While testing for equality of variances, which of the following formulae gives the F-test
statistic?
A)
B)
C)
D)
In sampling, ________ involves assessing the value of an unknown population
parameter’“ such as a population mean, population proportion, or population
variance’“using sample data.
A) distribution
B) randomization
C) estimation
D) substitution
Which of the following is true about the value of the power of the test?
A) low value will enable valid conclusions to be made
B) small sample sizes generate a low value of the power of the test
C) low value will help in detecting small differences in sample statistics
D) small sample sizes incur higher costs than large sample sizes
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.
Use the spreadsheet below for Stone Age Surfboards to answer the following
question(s) using integer constraints on variables in the optimization models using the
standard Solver.
Which of the following constraints Solver uses?
A) $B$14:$C$14 = integer
B) $D$15 > = $D$6
C) $D$16 > = $D$7
D) $D$19 < = 0
________ 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
Which of the following solving methods is selected in the Solver dialog for linear and
linear integer optimization problems?
A) GRG Nonlinear
B) Simplex LP
C) SOCP Barrier Engine
D) Evolutionary
A regression model that involves a single independent variable is called _____.
A) single regression
B) unit regression
C) simple regression
D) individual regression
Below is a payoff table that lists four mortgage options:
The probability of rates rising is 0.6, rates stable is 0.3, and rates falling is 0.1. Answer
the following questions by creating a decision tree.
Which of the following is considered the worst expected value decision?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
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 mean for X.
A) 16.71
B) 7.04
C) 2.67
D) 0.02
Which of the following types of sampling involves using random procedures to select a
sample?
A) judgment sampling
B) probabilistic sampling
C) subjective sampling
D) convenience sampling
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 mean absolute deviation obtained from the simulation results?
A) $10,893
B) $3,476
C) $7,443
D) $5,885
Which of the following is the test statistic for a one-sample test for mean when the
population standard deviation is unknown?
A) t =
B) z =
C) z =
D) t =
Below is a spreadsheet for Trance Electronics.
Suppose that the project manager of Trance Electronics has identified the following
uncertain variables in the model and the distributions and parameters that describe
them, as follows: Market size: normal with mean of 20,000,000 units and standard
deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and
$800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation
$30,000,000. Annual market growth factor: triangular with minimum = 2%,
maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum =
25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run
the simulation and answer the following questions using the Risk Solver Platform.
What is the risk that the net present value over the 5 years will not be positive?
A) approximately 40%
B) approximately 57%
C) approximately 24%
D) approximately 77%
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 1 to be purchased?
A) 27,420.8
B) 50,000
C) 22,579.2
D) 32,595
Which of the following is true for a median?
A) A median is only meaningful for interval or ordinal data and not for ratio data.
B) Medians can be calculated no matter how the data is arranged.
C) Medians are affected by outliers.
D) For an even number of observations, the median is the mean of the two middle
numbers.
Use the table below to answer the following question(s).
The historical data of Velvetta Inc., a healthcare products manufacturer, have shown
that in a production process for filling bottles of shampoo, variance in the volume is
constant; however, clogs in the filling machine often affect the mean volume. The
historical standard deviation is 5 milliliters. In filling 250-milliliter bottles, a sample of
20 found a meanvolume of 242 milliliters.
From the table above, calculate the / value at a 95% confidence interval.
A) 1.64
B) 1.84
C) 1.96
D) 2.19
________ sampling applies to populations that are divided into natural subsets and
allocates the appropriate proportion of samples to each subset.
A) Systematic
B) Stratified
C) Cluster
D) Continuous process
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential
new drug. The total R&D costs are estimated to reach around $875,000,000 with
clinical trials mounting to $145,000,000. The current market size is estimated to be
around 3,000,000 and is expected to grow at 4 percent every year. The market share
Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25
percent each year for the next 4 years. A monthly prescription is anticipated to generate
revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is
assumed.
Calculate the annual cost incurred for the second year.
A) $1,224,120,000
B) $884,520,000
C) $491,400,000
D) $638,820,000
Which of the following best defines Monte Carlo simulation?
A) It is a tool for building statistical models that characterize relationships among a
dependent variable and one or more independent variables.
B) It is a collection of techniques that seeks to group or segment a collection of objects
into subsets.
C) It is the process of selecting values of decision variables that minimizes or
maximizes some quantity of interest.
D) It is the process of generating random values for uncertain inputs in a model and
computing the output variables of interest.
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 to be normally distributed using the function =
PsiNormal(20000,2000)?
A) B5
B) B6
C) B7
D) B12
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 following table exhibits the age of antique furniture and the corresponding prices.
Use the table to answer the following question(s). (Hint: Use scatter diagram and the
Excel Trendline tool where necessary).
What is the relationship between the age of the furniture and their values?
A) Nonlinear
B) Linear
C) Curvilinear
D) No relationship
Which of the following is a difference between the t-distribution and the standard
normal distribution?
A) The t-distribution cannot be calculated without a known standard deviation, while
the standard normal distributions can be.
B) The standard normal distribution’s confidence levels are wider than those of the
t-distribution.
C) The t-distribution has a larger variance than the standard normal distribution.
D) The standard normal distribution is dependent on parameters like degrees of
freedom, while t-distribution is not.