The Holt-Winters additive model applies to time series whose amplitude increases or
decreases over time.
The expected value and variance of the Poisson distribution are equal to λ.
A value at risk measure considers the magnitude of the violation when the constraint is
not satisfied.
Monte Carlo simulation is an inappropriate tool to analyze cash budgets because of the
inherent uncertainty of the sales forecasts on which most cash budgets are based.
Whenever a constraint has positive slack, the shadow price is equal to one.
A global optimum solution is one for which all points close by are no better than the
solution.
Decision support systems evolved from efforts to improve military operations prior to
and during World War II.
As the sample size increases, the width of the confidence interval decreases.
A payoff table is a matrix whose rows correspond to events and whose columns
correspond to decisions.
If the alternative hypothesis includes the symbol <, the rejection region is in the upper
tail.
A good regression model has the fewest number of explanatory variables providing an
adequate interpretation of the dependent variable.
Absolute value functions, in optimization models, result in non-smooth functions.
If P(X|Y) = P(X), it implies that event Y is dependent on event X.
A binding constraint is one for which the Cell Value is greater than the right-hand side
of the value of the constraint.
A chance constraint is one that specifies the fraction of trials in a simulation that must
satisfy a constraint.
The average payoff strategy weights the likelihood that the actual outcomes can occur.
isalogicalfunctionthatreturnsonevalueiftheconditionistrueandanotherifthe condition is false
A) OR(condition 1, condition 2’¦)
B) AND(condition 1, condition 2’¦)
C) TO(value if true, value if false)
D) IF(condition, value if true, value if false)
Below is a payoff table that lists three mortgage options:
What is the maximum opportunity loss incurred for the 5-year ARM?
A) $ 8,626
B) $ 13,716
C) $ 14,369
D) $ 10,581
The worldwide sales of cars from 1981 -1990 are shown in the table below. Given: α =
0.2, γ = 0.05, and season length = 1. (Hint: Use XLMiner).
Which of the following is the value of the root mean square error for the given data?
A) 252.55
B) 367.35
C) 21.70
D) 109.76
Which of the following is true about Excel outputs Multiple R?
A) It is often referred to as the coefficient of determination.
B) A value of 0 indicates positive correlation.
C) A negative slope of the regression line denotes a positive Multiple R.
D) It is another name for the sample correlation coefficient, r.
Below is the spreadsheet for a project selection model.
Answer the following question(s) using a model with uncertainty on project selection.
Assume that the distribution on each project return is LogNormal. Use 10,000 trials and
1 for random seed for the simulation.
What is the mean absolute deviation obtained from the simulation results? [Hint:
Choose the approximate value.]
A) $ 143,767
B) $ 104,786
C) $ 188,995
D) $ 232,673
Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following is true about quartiles?
A) The 25th percentile is called the fourth quartile.
B) One-fourth of the data fall below the fourth quartile.
C) Three-fourths of the data are below the third quartile.
D) The 50th quartile is the third percentile.
Which of the following is the ideal next step if you get the message “Solver has
converged to the current solution./All constraints are satisfied,” when using Solver for
nonlinear optimization models?
A) Accept the values, but run Solver again from the current solution.
B) Do not accept the Solver values and re-run Solver with the starting values.
C) Accept the values and run simulations with different values.
D) Accept the values, and then tweak the values, and re-run Solver on tweaked values.
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.
Calculate the net profit for the headphones.
A) $586.8
B) $498.8
C) $1653.8
D) $466.8
Which of the following is implied from the standard error of the mean formula?
A) that true means of populations can be found easier than those of samples
B) that standard deviation increases with increase in sample size
C) that larger sample sizes provide greater accuracy in estimating the true population
mean
D) that the true mean of the population can only be calculated using smaller sample
sizes
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 operating income?
A) =B15-B5
B) =B15-B16
C) =SUM(B6:B10)-B11
D) =B15-B16+B6
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the inventory at the end of the first quarter?
A) 725
B) 525
C) 50
D) 75
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.
What is the number of reservations made that will generate a net revenue of $59,000?
A) 400
B) 410
C) 420
D) 430
Below is the spreadsheet for a project selection model.
Answer the following question(s) using a model with uncertainty on project selection.
Assume that the distribution on each project return is LogNormal. Use 10,000 trials and
1 for random seed for the simulation.
What is the coefficient of variation obtained from the simulation results? [Hint: Choose
the approximate value.]
A) 0.386
B) 0.589
C) 0.415
D) 0.669
Below is the spreadsheet for a project selection model.
Answer the following question(s) using a model with uncertainty on project selection.
