The ________ is the observation that occurs most frequently.
A) mode
B) mean
C) outlier
D) median
Identify the uncontrollable variable from the following inputs of a decision model.
A) investment returns
B) machine capacities
C) staffing levels
D) intercity distances
________ is a collection of techniques that seek to group or segment a collection of
objects or observations into subsets, such that those within each subset are more closely
related to one another than objects assigned to different subsets.
A) Association rule mining
B) Discriminant analysis
C) Cluster analysis
D) Logistic regression
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 amount shipped by the Detroit plant to the distribution centers?
A) 750
B) 1,000
C) 1,400
D) 1,300
The spreadsheet below shows the net income model for a company that sells shoes.
Which of the following would be used to calculate the gross profit?
A) =SUM(B7:B11)-B6
B) =B5-B6
C) =B5-(B6-B11)
D) =B5-B6+(B11-B10)
Which of the following sampling methods bases its selection of samples on the ease of
data collection?
A) probabilistic sampling
B) judgment sampling
C) simple random sampling
D) convenience sampling
Which of the following statements is true when using the Excel Regression tool?
A) The range for the independent variable values must be specified in the box for the
Input Y Range.
B) Checking the option Constant is Zero forces the intercept to zero.
C) The Regression tool can be found in the Tools tab under Insert group.
D) Adding an intercept term reduces the analysis’ fit to the data.
Which of the following statements is true when using the Excel Regression tool?
A) The range for the independent variable values must be specified in the box for the
Input Y Range.
B) Checking the option Constant is Zero forces the intercept to zero.
C) The Regression tool can be found in the Tools tab under Insert group.
D) Adding an intercept term reduces the analysis’ fit to the data.
Which of the following helps in evaluation of autocorrelation?
A) Breusch-Pagan test
B) Durbin-Watson statistic
C) Hosmer-Lemeshow test
D) Cochran-Mantel-Haenszel statistics
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 projected profit for the third year.
A) $31,315,200
B) $2,373,996,000
C) $1,149,876,000
D) $1,494,838,800
_________ ofmoney measures the worth of a stream of cash flows, taking into account the
time value
A) Accounting rate of return
B) Net present value
C) Internal rate of return
D) Adjusted present value
The worldwide sales of cars from 1981-1990 are shown in the table below. Given: α =
0.2 and β = 0.15 (Hint: Use XLMiner)
Calculate the value of the mean absolute percentage error using double exponential
smoothing for the given data.
A) 1.80
B) 8.10
C) 91.27
D) 11976.17
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 coefficient of variation obtained from the simulation results of the net
present value?
A) 1.78392
B) -2.23958
C) -1.36659
D) 2.87645
Which of the following formulas calculates the Euclidean distance between X and Y?
A)
B)
C)
D)
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 revenue for the clearance sales period.
A) $18,921.09
B) $23,400
C) $48,871.88
D) $17,105.16
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
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 will be the total profit contribution from Lava surfboards?
A) $ 391.30
B) $ 521.74
C) $ 130.43
D) $ 276.65
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 part-time employees are present in the 3-4 time slot?
A) 16
B) 14
C) 9
D) 7
Which of the following is true about problem solving?
A) Recognizing problems involves stating goals and objectives.
B) Analyzing the problem involves characterizing the possible decisions.
C) Decision making involves translating the results of the model in the organization.
D) Structuring the problem involves identifying constraints.
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 standard deviation obtained from the simulation results? [Hint:
Choose the approximate value.]
A) $ 119.1
B) $ 116.1
C) $ 105.7
D) $ 94.4
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 standard deviation obtained from the simulation results?
A) $9,175
B) $7,884
C) $3,860
D) $12,870
The data mining approach called ________ involves the developing of analytic models
to describe the relationship between metrics that drive business performance like
profitability, customer satisfaction, or employee satisfaction.
A) association
B) reduction
C) cause-and-effect modeling
D) classification
Which of the following is true about the rejection region?
A) The rejection region is chosen to determine the probability of a Type I error.
B) With a true null hypothesis, the test statistic falls into the rejection region.
C) If the test statistic is in the nonrejection region, the null hypothesis is rejected.
D) The rejection region occurs in the tails of the sampling distribution of the test
statistic.
________ is a measure of the linear association between two variables, X and Y.
A) Kurtosis
B) Proportion
C) Skewness
D) Covariance
How are probability, experiment, outcome, and sample space related to each other?
Find the range of volumes at which it is more economical for Nib ‘N’ Ink to produce the
refills in-house or outsource them. (Hint: Use the break-even decision model).
Briefly explain classification as a data-mining tool with an example.
What are the three elements required to characterize decisions with uncertain
consequences?
What is the importance of Integer Tolerance in Solver?
Which of the following is true of the parameters of a beta distribution function?
C) The parameters of the distribution function, α and β, can be negative.
D) The values of the parameters do not affect the skewness of the distribution.
E) If either parameter is 1.0 and the other is lesser than 1.0, the distribution takes an “L”
shape.
F) If the parameter β exceeds the other parameter α, the distribution is positively
skewed.