Which of the following is true about Excel outputs Multiple R?
A) It is often referred to as the coefficient of determination.
B) A value of 0 indicates positive correlation.
C) A negative slope of the regression line denotes a positive Multiple R.
D) It is another name for the sample correlation coefficient, r.
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
Below is the spreadsheet for a project selection model:
What is the amount of personnel used for Project 2?
A) 3
B) 4
C) 6
D) 11
What is the expected value for a 90 year-old piece of furniture?
A) $1002.45
B) $997.98
C) $934.56
D) $1033.21
Before launching a new line of toys, Toys Inc. used the method of historical analogy to
obtain a forecast. In this scenario, Toys Inc.:
A) noted the behavior of its current customers while they use their products.
B) used a panel of experts, whose identities were kept confidential from one another, to
respond to a sequence of questionnaires.
C) noted the consumer response to similar previous products to marketing campaigns
and used the responses as a basis to predict how the new marketing campaign might
fare.
D) used a brainstorming session among a group of experts to draw new ideas.
Below is a table showing the costs per order of items bought by a computer hardware
store.
Calculate the mean cost per order.
A) $220.54
B) $174.70
C) $159
D) $88
The total cost of reaching consumers (C) depends upon the number of consumers (N),
advertising costs (A), and transportation costs (T). The linear cost prediction model is
represented as:
C = c – nN + aA + tT
where c, n, a, and t are constants and c estimates the total cost when the remaining
variables are zero. Which of the following interpretations is true about this model?
A) Change in variables N, A, and T will cause n, a, and t to change.
B) As n decreases, c will increase.
C) When variables N, A, and T are zero, C = c – n + a + t.
D) Change in variables N, A, and T will not reflect any changes in c.
In the spreadsheet below, there is data on the price, cost, demand, and quantity
produced for an item. There are also different “what if” values that can help a manager
to calculate costs and revenue with variability in demand.
Which of the following is the Excel formula to determine the number of units sold?
A) =B8
B) =MIN(0,B8,B9)
C) =MIN(B8,B9)
D) =MAX(0,B8,B9)
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 value of mean obtained from the simulation results?
A) 450
B) 300
C) 400
D) 250
Below is the spreadsheet for demand prediction of a company that sells chocolates.
If a dollar sign is used after the column in B5 (B$5), how will the formula at B8 be
represented in C9 using absolute addressing?
A) C3-B$5*C9
B) C5-C$6*B9
C) C5-C$6*C9
D) C5-C$5*B9
Standard residuals:
A) help detect outliers that may bias the results of a regression analysis.
B) cause differences in the regression equation by changing the slope and intercept.
C) point out the ranges for the population intercept and slope at a 95% confidence level.
D) provide information for testing hypothesis associated with the intercept and slope.
Which of the following is true of variance?
A) The formula to calculate variance of a population is not the same as the formula to
calculate variance of a sample.
B) Its value is inversely proportional to the degree to which the data is spread from the
mean.
C) It only requires the middle 50% of data to be calculated.
D) It is the square root of standard deviation.
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 amount shipped by the Baltimore plant to the distribution centers?
A) 750
B) 1,000
C) 1,250
D) 1,300
Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following observations is closest to the 87th percentile of costs per order?
A) 75 SD104 screwdrivers for $183.00
B) 66 N103 nuts for $114.84
C) 73 B101 bolts for $1,200.12
D) 49 S101 screws for $1,001.56
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.
Based on the data in the table above, calculate the margin of error at 95% confidence
interval.
A) 1.84
B) 2.19
C) 2.51
D) 1.96
The payoff table given below lists four mortgage options:
The probability of rates rising is 0.6, rates stable is 0.3, and rates falling is 0.1.
What is the expected payoff for the 1-year ARM?
A) $ 53,082.00
B) $ 16,951.00
C) $ 56,938.00
D) $ 18,979.30
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, calculate the / value at a 95% confidence interval.
A) 1.64
B) 1.84
C) 1.96
D) 2.19
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 sales figure
for Gold tickets at the new price?
A) 32
B) 90
C) 33
D) 178
Which of the following is true of the binomial distribution?
A) The expected value of the binomial distribution is np(1 – p), where n is the number
of experiments and p is the probability of success.
B) The binomial distribution can assume different shapes and amounts of skewness,
depending on the parameters.
C) In Excel’s binomial distribution function, setting cumulative to TRUE will provide
the probability mass function for a specified value.
D) The expected value of the binomial distribution is λ, a constant.
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 will be the total profit contribution from Graystone surfboards?
A) $ 391.30
B) $ 521.74
C) $ 130.43
D) $ 276.65
Which of the following is true of cluster analysis?
A) It is a cause-and-modeling type of analytic model.
B) It does not provide a definitive answer from analyzing the data.
C) It is primarily a prescriptive analytical method.
D) It uses clustered data that are not affected by the specific method used.
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 expected loss determined from the simulation results?
A) $(78)
B) $(120)
C) $(60)
D) $(47)
Which of the following is a differentiation between calculating using the functions
COUNT
and COUNTIF?
A) COUNT does not require a range of cells; COUNTIF requires a range of cells.
B) COUNT only requires a range of cell and can be obtained without a special criteria,
COUNTIF requires range and special criteria to be calculated.
C) COUNT requires a range of cells; COUNTIF does not require a range of cells, only
special criteria.
D) COUNT calculates the sum of values for a range of cells; COUNTIF finds the
largest value in a range of cells.
To find the average of the total cost of orders from Rex Technologies, what Excel
formula should be used in A12?
A) =AVERAGE(C4:C10)
B) =AVERAGE(C4:C7)
C) =AVERAGE(E4:E7)
D) =AVERAGE(E4:E10)
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.
Which of the following cells are defined to be uniformly distributed?
A) B6:B8
B) C6:C8
C) D6:D8
D) B13:B15