What is a stream of historical data known as?
A) a time series
B) an index
C) a complex number
D) an orthopole
In an event X, the probability of rolling a sum of 8 on two dice is 5/36 while the
probability of
rolling an 11 is 2/36. In another event Y, the probability of rolling a 2 is 1/36, the
probability of
rolling a 9 is 4/36, and the probability of rolling a 4 is 3/36.
What is probability that neither X nor Y will occur?
A) 29/26
B) 1/36
C) 28/36
D) 21/36
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 Sensitivity Report, by how much should the unit profit on ScarCT be
increased in order for its production to be feasible?
A) $30
B) $90
C) $60
D) $120
Robin Inc. feared that the average company loss is running beyond $34,000. It initially
conducted a hypothesis test on a sample extracted from its database. The hypothesis
was formulated as H0: average company loss $34,000 vs. H1: average company loss >
$34,000. The test resulted in favor of Robin Inc.’s loss not exceeding $34,000. Detailed
study of company accounts later revealed that the average company loss had run up to
$37,896. Which of the following errors were made during the hypothesis test?
A) Type III error
B) Type II error
C) Type I error
D) Type IV error
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 would be the total time spent on
inspecting the Dela Mort models?
A) 158.33
B) 12.5
C) 85
D) 48
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 = β(bt – bt–1) + (1 –β)bt–1
B) at = αFt-1 + (1 – α)(at +1 + bt+1)
C) at = αFt + (1 – α)(at –1 + bt-1)
D) at = β(bt + bt–1) + (1 + γ)bt–1
Below is a payoff table that lists four mortgage options:
What is the average payoff for the 5-year ARM?
A) $ 49,514
B) $ 52,015
C) $ 53,395
D) $ 51,641
In finance, the ________ is the ratio of a fund’s excess returns (annualized total returns
minus Treasury bill returns) to its standard deviation.
A) field ratio
B) Sortino ratio
C) Calmar ratio
D) Sharpe ratio
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
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
The measure of location that specifies the middle value when the data are arranged
from least to greatest is the ________.
A) outlier
B) mean
C) median
D) mode
In a curvilinear regression model, the ________ represents the curvilinear effect.
A) intercept
B) error term
C) slope
D) R Square
Middle managers in operations:
A) develop staffing plans.
B) determine product mix.
C) develop advertising plans.
D) make pricing decisions.
Which of the following is true about probability density functions?
A) A graph of the density function must lie at or below the x-axis.
B) The total area under the density function below the x-axis is 2.0.
C) It calculates the probability of a random variable lying within a certain interval.
D) P (a) x P (b) is the area under the density function between two numbers a and b.
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 profit generated?
A) $ 748.28
B) $ 687.46
C) $ 385.65
D) $ 500.00