Assume that the distribution on each project return is LogNormal. Use 10,000 trials and
1 for random seed for the simulation.
What is the value of mean obtained from the simulation results? [Hint: Choose the
approximate value.]
A) $ 405,897
B) $ 358,138
C) $ 269,406
D) $ 452,785
For an independent variable Y, the error associated with the ith observation is:
A) ei = Yi – Ŷi
B) Yi = (ei)2 – Ŷi
C) (Ŷi)2 ei = Yi
D) ei = (Yi + Ŷi)2
Belowisaspreadsheetofpurchaseordersfor acomputerhardwareretailer.
To find the largest quantity of items ordered from Rex Technologies, what Excel
formula should be used in A12?
A) =COUNTIF(D4:D10)
B) =SUM(D4:D7)
C) =MAX(D4:D7)
D) =COUNT(D4:D7)
Following is the Sales database of Pointler’s Inc., a manufacturer of clothing material.
Use Excel to identify the buyer who made the highest single purchase of cotton (in
terms of sales revenue for Pointler’s Inc.) in Quintasia.
A) Peter
B) Henry
C) Philip
D) Simson
Descriptive analytics:
A) can predict risk and find relationships in data not readily apparent with traditional
analyses.
B) helps companies classify their customers into segments to develop specific
marketing campaigns.
C) helps detect hidden patterns in large quantities of data to group data into sets to
predict behavior.
D) can use mathematical techniques with optimization to make decisions that take into
account the uncertainty in the data.
Stone Age Surfboards is a small manufacturer of two types of popular high-tide
surfboards, the Rockwell and the Limestone models. The manufacturing process
consists of two departments: fabrication and finishing. The fabrication department has
15 skilled workers, each of whom works 5 hours per day. The finishing department has
5 workers, who also work a 5-hour shift. Each pair of Rockwell surfboards requires 3
labor hours in the fabrication department and 1.5 labor hours in finishing. The
Limestone model requires 4.5 labor- hours in fabrication and 2 labor-hours in finishing.
The company operates 6 days a week. It makes a per-unit profit of $60 on the Rockwell
model and $75 on the Limestone model. Approximately 4.1 Rockwell models and 8.4
Limestone models are produced per day.
What is the total profit generated?
A) $ 876.00
B) $ 675.50
C) $ 480.50
D) $ 965.00
15 students were asked to choose between the broad categories of Arts, Science, and
Math as their preferred area of study.
Use the multiplication law of probability to compute the probability that the respondent
is male and prefers Math.
A) 8/75
B) 3/8
C) 3/225
D) 3/15
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 net production for winter?
A) 0
B) 950
C) 200
D) 500
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 weighted distance between Shirley’s new
accommodation and Bungalow 2?
A) 435.89
B) 250.78
C) 1529.39
D) 589.25
What are the different interpretations for correlation coefficient values?
The table below is the data set of the Shiller Real Home Price Index for the years
1946-1956.
Setting k = 3, determine the value of root mean square of errors.
P(Q|P) = P(P or Q) – P(Q)
Explain selecting a sample using the continuous process sampling methods.
The table below is the data set of the Shiller Real Home Price Index for the years
1946-1956.
Setting k = 5, calculate the simple moving average forecast for the year 1951.
The table below is the data set of the Shiller Real Home Price Index for the years
1946-1956.
Setting k = 3, determine the value of mean absolute deviation.
Blue Sunset Band is planning to record a new album. A major decision to be made is if
the band can record the album on their own, or if they should hire a studio to record it
with. The fixed cost for recording at the studio is $ 100,000, plus the manufacturing
cost per CD, which is at $5. If they record the album in- house, the cost per CD is $10.
They plan to produce 3000 copies of the album regardless of the place of recording. If
the band wished to break even with the cost, how can they achieve this by using the
Goal Seek feature in Excel?
The Blue Sunset Band is planning to record a new album. A major decision to be made
is if the band can record the album on their own, or if they should hire a studio to record
it with. The
fixed cost for recording at the studio is $100,000 plus the manufacturing cost per CD,
which is at
$250. If they record the album in-house, the cost per CD is $350. They plan to produce
3000 copies of the album regardless of the place of recording. The band plans to record
with the cheaper option. Below is the spreadsheet of the Recording Decision.
Using the spreadsheet below, provide the steps in using Excel formulas in finding the
cost of the first order for Item number 1345, and the total cost of all Item numbers
1345, using the
MatchandIndexfunctionsinExcel.ColumnBissortedby itemnumberinascendingorder.
A goal of Korel & Marke, a dot-com company, is to gain strategic advantage over its
rival firms. How can Korel & Marke use analytics and exploit social media to
accomplish this goal?