Below is a decision tree for the airline revenue management.
What is the expected value of the ticket when a discount is offered on the full fare?
[Hint: Choose the approximate value.]
A) $ 442.50
B) $ 472.00
C) $ 410.00
D) $ 501.50
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.
What is the total profit generated?
A) $ 748.28
B) $ 687.46
C) $ 385.65
D) $ 500.00
In a curvilinear regression model, the ________ represents the curvilinear effect.
A) intercept
B) error term
C) slope
D) R Square
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 expected total return on all stocks?
A) 18%
B) 10%
C) 11%
D) 12%
The ________ is a formal statistical measure for categorical data, such as defects or
errors in quality control applications or consumer preferences in market research.
A) variance
B) proportion
C) mean
D) skewness
What is the mean absolute deviation obtained from the simulation results?
A) 39.10
B) 24.56
C) 58.75
D) 46.36
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.
What is the total profit generated from the manufacture of rivets?
A) $ 66,666.67
B) $ 100,000.00
C) $ 183,333.33
D) $ 150,000.00
A trader who wants to predict short-term movements in stock prices is likely to use
________ analytics.
A) predictive
B) descriptive
C) normative
D) prescriptive
Which of the following charts shows three-dimensional data?
A) Surface chart
B) Column chart
C) Stock chart
D) Doughnut chart
Which of the following is the rectilinear distance between the points A(13, and
B(10,12)?
A) 4
B) 25
C) 6
D) 10
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 percentage of the budget should be allocated to Stock 3?
A) 40%
B) 20%
C) 25%
D) 75%
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $ 75,000. She
expects a salary increase of 5 percent every year. Her retirement plan requires her to
pay 9 percent of her salary, while the company matches it at 32 percent. She expects an
annual return of 7 percent on her retirement portfolio. Using a predictive model for
Sheila’s first five years, calculate the following, assuming that the salary increases at the
same rate every year, and the return of interest does not change.
What will be Sheila’s salary in her second year of work at Simsin?
A) $81,750
B) $82,688
C) $78,750
D) $ 75,000
Predictive analytics:
A) summarizes data into meaningful charts and reports that can be standardized or
customized.
B) identifies the best alternatives to minimize or maximize an objective.
C) uses data to determine a course of action to be executed in a given situation.
D) detects patterns in historical data and extrapolates them forward in time.
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 projected revenue
figure for Classic tickets based on its new price?
A) $1,314.72
B) $1,116.03
C) $521.68
D) $1,312.52
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.
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.
What is the gross margin per minute of rivets manufactured?
A) $ 0.60
B) $ 0.73
C) $ 0.40
D) $ 0.27
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.
What is the total profit generated?
A) $ 748.28
B) $ 687.46
C) $ 385.65
D) $ 500.00
In classification, which of the following would be considered as a categorical variable
of interest for a credit approval decision for a requester?
A) age of the requester
B) income of the requester
C) revolving balance of the requester
D) reject or accept credit approval
For a two-sample hypothesis test for differences in population parameters (1) and (2),
which of the following is the correct form of an upper-tailed test?
A) H0: population parameter (1) – population parameter (2) ≥ 0 vs. H1: population
parameter (1) – population parameter (2) < 0
B) H0: population parameter (1) – population parameter (2) > 0 vs. H1: population
parameter (1) – population parameter (2) ≤ 0
C) H0: population parameter (1) – population parameter (2) < 0 vs. H1: population
parameter (1) – population parameter (2) > 0
D) H0: population parameter (1) – population parameter (2) ≤ 0 vs. H1: population
parameter (1) – population parameter (2) > 0
What is the expected value of perfect information?
P(P|Q) = P(Q) – P(P or Q)
What are the four different outcomes of hypothesis testing?
Define a chance constraint.
Profit is computed as the difference between total revenue from sales and total cost of
production. Revenue depends on the market share captured by a company and the size
of the target market. Various marketing decisions taken by managers are reflected upon
the market share. The decisions also have an impact on marketing costs which in turn
will affect the total cost of production. Construct an influence diagram that relates these
variables.
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.)
Conduct the appropriate type of one-sample test-statistic to determine whether the
average transportation charge is less than $430.
Blue Sunset Band is planning to record a new album. A major decision to be made is if
the band can record the album on their own, or if they should hire a studio to record it
with. The fixed cost for recording at the studio is $ 100,000, plus the manufacturing
cost per CD, which is at $5. If they record the album in- house, the cost per CD is $10.
They plan to produce 3000 copies of the album regardless of the place of recording. If
the band wished to break even with the cost, how can they achieve this by using the
Goal Seek feature in Excel?
What is the expected value of perfect information?