A global optimum solution is one for which all points close by are no better than the
solution.
Infeasible problems can occur when the demand requirement is higher than the
available capacity.
The Excel function NORM.DIST finds probabilities for the standard normal
distribution.
In Excel’s Analytic Solver Platform, a parameter is a set of outputs in a model.
In a MATCH function, if match_type = 1, then the function finds the smallest value that
is greater than or equal to lookup_value.
A good regression model has the fewest number of explanatory variables providing an
adequate interpretation of the dependent variable.
The VLOOKUP function in Excel can be used to generate outcomes from any discrete
distribution.
If a time series has seasonality but no trend, the most appropriate model used for
forecasting is the Holt-Winters multiplicative model.
The best-fitting line maximizes the residuals.
According to the interquartile range, extreme outliers are more than 3*IQR away from
the left of Q1 or to the right of Q3.
In a MATCH function, the default value for match_type = 0.
The value of a coefficient of skewness falling between 0.5 and -0.5 indicates relative
symmetry.
AND(condition 1, condition 2’¦) is a logical function that returns TRUE if all conditions
are true and FALSE if not.
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the net production at the end of the third quarter?
A) 75
B) 200
C) 450
D) 600
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 linear optimization model, what would be the total time spent for
assembling the Invazen models?
A) 8
B) 4
C) 16
D) 10
________ states that for any set of data, the proportion of values that lie within k
standard deviations (k > 1) of the mean is at least 1 – 1/k2.
A) Prime number theorem
B) Bertrand’s postulate
C) Oppermann’s conjecture
D) Chebyshev’s theorem
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 is considered the best expected value decision?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
Below is a spreadsheet for a hotel overbooking model.
Answer the following question(s) using multiple parameterized simulations. The range
of historical customer demand is 400-430. Assume a uniform integer distribution for
customer demand, and run parameterized simulations for different reservation limits.
Use 5,000 trials and 1 for random seed.
What is the number of reservations made that will generate a net revenue of $59,000?
A) 400
B) 410
C) 420
D) 430
Coppell Services contracts with outsourcing partners to handle various customer service
functions. Based on a study of call volumes provided by one of the firm’s partners, the
minimum number of staff needed for each hour of the day is as follows:
Mr. Coppell hires 6 permanent employees and wants to staff the remaining
requirements using part-time employees who work 4-hour shifts (four consecutive
hours starting as early as 8 A.M. or as late as 1 P.M.).
What is the minimum number of total part-time employees needed across all the 4-hour
shifts to ensure meeting the staffing requirements?
A) 16
B) 28
C) 24
D) 20
A(n) ________ is a single number derived from sample data that is used to estimate the
value of a population parameter.
A) confidence interval
B) frequentist interference
C) interval estimate
D) point estimate
The table provided below gives the sales details of the number of android smart phones
at an electronic retail store for the past 6 weeks. The time series appears to be relatively
stable, without trend, seasonal, or cyclical effects. (Hint: Optimize α value in 0.1
increments)
Which of the following is the value of the root mean square error for the given data?
A) 11.56
B) 21.77
C) 13.87
D) 20.13
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 Silver tickets at the new price?
A) 93
B) 178
C) 202
D) 101
Which of the following is true of association rule mining?
A) It develops analytic models to describe the relationship between metrics that drive
business performance.
B) It identifies attributes that occur frequently together in a given data set.
C) It seeks to classify a categorical outcome into one of two or more categories.
D) It is a data reduction technique that reduces large information into smaller
heterogeneous groups.
The purpose of sampling is to ________.
A) enumerate all the values in the population
B) measure all items of interest for a particular interest or investigation
C) obtain sufficient information to draw a valid inference about a population
D) calculate all variables and observations within a population
Roger wants to compare values across categories using vertical rectangles. Which of the
following charts must Roger use?
A) Line chart
B) Clustered column chart
C) Pie chart
D) Stacked column chart
Which of the following Excel functions is applied to test for significance of regression?
A) COVAR
B) ANOVA
C) SINH
D) TREND
The worldwide sales of cars from 1981-1990 are shown in the table below. Given: α =
0.2 and β = 0.15 (Hint: Use XLMiner)
Identify the value of the mean square error using double exponential smoothing for the
given set of data.
A) 8.10
B) 1.80
C) 91.27
D) 11976.17
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.
Calculate the economic value of a loyal customer for a company given that the
customer purchases, on an average, worth $43worth per visit and comes three times a
year. The company’s gross profit margin is 35 per cent with a customer defection rate of
0.4.
Compute the variance of the random variable that denotes the possible summed scores
from the two spinners.
The table below shows the number of goals scored by the Huntington Soccer Club in
their league for the past 12 years. Calculate the standard error of the mean of the data
given that the variance of the data is 50.45
Write a short note on indicators and indexes used in forecasting.
Following is an extract from a firm’s database detailing the number of hours spent on
the job by employees and their corresponding pay. (Note: Assume a level of
significance of 0.05 wherever necessary.)
Is the hours spent on the job a statistically significant variable in explaining the
variation in pay of employees? (Hint: Use Regression tool).