Which of the following is true about the observed errors associated with estimating the
value of the dependent variable using the regression line?
A) They are the horizontal distances between slopes and y-intercepts.
B) The errors are also referred to as critical values.
C) They are always maximized by the regression lines.
D) The errors can be negative or positive.
Sujito Electronix makes headphones for $22 and sells them for $32. Sujito has sold at
least 50 headphones on average per week in the past, though the actual demand is
unknown. Sujito has also often run short of supply in the past. After three months of
release, the headphones are sold at 40 percent discount. The spreadsheet below shows
Sujito’s sales and demand for the headphones. We take demand at 51, and quantity
produced at 55.
Which of the following is the value for quantity sold?
A) 51
B) 50
C) 4
D) 55
While testing hypotheses for regression coefficients, the t-test for the slope is expressed
as:
A) t =
B) t =
C) t =
D) t =
Which of the following is a weighted average of the squared deviations from the
expected value?
A) skewness
B) mean difference
C) kurtosis
D) variance
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 is the best purchase quantity to maximize the expected profit if
demand is 42?
A) 42
B) 45
C) 48
D) 51
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 distance between Shirley’s new accommodation
and Bungalow 5?
A) 54.62
B) 25.08
C) 14.53
D) 91.16
For a two-sample hypothesis test for differences in population parameters (1) and (2),
which of the following is the correct form of an upper-tailed test?
A) H0: population parameter (1) – population parameter (2) ≥ 0 vs. H1: population
parameter (1) – population parameter (2) < 0
B) H0: population parameter (1) – population parameter (2) > 0 vs. H1: population
parameter (1) – population parameter (2) ≤ 0
C) H0: population parameter (1) – population parameter (2) < 0 vs. H1: population
parameter (1) – population parameter (2) > 0
D) H0: population parameter (1) – population parameter (2) ≤ 0 vs. H1: population
parameter (1) – population parameter (2) > 0
Letherin Hides is a company that makes boots specifically targeting college students.
Forecasts of sales for the next year are 200 in the summer, 450 in the autumn, and 500
in the winter. Accessories that are used on the boots are purchased from a supplier for
$31.66. The cost of capital is estimated to be 24% per year (or 6% per quarter); thus, the
holding cost per item is 0.06($31.66) = $1.9 per quarter (rounded figure). Letherin
Hides hires freelance art designers at part-time to craft designs during the summer, and
they earn $ 6 per hour. In the autumn, labor is more difficult to keep, and the owner
must pay $6.5 per hour to retain qualified help. Because of the high demand for
part-time help during the winter holiday season, labor rates are higher in the winter, and
workers earn $7.75 per hour. Each boot design takes 2 hours to complete. How should
production be planned over the three quarters to minimize the combined production and
inventory holding costs?
The table below provides information on Letherin Hides boot design cost and
production.
According to the linear optimization model, what is the inventory held at the end of
summer?
A) 450
B) 0
C) 200
D) 550
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 Allowable Increase for Lava surfboards produced?
A) 30
B) 24
C) 12
D) 18
Which of the following propositions describes an existing theory or belief?
A) standard deviation
B) null hypothesis
C) proportion
D) alternative hypothesis
For a one-tailed test, the critical value:
A) divides the sampling distribution into three parts.
B) is the number of standard errors away from the sample mean.
C) helps determine if the test statistic falls in the rejection region or not.
D) fails to reject the null hypothesis if the test statistic exceeds the critical value.
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
The reflects the opportunity costs of spending funds now versus achieving a return
through another investment, as well as the risks associated with not receiving returns
until a later time.
A) modified internal rate of return
B) payback period
C) accounting rate of return
D) discount rate
If cellG7 containsthefunction, itstatesthatifthevalueincellC3is9, the
number 7 will be assigned to cell G7; if the value in cell C3 is not 9, the number 4 will
be assigned to cell G7.
A) =IF(G7=9)(G7=7)=OR(G7=4)
B) =IF(G7=7)=THEN(C3=9)=OR(C3=4)
C) =IF(C3=9)(C3=7)=OR(C3=4)
D) =IF(C3=9,7,4)
Bolton Computer’s
Laptop
Pricing Decision
Inputs
Price
Model
Sales -3.85 price + 1150.9
Outputs
Total revenue sales price
According to the nonlinear model, which of the following is the total revenue expected
from the sales?
A) 22,340.91
B) 86,011.09
C) 107,571.78
D) 74,733.77
Alternate optimal solutions exist when the ________.
A) reduced cost is equal to the shadow price
B) ratio of the objective coefficient to the constraint coefficient is one
C) Allowable Increase values for changing cells are zero
D) final value of the changing cells is greater than that of the constraints
Which of the following formulas is used to calculate the total studio recording cost?
A) =SUM(B6:B12)-B10
B) (B6+B7-B16)B12
C) B6+B7*B12
D) B6+B7*B12-B16
Write a short note on indicators and indexes used in forecasting.
What are the different interpretations for correlation coefficient values?
Explain the simplex method used by Solver.
Construct a relative frequency distribution for items in the purchase order database and
show the proportions of the frequencies visually using a pie chart.
Explain the assumptions underlying ANOVA along with their violations.
How is the strength of an association measured?