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 total profit generated from the manufacture of only plugs?
A) $ 66,666.67
B) $ 100,000.00
C) $ 183,333.33
D) $ 150,000.00
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 5?
A) 435.89
B) 1529.39
C) 589.25
D) 250.78
What is the formula used to calculate the value of bt in the linear trend equation Ft+k =
at + btk while using double exponential smoothing?
A) bt = β(bt – bt–1) + (1 –β)bt–1
B) bt = αFt–1 + (1 – α)(at +1 + bt+1)
C) bt = αFt + (1 – α)(at –1 + bt-1)
D) bt = β(at – at–1) + (1 –β)bt–1
If the actual value of a time series at time t and the forecast value for time t is denoted
by At and Ft respectively, then the formula for the mean absolute deviation over a range
of forecasted values is ________.
A) MAD =
B) MAD =
C) MAD =
D) MAD =
Which of the following is true about chi-square distribution?
A) It is a special distribution and is denoted by (C2).
B) It is characterized by degrees of freedom.
C) It is computed using the Excel function CHISQ.INV.TEST.
D) It has a left-tail area equal to the expected value of the sample.
A ________ is a range of values between which the value of the population parameter is
believed to be, along with a probability that the interval correctly estimates the true
population parameter.
A) point estimate
B) frequentist interference
C) confidence interval
D) fiducial inference
Which of the following would be considered as an example of a proportional
relationships constraint?
A) making certain that only a certain amount of units are produced
B) guaranteeing that a certain amount of workforce will be available for a certain month
C) balancing the input to the output during production
D) ensuring that the budget allocated to marketing is thrice that of research and
development
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 mean obtained from the simulation results? [Hint: Choose the
approximate value.]
A) $ 119.0
B) $ 116.1
C) $ 106.2
D) $ 94.4
The table provided below gives the sales details of the number of android smart phones
at an electronic retail store for the past 6 weeks. The time series appears to be relatively
stable, without trend, seasonal, or cyclical effects. (Hint: Optimize α value in 0.1
increments)
What is the forecasted value for the 3rd week?
A) 53 phones
B) 64 phones
C) 71 phones
D) 49 phones
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.
According to the model, which of the following is the X-coordinate for the phone
charger location?
A) 2.00
B) 3.00
C) 3.50
D) 4.00
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
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.
According to the model, which of the following is the weighted distance between the
phone charger and Measurements cell?
A) 12.00
B) 75.00
C) 7.00
D) 54.00
Which of the following is an example of a measure of dispersion?
A) median
B) mode
C) variance
D) midrange
In which of the following cases is a proportion of the observations of a sample used in
estimating the confidence interval?
A) when the degrees of freedom are too large
B) when a true sampling distribution cannot be estimated
C) when the population standard deviation is known
D) when variables have only two possible outcomes
________ provide information about the unknown values of the true regression
coefficients, accounting for sampling error.
A) Standard errors
B) Confidence intervals
C) Adjusted R Squares
D) P-values
John and Mike were offered mints. What is the probability that at least John or Mike
would respond favorably? (Hint: Use the classical definition).
A)1/8
B)1/2
C) 3/4
D) 3/8
The means of all possible samples of a fixed size n from some population will form a
distribution which is known as the ________.
A) corollary of the mean
B) sampling distribution of the mean
C) standard error of the mean
D) point estimate
Below are four options for an investment decision.
Based on the average utility, which of the following is considered the best decision?
A) Bank CD
B) Bond fund
C) Index fund
D) Growth fund
A manager at Gampco Inc. wishes to know the company’s revenue and profit in its
previous quarter. Which of the following business analytics will help the manager?
A) prescriptive analytics
B) normative analytics
C) descriptive analytics
D) predictive analytics
Which of the following is true of the value of k in the k-Nearest Neighbors algorithm?
A) The value of k is always taken as a constant and is equal to 1.
B) If the value of k is large, it drastically increases variability.
C) If the value k is very large, it introduces biases into the classification decisions.
D) If the value k is large, the classification of a record is very sensitive to the
classification of the single record to which it is closest.
To select a chart type in Excel from the Charts group, which tab has to be accessed?
A) Design tab
B) Layout tab
C) Insert tab
D) Format tab
In Excel’s Trendline tool, the value of the________ gives the measure of fit of the line
to the data.
A) linear function
B) R-squared
C) moving average
D) set intercept
Which of the following is true for a mode?
A) Modes are the mid values of data arranged from least to greatest.
B) Modes are affected by outliers.
C) Modes cannot be used in data having repetitious values.
D) The highest bar in a histogram is its mode.
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 standard deviation obtained from the simulation results? [Hint:
Choose the approximate value.]
A) $ 89,236
B) $ 180,278
C) $ 236,745
D) $ 107,892
The table below provides the sales data for JD Inc. for the year 1998. Given: α = 0.2,
β = 0.15, and γ = 0.05 (Hint: Use an additive Holt-Winters model.)
Umbrella Sales of JD Inc.
What is the value of the mean absolute deviation for the given data?
A) 8.10
B) 340.73
C) 14.82
D) 7.62