________ sampling applies to populations that are divided into natural subsets and
allocates the appropriate proportion of samples to each subset.
A) Systematic
B) Stratified
C) Cluster
D) Continuous process
In a lower one -tailed hypothesis test, chosen level of significance = 0.10, sample size =
55, and t-test statistic = -1.76.
For a two-sample hypothesis which tests for differences in population parameters (1)
and (2), a two-tailed test seeks evidence that population parameter:
A) seeks evidence that population parameter (2) is larger than parameter (1).
B) seeks evidence that population parameter (2) is the same as parameter (1).
C) seeks evidence that population parameter (2) is smaller than parameter (1).
D) seeks evidence that population parameters (1) and (2) do not belong to the same
data.
Which of the following describes dispersion in statistics?
A) the degree of variation in the data
B) the central value in the data
C) the frequency of values in the data
D) the measure of outliers in the data
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
Regression models of ________ data focus on predicting the future.
A) missing
B) time-series
C) panel
D) cross-sectional
An infeasible problem is one for which ________.
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
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the binary constraint at the end of the third quarter?
A) 75
B) 200
C) 450
D) 0
Which option in Risk Solver Platform allows you to choose the number of times that
random values can be generated for the uncertain cells in the model?
A) Trials per Simulation
B) Simulations to Run
C) Only Run
D) Sim.Random Seed
In the ________ method, the distance between groups is defined as the distance
between the closest pair of objects, where only pairs consisting of one object from each
group are considered. A) Ward’s linkage clustering
B) single linkage clustering
C) divisive clustering
D) average group linkage clustering
Which of the following measures of location is calculated using the formula is the
number of observations?
A) midrange
B) sample mean
C) mode
D) median
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the net production at the end of the second quarter?
A) 75
B) 200
C) 450
D) 600
Below is a room overbooking model spreadsheet for the Metza, a hotel chain. The hotel
has 425 rooms priced at $180 per day each, and is usually fully booked. Reservations
can be cancelled any time before 5:00 p.m. with no penalty. The hotel estimates an
average overbooking cost of $150. Customer demand is set at 400 with an average
cancellation of 20.
Calculate the net revenue.
A) $72,900
B) $76,500
C) $64,650
D) $68,400
15 students were asked to choose between the broad categories of Arts, Science, and
Math as their preferred area of study.
What is the probability that a respondent prefers Science given that the respondent is
female?
A) 1/15
B) 1/7
C) 7/15
D) 4/7
Which of the following data sets provides the most realistic estimate of the performance
of a model on completely unseen data?
A) validation data set
B) test data set
C) training data set
D) linear regression data set
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 expected value margin obtained from the simulation results of the net
present value?
A) 0.864
B) -0.726
C) 0.343
D) -0.467
Which of the following is a valid one-sample hypothesis test?
A) H0: population parameter ≠constant vs. H1: population parameter = constant
B) H0: population parameter > constant vs. H1: population parameter ≤ constant
C) H0: population parameter < constant vs. H1: population parameter ≥ constant
D) H0: population parameter = constant vs. H1: population parameter ≠constant
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 probability that the drug will not reach the market? [Hint: Choose the
approximate value.]
A) 0.95
B) 0.89
C) 0.77
D) 0.82
Below is a payoff table that lists four mortgage options:
What is the best payoff rate for the 1-year ARM?
A) $ 49,618
B) $ 43,650
C) $ 38,560
D) $ 66,645
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential
new drug. The total R&D costs are estimated to reach around $875,000,000 with
clinical trials mounting to $145,000,000. The current market size is estimated to be
around 3,000,000 and is expected to grow at 4 percent every year. The market share
Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25
percent each year for the next 4 years. A monthly prescription is anticipated to generate
revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is
assumed.
Calculate cumulative net profit at the fourth year.
A) $1,073,538,462
B) $3,189,634,800
C) $1,312,041,240
D) $1,494,838,800
Which of the following Excel tools is used for a two-sample test for equality of
variances?
A) Excel F-test Two-sample for variances
B) Excel z–test: Two-sample for means
C) Excel t-test: Two-sample assuming unequal variances
D) Excel t-test: Two-sample assuming equal variances
Below is a payoff table that lists four mortgage options:
What is the worst payoff rate for the 5-year ARM?
A) $ 50,894
B) $ 48,134
C) $ 51,641
D) $ 55,895
Which of the following charts provides a useful means for displaying data over time?
A) Scatter chart
B) A doughnut chart
C) Pie chart
D) Line chart
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 value of safety stock at a 95% service level?
A) 45
B) 71
C) 120
D) 95
Which of the following is the probability mass function of the Bernoulli distribution?
A)
B)
C)
D)
Explain statistics as defined by David Hand. What are the two ways in which Microsoft
Excel supports statistical analysis?
What is simple exponential smoothing?
List the four major categories of inventory costs and explain how they are influenced by
the timing of the ordering decision and amount ordered.
What are the properties of a probability mass function?
Following is an extract from a firm’s database detailing the number of hours spent on
the job by employees and their corresponding pay. (Note: Assume a level of
significance of 0.05 wherever necessary.)
Is the hours spent on the job a statistically significant variable in explaining the
variation in pay of employees? (Hint: Use Regression tool).
What are multiple parameterized simulations?
Write a short note on indicators and indexes used in forecasting.