Which of the following denotes the power of the test?
A) α
B) 1 – β
C) β
D) 1 – α
Consider the following spreadsheet for an outsourcing decision model.
We assume that the production (demand) volume is normally distributed with a mean of
1,000 and a standard deviation of 100. For the unit cost, select the triangular
distribution. It has a minimum value of $150, most likely value of $165, and a
maximum value of $190. The number of trials per simulation is equal to 5,000 at a Sim.
Random Seed of 1. Run the simulation and answer the following question(s) using the
Risk Solver Platform.
What is the value of mode obtained from the simulation results?
A) $28,435
B) $22,485
C) $27,198
D) $25,394
If a data set has ‘c’ number of observations, the relative frequency of category ‘l’ is
computed as ________.
A) (frequency of category ‘l’) / ‘c’
B) ‘c’ (number of observations in category ‘l’)
C) (sum of all observations in category ‘l’) / ‘c’
D) sum of (‘c’ + each observation in category ‘l’)
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 distance between Shirley’s new accommodation
and Bungalow 4?
A) 14.53
B) 250.78
C) 54.62
D) 98.21
How many gallons will be sold if the price is increased to $4.75?
A) 833.26
B) 843
C) 798.72
D) 818
Observations consisting of pairs of variable data are required to construct a ________
chart.
A) doughnut
B) scatter
C) radar
D) line
Remington Textiles has a mill that produces three types of fabrics on a make-to-order
basis. The mill operates on a 24/7 basis. The key decision facing the plant manager is
about the type of loom needed to process each fabric during the coming 12 weeks to
meet demands for the three fabrics and not exceed the capacity of the looms in the mill.
Two types of looms are used: Jaquard and Northrop. Jaquard looms can be used to
make all fabrics and are the only looms that can weave certain fabrics, such as plaids.
Demands, variable costs for each fabric, and production rates on the looms are given in
the table below. The mill has 10 Northrop looms and 2 Jaquard looms. Any fabrics that
cannot be woven in the mill because of limited capacity will be purchased from an
external supplier, finished at the mill, and sold at the selling price. In addition to
determining which looms to use to process the fabrics, the manager also needs to
determine which fabrics to buy externally.
According to the model, what is the total amount of Fabric 2 to be produced with
Northrop?
A) 0
B) 62,000
C) 20,160
D) 32,595
Which of the following is true about problem solving?
A) Recognizing problems involves stating goals and objectives.
B) Analyzing the problem involves characterizing the possible decisions.
C) Decision making involves translating the results of the model in the organization.
D) Structuring the problem involves identifying constraints.
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 Sensitivity report on the model, by what price should the unit cost of
shipment reduce to make shipment from Dallas to Houston feasible?
A) $8.68
B) $2.16
C) $10.84
D) $3.41
Which of the following is an example of a measure of dispersion?
A) median
B) mode
C) variance
D) midrange
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
What is the total amount shipped by the Detroit plant to the distribution centers?
A) 750
B) 1,000
C) 1,400
D) 1,300
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 both Graystone and Lava surfboards is increased by $10, what is the
total profit generated?
A) $ 521.74
B) $ 505.43
C) $ 423.91
D) $ 619.57
Using a$ signbeforeacolumnlabel____________.
A) keeps the reference to both the row and column fixed
B) keeps the reference to the row fixed, but allows the column reference to change
C) keeps the reference to column fixed, but allows the row reference to change
D) allows both the row and column references to change
In a two-sample test for differences in means, the hypotheses are of the form:
A)
B)
C)
D)
Which of the following typically describes the support for the association rule?
A) the number of transactions that include all items that are in the antecedent parts of
the rule
B) the number of transactions that include all items in the antecedent and consequent
parts of the rule
C) the number of transactions that include half from the antecedent and half from the
consequent
D) the number of transactions that include all items that are in the consequent parts of
the rule
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
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.
Which of the following cells is defined as the uncertain output cell?
A) B13
B) C15
C) C19
D) B22
Identify the uncontrollable variable from the following inputs of a decision model.
A) investment returns
B) machine capacities
C) staffing levels
D) intercity distances
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
Consider the following spreadsheet for an outsourcing decision model.
We assume that the production (demand) volume is normally distributed with a mean of
1,000 and a standard deviation of 100. For the unit cost, select the triangular
distribution. It has a minimum value of $150, most likely value of $165, and a
maximum value of $190. The number of trials per simulation is equal to 5,000 at a Sim.
Random Seed of 1. Run the simulation and answer the following question(s) using the
Risk Solver Platform.
What is the value of standard deviation obtained from the simulation results?
A) $9,175
B) $7,884
C) $3,860
D) $12,870
Qualis Investments is a private limited business that manages personal financial
portfolios. The company manages six mutual funds and has a client that has acquired
$750,000 from an inheritance. Characteristics of the funds are given in the table below.
The company recommends that no more than $300,000 be invested in any individual
fund, and that at least $80,000 be invested in each of the mid-cap stock and mortgage
fund. The total amount invested in the low-priced and multinational funds are at least
35% of the total investment. The client would like an average return of at least 6%.
Assume that X1- X6 represent the dollar amounts invested in funds 1 through 6,
respectively.
Which of the following describes the constraint on the mid-cap fund?
A) X3 ≥ 0.35(750,000)
B) X3 ≥ 80,000
C) X3 ≥ 0.35(80,000)
D) X3 ≤ 670,000
________ involves selecting items from a population so that every subset of a given
size has an equal chance of being selected.
A) Convenience sampling
B) Subjective sampling
C) Judgment sampling
D) Simple random sampling
Belowisaspreadsheetofpurchaseordersfor acomputerhardwareretailer.
If purchase quantities of 25 units or higher are found to be large orders, and orders less
than
25 are considered to be small, what IF function should be entered in H4 to be copied to
H5:H10 to calculate each order’s size?
A) =IF(D4=AND=OR=25,”Large”,”Small”)
B) =IF(D4<>25,”Small”)=AND(D4=25,”Large”)
C) =IF(D4=25,”Large”)=OR(“Small”)
D) =IF(D4>=25,”Large”,”Small”)
Nominal data:
A) are ranked according to some relationship to one another.
B) have constant differences between observations.
C) are continuous and have a natural zero.
D) are sorted into categories according to specified characteristics.
Use the data given below to answer the following question(s).
At a casino, a combination of two spinners is used to decide the winner based on the
sum of scores from spinning. The spinners each have four colored spaces – red, yellow,
blue, and green. Red = 1, Yellow = 2, Blue = 3, and Green = 4
Compute the expected value of the random variable that denotes the possible summed
scores from the
two spinners.
Calculate the standard deviation for cost per order in the following table.
What are the properties of a probability mass function?
What is the importance of Shadow Price in the Sensitivity Report?
Explain the concept of the “flaw of averages.”
Give an account of Excel’s Descriptive Statistics Tool.
The following extract from a manufacturer’s database shows a sample of 10 suppliers,
their transportation charges, and the estimated and actual total costs of supplying
materials. (Note: Assume a significance level of 0.05 wherever necessary.)
On studying the database, the manufacturer found out that the average difference
between the estimated and actual total costs was $394. Based on the sample data, can
the manufacturer conclude that the average difference between the estimated and actual
total costs is different from zero?
Explain the process of running a simulation using Risk Solver Platform.
Which of the following computes the probability of an event P given that event Q is
known to have occurred?