Which of the following is true of normal distributions?
A) The mean, median, and mode are all equal.
B) Its measure of skewness is always greater than 1.
C) The range of the random variable X is bounded.
D) Mathematical formulas make it easier to compute normal distributions.
Following are the components of a data set containing purchase details of a shoe
manufacturing company. Identify the ratio data.
A) Item Number
B) Rank of suppliers
C) Item cost
D) Arrival Date
If the payoff is $2200 and R is equal to $500, what is the utility function?
A) 0.9877
B) 0.6819
C) 0.7645
D) 0.4502
Below is a decision tree for the airline revenue management.
What is the expected value of the ticket when a discount is offered on the full fare?
[Hint: Choose the approximate value.]
A) $ 442.50
B) $ 472.00
C) $ 410.00
D) $ 501.50
Middle managers in operations:
A) develop staffing plans.
B) determine product mix.
C) develop advertising plans.
D) make pricing decisions.
Below is the profit model spreadsheet for the Lazarus Shoe Company producing their
latest model of shoes for the month of January.
Calculate the revenue for units sold.
A) $836,000
B) $1,136,000
C) $600,000
D) $1,786,000
After choosing the PivotTable, the PivotChart can be found on the ________ tab.
A) Design
B) View
C) Options
D) Layout
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
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 transportation model, what is the total shipment from Dallas?
A) 750
B) 1,180
C) 430
D) 950
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.
Based on the Sensitivity Report on the model, which of the following is the savings on
a reduction of demand of 2 units at Jacksonville?
A) $2.5
B) $1.25
C) $19.48
D) $16.98
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 percentage of the budget should be allocated to Stock 3?
A) 40%
B) 20%
C) 25%
D) 75%
A z-score of 1.0 means that ________.
A) the observation is -1.0 standard deviation to the right of the mean
B) the observation is -1.0 standard deviation to the left of the mean
C) the observation has no deviation from the mean
D) the observation is 1.0 standard deviation to the right of the mean
How is the return to risk described in financial statistics?
A) as the relative measure of the distance an observation is from the mean
B) as the reciprocal of coefficient of variation
C) as the square root of variance
D) as the ratio of excess returns to its standard deviation
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.
From the “what if” values, calculate the total profit when the demand is 20,000.
A) $825,000
B) $1,000,000
C) $1,100,000
D) ($925,000)
To copy a formula from a single cell or range of cells down a column or across a row,
first________, click and hold the mouse on the small square in the lower right-hand
corner of the cell, and drag the formula to the “target” cells which you wish to copy.
A) press Ctrl-C
B) select the cell or range
C) press Ctrl-Enter
D) select the whole spreadsheet
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 total amount to be produced in
summer?
A) 200
B) 100
C) 550
D) 0
The product mix is determined by the:
A) accounting staff.
B) middle managers.
C) finance managers.
D) top managers.
Below is a spreadsheet of purchase orders for a computer hardware retailer
If purchase quantities of 25 units or higher are found to be large orders, and orders less
than
25 are considered to be small, what IF function should be entered in H4 to be copied to
H5:H10 to calculate each order’s size?
A) =IF(D4=AND=OR=25,”Large”,”Small”)
B) =IF(D4<>25,”Small”)=AND(D4=25,”Large”)
C) =IF(D4=25,”Large”)=OR(“Small”)
D) =IF(D4>=25,”Large”,”Small”)
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 production cells
covers the most distance according to its demand when using the phone charger?
A) Measurements
B) Paint
C) Electricals
D) Testing
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 forecast value for the 6th year?
A) 1256.06
B) 1328.04
C) 1321.31
D) 1327.24
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
autumn?
A) 0
B) 200
C) 950
D) 500
Latin Hypercube sampling differs from Monte Carlo sampling in that the Latin
Hypercube sampling ________.
A) selects random variates independently over the entire range of possible values of the
distribution
B) uses an uncertain variable whose probability distribution is divided into intervals of
equal probability
C) is used for evaluating the model performance under various what-if scenarios
D) achieves less accurate forecast statistics for a fixed number of trials
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.
Following is an extract from a firm’s database detailing the number of hours spent on
the job by employees and their corresponding pay. (Note: Assume a level of
significance of 0.05 wherever necessary.)
Interpret the confidence intervals.
Following is the purchase order database of ‘The Chef Says So’, a restaurant in New
York, over the last quarter (April-June).
Describe how to and construct a line chart exhibiting the purchase order of ceramic
plates over the three months.
Explain how data-mining using lagging and leading measures of the cause-and-effect
model can help managers make business decisions.
What is a random number? How is it generated in Excel?
Explain how a two-way data table is created.
What is the probability that profit will be less than $1,900?
Explain statistics as defined by David Hand. What are the two ways in which Microsoft
Excel supports statistical analysis?
The Blue Sunset Band is planning to record a new album. A major decision to be made
is if the band can record the album on their own, or if they should hire a studio to record
it with. The
fixed cost for recording at the studio is $100,000 plus the manufacturing cost per CD,
which is at
$250. If they record the album in-house, the cost per CD is $350. They plan to produce
3000 copies of the album regardless of the place of recording. The band plans to record
with the cheaper option. Below is the spreadsheet of the Recording Decision.
Using the spreadsheet below, provide the steps in using Excel formulas in finding the
cost of the first order for Item number 1345, and the total cost of all Item numbers
1345, using the
MatchandIndexfunctionsinExcel.ColumnBissortedby itemnumberinascendingorder.
Describe how to sort the data by inventory value to compute cumulative percentage of
total inventory value to help the restaurateur conduct a Pareto analysis. (Assume that no
damages were caused to the inventory purchased over the three months)
