Which of the following would be considered as an example of a proportional
relationships constraint?
A) making certain that only a certain amount of units are produced
B) guaranteeing that a certain amount of workforce will be available for a certain month
C) balancing the input to the output during production
D) ensuring that the budget allocated to marketing is thrice that of research and
development
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 2?
A) 90%
B) 25%
C) 50%
D) 75%
Which of the following is true of midspread?
A) It is an example of a measure of location.
B) It is calculated by finding the difference between the highest and lowest values in the
data set. C) It is affected by extreme values.
D) It is calculated using only the middle 50% of the data.
To select a chart type in Excel from the Charts group, which tab has to be accessed?
A) Design tab
B) Layout tab
C) Insert tab
D) Format tab
Following are the components of a data set containing purchase details of a shoe
manufacturing company. Identify the ratio data.
A) Item Number
B) Rank of suppliers
C) Item cost
D) Arrival Date
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 cost incurred by Remington for producing the
three fabrics?
A) $96,540.47
B) $149,240.47
C) $96,227.82
D) $88,862.65
Consider the spreadsheet for a Newsvendor Model.
What is the purchase quantity lower cutoff if the likelihood is 75%?
A) 264
B) 255
C) 246
D) 228
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 is the total profit generated?
A) $ 675.68
B) $ 920.57
C) $ 521.74
D) $ 788.32
Descriptive analytics:
A) can predict risk and find relationships in data not readily apparent with traditional
analyses.
B) helps companies classify their customers into segments to develop specific
marketing campaigns.
C) helps detect hidden patterns in large quantities of data to group data into sets to
predict behavior.
D) can use mathematical techniques with optimization to make decisions that take into
account the uncertainty in the data.
Which of the following is true of hierarchical clustering?
A) All clusters must have the same number of data.
B) No single cluster can have all objects
C) The data are not partitioned into a particular cluster in a single step.
D) All clusters must have more than one object in it.
The details of the clock sales at a supermarket for the past 6 weeks are shown in the
table below. The time series appears to be relatively stable, without trend, seasonal, or
cyclical effects. The simple moving average value of k is set at 2.
For the given data, the simple moving average mean absolute deviation is ________.
A) 0.21
B) 20.12
C) 14.25
D) 207.13
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
The table below shows the daily frequency of female customers at a particular ice
cream shop during discount sale periods. The data is collected for 5 days. Calculate the
mean for the data.
Coppell Services contracts with outsourcing partners to handle various customer service
functions. Based on a study of call volumes provided by one of the firm’s partners, the
minimum number of staff needed for each hour of the day is as follows:
Mr. Coppell hires 6 permanent employees and wants to staff the remaining
requirements using part-time employees who work 4-hour shifts (four consecutive
hours starting as early as 8 A.M. or as late as 1 P.M.).
How many part-time employees are present in the 8-9 time slot?
A) 4
B) 6
C) 9
D) 14
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.According to the model, which of the following production cells
covers the most distance according to its demand when using the phone charger?
A) Measurements
B) Paint
C) Electricals
D) Testing
Which of the following is the initial step in conducting a hypothesis test?
A) collecting data and calculating a test statistic
B) selecting a level of significance
C) identifying the population parameter of interest
D) determining a decision rule
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 cumulative profit in the fifth year is likely to be realized with a probability of
0.50?
A) $78,244,098
B) $101,970,955
C) $144,058,696
D) $203,676,827
What is the formula used to calculate the value of bt in the linear trend equation Ft+k =
at + btk while using double exponential smoothing?
A) bt = β(bt – bt–1) + (1 –β)bt–1
B) bt = αFt–1 + (1 – α)(at +1 + bt+1)
C) bt = αFt + (1 – α)(at –1 + bt-1)
D) bt = β(at – at–1) + (1 –β)bt–1
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.
According to the model, which of the following is the X-coordinate for the phone
charger location?
A) 2.00
B) 3.00
C) 3.50
D) 4.00
How is the return to risk described in financial statistics?
A) as the relative measure of the distance an observation is from the mean
B) as the reciprocal of coefficient of variation
C) as the square root of variance
D) as the ratio of excess returns to its standard deviation
Alternate optimal solutions exist when the ________.
A) reduced cost is equal to the shadow price
B) ratio of the objective coefficient to the constraint coefficient is one
C) Allowable Increase values for changing cells are zero
D) final value of the changing cells is greater than that of the constraints
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 coefficient of variation obtained from the simulation results of the net
present value?
A) 1.78392
B) -2.23958
C) -1.36659
D) 2.87645
Which of the following uses the sum of squares between the objects in the cluster when
measuring their distances?
A) divisive clustering
B) average group linkage clustering
C) Ward’s hierarchical clustering
D) single linkage clustering
Letherin Hides is a company that makes boots specifically targeting college students.
Forecasts of sales for the next year are 200 in the summer, 450 in the autumn, and 500
in the winter. Accessories that are used on the boots are purchased from a supplier for
$31.66. The cost of capital is estimated to be 24% per year (or 6% per quarter); thus, the
holding cost per item is 0.06($31.66) = $1.9 per quarter (rounded figure). Letherin
Hides hires freelance art designers at part-time to craft designs during the summer, and
they earn $ 6 per hour. In the autumn, labor is more difficult to keep, and the owner
must pay $6.5 per hour to retain qualified help. Because of the high demand for
part-time help during the winter holiday season, labor rates are higher in the winter, and
workers earn $7.75 per hour. Each boot design takes 2 hours to complete. How should
production be planned over the three quarters to minimize the combined production and
inventory holding costs?
The table below provides information on Letherin Hides boot design cost and
production.
According to the linear optimization model, what is the inventory held at the end of
autumn?
A) 0
B) 200
C) 950
D) 500
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