Below is a room overbooking model spreadsheet for the Metza, a hotel chain. The hotel
has 425 rooms priced at $180 per day each, and is usually fully booked. Reservations
can be cancelled any time before 5:00 p.m. with no penalty. The hotel estimates an
average overbooking cost of $150. Customer demand is set at 400 with an average
cancellation of 20.
Which of the following is the excel formula used to estimate overbooked customers?
A) =MIN(0,B5-B15)
B) =MAX(0,B15-B5)
C) =MAX(B11,B12)
D) =MIN(B11-B12,B11-B14)
The confidence coefficient is denoted by:
A) α
B) 1 – β
C) β
D) 1 – α
Below is the spreadsheet for a project selection model.
Answer the following question(s) using a model with uncertainty on project selection.
Assume that the distribution on each project return is LogNormal. Use 10,000 trials and
1 for random seed for the simulation.
Which of the following cells is defined as the output cell?
A) B16
B) G16
C) G17
D) G18
If the smoothing constant is assumed to be 0.7, and setting F1 and F2 = A1, the
exponential smoothing sales forecast for week 7 is approximately ______.
A) 50 clocks
B) 80 clocks
C) 60 clocks
D) 70 clocks
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
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 total revenue during the full retail sales period.
A) $23,400
B) $16,200
C) $2,880
D) $17,550
Which of the following values of the coefficients of variation of stocks represents the
least risky stock?
A) 1.0
B) 0.005
C) 0.5
D) 0.045
A(n) ________ is a matrix whose rows correspond to decisions and whose columns
correspond to events.
A) decision tree model
B) payoff table
C) utility function table
D) scoring model
15 students were asked to choose between the broad categories of Arts, Science, and
Math as their preferred area of study.
Use the multiplication law of probability to compute the probability that the respondent
is male and prefers Math.
A) 8/75
B) 3/8
C) 3/225
D) 3/15
Following is an extract from the database of a construction company. The table shows
the height of walls in feet and the cost of raising them. The estimated simple linear
regression equation is given as Ŷ = b0 + b1X. (Hint: Use Excel functions).
What is the value of the coefficient b1?
A) 86.81704
B) 254.8371
C) 0.010697
D) -2.14625
Which of the following characterizes a random variable having two possible outcomes,
each with a constant probability of occurrence?
A) Beta distribution
B) Bernoulli distribution
C) Poisson distribution
D) Binominal distribution
Which of the following is an example of a measure of continuous metrics?
A) four errors revealed in an invoice
B) a delivery delayed by seven days
C) weight and volume of a sheet of steel
D) three incomplete orders on a day
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 prefers Science given that the respondent is
female?
A) 1/15
B) 1/7
C) 7/15
D) 4/7
Misty Inc. launches a new range of perfumes for men and women. The probability of
high consumer demand for the product is 0.6 and low consumer demand is 0.4. The
probability of a favorable survey response given high consumer demand is 0.9 and the
probability of a favorable survey response given low consumer demand is 0.2.
If the marketing report is unfavorable, what is the probability of low demand?
A) 84%
B) 90%
C) 87%
D) 80%
In a lower one -tailed hypothesis test, chosen level of significance = 0.10, sample size =
55, and t-test statistic = -1.76.
For a two-sample hypothesis which tests for differences in population parameters (1)
and (2), a two-tailed test seeks evidence that population parameter:
A) seeks evidence that population parameter (2) is larger than parameter (1).
B) seeks evidence that population parameter (2) is the same as parameter (1).
C) seeks evidence that population parameter (2) is smaller than parameter (1).
D) seeks evidence that population parameters (1) and (2) do not belong to the same
data.
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 Classic tickets?
A) $7.50
B) $12.45
C) $6.50
D) $8.20
Following is the Sales database of Pointler’s Inc., a manufacturer of clothing material.
Use Excel to identify the buyer who made the highest single purchase of cotton (in
terms of sales revenue for Pointler’s Inc.) in Quintasia.
A) Peter
B) Henry
C) Philip
D) Simson
If the given time series has a trend and no seasonality, the most appropriate forecasting
model to determine the forecast of the time series is the ________ model.
A) single exponential smoothing
B) Holt-Winters no trend smoothing
C) double exponential smoothing
D) Holt-Winters additive
On an average, the number of students that choose to study Arts subjects at Greyin Tide
University is 17 each year. (Hint: Use Poisson distribution formula).
What is the probability that exactly 13 students will take up Arts in the coming year?
A) 0.08795
B) 0.20087
C) 0.04798
D) 0.06585
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 correlation between variables X and Y.
A) 16.47
B) 0.02
C) 16.71
D) 7.04
Develop a prescriptive model that will help Goody Woods identify the price that
maximizes the total revenue.
Why is testing for independence important for businesses?
What is degeneracy in linear optimization? Give an example.
Following is an extract from a firm’s database detailing the number of hours spent on
the job by employees and their corresponding pay. (Note: Assume a level of
significance of 0.05 wherever necessary.)
Construct a scatter diagram and use the Excel Trendline tool to find the best-fitting
simple linear regression model.
Explain how a two-way data table is created.
How are objects clustered in agglomerative hierarchical clustering?
During a study, individuals were asked to rate a product on a scale of 1-5. From the
following data, help the researcher determine whether any significant differences exist
in opinions among individuals from different regions. (Note: Assume a significance
level of 0.05 wherever necessary.)
Brenton joined the Kroos Corporation at a starting salary of $61,500. According to the
company’s retirement plan, Brenton has to make a retirement contribution of 6 percent
of his salary. The company contributes 30 percent of this amount. Brenton is expected
to receive a salary increment of 3.5 percent per year for the next three years. Brenton is
also expected to receive an annual investment return of 8 percent on the plan. Assuming
the same rate of salary increases and investment returns each year, calculate the total
balance of the retirement plan in its second year.