The R2 value:
A) is the variability of the observed Y-values from the predicted values.
B) indicates that as the independent variable increases, the intercept term does too.
C) gives the proportion of variation in the dependent variable that is explained by the
independent variable.
D) transforms the cumulative probability scale (vertical axis) so that the graph of the
cumulative normal distribution is a straight line.
Which of the following sampling methods bases its selection of samples on the ease of
data collection?
A) probabilistic sampling
B) judgment sampling
C) simple random sampling
D) convenience sampling
The binominal distribution:
A) is a discrete distribution used to model the number of occurrences in some unit of
measure.
B) assumes that the average number of occurrences per unit is a constant and that
occurrences are independent.
C) is symmetric irrespective of the value of the probability of success.
D) models n independent replications of a Bernoulli experiment, each with a probability
p of success.
________ constraints essentially state that input = output and ensure that the flow of
material or money is accounted for at locations or between time periods.
A) Requirements
B) Proportional relationships
C) Balance
D) Limitations
The ________ algorithm is a classification scheme that attempts to find records in a
database that are similar to one we wish to classify.
A) linear regression
B) logistic regression
C) k-Nearest Neighbors
D) discriminant analysis
A(n) ________ is also called a minimax regret strategy.
A) opportunity-loss strategy
B) aggressive strategy
C) conservative strategy
D) average payoff strategy
When two or more independent variables in the same regression model can predict each
other better than the dependent variable, the condition is referred to as _______.
A) autocorrelation
B) heteroscedasticity
C) multicollinearity
D) homoscedasticity
Which of the following is true about multicollinearity?
A) The effect of a dependent variable on another becomes difficult to isolate.
B) Regression coefficients become clearer and are easier to interpret.
C) P-values reduce significantly leading to rejection of null hypothesis.
D) It is best measured using the statistic variance inflation factor (VIF).
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.
Due to decreasing profits, if the production of Graystone surfboards is stopped,
compute the total profit the firm can earn.
A) $ 521.74
B) $ 489.13
C) $ 423.91
D) $ 500.00
How many additional dummy variables are required if a categorical variable has 4
levels?
A) 2
B) 3
C) 1
D) 4
Which of the following is the first stage of joining clusters in agglomerative
hierarchical clustering?
A) by separating clusters into finer groups
B) by joining two clusters farthest away from each other
C) by joining two clusters that are not at a Euclidean distance
D) by joining two clusters that are closest to each other
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.
Which of the following is the constraint of nonnegativity for all values of i and j?
A) 13 X11 +15.25 X12 +10.99 X13 +18.48 X14 / 10.75 X21 +15.16 X22 + 9.65 X23
+18.5 X24 ≤ 0
B) Xij ≥ 0, for all i and j
C) Xij ≤ 0, for all i and j
D)
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 7th week?
A) 53 phones
B) 82 phones
C) 71 phones
D) 49 phones
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 annual revenue for the fourth year.
A) $ 2,325,304,800
B) $830,466,000
C) $1,494,838,800
D) $1,149,876,000
Which of the following is the mathematical model for deriving the break-even volume?
A) Q = (C – V
C) + F
B) Q = F / (C -V)
C) Q = (V +
C) / F
D) Q = F / (VC –
C)
The following table lists the amounts paid in mortgages as a percentage of the
household income in the town Aponia. Calculate the variance and standard deviation of
the data, if mean is given as 22.4%. The percentage (x) values are estimated as
midpoints of each percentage range.
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 distance between Shirley’s new accommodation
and Bungalow 3?
A) 54.62
B) 25.08
C) 36.53
D) 23.12
For a lower-tail test, the p-value in the output from an Excel tool:
A) is correct if the test-statistic is negative.
B) is the difference from 1.0 if the test-statistic is negative.
C) is correct if the test-statistic is zero.
D) is correct if the test-statistic is positive.
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 Gold tickets at the new price?
A) 32
B) 90
C) 33
D) 178
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 squared term value for Stock 3 variance?
A) 0.00018
B) 0.00080
C) 0.00096
D) 0.00194
Sendstars is a package delivering company that recently made a study on its customer
retention and service renewal metrics. They found that most customers defected from
using Sendstars’ services due to customer dissatisfaction stemming from delivery
personnel being rude or ill-mannered. To curb this issue, Sendstars gave special training
to its employees in customer service. Which of the following data mining approaches
did Sendstars employ when they decided to train their employees in customer care
based on the study?
A) association
B) cause-and-effect modeling
C) classification
D) reduction
________ states that for any set of data, the proportion of values that lie within k
standard deviations (k > 1) of the mean is at least 1 – 1/k2.
A) Prime number theorem
B) Bertrand’s postulate
C) Oppermann’s conjecture
D) Chebyshev’s theorem
________ is a measure of the linear relationship between two variables, X and Y, which
does not depend on the units of measurement.
A) Kurtosis
B) Proportion
C) Skewness
D) Correlation
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 profit contribution by the
Invazen model?
A) $205,200
B) $20,000
C) $10,000
D) $4,000
The Atlas Movies Theater has repriced 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 new price for the three
classes obtained using Solver.
Assume the distributions of elasticities for three classes of tickets are uniform with
minimum and maximum values equal to 75% and 125% of their estimated values,
respectively. Under this assumption, use Monte Carlo simulation to see what happens to
the prediction of tickets sold. The model is simulated for 10,000 trials.
What is the mean absolute deviation obtained from the simulation results?
A) 3
B) 6
C) 8
D) 10