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 8-9 time slot?
A) 4
B) 6
C) 9
D) 14
Which of the following is true of the equation [n ≥ (zα/2)2 ] for computing
the sample size required to achieve a desired confidence interval half-width for a
proportion?
A)The sample size calculated will only be an approximation.
B) The standard deviation need not be calculated first in order to compute the sample
size.
C) The value for π is always set at 1.
D) The most conservative estimate for π is 0.5.
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 projected sales figure
for Silver tickets at the new price?
A) 93
B) 178
C) 202
D) 101
Below are four options for an investment decision.
Which of the following is the average utility for the bond fund decision?
A) 1.18
B) 0.38
C) 0.54
D) 0.43
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
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 operating expenses?
A) =SUM(B7:B10)
B) =SUM(B7:B9)
C) =SUM(B7:B9)-B6
D) =SUM(B7:10)-B11
Which of the following is a difference between relative addressing and absolute
addressing when using cell formulas in Excel?
A) A relative address uses a dollar sign before either the row or column label; an
absolute address uses the ampersand symbol before either the row or column label.
B) A relative address uses a dollar sign before either the row or column label; an
absolute address uses just the row and column label in the cell reference.
C) A relative address uses just the row and column label in the cell reference; an
absolute address uses a dollar sign before either the row or column label.
D) A relative address uses only the column label in the cell reference; an absolute
address uses the row.
Which of the following is true for a mode?
A) Modes are the mid values of data arranged from least to greatest.
B) Modes are affected by outliers.
C) Modes cannot be used in data having repetitious values.
D) The highest bar in a histogram is its mode.
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 is the shadow price for the finishing hours used?
A) 32.46
B) 17.39
C) 8.33
D) 6.67
Below is a spreadsheet for a hotel overbooking model.
Assume that each reservation has a constant probability p = 0.04 of being cancelled.
Answer the question(s) using the Risk Solver Platform.
Which of the following cells is defined as an output cell?
A) B13
B) B14
C) B15
D) B17
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)
Using the double exponential smoothing, find the value of the root mean square error
for the given data.
A) 8.10
B) 91.27
C) 11976.17
D) 109.44
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.
Based on the data in the table above, calculate the margin of error at 95% confidence
interval.
A) 1.84
B) 2.19
C) 2.51
D) 1.96
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.
What is the value of mean profit generated by the simulation if the purchase quantity is
equal to 45?
A) $ 234
B) $ 255
C) $ 216
D) $ 222.
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 mean obtained from the simulation results? [Hint: Choose the
approximate value.]
A) $ 119.0
B) $ 116.1
C) $ 106.2
D) $ 94.4
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 2?
A) 435.89
B) 250.78
C) 1529.39
D) 589.25
Consider the spreadsheet for a Newsvendor Model.
What is the purchase quantity lower cutoff if the likelihood is 75%?
A) 264
B) 255
C) 246
D) 228