The Atlas Movies Theater is planning to reprice 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 price range within
which they plan to reduce their ticket rates.
According to the nonlinear model, which of the following is the total projected revenue
for the new sales figures?
A) $1,637.72
B) $2,970.09
C) $1,316.92
D) $2,865.89
Below is the table showing rate of shoes sold per day and the highest-priced shoe sold
that day for a one-week period. The rate of shoes sold per day (X) and the price of the
shoes (Y).
Use Excel to calculate the mean for X.
A) 16.71
B) 7.04
C) 2.67
D) 0.02
While rolling two dice, what is the probability of rolling a sum of 7 or more?
A) 7/12
B) 5/9
C) 1/6
D) 5/36
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
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.
What is the average daily sale during the full retail sales period?
A) 15
B) 33.33
C) 8
D) 24.55
Below is the spreadsheet for a newsvendor model.
Answer the following question(s) using multiple parameterized simulations. The range
for the historical demand is 40-51. Assume a uniform integer distribution for demand,
and run 12 simulations for different purchase quantities. Use 5,000 trials and 1 for
random seed.
Which of the following values of purchase quantity shows the least mean profit?
A) 42
B) 45
C) 48
D) 51
A regression model that involves a single independent variable is called _____.
A) single regression
B) unit regression
C) simple regression
D) individual regression
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.
Use the spreadsheet below for Stone Age Surfboards to answer the following
question(s) using integer constraints on variables in the optimization models using the
standard Solver.
What is the quantity of Graystone surfboards produced?
A) 2
B) 5
C) 7
D) 10
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
Predictive analytics:
A) summarizes data into meaningful charts and reports that can be standardized or
customized.
B) identifies the best alternatives to minimize or maximize an objective.
C) uses data to determine a course of action to be executed in a given situation.
D) detects patterns in historical data and extrapolates them forward in time.
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
Which of the following statements is true of a triangular distribution?
A) We are required to know only the smallest and largest possible values that the
variable might assume.
B) These distributions depend on multiple parameters that one can easily identify based
on managerial knowledge and judgment.
C) The distribution has a limited range and can be skewed in either direction.
D) The distribution is very positively skewed, with no negative values.
Which of the following is the initial step in conducting a hypothesis test?
A) collecting data and calculating a test statistic
B) selecting a level of significance
C) identifying the population parameter of interest
D) determining a decision rule
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
A trader who wants to predict short-term movements in stock prices is likely to use
________ analytics.
A) predictive
B) descriptive
C) normative
D) prescriptive
Below is a decision tree illustrating the R&D process for a new drug.
Let us assume that if market is large, payoff is lognormally distributed with a mean of
$4,900 million and a standard deviation of $1,000 million; if market is medium, payoff
is lognormally distributed with a mean of $2,500 million and a standard deviation of
$500 million; and if market is small, payoff is normally distributed with a mean of
$1,800 million and standard deviation of $200 million. Let us also assume that the cost
of clinical trials is uncertain and estimates are modeled with a triangular distribution
with a minimum of -$ 700 million, a most likely value of – $550 million, and a
maximum of -$500 million. Use 10,000 trials and a random seed of 1.
What is the value of mode obtained from the simulation results? [Hint: Choose the
approximate value.]
A) $ 119.0
B) $ 116.1
C) $ 105.7
D) $ 94.1
The spreadsheet below shows the net income model for a company that sells shoes.
Which of the following formulas would be used to calculate the net operating income?
A) =B15-B5
B) =B15-B16
C) =SUM(B6:B10)-B11
D) =B15-B16+B6
What is Monte Carlo simulation?
P(P|Q) = P(P and Q) / P(Q)
What is statistical thinking? How is it important to making business decisions?
How does Solver handle simple lower bounds and upper bounds compared to ordinary
constraints?
What are the three components of decision support systems (DSS)?
The table below shows the weights of female individuals in Catherine’s family.
Calculate the sample variance in the weights, and the standard deviation.
Weights of female individuals in Catherine’s family (in lbs)
163
160
155
161
158
155
149
151
158
171
Explain the implementation of a project-selection model.
Explain the different types of Holt-Winters models used in forecasting.
Explain the concept of the “flaw of averages.”