Which of the following best defines Monte Carlo simulation?
A) It is a tool for building statistical models that characterize relationships among a
dependent variable and one or more independent variables.
B) It is a collection of techniques that seeks to group or segment a collection of objects
into subsets.
C) It is the process of selecting values of decision variables that minimizes or
maximizes some quantity of interest.
D) It is the process of generating random values for uncertain inputs in a model and
computing the output variables of interest.
Give the logical function for the following: If cell B7 equals 12, check contents of cell
B10. If cell B10 is 10, then the value of the function in the string is YES; if not, it is a
blank space. If cell B7 does not equal 12, then the value of the function is 7.
A) =IF(B7=12,(AND(B10=10, “”)(YES)),7)
B) =IF(B10=10,(OR(B7=12,””)”YES”)7)
C) =IF(B7=12,(IF(B10=10,”YES”, “”)),7)
D) =IF(B7=12,(AND(B10=10,”YES”,””)(B10=”NO”),7)
Below is a payoff table that lists four mortgage options:
The probability of rates rising is 0.6, rates stable is 0.3, and rates falling is 0.1. Answer
the following questions by creating a decision tree.
Which of the following is considered the worst expected value decision?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
Alternate optimal solutions exist when the ________.
A) reduced cost is equal to the shadow price
B) ratio of the objective coefficient to the constraint coefficient is one
C) Allowable Increase values for changing cells are zero
D) final value of the changing cells is greater than that of the constraints
In Excel’s Trendline tool, the value of the________ gives the measure of fit of the line
to the data.
A) linear function
B) R-squared
C) moving average
D) set intercept
Which of the following charts provides a useful means for displaying data over time?
A) Scatter chart
B) A doughnut chart
C) Pie chart
D) Line chart
What is the value of mean obtained from the simulation results?
A) 473.0
B) 520.0
C) 456.0
D) 490.0
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 4?
A) 589.25
B) 346.77
C) 1529.39
D) 3152.08
Consider the following spreadsheet for an outsourcing decision model.
We assume that the production (demand) volume is normally distributed with a mean of
1,000 and a standard deviation of 100. For the unit cost, select the triangular
distribution. It has a minimum value of $150, most likely value of $165, and a
maximum value of $190. The number of trials per simulation is equal to 5,000 at a Sim.
Random Seed of 1. Run the simulation and answer the following question(s) using the
Risk Solver Platform.
What is the value of mean absolute deviation obtained from the simulation results?
A) $10,893
B) $3,476
C) $7,443
D) $5,885
In a curvilinear regression model, the ________ represents the curvilinear effect.
A) intercept
B) error term
C) slope
D) R Square
Which decision model incorporates the uncertainty element?
A) predictive
B) normative
C) prescriptive
D) descriptive
Below are four options for an investment decision.
Based on the average utility, which of the following is considered the worst decision?
A) Bank CD
B) Bond fund
C) Index fund
D) Growth fund
Below is a room overbooking model spreadsheet for the Metza, a hotel chain. The hotel
has 425 rooms priced at $180 per day each, and is usually fully booked. Reservations
can be cancelled any time before 5:00 p.m. with no penalty. The hotel estimates an
average overbooking cost of $150. Customer demand is set at 400 with an average
cancellation of 20.
Calculate the customer arrivals at the Metza.
A) 425
B) 405
C) 400
D) 380
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
Which of the following is true from the equation:∑, where is the mean of the sample?
A) The sum of the deviations above the mean are the same as the sum of the deviations
below the mean
B) Half the data lie above the mean of the values
C) The specific set of values does not have any outliers affecting the mean
D) Half the data lie below the mean of the values
A company makes standard 130- inch-wide rolls of thin sheet metal and slits them into
smaller rolls to meet customer orders for widths of 10, 14, and 25 inches. Suppose that
the company has proposed the following cutting patterns:
Demands for the coming week are 950 10-inch rolls, 725 14-inch roles, and 640
25-inch rolls. Develop a model using the Analytic Solver Platform that will determine
how many 130-inch rolls to cut into each of the six patterns in order to meet demand
and minimize scrap.
What is the total number of 14-inch rolls produced?
A) 721
B) 725
C) 728
D) 740
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
What is the total cost incurred?
A) $ 27,297
B) $ 35,233
C) $ 42,675
D) $ 47,864
Which of the following is a weighted average of the squared deviations from the
expected value?
A) skewness
B) mean difference
C) kurtosis
D) variance
Which of the following cases require the mean of a sample to be calculated using the
formula
= , where N represents the sample size?
A) the sample has no mode value
B) there is direct access to the raw data
C) sample data are grouped in a frequency distribution
D) the coefficient of skewness is 1 or less than -1
Which of the following is true of cluster analysis?
A) It is a cause-and-modeling type of analytic model.
B) It does not provide a definitive answer from analyzing the data.
C) It is primarily a prescriptive analytical method.
D) It uses clustered data that are not affected by the specific method used.
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.
What is the value of standard deviation obtained from the simulation results?
A) 35.0
B) 49.0
C) 56.0
D) 41.0
Coppell Services contracts with outsourcing partners to handle various customer service
functions. Based on a study of call volumes provided by one of the firm’s partners, the
minimum number of staff needed for each hour of the day is as follows:
Mr. Coppell hires 6 permanent employees and wants to staff the remaining
requirements using part-time employees who work 4-hour shifts (four consecutive
hours starting as early as 8 A.M. or as late as 1 P.M.).
How many excess employees are present in the noon-1 time slot?
A) 2
B) 4
C) 5
D) 6
Which of the following ways would 102 53/ 100 – 73 be represented in an Excel
spreadsheet?
A) 10(2) * 5(3) / 100 ^ 73
B) 10(2) ^ 5(3) / 100 – 73
C) 10^2 * 5^3 / 100 – 73
D) 10*2 ^ 5*3 / 100 – 73