An outcome over which the decision maker has complete control is called an event
node.
A service level is a constraint that represents the probability that demand can be
satisfied.
Infeasible problems can occur when the demand requirement is higher than the
available capacity.
Solver can generate a Sensitivity report for integer models.
The economic order quantity is the amount to order that minimizes the total cost of
ordering and holding.
Infeasible problems can occur when the demand requirement is higher than the
available capacity.
Estimators are the measures used to estimate population parameters.
The average payoff strategy weights the likelihood that the actual outcomes can occur.
For nonlinear models, the Lagrange multipliers are only approximate indicators of
shadow prices.
The larger the variance, the more the data are spread out from the mean.
The average payoff strategy weights the likelihood that the actual outcomes can occur.
If a time series has seasonality but no trend, the most appropriate model used for
forecasting is the Holt-Winters multiplicative model.
A global optimum solution is one for which all points close by are no better than the
solution.
Mathematically, a binary variable x can be represented as x > 2 and integer.
Convenience sampling is an example of a probabilistic sampling method.
If P(X|Y) = P(X), it implies that event Y is dependent on event X.
Which of the following distributions is appropriate when the probability of zero is very
low, but the most likely value is just greater than zero?
A) triangular distribution
B) exponential distribution
C) lognormal distribution
D) beta distribution
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.).
Which of the following best defines a binary variable?
A) It is a general integer variable that is restricted to being between -1 and 1.
B) It is a general integer variable that is restricted to being a multiple of 2.
C) It is a general integer variable that is restricted to being between 0 and 1.
D) It is a general integer variable that is restricted to being greater than 2.
The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas
and Atlanta. They ship them to major distribution centers in Houston, San Jose,
Jacksonville, and Memphis. The accounting, production, and marketing departments
have provided the information in the table below, which shows the unit cost of shipping
between any plant and distribution center, plant capacities over the next planning
period, and distribution center demands. RTC’s supply chain manager faces the problem
of determining how much to ship between each plant and distribution center to
minimize the total transportation cost, not exceed available capacity, and meet customer
demand.
Assume Xij = amount shipped from plant i to distribution center j, where i = 1
represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on.
According to the transportation model, what is the amount shipped from Atlanta to
Memphis?
A) 480
B) 0
C) 230
D) 950
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
The worldwide sales of cars from 1981 -1990 are shown in the table below. Given: α =
0.2, γ = 0.05, and season length = 1. (Hint: Use XLMiner).
Determine the value of the mean absolute deviation using the Holt-Winters no-trend
model for the given data.
A) 367.35
B) 18.39
C) 21.70
D) 252.55
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
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 standard deviation for Y.
A) 49.57
B) 16.47
C) 7.04
D) 2.6
Below is a spreadsheet for Stone Age Surfboards.
Assume that the finishing time for a pair of Rockwell surfboards is triangular with a
minimum value of 1.4, a most likely value of 1.5, and a maximum value of 1.8 and that
finishing time for a pair of Limestone surfboards is also triangular with a minimum
value of 1.8, a most likely value of 2.0, and a maximum value of 2.4. The number of
trials per simulation is equal to 5000.
What is the value of standard deviation obtained from the simulation results?
A) 1.20
B) 2.50
C) 3.80
D) 5.00
Which of the following is the probability mass function of the Bernoulli distribution?
A)
B)
C)
D)
The data for the number of hand-held gaming devices sold for the past 5 weeks are 15
units, 20 units, 25 units, 30 units, and 17 units respectively. The time series appears to
be relatively stable, without trend, seasonal, or cyclical effects; thus, a moving average
model would be appropriate. Setting k = 3 the three-period moving average forecast for
week 6 is ________.
A) 20 units
B) 24 units
C) 30 units
D) 17 units
The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas
and Atlanta. They ship them to major distribution centers in Houston, San Jose,
Jacksonville, and Memphis. The accounting, production, and marketing departments
have provided the information in the table below, which shows the unit cost of shipping
between any plant and distribution center, plant capacities over the next planning
period, and distribution center demands. RTC’s supply chain manager faces the problem
of determining how much to ship between each plant and distribution center to
minimize the total transportation cost, not exceed available capacity, and meet customer
demand.
Assume Xij = amount shipped from plant i to distribution center j, where i = 1
represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on.
In a sensitivity report, a solution is considered a(n) ________ solution if the
right-hand-side value of any constraint has a zero Allowable Increase or Allowable
Decrease.
A) algorithmic
B) unbounded
C) infeasible
D) degenerate
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 2 variance?
A) 0.00080
B) -0.00080
C) -0.00075
D) 0.01132
How many gallons will be sold if the price is increased to $4.75?
A) 833.26
B) 843
C) 798.72
D) 818
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 value of safety stock at a 95% service level?
A) 45
B) 71
C) 120
D) 95
Thereflectstheopportunitycosts ofspendingfunds now versus achievingareturn
through another investment, as well as the risks associated with not receiving returns
until a later time.
A) modified internal rate of return
B) payback period
C) accounting rate of return
D) discount rate
For the given data, calculate the value of the simple moving average mean absolute
percentage error.
A) 20.90
B) 23.45
C) 14.39
D) 25.56
For a simple linear regression model, significance of regression is:
A) a measure of how well the regression line fits the data.
B) a hypothesis test of whether the true regression coefficient 1 is zero.
C) a statistic that modifies the value of R2 by incorporating the sample size and the
number of explanatory variables in the model.
D) the variability of the observed Y-values from the predicted values.
Peige, a stock broker, has data consisting of price, price/earnings ratio, and market
capitalization for seven different stocks on one particular day. She wishes to plot these
three variables in two dimensions. Which of the following charts must Peige use?
A) Stock chart
B) Surface chart
C) Bubble chart
D) Line chart
How does Excel distinguish between vertical and horizontal bar charts?
What are the two basic properties of a linear optimization model?
What is the probability that profit will be between $2,000 and $2,200?
Describe the steps involved in the construction of a decision tree.
What is a service level?
What is a conditional value at risk constraint?
Explain the travelling salesperson problem with examples.
Describe the method of calculating the net present value (NPV) in Excel.
What is a confidence interval in sampling?
What are the differences between an aggressive strategy and a conservative strategy?