BUS 593 According to the empirical

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According to the empirical rules of standard deviation in statistics, approximately 68%

of the observations will fall within three standard deviations of the mean.

AutoFilter creates filtering criteria based on the type of data being filtered.

A cyclical effect is one that repeats at fixed intervals of time, typically a year, month,

week, or day.

If the distribution of observations are such that mode < median < mean, the histogram

would be said to be negatively skewed.

If the Integer Tolerance is set to 0.01, the Solver will stop if it finds an integer solution

that is within 10% of the optimal solution.

Fewer groups provide a “coarser” histogram.

Rectilinear distance is the measure of distance as a straight line between two points.

The larger the variance, the more the data are spread out from the mean.

Linear optimization cannot be used on problems having multiple time periods.

Not specifying a Bin Range will not allow Excel to automatically determine bin values

for the frequency distribution and histogram.

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 Decrease in the fabrication hours used?

A) 26.84

B) 16.67

C) 8.33

D) 38.46

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.

According to the transportation model, what is the total cost incurred by Riviera

Transport Company?

A) $29,016.95

B) $26,698.95

C) $20,331.35

D) $41,978.75

Below is a spreadsheet for Trance Electronics.

Suppose that the project manager of Trance Electronics has identified the following

uncertain variables in the model and the distributions and parameters that describe

them, as follows: Market size: normal with mean of 20,000,000 units and standard

deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and

$800,000,000.

Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation

$30,000,000. Annual market growth factor: triangular with minimum = 2%,

maximum = 6%, and most likely = 3%.

Annual market share growth rate: triangular with minimum = 15%, maximum =

25%, and most likely = 20%.

The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run

the simulation and answer the following questions using the Risk Solver Platform.

What are the chances that the product will show a cumulative net profit in the fourth

year?

A) approximately 25%

B) approximately 18%

C) approximately 11%

D) approximately 32%

Which of the following data sets provides the most realistic estimate of the performance

of a model on completely unseen data?

A) validation data set

B) test data set

C) training data set

D) linear regression data set

Which of the following accurately describes a sampling distribution of the mean?

A) It is the mean of any one sample from a group of related populations of different

sizes.

B) It is the mean distribution of any one sample from a group of samples of varying

sizes from a population.

C) It is the mean of half the samples from a related group of populations.

D) It is the distribution of the means of all possible samples of fixed size n from a

population.

Which of the following characterizes a random variable having two possible outcomes,

each with a constant probability of occurrence?

A) Beta distribution

B) Bernoulli distribution

C) Poisson distribution

D) Binominal distribution

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

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 4?

A) 14.53

B) 250.78

C) 54.62

D) 98.21

What is the formula used to calculate the value of at in the linear trend equation Ft+k =

at + btk while using double exponential smoothing?

A) at = Î²(bt – bt–1) + (1 –Î²)bt–1

B) at = Î±Ft-1 + (1 – Î±)(at +1 + bt+1)

C) at = Î±Ft + (1 – Î±)(at –1 + bt-1)

D) at = Î²(bt + bt–1) + (1 + Î³)bt–1

A positiveNPVmeansthattheinvestmentwillprovideaddedvaluebecausetheprojected

returnexceedsthe .

A) modified internal rate of return

B) discount rate

C) accounting rate of return

D) adjusted present value