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 cumulative net profit at the fourth year.
A) $1,073,538,462
B) $3,189,634,800
C) $1,312,041,240
D) $1,494,838,800
Following is an extract from the Employee Payroll Database of HFR Informatics Inc.
What is the relative frequency of Female employees?
A) 0.65
B) 0.75
C) 0.25
D) 0.35
________ is based on dividing a population into subgroups, sampling a set of
subgroups, and conducting a complete census within the subgroups sampled.
A) Cluster sampling
B) Continuous process sampling
C) Judgment sampling
D) Systematic sampling
If the Euclidean distance were to be represented in a right triangle, which of the
following would be considered the distance between two objects of a cluster?
A) the hypotenuse
B) the small leg
C) the long leg
D) the average of the sum of both the legs
Following is the Sales database of Pointler’s Inc., a manufacturer of clothing material.
Use Excel to calculate the total $ amount of sales made to Quintasia. Include the sale of
fur, jute, and leather.
A) $193
B) $4185.47
C) $25250.19
D) $130.83
Below is the spreadsheet for a project selection model:
What is the amount of cash used for Project 2?
A) $ 105,000
B) $ 25,000
C) $ 115,000
D) $ 70,000
In the equation to calculate the economic value of a customer, V = R F M / D, how is
the value for F estimated?
A) It is estimated to be the total number of purchases the customer has made.
B) It is estimated to be the number of visits of the customer without actually spending
on an item.
C) It is estimated to be the purchase frequency per year.
D) It is estimated to be the number of customers defecting per year.
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
A probability density function:
A) is the probability distribution of discrete outcomes.
B) suggests that the probability that a random variable assumes a specific value must be
positive.
C) characterizes outcomes of a continuous random variable.
D) can yield negative values depending on the values of the random variable, X.
While checking for linearity by examining the residual plot, the residuals must:
A) exhibit a linear trend.
B) form a parabolic shape.
C) be randomly scattered.
D) be below the x-axis.
When using logistic regression, where p being the probability that the dependent
variable Y = 1, X1, X2 …, Xk are the independent variables, and β0, β1, β2 …, βk are
unknown regression coefficients, ________ is called the odds of belonging to category
1(Y = 1).
A) p(β0 + β1X1 + β2X2 + …+ βkXk)
B)
C)
D)
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 the finishing operation?
A) 18.7
B) 30.0
C) 35.5
D) 24.2
Consider the spreadsheet for a Newsvendor Model.
What is the purchase quantity lower cutoff if the likelihood is 75%?
A) 264
B) 255
C) 246
D) 228
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 number of 10-inch rolls produced?
A) 940
B) 946
C) 950
D) 960
Which of the following values of the coefficients of variation of stocks represents the
least risky stock?
A) 1.0
B) 0.005
C) 0.5
D) 0.045
If the payoff is $2200 and R is equal to $500, what is the utility function?
A) 0.9877
B) 0.6819
C) 0.7645
D) 0.4502
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
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.
According to the model, what is the total amount of Fabric 3 to be produced with
Northrop?
A) 0
B) 35,000
C) 2,405
D) 32,595
Identify the formula used to calculate the root mean square error over a range of
forecasted values, if the actual value of the time series at time t and the forecast value
for time t are denoted by At and Ft respectively.
A) RMSE =
B) RMSE =
C) RMSE =
D) RMSE =
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
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.
Which of the following solving methods is selected in the Solver dialog for linear and
linear integer optimization problems?
A) GRG Nonlinear
B) Simplex LP
C) SOCP Barrier Engine
D) Evolutionary
The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas
and Atlanta. They ship them to major distribution centers in Houston, San Jose,
Jacksonville, and Memphis. The accounting, production, and marketing departments
have provided the information in the table below, which shows the unit cost of shipping
between any plant and distribution center, plant capacities over the next planning
period, and distribution center demands. RTC’s supply chain manager faces the problem
of determining how much to ship between each plant and distribution center to
minimize the total transportation cost, not exceed available capacity, and meet customer
demand.
Assume Xij = amount shipped from plant i to distribution center j, where i = 1
represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on.
Which of the following is the constraint for total amount shipped from Dallas?
A) X11 + X12 + X13 + X14 ≤ 1,250
B) X21 + X22 + X23 + X24 ≤ 1,250
C) X21 + X22 + X23 + X24 ≤ 750
D) X11 + X12 + X13 + X14 – X21 + X22 + X23 + X24 ≤ 850
A graphical depiction of a frequency distribution for numerical data in the form of a
column chart is called a ________.
A) cartogram
B) correlogram
C) histogram
D) dendogram
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.
Which of the following cells is defined to be normally distributed using the function =
PsiNormal(20000,2000)?
A) B5
B) B6
C) B7
D) B12