Below is the profit model spreadsheet for the Lazarus Shoe Company producing their
latest model of shoes for the month of January.
Calculate the total profit.
A) $600,000
B) $1,436,000
C) $836,000
D) $1,786,000
Level of significance is the probability of:
A) incorrectly rejecting an actually true null hypothesis.
B) correctly failing to reject an actually true null hypothesis.
C) incorrectly failing to reject an actually false null hypothesis.
D) correctly rejecting an actually false null hypothesis.
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 Silver tickets?
A) $7.40
B) $12.17
C) $11.50
D) $12.50
The ________ is the observation that occurs most frequently.
A) mode
B) mean
C) outlier
D) median
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
Before launching a new line of toys, Toys Inc. used the method of historical analogy to
obtain a forecast. In this scenario, Toys Inc.:
A) noted the behavior of its current customers while they use their products.
B) used a panel of experts, whose identities were kept confidential from one another, to
respond to a sequence of questionnaires.
C) noted the consumer response to similar previous products to marketing campaigns
and used the responses as a basis to predict how the new marketing campaign might
fare.
D) used a brainstorming session among a group of experts to draw new ideas.
Below are four options for an investment decision.
Based on the average utility, which of the following is considered the best decision?
A) Bank CD
B) Bond fund
C) Index fund
D) Growth fund
Which of the following is a similarity between a midrange and a mean?
A) Both measures are calculated using all the values in a data set.
B) Both measures are affected by outliers.
C) Both measures divide the data into two equal halves.
D) Both measures can only be used for small sample sizes.
The spreadsheet below shows the net income model for a company that sells shoes.
Which of the following formulas would be used to calculate earnings before taxes?
A) =B15-B16+B6
B) =B15-B5
C) =B15-B16
D) =B17-B10
Which of the following probabilities gives the confidence coefficient?
A) P(rejecting H0 | H0 is true)
B) P(not rejecting H0 | H0 is false)
C) P(rejecting H0 | H0 is false)
D) P(not rejecting H0 | H0 is true)
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
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.
What is the value of safety stock at a 95% service level?
A) 45
B) 71
C) 120
D) 95
Which of the following equations correctly expresses the relationship between the two
variables?
A) Value = (-181.16) + 13.493 Number of years
B) Number of years = Value / 12.537
C) Value = (459.34 / Number of years) 4.536
D) Number of years = (17.538 Value) / (-157.49)
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.
What is the correlation of the R&D cost with the NPV with reference to the sensitivity
chart?
A) -0.404
B) 0.028
C) 0.908
D) -0.194
In a lower one -tailed hypothesis test, chosen level of significance = 0.10, sample size =
55, and t-test statistic = -1.76.
Which of the following is the conclusion?
A) This is a high probability and the conclusion is difficult.
B) The null hypothesis is rejected.
C) There are many sampling errors.
D) The null hypothesis cannot be rejected.
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the binary constraint at the end of the third quarter?
A) 75
B) 200
C) 450
D) 0
Which decision model incorporates the process of optimization?
A) predictive
B) prescriptive
C) descriptive
D) normative