______are mathematical functions used in predictive analytical models which define
phenomena that increase at a specific rate, and is represented by the formula y = axb
A) Exponential functions
B) Power functions
C) Polynomial functions
D) Logarithmic functions
Below is a payoff table with three mortgage options:
What is the expected opportunity loss for the 3-year ARM?
A) $ 7,979.60
B) $ 3,959.40
C) $ 6,853.50
D) $ 8,621.40
In the equation to calculate the economic value of a customer, V = R F M / D, how is
the value for F estimated?
A) It is estimated to be the total number of purchases the customer has made.
B) It is estimated to be the number of visits of the customer without actually spending
on an item.
C) It is estimated to be the purchase frequency per year.
D) It is estimated to be the number of customers defecting per year.
The Delphi method used for forecasting:
A) obtains forecasts through a comparative analysis with a previous situation.
B) uses measures that are believed to influence the behavior of a variable that the
researcher wishes to forecast.
C) uses a single measure that weights multiple indicators and provides a measure of
overall expectation.
D) uses a panel of experts, whose identities are typically kept confidential from one
another, to respond to a sequence of questionnaires.
Uniform or triangular distributions are used in the absence of data.
Which of the following would be considered a lagging measure in a restaurant using the
cause-and-modeling method of data mining?
A) a manager who is having trouble meeting the daily demands
B) a waiter’s behavior toward a customer
C) an accurately billed meal
D) a satisfied customer
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.
What is the value of mean obtained from the simulation results? [Hint: Choose the
approximate value.]
A) $ 405,897
B) $ 358,138
C) $ 269,406
D) $ 452,785
Which of the following is true of the coefficient of skewness (CS)?
A) If the CS is positive, the distribution of values tails off to the left.
B) If the CS value is between 0.5 and 1, the skewness is considered to be moderate.
C) If the CS is closer to zero, the degree of skewness is considered to be high.
D) If the CS value is between -0.5 and -1, the skewness is considered negligible.
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.
If the unit profit on Graystone surfboards is increased by $10, what is the Allowable
Increase for Lava surfboards?
A) 30.00
B) 85.00
C) 16.67
D) 58.75
Below is the spreadsheet for a project selection model:
What is the amount of cash used for Project 5?
A) $ 65,000
B) $ 117,000
C) $ 13,000
D) $ 110,000
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
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)
Identify the correct statement from the following.
A) The events that a respondent is female and chooses Math are not independent.
B) All events are independent of each other.
C) The events that a respondent is male and chooses Science are not dependent.
D) The events that a respondent is female and that she chooses Science are independent.
In the equation Cp = (upper specification – lower specification)/total variation, what
does Cp denote?
A) capacity variation index
B) capability pattern
C) process capability index
D) capability push
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 is the total hours spent for painting all
the models?
A) 220
B) 94.94
C) 109.67
D) 199.44
Troista Mobile Accessories sells mobile apps on their Web site. If a customer spends on
average, $12 per visit and visits the Web site 20 times each year, what is the average
nondiscounted gross profit during a customer’s lifetime? Given that Troista makes a
margin of 60 percent on the average bill, with 25 percent of customers not returning
each year.
A) $30
B) $75
C) $360
D) $576
Descriptive decision models:
A) aim to predict what will happen in the future.
B) describe relationships but do not tell a manager what to do.
C) help analyze the risks associated with various decisions.
D) do not facilitate evaluation of different decisions.
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 number of units sold during the full retail sales period.
A) 33.33
B) 520
C) 187.5
D) 360
Which of the following is true about constructing PivotTables?
A) It is not possible to construct the PivotTable in the same worksheet.
B) Dragging a field into the Report Filter area allows addition of a third dimension to
the analysis.
C) Placing a field each in the row and column labels will automatically sum the variable
values in the table.
D) PivotTables cannot be duplicated by copying and pasting an existing table.