.10
B) 91.27
C) 11976.17
D) 109.44
Which of the following is true of variance?
A) The formula to calculate variance of a population is not the same as the formula to
calculate variance of a sample.
B) Its value is inversely proportional to the degree to which the data is spread from the
mean.
C) It only requires the middle 50% of data to be calculated.
D) It is the square root of standard deviation.
Stone Age Surfboards is a small manufacturer of two types of popular high-tide
surfboards, the Rockwell and the Limestone models. The manufacturing process
consists of two departments: fabrication and finishing. The fabrication department has
15 skilled workers, each of whom works 5 hours per day. The finishing department has
5 workers, who also work a 5-hour shift. Each pair of Rockwell surfboards requires 3
labor hours in the fabrication department and 1.5 labor hours in finishing. The
Limestone model requires 4.5 labor- hours in fabrication and 2 labor-hours in finishing.
The company operates 6 days a week. It makes a per-unit profit of $60 on the Rockwell
model and $75 on the Limestone model. Approximately 4.1 Rockwell models and 8.4
Limestone models are produced per day.
What is the total number of hours used for fabrication?
A) 42.58
B) 50.10
C) 35.64
D) 22.95
Consider the spreadsheet for a Newsvendor Model.
What is the value of mean profit?
A) $255.90
B) $251.45
C) $245.98
D) $264.00
________ is a measure of the linear relationship between two variables, X and Y, which
does not depend on the units of measurement.
A) Kurtosis
B) Proportion
C) Skewness
D) Correlation
Which of the following is necessary to calculate the variable cost of production for the
company to develop a profit model?
A) unit sale price
B) quantity of item produced
C) quantity of item sold
D) fixed cost of production
How does the Risk Solver Platform define an uncertain function cell?
A) It is a cell that contains a triangular distribution function.
B) It is a cell in which a distribution of output values is created from the model.
C) It is a cell in which an uncertain variable is used to define a distribution.
D) It is a cell that can only be defined by discrete distributions.
Consider the spreadsheet for a Newsvendor Model.
What is the value of mode?
A) $228
B) $245
C) $255
D) $264
________ is the parameter that specifies when the Solver algorithm will terminate an
optimization process with integer constraints.
A) Mutation Rate
B) Population Size
C) Integer Tolerance
D) Convergence
Which of the following is a difference between relative addressing and absolute
addressing when using cell formulas in Excel?
A) A relative address uses a dollar sign before either the row or column label; an
absolute address uses the ampersand symbol before either the row or column label.
B) A relative address uses a dollar sign before either the row or column label; an
absolute address uses just the row and column label in the cell reference.
C) A relative address uses just the row and column label in the cell reference; an
absolute address uses a dollar sign before either the row or column label.
D) A relative address uses only the column label in the cell reference; an absolute
address uses the row.
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 daily sales during the discount sales period.
A) 39.28
B) 133.3
C) 388.13
D) 25.88
Descriptive decision models:
A) aim to predict what will happen in the future.
B) describe relationships but do not tell a manager what to do.
C) help analyze the risks associated with various decisions.
D) do not facilitate evaluation of different decisions.
For which of the following is the value of the estimator said to be biased?
A) if the expected value of the estimator does not equal the population parameter
B) if the expected value of the estimator equals the population parameter
C) only if the expected value of the estimator is zero
D) only if the expected value of the estimator goes below zero
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.According to the model, which of the following production cells
covers the most distance according to its demand when using the phone charger?
A) Measurements
B) Paint
C) Electricals
D) Testing
Categorical variables that have been coded are called _______.
A) limited dependent variables
B) dummy variables
C) instrumental variables
D) observable variables
Below is the spreadsheet for a project selection model:
What is the amount of personnel used for Project 2?
A) 3
B) 4
C) 6
D) 11
Prescriptive decision models help:
A) make predictions of how demand is influenced by price.
B) make trade-offs between greater rewards and risks of potential losses.
C) decision makers identify the best solution to decision problems.
D) describe relationships and influence of various elements in the model.
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
________ states that if the sample size is large enough, the sampling distribution of the
mean is approximately normally distributed, regardless of the distribution of the
population and that the mean of the sampling distribution will be the same as that of the
population.
A) Chebyshev’s theorem
B) Central limit theorem
C) Prime number theorem
D) Oppermann’s conjecture
In the linear trend equation, Ft+k = at + btk, at is known as the ________.
A) level
B) trend
C) slope
D) forecast
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.
What is the number of reservations made that will generate a net revenue of $59,000?
A) 400
B) 410
C) 420
D) 430
In a lower one -tailed hypothesis test, chosen level of significance = 0.10, sample size =
55, and t-test statistic = -1.76.
What is the observed level of significance?
A) 0.4605
B) 0.4191
C) 0.0379
D) 0.0420
The details of the clock sales at a supermarket for the past 6 weeks are shown in the
table below. The time series appears to be relatively stable, without trend, seasonal, or
cyclical effects. The simple moving average value of k is set at 2.
For the given data, what is the value of the simple moving average mean square error?
A) 0.21
B) 20.12
C) 14.25
D) 207.13
The table below provides the sales data for JD Inc. for the year 1998. Given: α = 0.2,
β = 0.15, and γ = 0.05 (Hint: Use an additive Holt-Winters model.)
Umbrella Sales of JD Inc.
Calculate the value of the mean square error using an appropriate Holt-Winters trend
model for the given data.
A) 8.10
B) 346.26
C) 140942.78
D) 7.62
In a linear relationship, which of the following accounts for the many possible values of
the dependent variable that vary around the mean?
A) the coefficient of the dependent variable X
B) the value of the intercept 0
C) the random error term ε
D) the standard error SYX