Which of the following statements is true when using the Excel Regression tool?
A) The range for the independent variable values must be specified in the box for the
Input Y Range.
B) Checking the option Constant is Zero forces the intercept to zero.
C) The Regression tool can be found in the Tools tab under Insert group.
D) Adding an intercept term reduces the analysis’ fit to the data.
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.
Philip wishes to understand the relative proportion of each data source to the total.
Which of the following charts must Philip use?
A) Pie chart
B) Bar chart
C) Scatter chart
D) Column chart
Below is the spreadsheet for Memphis Designs fixed cost model:
Which of the following constraints is used in Solver?
A) $B$14:$D$14 > = $B$18:$D$18
B) $B$16:$D$16 = binary
C) $B$19:$D$19 < = $B$8:$D$8
D) $B$15:$D$15 = binary
Pickson Luthiers Corporation makes four models of electric guitars, ScarCT, Dela Mort,
Warax, and Invazen. Each guitar must flow through five departments, assembly,
painting, sound testing, inspection, and packaging. The table below shows the relevant
data. Production rates are shown in units/hour. (ScarCT is assembled elsewhere).
Pickson wants to determine how many guitars to make to maximize monthly profit.
According to the linear optimization model, what is the total hours spent for painting all
the models?
A) 220
B) 94.94
C) 109.67
D) 199.44
Logistic regression is different from discriminant analysis in that logistic regression
________.
A) does not predict the weights
B) sets observation into predefined classes
C) does not depend on assumptions
D) depends on assumptions such as normalization of independent variables
The Atlas Movies Theater has repriced 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 new price for the three
classes obtained using Solver.
Assume the distributions of elasticities for three classes of tickets are uniform with
minimum and maximum values equal to 75% and 125% of their estimated values,
respectively. Under this assumption, use Monte Carlo simulation to see what happens to
the prediction of tickets sold. The model is simulated for 10,000 trials.
What is the mean absolute deviation obtained from the simulation results?
A) 3
B) 6
C) 8
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 is the cross-product value for Stock 2 variance?
A) 0.00080
B) -0.00080
C) -0.00075
D) 0.01132
If a model has alternative optimal solutions, ________.
A) the objective is maximized or minimized by more than one combination of decision
variables
B) there is no solution that simultaneously satisfies all the constraints
C) the objective can be increased or decreased to infinity or negative infinity
D) there is exactly one solution that will result in the maximum or minimum objective
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)
Calculate the value of the mean absolute percentage error for the given data.
A) 20.90
B) 16.60
C) 21.72
D) 29.97
Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters
as part of the winter collection for $65 with an inventory of 1500. The main selling
season is 60 days between November and December. The store then sells the remaining
units in a clearance sale at 65 percent discount. Out of the 60 main retail days, Fiberia
sells the sweaters at full retail price for only 45 days, while giving a discount of 25
percent for the remaining 15 days. The demand functions a, and b are given as 79.5 and
1.1 respectively.
Calculate the total revenue during the discount sales period.
A) $4,478.91
B) $18,921.09
C) $10,042.73
D) $43,321.09
Spam filtering for e-mails can be seen as an example of which of the following types of
approaches of data mining?
A) reduction
B) association
C) cause-and-effect modeling
D) classification
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 are the chances that the product will show a cumulative net profit in the fourth
year?
A) approximately 25%
B) approximately 18%
C) approximately 11%
D) approximately 32%
Below is a payoff table with three mortgage options:
What is the expected opportunity loss for the 3-year ARM?
A) $ 7,979.60
B) $ 3,959.40
C) $ 6,853.50
D) $ 8,621.40
The worldwide sales of cars from 1981-1990 are shown in the table below. Given: α =
0.2 and β = 0.15 (Hint: Use XLMiner)
Using the double exponential smoothing, calculate the value of the mean absolute
deviation for the given data.
A) 8.10
B) 1.80
C) 91.27
D) 11976.17
Following is the Sales database of Pointler’s Inc., a manufacturer of clothing material.
Use Excel to identify the buyer who made the highest single purchase of cotton (in
terms of sales revenue for Pointler’s Inc.) in Quintasia.
A) Peter
B) Henry
C) Philip
D) Simson
Calculate the median for the cost per order data.
A) $325
B) $154
C) $174.17
D) $88
In a database, information is stored and maintained in ________.
A) fields
B) measurements
C) entities
D) attributes
Which of the following is the equation for calculating the coefficient of variation (CV)?
A) CV = standard deviation/mean
B) CV = standard deviation – z-score/mean (total variation)
C) CV = value of observation’s distance from mean/standard deviation
D) CV = mean/(standard deviation)2
The data for the number of hand-held gaming devices sold for the past 5 weeks are 15
units, 20 units, 25 units, 30 units, and 17 units respectively. The time series appears to
be relatively stable, without trend, seasonal, or cyclical effects; thus, a moving average
model would be appropriate. Setting k = 3 the three-period moving average forecast for
week 6 is ________.
A) 20 units
B) 24 units
C) 30 units
D) 17 units
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 1?
A) 10%
B) 25%
C) 50%
D) 40%
________ is based on dividing a population into subgroups, sampling a set of
subgroups, and conducting a complete census within the subgroups sampled.
A) Cluster sampling
B) Continuous process sampling
C) Judgment sampling
D) Systematic sampling
Below is a spreadsheet for a hotel overbooking model.
Answer the following question(s) using multiple parameterized simulations. The range
of historical customer demand is 400-430. Assume a uniform integer distribution for
customer demand, and run parameterized simulations for different reservation limits.
Use 5,000 trials and 1 for random seed.
If 425 reservations are made, and there are 20 cancellations, what is the mean net
revenue generated by the simulation?
A) $ 58,000
B) $ 58,500
C) $ 59,000
D) $58,995