The standard error may be assumed to be large if the data are clustered close to the
regression line.
The standard error may be assumed to be large if the data are clustered close to the
regression line.
The simple random sampling method is the only statistical sampling method that does
not include sampling errors.
The best-fitting line maximizes the residuals.
Not specifying a Bin Range will not allow Excel to automatically determine bin values
for the frequency distribution and histogram.
In the average linkage clustering, the distance between two clusters is defined as the
average of distances between all pairs of objects, where each pair is made up of one
object from each group.
In a minimin strategy, the decision which minimizes the minimum payoff is chosen.
The VLOOKUP function in Excel can be used to generate outcomes from any discrete
distribution.
According to the interquartile range, extreme outliers are more than 3*IQR away from
the left of Q1 or to the right of Q3.
An increase in adjusted R2 indicates that the regression model has improved.
Linear optimization cannot be used on problems having multiple time periods.
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
In forecasting, what is an index?
A) It is a single measure that weights multiple indicators and provides a measure of
overall expectation.
B) It is a stream of historical data, such as weekly sales.
C) It is a time series that does not have trend, seasonal, or cyclical effects but is
relatively constant and only exhibits random behavior.
D) It is a measure that provides a complete forecast.
Below is a spreadsheet for Trance Electronics.
Suppose that the project manager of Trance Electronics has identified the following
uncertain variables in the model and the distributions and parameters that describe
them, as follows: Market size: normal with mean of 20,000,000 units and standard
deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and
$800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation
$30,000,000. Annual market growth factor: triangular with minimum = 2%,
maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum =
25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run
the simulation and answer the following questions using the Risk Solver Platform.
With reference to the trend chart, which year shows the highest uncertainty in
forecasting the future?
A) Year 1
B) Year 3
C) Year 4
D) Year 5
Which of the following mathematical functions, used in predictive analytical models, is
represented by the formula y = ax3 + bx2 + cx + d?
A) exponential functions
B) power functions
C) logarithmic functions
D) polynomial functions
Which of the following formula is used to make the recording decision in B20?
A) =IF(B19>0,”In-house”,”Studio”)
B) =IF(B19<=0,”Studio”,”In-house”)
C) =SUM(B19<=0,”Studio”)
D) =IF(B19>0,”Studio”,”In-house”)
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.
Which of the following is the probability mass function of the Bernoulli distribution?
A)
B)
C)
D)
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.
Calculate the total revenue when the quantity produced is 55,000 and demand is 60,000.
A) $1,375,000
B) ($1,320,000)
C) $1,430,000
D) $2,750,000
Which of the following is true of the t-distribution?
A) It has narrower confidence intervals than the standard normal distribution.
B) It is only used to calculate confidence intervals where there is no known population
standard deviation.
C) It converges to the standard normal distribution as degrees of freedom increase.
D) It does not require parameters such as degrees of freedom.
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 Testing cell?
A) 7.00
B) 17.50
C) 22.50
D) 27.50
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.
According to the Sensitivity Report, which of the following is true if the capacity at
Atlanta is increased by 230 units?
A) the total cost can be reduced by $.09 per unit
B) the total cost at Atlanta increases by $9
C) the total cost per unit will reduce by $.09 to Memphis
D) the shadow price at Atlanta will increase to $0.09
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 $7.75 per hour. Each boot design takes 2 hours to complete. How should
production be planned over the three quarters to minimize the combined production and
inventory holding costs?
The table below provides information on Letherin Hides boot design cost and
production.
According to the linear optimization model, what is the net production for winter?
A) 0
B) 950
C) 200
D) 500
Which of the following describes dispersion in statistics?
A) the degree of variation in the data
B) the central value in the data
C) the frequency of values in the data
D) the measure of outliers in the data
Below is the spreadsheet for demand prediction of a company that sells chocolates.
If, in the spreadsheet, cells B9 and B10 were empty, which of the following formulas
should be entered in B8 so that the formula can be dragged to B9 and B10 to obtain
their correct values?
A) B4-B5*A8
B) B4-B5*$A8
C) $B4-B5*$A8
D) $B$4-$B$5*$A8
Below is a spreadsheet for a hotel overbooking model.
Assume that each reservation has a constant probability p = 0.04 of being cancelled.
Answer the question(s) using the Risk Solver Platform.
With respect to B12, what is the range of weights given in the Parameters section in the
Discrete dialog?
A) $E$2:$E$13
B) $D$2:$D$8
C) $D$2:$D$13
D) $E$2:$E$8
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, what is the new price for Gold tickets?
A) $16.50
B) $15.50
C) $16
D) $16.11
Coppell Services contracts with outsourcing partners to handle various customer service
functions. Based on a study of call volumes provided by one of the firm’s partners, the
minimum number of staff needed for each hour of the day is as follows:
Mr. Coppell hires 6 permanent employees and wants to staff the remaining
requirements using part-time employees who work 4-hour shifts (four consecutive
hours starting as early as 8 A.M. or as late as 1 P.M.).
How many part-time employees are present in the 8-9 time slot?
A) 4
B) 6
C) 9
D) 14
Which of the following is an example of a subset?
A) The number of individuals who have a Ford car
B) The number of IT employees out of all employees working in an office of Google
C) The number of members in the Democratic Party
D) The population of Canada
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.
Which of the following Lookup functions returns the relative position of an item in an
array that equals a specified value in a specified order?
A) HLOOKUP(lookup_value, table_array, row_index_num)
B) MATCH(lookup_value, lookup_array, match_type)
C) INDEX(array, row_num, col_num)
D) VLOOKUP(lookup_value, table_array, col_index_num)
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
Brenton joined the Kroos Corporation at a starting salary of $61,500. According to the
company’s retirement plan, Brenton has to make a retirement contribution of 6 percent
of his salary. The company contributes 30 percent of this amount. Brenton is expected
to receive a salary increment of 3.5 percent per year for the next three years. Brenton is
also expected to receive an annual investment return of 8 percent on the plan. Assuming
the same rate of salary increases and investment returns each year, calculate the total
balance of the retirement plan in its second year.
Explain the concept of the “flaw of averages.”
What are the three components of decision support systems (DSS)?
The table below shows the number of goals scored by the Huntington Soccer Club in
their league for the past 12 years. Calculate the standard error of the mean of the data
given that the variance of the data is 50.45
What are the four different outcomes of hypothesis testing?
Exemplify the k-Nearest Neighbor algorithm of classification.
P(P|Q) = P(Q) – P(P or Q)