The mathematical form Y ≤ 450 would be considered as representing a simple
bounds constraint.
When constructing frequency distributions for numerical data, SUMIF is used to count
the frequencies of each discrete value.
In a database file, which is organized in a two-dimensional table, the rows represent
records of related data elements.
The process of developing good, useful, and correct spreadsheet models is known as
spreadsheet engineering.
Decision variables that are forced to be integers are called general integer variables.
In predictive modeling, validity refers to how well a model represents reality.
For a two-sample test for means with the population variance being known, the Excel
procedure used is the Excel z-test.
For a two-sample test for means with the population variance being known, the Excel
procedure used is the Excel z-test.
For an odd number of observations, the median is the mean of the two middle numbers.
Indicators are measures that are believed to influence the behavior of a variable an
individual wishes to forecast.
Decision support systems evolved from efforts to improve military operations prior to
and during World War II.
If the distribution of observations are such that mode < median < mean, the histogram
would be said to be negatively skewed.
A deterministic model is one in which all model input information is either known or
assumed to be known with certainty.
Which of the following is a definition of distance between two clusters in a complete
linkage clustering?
A) the average of distances between all pairs of objects, where each pair is made up of
one object from each group
B) the distance between the most distant pair of objects, one from each group
C) the sum of squares of the distance between clusters
D) the distance between the value of the shortest link between the clusters
Jonathan Reese is considering three stocks in which to invest with a fixed budget. The
table below provides information on Jonathan’s expected returns for each stock. The
table also provides information, collected from market researchers, on the
variance-covariance matrix of the individual stocks. He expects a total return of at least
10%.
Develop a quadratic optimization model to find the optimal allocation of the budget to
each stock, and variance calculations for squared terms and cross-products based on the
variance-covariance matrix.
According to the model, what is the expected variance of the resulting portfolio?
A) 0.014
B) 0.010
C) 0.009
D) 0.012
Below is the spreadsheet for a newsvendor model.
Answer the following question(s) using multiple parameterized simulations. The range
for the historical demand is 40-51. Assume a uniform integer distribution for demand,
and run 12 simulations for different purchase quantities. Use 5,000 trials and 1 for
random seed.
Which of the following values of purchase quantity shows the least mean profit?
A) 42
B) 45
C) 48
D) 51
When data are classified by the type of measurement scale, which is the strongest form
of measurement?
A) nominal
B) interval
C) ordinal
D) ratio
Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters
as part of the winter collection for $65 with an inventory of 1500. The main selling
season is 60 days between November and December. The store then sells the remaining
units in a clearance sale at 65 percent discount. Out of the 60 main retail days, Fiberia
sells the sweaters at full retail price for only 45 days, while giving a discount of 25
percent for the remaining 15 days. The demand functions a, and b are given as 79.5 and
1.1 respectively.
Calculate the daily sales during the discount sales period.
A) 39.28
B) 133.3
C) 388.13
D) 25.88
The Kolmogorov-Smirnov procedure:
A) compares the cumulative distribution of the data with the theoretical distribution to
base its conclusion.
B) puts more weight on the differences between the tails of the distributions.
C) breaks down the theoretical distribution into areas of equal probability and compares
the data points within each area to the number that would be expected for that
distribution.
D) is useful when a better fit is needed at the extreme tails of the distribution.
Which of the following is true while applying the Excel ANOVA tool?
A) The specified input range of data must be separated.
B) The sample size for each factor level must be the same.
C) The input range must be a rectangular region that contains all data.
D) Level of significance need not be specified.
Below is a spreadsheet for Stone Age Surfboards.
Assume that the finishing time for a pair of Rockwell surfboards is triangular with a
minimum value of 1.4, a most likely value of 1.5, and a maximum value of 1.8 and that
finishing time for a pair of Limestone surfboards is also triangular with a minimum
value of 1.8, a most likely value of 2.0, and a maximum value of 2.4. The number of
trials per simulation is equal to 5000.
What is the value of mean obtained from the simulation results?
A) 15.65
B) 25.91
C) 20.78
D) 30.42
Divisive clustering method is different from agglomerative clustering methods in that
divisive clustering methods ________.
A) can only have a pair of subjects in each cluster
B) separate objects into a particular cluster in one step
C) separate n objects successively into finer groupings
D) can only have a single subject in each cluster
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
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential
new drug. The total R&D costs are estimated to reach around $875,000,000 with
clinical trials mounting to $145,000,000. The current market size is estimated to be
around 3,000,000 and is expected to grow at 4 percent every year. The market share
Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25
percent each year for the next 4 years. A monthly prescription is anticipated to generate
revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is
assumed.
Calculate the projected sales for the first year.
A) 273,000
B) 210,000
C) 378,000,000
D) 268,230
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 income value using
only the data value?
A) =SUM(B5:B10)-B11
B) =SUM(B5:B11)
C) =B5-SUM(B6:B11)
D) =B5-SUM(B6:B10)+B11
______are mathematical functions used in predictive analytical models which define
phenomena that increase at a specific rate, and is represented by the formula y = axb
A) Exponential functions
B) Power functions
C) Polynomial functions
D) Logarithmic functions
Which of the following best defines Monte Carlo simulation?
A) It is a tool for building statistical models that characterize relationships among a
dependent variable and one or more independent variables.
B) It is a collection of techniques that seeks to group or segment a collection of objects
into subsets.
C) It is the process of selecting values of decision variables that minimizes or
maximizes some quantity of interest.
D) It is the process of generating random values for uncertain inputs in a model and
computing the output variables of interest.
A ________ is a description of the approach that is used to obtain samples from a
population prior to any data collection activity.
A) population frame
B) sampling weight
C) sampling plan
D) probability interval
Below is the spreadsheet for a project selection model:
What is the amount of cash used for Project 2?
A) $ 105,000
B) $ 25,000
C) $ 115,000
D) $ 70,000
A company makes standard 130- inch-wide rolls of thin sheet metal and slits them into
smaller rolls to meet customer orders for widths of 10, 14, and 25 inches. Suppose that
the company has proposed the following cutting patterns:
Demands for the coming week are 950 10-inch rolls, 725 14-inch roles, and 640
25-inch rolls. Develop a model using the Analytic Solver Platform that will determine
how many 130-inch rolls to cut into each of the six patterns in order to meet demand
and minimize scrap.
What is the total number of 25-inch rolls produced?
A) 630
B) 635
C) 640
D) 645
Calculate the economic value of a loyal customer for a company given that the
customer purchases, on an average, worth $43worth per visit and comes three times a
year. The company’s gross profit margin is 35 per cent with a customer defection rate of
0.4.
List the four major categories of inventory costs and explain how they are influenced by
the timing of the ordering decision and amount ordered.
Use the data given below to answer the following question(s).
At a casino, a combination of two spinners is used to decide the winner based on the
sum of scores from spinning. The spinners each have four colored spaces – red, yellow,
blue, and green. Red = 1, Yellow = 2, Blue = 3, and Green = 4
Compute the expected value of the random variable that denotes the possible summed
scores from the
two spinners.
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.
Explain how data-mining using lagging and leading measures of the cause-and-effect
model can help managers make business decisions.