For a simple linear regression model, significance of regression is:
A) a measure of how well the regression line fits the data.
B) a hypothesis test of whether the true regression coefficient 1 is zero.
C) a statistic that modifies the value of R2 by incorporating the sample size and the
number of explanatory variables in the model.
D) the variability of the observed Y-values from the predicted values.
Answer:
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.
According to the model, what is the total amount of Fabric 2 to be produced with
Northrop?
A) 0
B) 62,000
C) 20,160
D) 32,595
Answer:
A manager at Gampco Inc. wishes to know the company’s revenue and profit in its
previous quarter. Which of the following business analytics will help the manager?
A) prescriptive analytics
B) normative analytics
C) descriptive analytics
D) predictive analytics
Answer:
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.
From the “what if” values, calculate the total cost when demand is 40,000.
A) $ 2,000,000
B) $1,925,000
C) $1,100,000
D) $75,000
Answer:
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.
According to the Sensitivity report on the model, by what price should the unit cost of
shipment reduce to make shipment from Dallas to Houston feasible?
A) $8.68
B) $2.16
C) $10.84
D) $3.41
Answer:
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 is the total number of hours used for the finishing operation?
A) 18.7
B) 30.0
C) 35.5
D) 24.2
Answer:
______are mathematical functions used in predictive analytical models which define
phenomena that increase at a specific rate, and is represented by the formula y = axb
A) Exponential functions
B) Power functions
C) Polynomial functions
D) Logarithmic functions
Answer:
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
Answer:
Which of the following solving methods is selected in the Solver dialog for linear and
linear integer optimization problems?
A) GRG Nonlinear
B) Simplex LP
C) SOCP Barrier Engine
D) Evolutionary
Answer:
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails,
rivets, and clips-which are machined on two CNC machining centers. The machining
centers have a capacity of 250,000 minutes per year. The gross margin per unit and
machining requirements are shown in the spreadsheet below.
What is the gross margin per minute of plugs manufactured?
A) $ 0.60
B) $ 0.73
C) $ 0.40
D) $ 0.27
Answer:
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.
According to the model, what is the total amount of Fabric 1 to be produced on
Jaquard?
A) 50,000
B) 0
C) 27,420.8
D) 22,579.2
Answer:
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.
What is the average daily sale during the full retail sales period?
A) 15
B) 33.33
C) 8
D) 24.55
Answer:
Which of the following is implied from the standard error of the mean formula?
A) that true means of populations can be found easier than those of samples
B) that standard deviation increases with increase in sample size
C) that larger sample sizes provide greater accuracy in estimating the true population
mean
D) that the true mean of the population can only be calculated using smaller sample
sizes
Answer:
The spreadsheet below shows the net income model for a company that sells shoes.
Which of the following formulas would be used to calculate the net income value using
only the data value?
A) =SUM(B5:B10)-B11
B) =SUM(B5:B11)
C) =B5-SUM(B6:B11)
D) =B5-SUM(B6:B10)+B11
Answer:
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.
Use the spreadsheet below for Stone Age Surfboards to answer the following
question(s) using integer constraints on variables in the optimization models using the
standard Solver.
What is the total profit generated?
A) $ 748.28
B) $ 687.46
C) $ 385.65
D) $ 500.00
Answer:
Which of the following questions will prescriptive analytics help a company address?
A) How many and what types of complaints did they resolve?
B) What is the best way of shipping goods from their factories to minimize costs?
C) What do they expect to pay for fuel over the next several months?
D) What will happen if demand falls by 10% or if supplier prices go up 5%?
Answer:
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.
Use the spreadsheet below for Stone Age Surfboards to answer the following
question(s) using integer constraints on variables in the optimization models using the
standard Solver.
What is the quantity of Graystone surfboards produced?
A) 2
B) 5
C) 7
D) 10
Answer:
The demand for coffee beans over a period of three months has been represented in the
form of an L-shaped curve. Which form of model was used here?
A) mathematical model
B) visual model
C) kinesthetic (tactile) model
D) verbal model
Answer:
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 1?
A) 589.25
B) 435.89
) 346.77
D) 3152.08
Answer:
While testing for equality of variances, which of the following formulae gives the F-test
statistic?
A)
B)
C)
D)
Answer:
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.
With reference to the trend chart, which year shows the highest uncertainty in
forecasting the future?
A) Year 1
B) Year 3
C) Year 4
D) Year 5
Answer:
Which of the following is the ideal next step if you get the message “Solver has
converged to the current solution./All constraints are satisfied,” when using Solver for
nonlinear optimization models?
A) Accept the values, but run Solver again from the current solution.
B) Do not accept the Solver values and re-run Solver with the starting values.
C) Accept the values and run simulations with different values.
D) Accept the values, and then tweak the values, and re-run Solver on tweaked values.
Answer:
A(n) ________ is a matrix whose rows correspond to decisions and whose columns
correspond to events.
A) decision tree model
B) payoff table
C) utility function table
D) scoring model
Answer:
________ is a measure of the linear association between two variables, X and Y.
A) Kurtosis
B) Proportion
C) Skewness
D) Covariance
Answer:
Below is a decision tree for the airline revenue management.
If the probability of selling the full-fare ticket is 0.80, what is the expected value of the
ticket?
A) $ 442.50
B) $ 472.00
C) $ 501.50
D) $ 531.00
Answer: