Point estimates do not provide any indication of the magnitude of the potential error in
the estimate.
Any solution that satisfies all constraints of a problem is called a feasible solution.
Logistic regression cannot be employed when the dependent variable is binary.
In predictive analysis models, a second-order polynomial has only one hill or valley.
A constraint function is a function of the decision variables in the problem.
A value at risk measure is more conservative in nature than a conditional value at risk
measure.
A correlation of 0 indicates that the two variables have no linear relationship with each
other.
For any sample of fixed size n, the true standard deviation of the sampling distribution
of the mean is the standard deviation of the population.
A value at risk measure is more conservative in nature than a conditional value at risk
measure.
Whenever a constraint has positive slack, the shadow price is equal to one.
In predictive analysis models, a second-order polynomial has only one hill or valley.
If the Integer Tolerance is set to 0.01, the Solver will stop if it finds an integer solution
that is within 10% of the optimal solution.
For nonlinear models, the Lagrange multipliers are only approximate indicators of
shadow prices.
Theeasiestway tolocateaparticularfunctionistoselectacellandclickon theInsert
function button represented by
A) fx
B) Σ
C) $
D) %
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 Sensitivity Report, by how much should the unit profit on ScarCT be
increased in order for its production to be feasible?
A) $30
B) $90
C) $60
D) $120
Which of the following Lookup functions returns the relative position of an item in an
array that equals a specified value in a specified order?
A) HLOOKUP(lookup_value, table_array, row_index_num)
B) MATCH(lookup_value, lookup_array, match_type)
C) INDEX(array, row_num, col_num)
D) VLOOKUP(lookup_value, table_array, col_index_num)
In a lower one -tailed hypothesis test, chosen level of significance = 0.10, sample size =
55, and t-test statistic = -1.76.
Which of the following computes the test statistic for a one-sample test for proportions?
A) z =
B) z =
C) z =
D) z =
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
Which of the following tests is used to determine if two categorical variables are
independent?
A) Chi-square test
B) t-test
C) z-test
D) ANOVA
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 coefficient of variation obtained from the simulation results for maximizing
the total expected return? [Hint: Choose the approximate value.]
A) 1.2451
B) 0.4865
C) 0.8917
D) 0.1284
If the payoff is $2200 and R is equal to $500, what is the utility function?
A) 0.9877
B) 0.6819
C) 0.7645
D) 0.4502
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails,
rivets, and clips-which are machined on two CNC machining centers. The machining
centers have a capacity of 250,000 minutes per year. The gross margin per unit and
machining requirements are shown in the spreadsheet below.
When a model has a unique optimal solution, it means that ________.
A) the objective is maximized or minimized by more than one combination of decision
variables
B) there is no solution that simultaneously satisfies all the constraints
C) the Allowable Increase or Allowable Decrease values for changing cells are zero
D) there is exactly one solution that will result in the maximum or minimum objective
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 income value using
only the information in the Model, and not in the Data section?
A) =B5-B17
B) =B6-B15
C) =B15-B16-B17+B18
D) =B18-B11
Below is the spreadsheet for a project selection model:
What is the total amount of personnel used for all five projects?
A) 23
B) 17
C) 10
D) 4
The effectiveness of a classification rule can be judged making a probability of
misclassification errors and summarizing the results in a ________.
A) classification matrix
B) classification hierarchy
C) dendogram
D) classification algorithm
In the z-score formula, which of the following is true if the value in the numerator is a
negative value?
A) that the xi value lies to the left of the mean
B) that the mean is of lesser value than the xi value
C) that the mean is of negative value
D) that the numerator value cannot be divided by the standard deviation
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.
According to the model, which of the following is the weighted distance between the
phone charger and Paint cell?
A) 36.00
B) 12.00
C) 24.00
D) 0
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 for
packaging the Invazen models?
A) 8
B) 16
C) 20
D) 10
Consider the spreadsheet for a Newsvendor Model.
What is the value of mean absolute deviation?
A) $8.91
B) $5.45
C) $12.35
D) $15.64
If the payoff is $2200 and R is equal to $500, what is the utility function?
A) 0.9877
B) 0.6819
C) 0.7645
D) 0.4502
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
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, what is the new price for Silver tickets?
A) $7.40
B) $12.17
C) $11.50
D) $12.50
The formula for a 100(1 – α)% confidence interval for the mean μ when the
population standard deviation is unknown is __________.
A) xi – /(σ / √ )
B) tα/2n-1(s / √ )
C) zα/2 (σ/ √ )
D)
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 increase in total cost?
A) $ 280
B) $ 590
C) $ 353
D) $ 450
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails,
rivets, and clips-which are machined on two CNC machining centers. The machining
centers have a capacity of 250,000 minutes per year. The gross margin per unit and
machining requirements are shown in the spreadsheet below.
What is the gross margin per minute of plugs manufactured?
A) $ 0.60
B) $ 0.73
C) $ 0.40
D) $ 0.27
Jonathan Reese is considering three stocks in which to invest with a fixed budget. The
table below provides information on Jonathan’s expected returns for each stock. The
table also provides information, collected from market researchers, on the
variance-covariance matrix of the individual stocks. He expects a total return of at least
10%.
Develop a quadratic optimization model to find the optimal allocation of the budget to
each stock, and variance calculations for squared terms and cross-products based on the
variance-covariance matrix.
According to the model, what is the cross-product value for Stock 1 variance?
A) 0.00176
B) 0.00450
C) -0.00047
D) 0.00194
What are the benefits of a Risk Solver Platform sensitivity chart?
What is Monte Carlo simulation?
How are probability, experiment, outcome, and sample space related to each other?
Exemplify the k-Nearest Neighbor algorithm of classification.
What are the benefits of a Risk Solver Platform sensitivity chart?
Discuss how overbooking decisions are made by service businesses.
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.
From the above table, provide the objective function for the best location of the
charging point. What kind of solution technique from Solver can be used to make the
optimization model based on the data?
What is the probability that profit will be between $2,000 and $2,200?
What are the four possible outcomes that can be obtained by solving a linear
optimization model?