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 reorder point required to attain a 95% service level?
A) 460.0
B) 750.5
C) 571.0
D) 640.5
15 students were asked to choose between the broad categories of Arts, Science, and
Math as their preferred area of study.
What is the probability that a respondent is male and prefers Arts?
A) 8/15
B) 10/15
C) 2/15
D) 6/15
Which of the following is true of hierarchical clustering?
A) All clusters must have the same number of data.
B) No single cluster can have all objects
C) The data are not partitioned into a particular cluster in a single step.
D) All clusters must have more than one object in it.
For two variables, a positive correlation coefficient indicates ________.
A) a linear relationship exists for which one variable increases as the other also
increases
B) a linear relationship exists for one variable that increases while the other decreases
C) that the two variables have no linear relationship with each other
D) a nonlinear relationship with no linear correlation between the two variables
In the spreadsheet below, there is data on the price, cost, demand, and quantity
produced for an item. There are also different “what if” values that can help a manager
to calculate costs and revenue with variability in demand.
Calculate the variable cost when the demand is 60,000 units.
A) $1,430,000
B) $1,375,000
C) $2,750,000
D) $1,320,000
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 a spreadsheet for Trance Electronics.
Suppose that the project manager of Trance Electronics has identified the following
uncertain variables in the model and the distributions and parameters that describe
them, as follows: Market size: normal with mean of 20,000,000 units and standard
deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and
$800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation
$30,000,000. Annual market growth factor: triangular with minimum = 2%,
maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum =
25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run
the simulation and answer the following questions using the Risk Solver Platform.
What is the expected value margin obtained from the simulation results of the net
present value?
A) 0.864
B) -0.726
C) 0.343
D) -0.467
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 would be the total time spent on
inspecting the Dela Mort models?
A) 158.33
B) 12.5
C) 85
D) 48
Which of the following is the first stage of joining clusters in agglomerative
hierarchical clustering?
A) by separating clusters into finer groups
B) by joining two clusters farthest away from each other
C) by joining two clusters that are not at a Euclidean distance
D) by joining two clusters that are closest to each other
Use the table below to answer the following question(s).
The historical data of Velvetta Inc., a healthcare products manufacturer, have shown
that in a production process for filling bottles of shampoo, variance in the volume is
constant; however, clogs in the filling machine often affect the mean volume. The
historical standard deviation is 5 milliliters. In filling 250-milliliter bottles, a sample of
20 found a meanvolume of 242 milliliters.
From the table above, calculate the lower confidence interval estimate at a confidence
level of 95%
A) 239.49
B) 240.16
C) 239.81
D) 240.04
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.
In the ________ method, the distance between groups is defined as the distance
between the closest pair of objects, where only pairs consisting of one object from each
group are considered. A) Ward’s linkage clustering
B) single linkage clustering
C) divisive clustering
D) average group linkage clustering
Problem statements such as the amount of material used in production cannot exceed
the amount available in inventory would be categorized as a ________ constraint.
A) proportional relationships
B) limitations
C) requirements
D) simple bounds
The ________ is a formal statistical measure for categorical data, such as defects or
errors in quality control applications or consumer preferences in market research.
A) variance
B) proportion
C) mean
D) skewness
Below is a spreadsheet for a hotel overbooking model.
Answer the following question(s) using multiple parameterized simulations. The range
of historical customer demand is 400-430. Assume a uniform integer distribution for
customer demand, and run parameterized simulations for different reservation limits.
Use 5,000 trials and 1 for random seed.
Which of the following is the best number of reservations to accept?
A) 400
B) 410
C) 420
D) 430
Which of the following conditions is the optimal solution to the newsvendor problem,
where Q is the quantity to be purchased, and D is demand?
A) Q > D
B) Q = D
C) D > Q
D) Q / D = 0
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
Which of the following is an example of a simple bounds constraint?
A) confirming that production does not go beyond a certain unit value
B) reducing production due to scarcity of resources
C) meeting targets for a specific sales job
D) equaling production in September with the resources available at the end of August
The Excel 2010 function ________ computes the kth percentile of data in the range
specified in the array field, where k is in the range 0 to 1, inclusive.
A) PERCENTILE.INC(array, k)
B) PERCENTILE(array + k)
C) PERCENTILE.IF(array, k)
D) PERCENTILE(SUM(array), k)
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 would be the total time spent on
inspecting the Dela Mort models?
A) 158.33
B) 12.5
C) 85
D) 48
Explain the different types of Holt-Winters models used in forecasting.
Describe and construct a cross-tabulation showing the region-wise percentage
breakdown of purchase of glass bottles and silver spoons and visually represent the data
in a 3-D column chart.
Explain the assumptions underlying ANOVA along with their violations.
Calculate the standard deviation for cost per order in the following table.
How does Solver handle simple lower bounds and upper bounds compared to ordinary
constraints?
What is the Insert function in Excel?
What are multiple parameterized simulations?