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.
Which of the following options is used if Solver gives an error message that linearity is
not satisfied?
A) Ignore Integer Constraints
B) Show Iteration Results
C) Use Automatic Scaling
D) Use Multistart
Which of the following describes standard deviation?
A) It is the average of the greatest and least values in the data set.
B) It is the square root of the variance.
C) It is the difference between the first and third quartiles of a data set.
D) It is the average of the squared deviations of the observations from the mean.
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 is the first stage of joining clusters in agglomerative
hierarchical clustering?
A) by separating clusters into finer groups
B) by joining two clusters farthest away from each other
C) by joining two clusters that are not at a Euclidean distance
D) by joining two clusters that are closest to each other
The effectiveness of a classification rule can be judged making a probability of
misclassification errors and summarizing the results in a ________.
A) classification matrix
B) classification hierarchy
C) dendogram
D) classification algorithm
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.
According to the model, which of the following is the weighted distance between the
phone charger and Measurements cell?
A) 12.00
B) 75.00
C) 7.00
D) 54.00
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 Classic tickets?
A) $7.50
B) $12.45
C) $6.50
D) $8.20
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 market share percentage in the third year.
A) 25 percent
B) 4 percent
C) 11 percent
D) 7 percent
Which of the following typically describes the support for the association rule?
A) the number of transactions that include all items that are in the antecedent parts of
the rule
B) the number of transactions that include all items in the antecedent and consequent
parts of the rule
C) the number of transactions that include half from the antecedent and half from the
consequent
D) the number of transactions that include all items that are in the consequent parts of
the rule
Descriptive decision models:
A) aim to predict what will happen in the future.
B) describe relationships but do not tell a manager what to do.
C) help analyze the risks associated with various decisions.
D) do not facilitate evaluation of different decisions.
________ provide information about the unknown values of the true regression
coefficients, accounting for sampling error.
A) Standard errors
B) Confidence intervals
C) Adjusted R Squares
D) P-values
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 is the squared term value for Stock 1 variance?
A) 0.00065
B) 0.00535
C) 0.01132
D) 0.00283
The ________ is the observation that occurs most frequently.
A) mode
B) mean
C) outlier
D) median
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.
Which of the following decisions has the largest expected payoff?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
Which of the following is true of random partitioning?
A) It cannot be used for creating training data sets.
B) It can contain any non-negative value from the observations.
C) It can include negative-value observations in its data.
D) It selects its data based on observations that have similar properties.