Expected confidence assumes independence between the consequent and the
antecedent.
Rectilinear distance is the measure of distance as a straight line between two points.
If P(X|Y) = P(X), it implies that event Y is dependent on event X.
Excel’s Trendline feature cannot be used in modeling trends which include time
variables.
A chance constraint is one that specifies the fraction of trials in a simulation that must
satisfy a constraint.
Two-way data tables can evaluate only one output variable.
A value at risk measure considers the magnitude of the violation when the constraint is
not satisfied.
According to the empirical rules of standard deviation in statistics, approximately 68%
of the observations will fall within three standard deviations of the mean.
In Excel’s Analytic Solver Platform, a parameter is a set of outputs in a model.
The economic order quantity is the amount to order that minimizes the total cost of
ordering and holding.
In predictive analysis models, a second-order polynomial has only one hill or valley.
Two variables can only have a statistical relationship if there is a cause-and-effect factor
between them.
A confidence interval is associated with the sampling distribution of a statistic.
Rectilinear distance is the measure of distance as a straight line between two points.
A payoff table is a matrix whose rows correspond to events and whose columns
correspond to decisions.
In sampling, ________ involves assessing the value of an unknown population
parameter’“ such as a population mean, population proportion, or population
variance’“using sample data.
A) distribution
B) randomization
C) estimation
D) substitution
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
Why is the ROUND function used in Excel?
A) to ensure that the values generated are whole numbers
B) to ensure that the values generated are multiples of ten
C) to ensure that the values generated are always positive
D) to ensure that the values are even numbers
When using logistic regression, where p being the probability that the dependent
variable Y = 1, X1, X2 …, Xk are the independent variables, and β0, β1, β2 …, βk are
unknown regression coefficients, ________ is called the odds of belonging to category
1(Y = 1).
A) p(β0 + β1X1 + β2X2 + …+ βkXk)
B)
C)
D)
Which of the following is the mathematical model for deriving total cost of only
outsourcing?
A) TC = Q x C
B) TC = F + (C x Q)
C) TC = (V +
C) x Q
D) TC = (VC + F) x Q
The payoff table given below lists four mortgage options:
The probability of rates rising is 0.6, rates stable is 0.3, and rates falling is 0.1.
Which of the following is considered the best expected value decision?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
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.
Which of the following years shows the first profit for Dresden’s new drug?
A) first year
B) second year
C) third year
D) fourth year
What is the slope of the sales function D = a -bP?
A) 4
B) 9
C) 12
D) 17
Below is the spreadsheet for a project selection model.
Answer the following question(s) using a model with uncertainty on project selection.
Assume that the distribution on each project return is LogNormal. Use 10,000 trials and
1 for random seed for the simulation.
Which of the following cells is defined as the output cell?
A) B16
B) G16
C) G17
D) G18
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 standard deviation obtained from the simulation results?
A) 1.20
B) 2.50
C) 3.80
D) 5.00
What is the confidence coefficient when the level of significance is 0.03?
A) 0.9700
B) 0.0376
C) 0.7924
D) 0.7776
Which of the following is the rectilinear distance between the points A(13, and
B(10,12)?
A) 4
B) 25
C) 6
D) 10
Time-series models may exhibit seasonal effects or cyclical effects. A seasonal effect
differs from a cyclical effect in that a seasonal effect:
A) has no trend, is relatively constant, and only exhibits random behavior.
B) describes ups and downs over a time frame such as several years.
C) is one that repeats at fixed intervals of time, typically a year, month, week, or day.
D) is based on analysis of historical time-series data and are predicated on the
assumption that the future is an extrapolation of the past.
Which decision model incorporates the process of optimization?
A) predictive
B) prescriptive
C) descriptive
D) normative
In a lower one -tailed hypothesis test, chosen level of significance = 0.10, sample size =
55, and t-test statistic = -1.76.
What is the observed level of significance?
A) 0.4605
B) 0.4191
C) 0.0379
D) 0.0420
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
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 cost incurred for the second year.
A) $1,224,120,000
B) $884,520,000
C) $491,400,000
D) $638,820,000
Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following does the second quartile of the costs per order indicate?
A) 2% of the costs per order are less than or equal to $114.84.
B) 20% of the costs per order are less than or equal to $1,200.12.
C) 5% of the costs per order are less than or equal to $229.36.
D) 50% of the costs per order are less than or equal to $286.16.
The worldwide sales of cars from 1981-1990 are shown in the table below. Given: α =
0.2 and β = 0.15 (Hint: Use XLMiner)
Which of the following equations is the trend line equation for the given data? (Note:
the fitted model assumes that the years are numbered 1 through 10, not the actual
dates.)
A) 60.123x + 481.56
B) 48.16x + 481.86
C) 32.17x + 931.87
D) 57.15x + 503.81
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.
If the unit profit on Graystone surfboards is increased by $10, what is the total profit
generated?
A) $ 489.13
B) $ 521.74
C) $ 423.91
D) $ 554.35
The worldwide sales of cars from 1981-1990 are shown in the table below. Given: α =
0.2 and β = 0.15 (Hint: Use XLMiner)
Which of the following equations is the trend line equation for the given data? (Note:
the fitted model assumes that the years are numbered 1 through 10, not the actual
dates.)
A) 60.123x + 481.56
B) 48.16x + 481.86
C) 32.17x + 931.87
D) 57.15x + 503.81
Which of the following will hold true if events X and Y are independent?
A) P(X) = P(Y) P(X and Y)
B) P(Y) = P(X|Y)
C) P(X and Y) = [P(X) + P(Y)] – P(X or Y) D) P(X) = P(X|Y)
What is the value of mean obtained from the simulation results?
A) 473.0
B) 520.0
C) 456.0
D) 490.0
P(Q|P) = P(Q) – P(P)
Develop a linear model relating the demand for Goody Woods’ units to the price.
Explain selecting a sample using the continuous process sampling methods.
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.)
Draw conclusions for test of hypothesis for regression coefficients.
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.)
Draw conclusions for test of hypothesis for regression coefficients.