In a MATCH function, the default value for match_type = 0.
The Excel function NORM.DIST finds probabilities for the standard normal
distribution.
The expected value and variance of the Poisson distribution are equal to λ.
A confidence interval is associated with the sampling distribution of a statistic.
Nonnegativity of the decision variables is an example of an explicit constraint.
One of the properties of the mean is that the sum of the deviations of each observation
from the mean is zero.
Solver can generate a Sensitivity report for integer models.
Decision support systems evolved from efforts to improve military operations prior to
and during World War II.
Estimators are the measures used to estimate population parameters.
A cyclical effect is one that repeats at fixed intervals of time, typically a year, month,
week, or day.
For an odd number of observations, the median is the mean of the two middle numbers.
A value at risk measure considers the magnitude of the violation when the constraint is
not satisfied.
Indicators are measures that are believed to influence the behavior of a variable an
individual wishes to forecast.
A value at risk measure is more conservative in nature than a conditional value at risk
measure.
Measure is the act of obtaining data associated with a metric. Measurements are the
numerical values associated with a metric.
Convenience sampling is an example of a probabilistic sampling method.
Below is the spreadsheet for an economic order quantity model.
Assume that the distribution of demand is normal with a mean of 20,000 and standard
deviation of 2,000.The increase in total cost is calculated by adding the holding cost
and the ordering cost.
As the number of degrees of freedom increases, the t-distribution converges to the
standard normal distribution.
If the Integer Tolerance is set to 0.01, the Solver will stop if it finds an integer solution
that is within 10% of the optimal solution.
According to the empirical rules of standard deviation in statistics, approximately 68%
of the observations will fall within three standard deviations of the mean.
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 value of mode obtained from the simulation results for maximizing the total
expected return? [Hint: Choose the approximate value.]
A) $ 6,378.39
B) $ 5,848.24
C) $ 5,281.79
D) $ 7,025.86
Before launching a new line of toys, Toys Inc. used the method of historical analogy to
obtain a forecast. In this scenario, Toys Inc.:
A) noted the behavior of its current customers while they use their products.
B) used a panel of experts, whose identities were kept confidential from one another, to
respond to a sequence of questionnaires.
C) noted the consumer response to similar previous products to marketing campaigns
and used the responses as a basis to predict how the new marketing campaign might
fare.
D) used a brainstorming session among a group of experts to draw new ideas.
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 gross margin per minute of plugs manufactured?
A) $ 0.60
B) $ 0.73
C) $ 0.40
D) $ 0.27
Which of the following best defines constraints in an optimization problem?
A) They are limitations, requirements, or other restrictions that are imposed on any
solution.
B) They are quantities that an optimization model seeks to maximize or minimize.
C) They are quantities for which no feasible solutions exist.
D) They are unknown values that the model seeks to determine.
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.
What is the total number of hours used for fabrication?
A) 54.5
B) 30.0
C) 35.5
D) 43.8
To construct a frequency distribution for categorical data, the
A) observations that appear in each category must be summed up.
B) number of observations that appear in each category must be counted.
C) observations in each category must be multiplied by observations in the
corresponding category.
D) number of observations in each category must be divided by the total number of
observations in all categories.
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 2 variance?
A) 0.00236
B) -0.00031
C) 0.00080
D) 0.00430
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $ 75,000. She
expects a salary increase of 5 percent every year. Her retirement plan requires her to
pay 9 percent of her salary, while the company matches it at 32 percent. She expects an
annual return of 7 percent on her retirement portfolio. Using a predictive model for
Sheila’s first five years, calculate the following, assuming that the salary increases at the
same rate every year, and the return of interest does not change.
What’s the total retirement balance when Sheila has reached the age of 40 while
working with Simsin?
A) $108,374.54
B) $56,253.36
C) $53,627.87
D) $91,163
In an Economic Order-Quantity (EOQ) model, ________ is the estimate on how long it
takes an order to be received after it is placed.
A) lead time
B) safety stock
C) time limit
D) cycle time
Consider the spreadsheet for a Newsvendor Model.
Which of the following cells is defined as the uncertain function cell?
A) B12
B) B14
C) B15
D) B17
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 value of standard deviation obtained from the simulation results?
A) 5
B) 4
C) 8
D) 10
Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters
as part of the winter collection for $65 with an inventory of 1500. The main selling
season is 60 days between November and December. The store then sells the remaining
units in a clearance sale at 65 percent discount. Out of the 60 main retail days, Fiberia
sells the sweaters at full retail price for only 45 days, while giving a discount of 25
percent for the remaining 15 days. The demand functions a, and b are given as 79.5 and
1.1 respectively.
Calculate the total revenue for the new line of sweaters.
A) $59,426.25
B) $48,871.88
C) $23,400
D) $43,231.09
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
Below is a payoff table with three mortgage options:
The expected value of sample information (EVSI) is equal to the ________.
A) EMV without sample information divided by the EMV with sample information
B) EMV without sample information minus the EMV with sample information
C) sum of the EMV with sample information and the EMV without sample information
D) EMV with sample information minus the EMV without sample information
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the inventory at the end of the first quarter?
A) 725
B) 525
C) 50
D) 75
A manufacturer wishes to determine if the average profit from the sale of his product
exceeds $6,710. Which of the following is the appropriate hypothesis test?
A) H0: population mean profit from sale > $6,710 vs. H1: population mean profit from
sale ≤ $6,710
B) H0: population mean profit from sale ≤ $6,710 vs. H1: population mean profit
from sale > $6,710
C) H0: population mean profit from sale < $6,710 vs. H1: population mean profit from
sale ≥ $6,710
D) H0: population mean profit from sale ≥ $6,710 vs. H1: population mean profit
from sale < $6,710
What are three types of Risk Solver Platform charts used to obtain multiple simulation
results?
Develop a linear model relating the demand for Goody Woods’ units to the price.
How does a tornado chart help make sense of inputs in analyzing data and models?
How does a tornado chart help make sense of inputs in analyzing data and models?
Explain how the Data Validation feature in Excel helps in increasing spreadsheet
quality.