Below is a payoff table that lists three mortgage options:
What is the maximum opportunity loss incurred for the 25-year fixed decision?
A) $ 8,626
B) $ 13,716
C) $ 14,369
D) $ 10,581
If the given time series has a trend and seasonality, the most appropriate forecasting
model to determine the forecast of the time series is the ________ model.
A) multiple regression
B) Holt-Winters no trend smoothing
C) double exponential smoothing
D) Holt-Winters multiplicative
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 value of standard deviation obtained from the simulation results?
A) $9,175
B) $7,884
C) $3,860
D) $12,870
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 distance between Shirley’s new accommodation
and Bungalow 5?
A) 54.62
B) 25.08
C) 14.53
D) 91.16
Below is a decision tree for the airline revenue management.
The expected value of perfect information (EVPI) is equal to the ________.
A) Expected Monetary Value (EMV) with perfect information minus the EMV without
any information
B) EMV with perfect information divided by the EMV without any information
C) sum of the EMV with information and the EMV without any information
D) EMV without any information minus the EMV with perfect information
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 transportation model, what is the amount shipped from Atlanta to
Jacksonville?
A) 950
B) 480
C) 0
D) 95
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.
Which of the following cells is defined to be normally distributed using the function =
PsiNormal(20000,2000)?
A) B5
B) B6
C) B7
D) B12
Which of the following best defines decision variables in an optimization model?
A) They are limitations, requirements, or other restrictions that are imposed on any
solution.
B) They are the quantities that the model seeks to maximize or minimize.
C) They are quantities for which no feasible solutions exist.
D) They are unknown values that the model seeks to determine.
Which of the following can be used to quickly create cross-tabulations?
A) Frequency distribution
B) COUNTIF function
C) PivotTable
D) Sort & Filter
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.
Below is the table showing rate of shoes sold per day and the highest-priced shoe sold
that day for a one-week period. The rate of shoes sold per day (X) and the price of the
shoes (Y).
Use Excel to calculate the z-score of X observation 27.
A) -0.24
B) 0
C) 0.18
D) 1.46
Theeasiestway tolocateaparticularfunctionistoselectacellandclickon theInsert
function button represented by
A) fx
B) Σ
C) $
D) %
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 purchased?
A) 27,420.8
B) 50,000
C) 22,579.2
D) 32,595
Following is the Sales database of Pointler’s Inc., a manufacturer of clothing material.
Use Excel to calculate the total $ amount earned from sales of all denim items to
Prioland
A) $4449.42
B) $22213
C) $388
D) $57.25
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)
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.
Calculate the total revenue when the quantity produced is 55,000 and demand is 60,000.
A) $1,375,000
B) ($1,320,000)
C) $1,430,000
D) $2,750,000
Following is an extract from the database of a construction company. The table shows
the height of walls in feet and the cost of raising them. The estimated simple linear
regression equation is given as Ŷ = b0 + b1X. (Hint: Use Excel functions).
What is the value of the coefficient b0?
A) -2.25321
B) 0.010697
C) 254.8371
D) 86.81704
In statistical notation, the elements of a data set are typically labeled as ________.
A) summation operators
B) letters in capitals
C) Greek letters
D) subscripted variables
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 Sensitivity Report, by how much should the unit profit on ScarCT be
increased in order for its production to be feasible?
A) $30
B) $90
C) $60
D) $120
Below is the table showing rate of shoes sold per day and the highest-priced shoe sold
that day for a one-week period. The rate of shoes sold per day (X) and the price of the
shoes (Y).
Use Excel to calculate the variance of X.
A) 271.33
B) 16.47
C) 49.57
D) 7.04
The accuracy of the model on the test data gives a realistic estimate of the performance
of the model on completely unseen data.
What is the Insert function in Excel?
Using the following data, test for the independence of the variables. (Note: Assume a
significance level of 0.05 wherever necessary.)
When are logarithmic functions used in predictive analysis?
P(P|Q) = P(P and Q) / P(Q)
The table below shows the sales per day at a grocery store over a period of a week.
Calculate the z-score for sales on Day 4.
Give an account of biased and unbiased estimators in sampling methods.
Explain the different Lookup functions in Excel.
Elaborate on the use of geographic data mapping in business analytics.
Explain econometric models used in forecasting with examples.
Use the data given below to answer the following question(s).
At a casino, a combination of two spinners is used to decide the winner based on the
sum of scores from spinning. The spinners each have four colored spaces – red, yellow,
blue, and green. Red = 1, Yellow = 2, Blue = 3, and Green = 4
What is the probability that the spinners land on colors summing up to exactly 3?