How does the Risk Solver Platform define an uncertain function cell?
A) It is a cell that contains a triangular distribution function.
B) It is a cell in which a distribution of output values is created from the model.
C) It is a cell in which an uncertain variable is used to define a distribution.
D) It is a cell that can only be defined by discrete distributions.
A ________ is a range of values between which the value of the population parameter is
believed to be, along with a probability that the interval correctly estimates the true
population parameter.
A) point estimate
B) frequentist interference
C) confidence interval
D) fiducial inference
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
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
Which of the following 2010 Excel functions computes the p-value for the chi-square
test?
A) CHISQ.INV.RT
B) CHIDIST
C) CHI.SQ
D) CHISQ.TEST
If the Euclidean distance were to be represented in a right triangle, which of the
following would be considered the distance between two objects of a cluster?
A) the hypotenuse
B) the small leg
C) the long leg
D) the average of the sum of both the legs
Which of the following represents the proportion of the total number of observations
that fall at or below the upper limit of each group?
A) Percentile
B) Pareto chart
C) Frequency distribution
D) Cumulative relative frequency
For which of the following MATCH functions must the values in the lookup_array be
ordered in a descending order?
A) When match_type = -1
B) When match_type >1
C) When match_type = 0
D) When match_type = 1
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.
If the unit profit on both Graystone and Lava surfboards is increased by $10, what is the
shadow price for the finishing hours used?
A) -4.35
B) 8.33
C) 20.65
D) 32.46
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 the net present value for Dresden’s new drug.
A) $1,312,041,240
B) ($339,600,000)
C) $3,702,463,939
D) ($932,028,690)
What is a database?
A) a structured collection of related files and data
B) simply a collection of data
C) a data file holding a single file
D) flat files used to store data
Which of the following types of distributions use z-values to establish confidence
intervals?
A) Gaussian q-distribution
B) t-distribution
C) log-normal distribution
D) standard normal distribution
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
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
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
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
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 mean absolute deviation obtained from the simulation results? [Hint:
Choose the approximate value.]
A) $ 143,767
B) $ 104,786
C) $ 188,995
D) $ 232,673
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
Which of the following represents the proportion of the total number of observations
that fall at or below the upper limit of each group?
A) Percentile
B) Pareto chart
C) Frequency distribution
D) Cumulative relative frequency
Which of the following is an example of a measure of dispersion?
A) median
B) mode
C) variance
D) midrange
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.
Based on the Sensitivity Report on the model, which of the following is the savings on
a reduction of demand of 2 units at Jacksonville?
A) $2.5
B) $1.25
C) $19.48
D) $16.98
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