Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following will give the value for the third quartile?
A) PERCENTILE.INC(array, 0.75)
B) QUARTILE.INC(array, 0.75)
C) DECILE.INC(array, 0.30)
D) QUARTILE.INC(array, 0.25)
Stone Age Surfboards is a small manufacturer of two types of popular low-tide
surfboards, the Graystone and the Lava models. The manufacturing process consists of
two departments: fabrication and finishing. The fabrication department has 8 skilled
workers, each of whom works 9.25 hours per day. The finishing department has 5
workers, each of whom works a 6 -hour shift per day. Each pair of Graystone
surfboards requires 2.5 labor hours in the fabrication department and 2 labor hours in
finishing. The Lava model requires 4.2 labor-hours in fabrication and 3.6 labor-hours in
finishing. The company operates 6 days a week. It makes a per unit profit of $40 on the
Graystone model and $60 on the Lava model. The company anticipates selling at least
twice as many Lava models as Graystone models.
What is the total number of hours used for fabrication?
A) 54.5
B) 30.0
C) 35.5
D) 43.8
Below is a spreadsheet for a hotel overbooking model.
Assume that each reservation has a constant probability p = 0.04 of being cancelled.
Answer the question(s) using the Risk Solver Platform.
With respect to B12, what is the range for values given in the Parameters section in the
Discrete dialog?
A) $E$2:$E$13
B) $D$2:$D$8
C) $D$2:$D$13
D) $E$2:$E$8
While testing for equality of variances, which of the following formulae gives the F-test
statistic?
A)
B)
C)
D)
The Risk Solver Platform ________ chart shows the minimum, first quartile, median,
third quartile, and maximum values in a data set graphically.
A) trend
B) sensitivity
C) overlay
D) box-whisker
To copy a formula from a single cell or range of cells down a column or across a row,
first________, click and hold the mouse on the small square in the lower right-hand
corner of the cell, and drag the formula to the “target” cells which you wish to copy.
A) press Ctrl-C
B) select the cell or range
C) press Ctrl-Enter
D) select the whole spreadsheet
Which of the following is a difference between the t-distribution and the standard
normal distribution?
A) The t-distribution cannot be calculated without a known standard deviation, while
the standard normal distributions can be.
B) The standard normal distribution’s confidence levels are wider than those of the
t-distribution.
C) The t-distribution has a larger variance than the standard normal distribution.
D) The standard normal distribution is dependent on parameters like degrees of
freedom, while t-distribution is not.
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $ 75,000. She
expects a salary increase of 5 percent every year. Her retirement plan requires her to
pay 9 percent of her salary, while the company matches it at 32 percent. She expects an
annual return of 7 percent on her retirement portfolio. Using a predictive model for
Sheila’s first five years, calculate the following, assuming that the salary increases at the
same rate every year, and the return of interest does not change.
Calculate the employer contribution in Sheila’s fourth year at Simsin.
A) $546.98
B) $703.26
C) $2,500.47
D) $2,160
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 is the expected variance of the resulting portfolio?
A) 0.014
B) 0.010
C) 0.009
D) 0.012
Coppell Services contracts with outsourcing partners to handle various customer service
functions. Based on a study of call volumes provided by one of the firm’s partners, the
minimum number of staff needed for each hour of the day is as follows:
Mr. Coppell hires 6 permanent employees and wants to staff the remaining
requirements using part-time employees who work 4-hour shifts (four consecutive
hours starting as early as 8 A.M. or as late as 1 P.M.).
How many excess employees are present in the 4-5 time slot?
A) 0
B) 2
C) 4
D) 6
Which of the following is true of normal distributions?
A) The mean, median, and mode are all equal.
B) Its measure of skewness is always greater than 1.
C) The range of the random variable X is bounded.
D) Mathematical formulas make it easier to compute normal distributions.
The Excel 2010 function ________ computes the kth percentile of data in the range
specified in the array field, where k is in the range 0 to 1, inclusive.
A) PERCENTILE.INC(array, k)
B) PERCENTILE(array + k)
C) PERCENTILE.IF(array, k)
D) PERCENTILE(SUM(array), k)
Below is a payoff table that lists four mortgage options:
What is the best payoff rate for the 1-year ARM?
