The following extract from a manufacturer’s database shows a sample of 10 suppliers,
their transportation charges, and the estimated and actual total costs of supplying
materials. (Note: Assume a significance level of 0.05 wherever necessary.)
Conduct the appropriate type of one-sample test-statistic to determine whether the
average transportation charge is less than $430. Apply a decision rule using the
observed level of significance and draw a conclusion.
Two different sets of data can never have the same z-scores.
Degeneracy does not impact the interpretation of sensitivity analysis information.
All quadratic optimization models have nonlinear constraints.
The expected value and variance of the Poisson distribution are equal to λ.
Nonnegativity of the decision variables is an example of an explicit constraint.
Absolute value functions, in optimization models, result in non-smooth functions.
The Holt-Winters additive model applies to time series whose amplitude increases or
decreases over time.
A sample is a subset of a population.
For an odd number of observations, the median is the mean of the two middle numbers.
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.The increase in total cost is calculated by adding the holding cost
and the ordering cost.
A value at risk measure is more conservative in nature than a conditional value at risk
measure.
The simple random sampling method is the only statistical sampling method that does
not include sampling errors.
The following extract from a manufacturer’s database shows a sample of 10 suppliers,
their transportation charges, and the estimated and actual total costs of supplying
materials. (Note: Assume a significance level of 0.05 wherever necessary.)
Conduct the appropriate type of one-sample test-statistic to determine whether the
average transportation charge is less than $430. Apply a decision rule using the
observed level of significance and draw a conclusion.
In Excel’s Analytic Solver Platform, a parameter is a set of outputs in a model.
The process of developing good, useful, and correct spreadsheet models is known as
spreadsheet engineering.
The larger the variance, the more the data are spread out from the mean.
In predictive analysis models, a second-order polynomial has only one hill or valley.
Pickson Luthiers Corporation makes four models of electric guitars, ScarCT, Dela Mort,
Warax, and Invazen. Each guitar must flow through five departments, assembly,
painting, sound testing, inspection, and packaging. The table below shows the relevant
data. Production rates are shown in units/hour. (ScarCT is assembled elsewhere).
Pickson wants to determine how many guitars to make to maximize monthly profit.
According to the linear optimization model, what is the total number of ScarCTs
produced?
A) 2500
B) 750
C) 0
D) 100
Consider the spreadsheet for a Newsvendor Model.
What is the value of mean absolute deviation?
A) $8.91
B) $5.45
C) $12.35
D) $15.64
The Risk Solver Platform ________ feature allows you to superimpose the frequency
distributions from selected forecasts on one chart in order to compare differences and
similarities that might not be apparent.
A) trend chart
B) sensitivity chart
C) overlay chart
D) box-whisker chart
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.
From the Sensitivity Report on the model, to which of the following cities can Atlanta
not ship to without reducing unit cost of production?
A) Houston
B) San Jose
C) Jacksonville
D) Memphis
Problem statements such as production must be sufficient to meet promised customer
orders would be categorized as a ________ constraint.
A) limitations
B) requirements
C) proportional relationships
D) balance
The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues.
They have three classes of tickets: Classic, Silver, and Gold. The table below provides
information on the average ticket sales, revenue and price elasticity on demand. They
have a total seating capacity of 300. The table also provides the price range within
which they plan to reduce their ticket rates.
According to the nonlinear model, which of the following is the projected sales figure
for Silver tickets at the new price?
A) 93
B) 178
C) 202
D) 101
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
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.
Use the spreadsheet below for Stone Age Surfboards to answer the following
question(s) using integer constraints on variables in the optimization models using the
standard Solver.
What is the total number of hours used for fabrication?
A) 39.6
B) 34.4
C) 29.2
D) 24.8
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 possible production of rails based on the machine capacity?
A) 250,000.00
B) 83,333.33
C) 166,666.67
D) 125,000.00
Nominal data:
A) are ranked according to some relationship to one another.
B) have constant differences between observations.
C) are continuous and have a natural zero.
D) are sorted into categories according to specified characteristics.
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
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.
If the unit profit on both Graystone and Lava surfboards is increased by $10, what is the
total profit generated?
A) $ 521.74
B) $ 505.43
C) $ 423.91
D) $ 619.57
Which of the following probabilities gives the confidence coefficient?
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)
In order to reject the null hypothesis, the F-test statistic must be greater than the_____.
A) p-value
B) variance
C) df
D) F crit
Which of the following is true of calculating confidence intervals for larger samples?
A) For larger samples, the t-distribution is indistinguishable from the standard normal
distribution.
B) For larger samples, both the t-distribution and the standard normal distribution
require standard deviation values to be calculated.
C) For larger samples, the degrees of freedom cannot be calculated accurately.
D) For larger samples, only z-values provide a true sampling distribution of the mean.
In a lower one -tailed hypothesis test, chosen level of significance = 0.10, sample size =
55, and t-test statistic = -1.76.
Which of the following is the conclusion?
A) This is a high probability and the conclusion is difficult.
B) The null hypothesis is rejected.
C) There are many sampling errors.
D) The null hypothesis cannot be rejected.
________ are statistical errors that are due to the sample not representing the target
population adequately.
A) Parallax errors
B) Sampling errors
C) Nonsampling errors
D) Quantization errors
If a simulation has multiple output variables that are related to one another, the
distributions of all output variables can be viewed on a single Risk Solver Platform
chart called a(n)
________.
A) trend chart
B) sensitivity chart
C) overlay chart
D) box-whisker chart
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
Below is the spreadsheet for a project selection model:
What is the total amount of cash used for all five projects?
A) $ 175,000
B) $ 163,000
C) $ 215,000
D) $ 260,000
Below is a decision tree illustrating the R&D process for a new drug.
Let us assume that if market is large, payoff is lognormally distributed with a mean of
$4,900 million and a standard deviation of $1,000 million; if market is medium, payoff
is lognormally distributed with a mean of $2,500 million and a standard deviation of
$500 million; and if market is small, payoff is normally distributed with a mean of
$1,800 million and standard deviation of $200 million. Let us also assume that the cost
of clinical trials is uncertain and estimates are modeled with a triangular distribution
with a minimum of -$ 700 million, a most likely value of – $550 million, and a
maximum of -$500 million. Use 10,000 trials and a random seed of 1.
What is the value of mode obtained from the simulation results? [Hint: Choose the
approximate value.]
A) $ 119.0
B) $ 116.1
C) $ 105.7
D) $ 94.1
In the spreadsheet below, there is data on the price, cost, demand, and quantity
produced for an item. There are also different “what if” values that can help a manager
to calculate costs and revenue with variability in demand.
Which of the following is the Excel formula to determine the number of units sold?
A) =B8
B) =MIN(0,B8,B9)
C) =MIN(B8,B9)
D) =MAX(0,B8,B9)
Describe and construct a cross-tabulation showing the region-wise percentage
breakdown of purchase of glass bottles and silver spoons and visually represent the data
in a 3-D column chart.
During a study, individuals were asked to rate a product on a scale of 1-5. From the
following data, help the researcher determine whether any significant differences exist
in opinions among individuals from different regions. (Note: Assume a significance
level of 0.05 wherever necessary.)
Exemplify the k-Nearest Neighbor algorithm of classification.
Compare between a prediction interval and a confidence interval.
What is statistical thinking? How is it important to making business decisions?
Explain the method of solving models with general integer variables.
Compare between the t-distribution and the standard normal distribution.
For a two-sample test, explain the procedure used when it is difficult to justify the
assumption that the variances of each population are equal.
List the systematic approach to build good multiple regression models.
How can outliers be identified in a data set?