To use the VLOOKUP(lookup_value, table_array, col_index_num), the table must be
sorted in descending order.
For a two-sample test for means with the population variance being known, the Excel
procedure used is the Excel z-test.
The Excel function NORM.DIST finds probabilities for the standard normal
distribution.
When interpreting sensitivity analysis information for changes in model parameters, all
other model parameters are held constant.
Linear optimization cannot be used on problems having multiple time periods.
Degeneracy does not impact the interpretation of sensitivity analysis information.
Point estimates do not provide any indication of the magnitude of the potential error in
the estimate.
To invoke the binary constraints on the variables, the option bin is chosen from the
dropdown box in the Add Constraint dialog.
In stock trading, the higher the coefficient of variation for the stock, the smaller the
relative risk is for the return provided.
A deterministic model is one in which all model input information is either known or
assumed to be known with certainty.
In predictive modeling, validity refers to how well a model represents reality.
In a minimin strategy, the decision which minimizes the minimum payoff is chosen.
Indicators are measures that are believed to influence the behavior of a variable an
individual wishes to forecast.
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the inventory at the end of the first quarter?
A) 725
B) 525
C) 50
D) 75
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
While rolling two dice, what is the probability of rolling a sum of 7 or more?
A) 7/12
B) 5/9
C) 1/6
D) 5/36
Consider the spreadsheet for a Newsvendor Model.
What is the value of mode?
A) $228
B) $245
C) $255
D) $264
A probability density function:
A) is the probability distribution of discrete outcomes.
B) suggests that the probability that a random variable assumes a specific value must be
positive.
C) characterizes outcomes of a continuous random variable.
D) can yield negative values depending on the values of the random variable, X.
Below is a spreadsheet for a hotel overbooking model.
Assume that each reservation has a constant probability p = 0.04 of being cancelled.
Answer the question(s) using the Risk Solver Platform.
With respect to B12, what is the range for values given in the Parameters section in the
Discrete dialog?
A) $E$2:$E$13
B) $D$2:$D$8
C) $D$2:$D$13
D) $E$2:$E$8
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 2?
A) 91.16
B) 23.12
C) 98.21
D) 14.53
While constructing a histogram, how is group width calculated?
A) number of groups (lower limit of the last group + upper limit of the first group)
B) (upper limit of the last group – lower limit of the first group) / number of groups
C) (upper limit of the first group + number of groups) lower limit of the last group +
number of groups)
D) (lower limit of the first group – number of groups) upper limit of the last group
Stone Age Surfboards is a small manufacturer of two types of popular high-tide
surfboards, the Rockwell and the Limestone models. The manufacturing process
consists of two departments: fabrication and finishing. The fabrication department has
15 skilled workers, each of whom works 5 hours per day. The finishing department has
5 workers, who also work a 5-hour shift. Each pair of Rockwell surfboards requires 3
labor hours in the fabrication department and 1.5 labor hours in finishing. The
Limestone model requires 4.5 labor- hours in fabrication and 2 labor-hours in finishing.
The company operates 6 days a week. It makes a per-unit profit of $60 on the Rockwell
model and $75 on the Limestone model. Approximately 4.1 Rockwell models and 8.4
Limestone models are produced per day.
What is the total profit generated?
A) $ 876.00
B) $ 675.50
C) $ 480.50
D) $ 965.00
The table provided below gives the sales details of the number of android smart phones
at an electronic retail store for the past 6 weeks. The time series appears to be relatively
stable, without trend, seasonal, or cyclical effects. (Hint: Optimize α value in 0.1
increments)
What is the difference between the forecasted and the actual value for the 3rd week?
A) 1 phones
B) 6 phones
C) 4 phones
D) 3 phones
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, which of the following is the total projected revenue
for the new sales figures?
A) $1,637.72
B) $2,970.09
C) $1,316.92
D) $2,865.89
Belowisaspreadsheetofpurchaseordersfor acomputerhardwareretailer.
To find the number of orders with A/P terms less than 25 months, what Excel formula
should be used in A12?
A) =COUNTIF(F4:F10,”<25″)
B) =COUNT(F4:F10,25)
C) =AVERAGE(F4:F10,”<25″)
D) =COUNTIF(F4:F10,F5)
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
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.
What will be the total profit contribution from Graystone surfboards?
A) $ 391.30
B) $ 521.74
C) $ 130.43
D) $ 276.65
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 operating expenses?
A) =SUM(B7:B10)
B) =SUM(B7:B9)
C) =SUM(B7:B9)-B6
D) =SUM(B7:10)-B11
A company makes standard 130- inch-wide rolls of thin sheet metal and slits them into
smaller rolls to meet customer orders for widths of 10, 14, and 25 inches. Suppose that
the company has proposed the following cutting patterns:
Demands for the coming week are 950 10-inch rolls, 725 14-inch roles, and 640
25-inch rolls. Develop a model using the Analytic Solver Platform that will determine
how many 130-inch rolls to cut into each of the six patterns in order to meet demand
and minimize scrap.
What is the total number of 25-inch rolls produced?
A) 630
B) 635
C) 640
D) 645
Which of the following is true of the lift value in association rule?
A) Its strength is directly proportional to the strength of the association rule.
B) It cannot have a value that is more than 1 to be considered a good minimum.
C) It provides information on the increase of the antecedent given the consequent.
D) It does not require the expected confidence to be calculated.
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 mean absolute deviation obtained from the simulation results? [Hint:
Choose the approximate value.]
A) $ 119.0
B) $ 116.1
C) $ 105.7
D) $ 94.0
Type II error occurs when the test:
A) correctly fails to reject an actually true null hypothesis.
B) incorrectly fails to reject an actually false null hypothesis.
C) correctly rejects an actually false null hypothesis.
D) incorrectly rejects an actually true null hypothesis.
For a lower-tail test, the p-value in the output from an Excel tool:
A) is correct if the test-statistic is negative.
B) is the difference from 1.0 if the test-statistic is negative.
C) is correct if the test-statistic is zero.
D) is correct if the test-statistic is positive.
Below is the spreadsheet for a project selection model:
What is the amount of cash used for Project 2?
A) $ 105,000
B) $ 25,000
C) $ 115,000
D) $ 70,000
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 a similarity between a midrange and a mean?
A) Both measures are calculated using all the values in a data set.
B) Both measures are affected by outliers.
C) Both measures divide the data into two equal halves.
D) Both measures can only be used for small sample sizes.
Below is a table showing the costs per order of items bought by a computer hardware
store.
Calculate the mode for the cost per order data.
A) $174.17
B) $325
C) $88
D) $206.5
Develop a linear model relating the demand for Goody Woods’ units to the price.
Explain how data-mining using lagging and leading measures of the cause-and-effect
model can help managers make business decisions.
What is the importance of binary variables in integer optimization models?
What is statistical thinking? How is it important to making business decisions?
Explain the process of running a simulation using Risk Solver Platform.
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.
Keychain Publishing is planning to release two books, simultaneously, by the same
author. One is a fictional book, while the other is the author’s autobiography. The details
of its cost, production, and demand are given in the table below.
Keychain Publishing has $150,000 available to bind books and advertise them with an
objective of maximizing profit contribution. Provide the objective function for
maximizing profits, along with its constraints.
What is simple exponential smoothing?