Business 373 | Course Paper

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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

The Risk Solver Platform ________ feature allows you to superimpose the frequency

distributions from selected forecasts on one chart in order to compare differences and

similarities that might not be apparent.

A) trend chart

B) sensitivity chart

C) overlay chart

D) box-whisker chart

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 X-coordinate for the location of Shirley’s new

accommodation?

A) 54.62

B) 36.53

C) 25

D) 23.12

Cerebro Manufacturing produces four types of structural support fittings-plugs, rails,

rivets, and clips-which are machined on two CNC machining centers. The machining

centers have a capacity of 250,000 minutes per year. The gross margin per unit and

machining requirements are shown in the spreadsheet below.

What is the total profit generated from the manufacture of only plugs?

A) $ 66,666.67

B) $ 100,000.00

C) $ 183,333.33

D) $ 150,000.00

The Risk Solver Platform ________ feature allows you to superimpose the frequency

distributions from selected forecasts on one chart in order to compare differences and

similarities that might not be apparent.

A) trend chart

B) sensitivity chart

C) overlay chart

D) box-whisker chart

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 hours spent for painting all

the models?

A) 220

B) 94.94

C) 109.67

D) 199.44

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

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 amount shipped from Atlanta to

Memphis?

A) 480

B) 0

C) 230

D) 950

Which of the following is true when testing for normality of errors?

A) Normality is verified by inspecting for a bell-shaped distribution.

B) It is easier to evaluate normality with small sample sizes.

C) A scatter diagram of the whole data is always used to verify normality.

D) Errors are normally distributed when the scatter diagram shows a straight-line

distribution.

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 number of ScarCTs

produced?

A) 2500

B) 750

C) 0

D) 100

If cell G7 contains the function, it states that if the value in cell C3 is 9, the number 7

will be assigned to cell G7; if the value in cell C3 is not 9, the number 4 will be

assigned to cell G7.

A) =IF(G7=9)(G7=7)=OR(G7=4)

B) =IF(G7=7)=THEN(C3=9)=OR(C3=4)

C) =IF(C3=9)(C3=7)=OR(C3=4)

D) =IF(C3=9,7,4)

Following is an extract from the database of a construction company. The table shows

the height of walls in feet and the cost of raising them. The estimated simple linear

regression equation is given as Å¶ = b0 + b1X. (Hint: Use Excel functions).

What is the estimated cost of raising a 10-inch wall?

A) 1505.786

B) 1103.578

C) 968.6109

D) 1123.008

Below is the spreadsheet for demand prediction of a company that sells chocolates.

Given that D = a-bP, where D, is demand, “a” and “b,” are linear constants, and P, is

price, from the below spreadsheet, how will the formula in B9 be represented in Excel

using relative addressing?

A) B4-B5*A9

B) C5-C6*A10

C) B4-B5*A10

D) B5-B6*A10

Below is the spreadsheet for a portfolio allocation model.

Answer the following question(s) using a model with uncertainty on type of investment

return. Assume that the distributions of life insurance annual return is uniform with

minimum 4% and maximum 6%, bond mutual funds annual return is normal with mean

7% and standard deviation 1%, stock mutual funds annual return is lognormal with

mean 11% and standard deviation 4%. Use 10,000 trials and 1 for random seed for the

simulation.

What is the coefficient of variation obtained from the simulation results for maximizing

the total expected return? [Hint: Choose the approximate value.]

A) 1.2451

B) 0.4865

C) 0.8917

D) 0.1284

Consider the spreadsheet for a Newsvendor Model.

What is the value of mean profit?

A) $255.90

B) $251.45

C) $245.98

D) $264.00

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

Which of the following is a difference between interval estimates and point estimates?

A) Point estimates cannot be used to calculate statistical error, while interval estimate is

used to calculate statistical error.

B) Point estimates provide only a single value for a sample, while interval estimates

provide a range of values.

C) Point estimates indicate the magnitude of potential error in the estimate, while

interval estimates don’t.

D) Point estimates on an average provide more information than interval estimates.