Philip wishes to understand the relative proportion of each data source to the total.
Which of the following charts must Philip use?
A) Pie chart
B) Bar chart
C) Scatter chart
D) Column chart
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
Which of the following relies on sorting data and calculating the cumulative percentage
of the characteristic of interest?
A) Randolph diagram
B) Anscombe’s quartet
C) Bland-Altman plot
D) Pareto analysis
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 market size for the second year.
A) 3,000,000
B) 273,000
C) 3,244,800
D) 3,120,000
Type II error occurs when the test:
A) correctly fails to reject an actually true null hypothesis.
B) incorrectly fails to reject an actually false null hypothesis.
C) correctly rejects an actually false null hypothesis.
D) incorrectly rejects an actually true null hypothesis.
Which of the following is true of the coefficient of skewness (CS)? A) If the CS is
positive, the distribution of values tails off to the left.
B) If the CS value is between 0.5 and 1, the skewness is considered to be moderate. C)
If the CS is closer to zero, the degree of skewness is considered to be high.
D) If the CS value is between -0.5 and -1, the skewness is considered negligible.
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
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
Consider an event X comprised of three outcomes whose probabilities are 9/18, 1/18,
and 6/18. Compute the probability of the complement of the event.
A) 2/18
B) 1/2
C) 16/3
D) 16/18
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
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 mean obtained from the simulation results?
A) 15.65
B) 25.91
C) 20.78
D) 30.42
A ________ is a description of the approach that is used to obtain samples from a
population prior to any data collection activity.
A) population frame
B) sampling weight
C) sampling plan
D) probability interval
Which of the following is true about variance?
A) It measures the uncertainty of a random variable.
B) Higher variance implies low uncertainty.
C) It is the square root of a random variable’s standard deviation.
D) It is the weighted average of all possible outcomes.
The measure of location that specifies the middle value when the data are arranged
from least to greatest is the ________.
A) outlier
B) mean
C) median
D) mode
Interaction is:
A) the principle of having a model with maximum explanatory variables.
B) the process of coding categorical variables.
C) a measure to determine the correlation between dependent variables.
D) the dependence between two independent variables.
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
Below is a table showing the costs per order of items bought by a computer hardware
store.
Calculate the mean cost per order.
A) $220.54
B) $174.70
C) $159
D) $88
Calculate the coefficient of variation from the following data:
z-score = 1.32; standard deviation = 0.173; mean = 4.7; total variation = 0.6
A) 27.16
B) 156.66
C) 0.04
D) -0.5
Qualis Investments is a private limited business that manages personal financial
portfolios. The company manages six mutual funds and has a client that has acquired
$750,000 from an inheritance. Characteristics of the funds are given in the table below.
The company recommends that no more than $300,000 be invested in any individual
fund, and that at least $80,000 be invested in each of the mid-cap stock and mortgage
fund. The total amount invested in the low-priced and multinational funds are at least
35% of the total investment. The client would like an average return of at least 6%.
Assume that X1- X6 represent the dollar amounts invested in funds 1 through 6,
respectively.
Which of the following is the constraint for the weighted return?
A) X1 + X2 + X3 + X4 + X5 + X6 = 750,000
B) 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ≥ 6.00
C) ( 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ) / 750,000 ≥ 6.00
D) ( 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ) / 750,000
Which of the following best defines objective functions?
A) They are limitations, requirements, or other restrictions that are imposed on any
solution in an optimization model.
B) They are quantities that an optimization model seeks to maximize or minimize.
C) They are quantities for which no feasible solutions exist in an optimization model.
D) They are unknown values that an optimization model seeks to determine.