A) $ 49,618
B) $ 43,650
C) $ 38,560
D) $ 66,645
Below is the spreadsheet for a portfolio allocation model.
Answer the following question(s) using a model with uncertainty on type of investment
return. Assume that the distributions of life insurance annual return is uniform with
minimum 4% and maximum 6%, bond mutual funds annual return is normal with mean
7% and standard deviation 1%, stock mutual funds annual return is lognormal with
mean 11% and standard deviation 4%. Use 10,000 trials and 1 for random seed for the
simulation.
What is the mean absolute deviation obtained from the simulation results for
maximizing the total expected return? [Hint: Choose the approximate value.]
A) $ 887.25
B) $ 735.86
C) $ 651.97
D) $ 967.36
In aMATCH function,ifthematch_type=0,then _____
A) the function finds the largest value that is less than or equal to lookup_value
B) the function finds the smallest value that is greater than or equal to lookup_value
C) MATCH finds the first value that is exactly equal to lookup_value
D) the values in the lookup_array must be in a particular order
Troista Mobile Accessories sells mobile apps on their Web site. If a customer spends on
average, $12 per visit and visits the Web site 20 times each year, what is the average
nondiscounted gross profit during a customer’s lifetime? Given that Troista makes a
margin of 60 percent on the average bill, with 25 percent of customers not returning
each year.
A) $30
B) $75
C) $360
D) $576
Remington Textiles has a mill that produces three types of fabrics on a make-to-order
basis. The mill operates on a 24/7 basis. The key decision facing the plant manager is
about the type of loom needed to process each fabric during the coming 12 weeks to
meet demands for the three fabrics and not exceed the capacity of the looms in the mill.
Two types of looms are used: Jaquard and Northrop. Jaquard looms can be used to
make all fabrics and are the only looms that can weave certain fabrics, such as plaids.
Demands, variable costs for each fabric, and production rates on the looms are given in
the table below. The mill has 10 Northrop looms and 2 Jaquard looms. Any fabrics that
cannot be woven in the mill because of limited capacity will be purchased from an
external supplier, finished at the mill, and sold at the selling price. In addition to
determining which looms to use to process the fabrics, the manager also needs to
determine which fabrics to buy externally.
From the Sensitivity Report, what cost reduction ($/hour) would make it feasible to
purchase some amount of Fabric 2 from the external supplier rather than just produce
it?
A) $0.6
B) $0.25
C) $0.128
D) $1.1
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.
Which of the following is the best number of reservations to accept?
A) 400
B) 410
C) 420
D) 430
Which of the following is true of the lift value in association rule?
A) Its strength is directly proportional to the strength of the association rule.
B) It cannot have a value that is more than 1 to be considered a good minimum.
C) It provides information on the increase of the antecedent given the consequent.
D) It does not require the expected confidence to be calculated.
Which of the following is true while applying the Excel ANOVA tool?
A) The specified input range of data must be separated.
B) The sample size for each factor level must be the same.
C) The input range must be a rectangular region that contains all data.
D) Level of significance need not be specified.
Consider the following spreadsheet for an outsourcing decision model.
We assume that the production (demand) volume is normally distributed with a mean of
1,000 and a standard deviation of 100. For the unit cost, select the triangular
distribution. It has a minimum value of $150, most likely value of $165, and a
maximum value of $190. The number of trials per simulation is equal to 5,000 at a Sim.
Random Seed of 1. Run the simulation and answer the following question(s) using the
Risk Solver Platform.
What is the value of mean absolute deviation obtained from the simulation results?
A) $10,893
B) $3,476
C) $7,443
D) $5,885
Below is a spreadsheet for Stone Age Surfboards.
Assume that the finishing time for a pair of Rockwell surfboards is triangular with a
minimum value of 1.4, a most likely value of 1.5, and a maximum value of 1.8 and that
finishing time for a pair of Limestone surfboards is also triangular with a minimum
value of 1.8, a most likely value of 2.0, and a maximum value of 2.4. The number of
trials per simulation is equal to 5000.
What is the coefficient of variation obtained from the simulation results?
A) 0.098
B) 0.134
C) 0.047
D) 0.020