Which of the following is true about determining the proper form of the hypotheses?
A) H0 is statistically proved true while testing
B) failure to reject H0 proves H1 wrong
C) H0 is always assumed to be true in testing
D) H1 is always assumed to be true in testing
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 5?
A) 435.89
B) 1529.39
C) 589.25
D) 250.78
Below is a decision tree illustrating the R&D process for a new drug.
Let us assume that if market is large, payoff is lognormally distributed with a mean of
$4,900 million and a standard deviation of $1,000 million; if market is medium, payoff
is lognormally distributed with a mean of $2,500 million and a standard deviation of
$500 million; and if market is small, payoff is normally distributed with a mean of
$1,800 million and standard deviation of $200 million. Let us also assume that the cost
of clinical trials is uncertain and estimates are modeled with a triangular distribution
with a minimum of -$ 700 million, a most likely value of – $550 million, and a
maximum of -$500 million. Use 10,000 trials and a random seed of 1.
What is the value of standard deviation obtained from the simulation results? [Hint:
Choose the approximate value.]
A) $ 119.1
B) $ 116.1
C) $ 105.7
D) $ 94.4
The strength of the association rule, known as lift, is calculated as the ratio of the
________.
A) sum of the antecedents and the consequents to the antecedents
B) antecedents to the consequents
C) support to the confidence level
D) confidence to expected confidence
A graphical depiction of a frequency distribution for numerical data in the form of a
column chart is called a ________.
A) cartogram
B) correlogram
C) histogram
D) dendogram
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
What is the total cost incurred?
A) $ 27,297
B) $ 35,233
C) $ 42,675
D) $ 47,864
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, determine the cumulative probability for z at a 95% confidence
level.
A) 0.975
B) 0.950
C) 1
D) 0.987
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 full retail sales period.
A) $23,400
B) $16,200
C) $2,880
D) $17,550
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 cost difference lower cutoff in thousands of dollars if the likelihood is 60%?
A) approximately 13.56
B) approximately 22.45
C) approximately 29.67
D) approximately 38.97
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.
In statistics, ________ refers to the peakedness or flatness of a histogram.
A) Sharpe ratio
B) entropy rate
C) Markov chain
D) kurtosis
Which of the following is a difference between a mean and a median?
A) A mean divides the data half above it and half below it; a median does not.
B) A median is not affected by outliers; a mean is affected by outliers.
C) A mean is an observation that occurs most frequently; a median is the average of all
observations.
D) A median is not meaningful for ratio data; a mean is meaningful to ratio data.
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, what is the new price for Gold tickets?
A) $16.50
B) $15.50
C) $16
D) $16.11
Below is the spreadsheet for a project selection model.
Answer the following question(s) using a model with uncertainty on project selection.
Assume that the distribution on each project return is LogNormal. Use 10,000 trials and
1 for random seed for the simulation.
What is the coefficient of variation obtained from the simulation results? [Hint: Choose
the approximate value.]
A) 0.386
B) 0.589
C) 0.415
D) 0.669
Which of the following conditions is the optimal solution to the newsvendor problem,
where Q is the quantity to be purchased, and D is demand?
A) Q > D
B) Q = D
C) D > Q
D) Q / D = 0
For a one-tailed test, the critical value:
A) divides the sampling distribution into three parts.
B) is the number of standard errors away from the sample mean.
C) helps determine if the test statistic falls in the rejection region or not.
D) fails to reject the null hypothesis if the test statistic exceeds the critical value.
Monte Carlo sampling differs from Latin Hypercube sampling in that the Monte Carlo
sampling ______.
A) results in a more even distribution of output values
B) uses the entire range of the distribution in a more consistent manner
C) selects random variates independently over the entire range of possible values of the
distribution
D) uses an uncertain variable whose probability distribution is divided into intervals of
equal probability
Belowisaspreadsheetofpurchaseordersfor acomputerhardwareretailer.
To find the largest quantity of items ordered from Rex Technologies, what Excel
formula should be used in A12?
A) =COUNTIF(D4:D10)
B) =SUM(D4:D7)
C) =MAX(D4:D7)
D) =COUNT(D4:D7)
Which of the following is a disadvantage of ordinal data?
A) They bear no relationship to one another.
B) They have no fixed units of measurement.
C) They have no natural zero.
D) They are not comparable with each other.
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.
From the Sensitivity Report, which of the following would reduce the total cost by
$1.568 for each additional hour of capacity for the Jaquard looms?
A) decreasing the Northrop loom cost per hour by $0.58
B) decreasing the Northrop loom capacity down by 534.4
C) increasing the Jaquard loom capacity up by 4896.5 hours
D) increasing the Jaquard loom capacity up by 4032 hours
Below is the spreadsheet for demand prediction of a company that sells chocolates.
Given that D = a-bP, where D, is demand, “a” and “b,” are linear constants, and P, is
price, from the below spreadsheet, how will the formula in B9 be represented in Excel
using relative addressing?
A) B4-B5*A9
B) C5-C6*A10
C) B4-B5*A10
D) B5-B6*A10
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.
What is the reorder point required to attain a 95% service level?
A) 460.0
B) 750.5
C) 571.0
D) 640.5
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%
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 worldwide sales of cars from 1981 -1990 are shown in the table below. Given: α =
0.2, γ = 0.05, and season length = 1. (Hint: Use XLMiner).
Calculate the value of the mean absolute percentage error using the Holt-Winters
no-trend model for the given data.
A) 8.10
B) 18.39
C) 21.70
D) 10.97