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.
From the Sensitivity Report on the model, to which of the following cities can Atlanta
not ship to without reducing unit cost of production?
A) Houston
B) San Jose
C) Jacksonville
D) Memphis
The R2 value:
A) is the variability of the observed Y-values from the predicted values.
B) indicates that as the independent variable increases, the intercept term does too.
C) gives the proportion of variation in the dependent variable that is explained by the
independent variable.
D) transforms the cumulative probability scale (vertical axis) so that the graph of the
cumulative normal distribution is a straight line.
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
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
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 standard deviation for Y.
A) 49.57
B) 16.47
C) 7.04
D) 2.6
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 squared term value for Stock 3 variance?
A) 0.00018
B) 0.00080
C) 0.00096
D) 0.00194
Which of the following is the mathematical model for deriving total cost of only
outsourcing?
A) TC = Q x C
B) TC = F + (C x Q)
C) TC = (V +
C) x Q
D) TC = (VC + F) x Q
Which of the following characterizes a continuous random variable for which all
outcomes between some minimum and maximum value are equally likely?
A) exponential distribution
B) uniform distribution
C) normal distribution
D) lognormal distribution
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 total amount to be produced in
summer?
A) 200
B) 100
C) 550
D) 0
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 weighted distance between Shirley’s new
accommodation and Bungalow 3?
A) 3152.08
B) 1529.39
C) 346.77
D) 250.78
Which of the following formula is used to compute covariance between two variables X
and Y?
A) cov (X,Y) =
B) cov (X,Y) =
C) cov (X,Y) =
D) cov (X,Y) =
Which of the following will hold true if events X and Y are independent?
A) P(X) = P(Y) P(X and Y)
B) P(Y) = P(X|Y)
C) P(X and Y) = [P(X) + P(Y)] – P(X or Y) D) P(X) = P(X|Y)
Below are four options for an investment decision.
Which of the following is the average utility for the index fund decision?
A) 1.05
B) 0.70
C) 0.60
D) 0.45
Given that Q = order quantity, D = annual demand, C = unit cost of the item, C0 = cost
per order placed, i = inventory carrying charge per unit, which of the following
represents the holding cost per unit?
A) D/Q
B) iC
C) (D/Q)C0
D) iCQ/2
The exponential distribution:
A) has the density function f (x) = e-λx , for x ≥ 0.
B) models the time between randomly occurring events.
C) has an expected value λ.
D) is described by the familiar bell-shaped curve.
Which of the following is true of an unbiased estimator value?
A) The expected value will align perfectly with the population mean.
B) The expected value will not equal the population’s parameters.
C) The expected value will not be greater than zero.
D) The expected value will equal the population’s parameter.
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the total cost incurred by the company?
A) $ 8,345.00
B) $ 10,756.80
C) $ 7,289.62
D) $ 9,582.75
A manager at Gampco Inc. wishes to know the company’s revenue and profit in its
previous quarter. Which of the following business analytics will help the manager?
A) prescriptive analytics
B) normative analytics
C) descriptive analytics
D) predictive analytics
Uniform or triangular distributions are used in the absence of data.
Following is an extract from the Employee Payroll Database of HFR Informatics Inc.
What is the cumulative relative frequency of Ranks 1 and 2?
A) 0.80
B) 0.15
C) 0.30
D) 0.25
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 Y-coordinate for the phone
charger location?
A) 1.50
B) 1.00
C) 3.00
D) 5.00
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
Which of the following is the equation used for computing the sample correlation
coefficient?
A) rxy = cov(X,Y)(sxsy)
B) rxy = cov(X,Y)/SxSy
C) rxy =
D) rxy =
The following table lists the amounts paid in mortgages as a percentage of the
household income in the town Aponia. Calculate the variance and standard deviation of
the data, if mean is given as 22.4%. The percentage (x) values are estimated as
midpoints of each percentage range.
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 Gold tickets based on its new price?
A) $432.93
B) $1,316.92
C) $1,116.03
D) $523.29