Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following observations is closest to the third quartile?
A) 35 N102 nuts for $190.40
B) 59 S103 screws for $556.96
C) 13 N103 nuts for $22.62
D) 2 NG102 nailgun packs for $550.90
Sendstars is a package delivering company that recently made a study on its customer
retention and service renewal metrics. They found that most customers defected from
using Sendstars’ services due to customer dissatisfaction stemming from delivery
personnel being rude or ill-mannered. To curb this issue, Sendstars gave special training
to its employees in customer service. Which of the following data mining approaches
did Sendstars employ when they decided to train their employees in customer care
based on the study?
A) association
B) cause-and-effect modeling
C) classification
D) reduction
If a data set has ‘c’ number of observations, the relative frequency of category ‘l’ is
computed as ________.
A) (frequency of category ‘l’) / ‘c’
B) ‘c’ (number of observations in category ‘l’)
C) (sum of all observations in category ‘l’) / ‘c’
D) sum of (‘c’ + each observation in category ‘l’)
The spreadsheet below shows the net income model for a company that sells shoes.
Which of the following formulas would be used to calculate the net income value using
only the data value?
A) =SUM(B5:B10)-B11
B) =SUM(B5:B11)
C) =B5-SUM(B6:B11)
D) =B5-SUM(B6:B10)+B11
Which of the following is an example of a simple bounds constraint?
A) confirming that production does not go beyond a certain unit value
B) reducing production due to scarcity of resources
C) meeting targets for a specific sales job
D) equaling production in September with the resources available at the end of August
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
________ 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
An unbounded problem is one for which ________.
A) the objective is maximized or minimized by more than one combination of decision
variables
B) there is no solution that simultaneously satisfies all the constraints
C) the objective can be increased or decreased to infinity or negative infinity while the
solution remains feasible
D) there is exactly one solution that will result in the maximum or minimum objective
In the z-score formula, which of the following is true if the value in the numerator is a
negative value?
A) that the xi value lies to the left of the mean
B) that the mean is of lesser value than the xi value
C) that the mean is of negative value
D) that the numerator value cannot be divided by the standard deviation
Robin Inc. feared that the average company loss is running beyond $34,000. It initially
conducted a hypothesis test on a sample extracted from its database. The hypothesis
was formulated as H0: average company loss $34,000 vs. H1: average company loss >
$34,000. The test resulted in favor of Robin Inc.’s loss not exceeding $34,000. Detailed
study of company accounts later revealed that the average company loss had run up to
$37,896. Which of the following errors were made during the hypothesis test?
A) Type III error
B) Type II error
C) Type I error
D) Type IV error
Below is a payoff table that lists four mortgage options:
Which of the following decisions has the best average payoff?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
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.
Due to decreasing profits, if the production of Graystone surfboards is stopped,
compute the total profit the firm can earn.
A) $ 521.74
B) $ 489.13
C) $ 423.91
D) $ 500.00
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential
new drug. The total R&D costs are estimated to reach around $875,000,000 with
clinical trials mounting to $145,000,000. The current market size is estimated to be
around 3,000,000 and is expected to grow at 4 percent every year. The market share
Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25
percent each year for the next 4 years. A monthly prescription is anticipated to generate
revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is
assumed.
Calculate the market share percentage in the third year.
A) 25 percent
B) 4 percent
C) 11 percent
D) 7 percent
Which of the following is true of the value of k in the k-Nearest Neighbors algorithm?
A) The value of k is always taken as a constant and is equal to 1.
B) If the value of k is large, it drastically increases variability.
C) If the value k is very large, it introduces biases into the classification decisions.
D) If the value k is large, the classification of a record is very sensitive to the
classification of the single record to which it is closest.
While testing for equality of variances, which of the following formulae gives the F-test
statistic?
A)
B)
C)
D)
The formula for a 100(1 – α)% confidence interval for the mean μ when the
population standard deviation is unknown is __________.
A) xi – /(σ / √ )
B) tα/2n-1(s / √ )
C) zα/2 (σ/ √ )
D)
Following is the Sales database of Pointler’s Inc., a manufacturer of clothing material.
Use Excel to calculate the total $ amount earned from sales of all denim items to
Prioland
A) $4449.42
B) $22213
C) $388
D) $57.25
What is the expected value for a 90 year-old piece of furniture?
A) $1002.45
B) $997.98
C) $934.56
D) $1033.21
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
Identify the power of the test from the following probabilities.
A) P(rejecting H0 | H0 is true)
B) P(not rejecting H0 | H0 is false)
C) P(rejecting H0 | H0 is false)
D) P(not rejecting H0 | H0 is true)
What is the slope of the sales function D = a -bP?
A) 4
B) 9
C) 12
D) 17
Shirley Templeton is a real estate agent for Paralol Realty. Shirley is given the
responsibility to manage potential customers for 5 of the Realty’s bungalows. These 5
bungalows are situated in close proximity. In order to make traveling easier, Shirley
decides to move to a location closer to the 5 bungalows. The table below gives the
location (X and Y coordinates) of the 5 bungalows along with the number of trips she
would have to make to each bungalow. Create a nonlinear model based on the data
given in the table below noting that the objective is to reduce the weighted distance
between Shirley’s accommodation and the 5 bungalows.
According to the model, what is the Y-coordinate for the location of Shirley’s new
accommodation?
A) 91.16 B) 25.08 C) 98.21 D) 54.62
What is the expected value of sample information?
How is the strength of an association measured?
Explain the travelling salesperson problem with examples.
What is a value at risk constraint?
Explain how the Markowitz portfolio model is a quadratic optimization model.