An increase in adjusted R2 indicates that the regression model has improved.
According to the interquartile range, extreme outliers are more than 3*IQR away from
the left of Q1 or to the right of Q3.
Logistic regression cannot be employed when the dependent variable is binary.
Any solution that satisfies all constraints of a problem is called a feasible solution.
As the sample size increases, the width of the confidence interval decreases.
The mathematical form Y ≤ 450 would be considered as representing a simple
bounds constraint.
Any solution that satisfies all constraints of a problem is called a feasible solution.
Explain the similarity between the formulas for computing population mean and
expected value of discrete random variable X.
Estimators are the measures used to estimate population parameters.
One of the properties of the mean is that the sum of the deviations of each observation
from the mean is zero.
As Monte Carlo simulation is essentially statistical sampling, the larger the number of
trials used, the more precise is the result.
A binding constraint is one for which the Cell Value is greater than the right-hand side
of the value of the constraint.
A cyclical effect is one that repeats at fixed intervals of time, typically a year, month,
week, or day.
The market share of a business would be considered a lagging measure in the
cause-and-effect modeling of data mining.
Mathematically, a binary variable x can be represented as x > 2 and integer.
To invoke the binary constraints on the variables, the option bin is chosen from the
dropdown box in the Add Constraint dialog.
In the linear trend equation Ft+k = at + btk, identify the term that signifies the trend.
A) bt
B) k
C) at
D) Ft + k
Qualis Investments is a private limited business that manages personal financial
portfolios. The company manages six mutual funds and has a client that has acquired
$750,000 from an inheritance. Characteristics of the funds are given in the table below.
The company recommends that no more than $300,000 be invested in any individual
fund, and that at least $80,000 be invested in each of the mid-cap stock and mortgage
fund. The total amount invested in the low-priced and multinational funds are at least
35% of the total investment. The client would like an average return of at least 6%.
Assume that X1- X6 represent the dollar amounts invested in funds 1 through 6,
respectively.
Which of the following is the constraint for investment in low-priced and multinational
funds?
A) X1 + X2 ≥ 0.35(750,000)
B) ≥ 0.35(750,000)
C) X1 + X2 + X3 + X4 + X5 + X6 ≥ 0.35(750,000)
D) ≥ 0.35
When a scatter chart of data shows a nonlinear relationship, the nonlinear model can be
expressed as:
A) Y = β0 + β1X + β2X2 + ε
B) Y = β0 + β1X + (β2X)2 + ε
C) Y = β0 + β1X + β2X
D) Y = β0 + β1X2 + β2X2 + ε
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 is the total profit for the Pickson
Luthiers Corporation?
A) $10,000
B) $199,880
C) $205,200
D) $219,200
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
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 3 to be produced with
Northrop?
A) 0
B) 35,000
C) 2,405
D) 32,595
When two or more independent variables in the same regression model can predict each
other better than the dependent variable, the condition is referred to as _______.
A) autocorrelation
B) heteroscedasticity
C) multicollinearity
D) homoscedasticity
Which of the following is true of covariance, between two variables, when one of the
deviations from the mean is positive and the other is negative?
A) the degree of linear association is high between the two variables
B) there is no covariance between the two variables
C) the covariance will be negative
D) the covariance will be positive
Which of the following types of sampling involves using random procedures to select a
sample?
A) judgment sampling
B) probabilistic sampling
C) subjective sampling
D) convenience sampling
Which of the following is true of the R-squared (R value in Excel’s Trendline function?
A) A value of 1.0 for R2 indicates maximum deviation of the data from the line.
B) If the value of R2 is above 1.0, the line will be at a perfect fit for the data.
C) The value of R2 will always be between -1 and 1.
D) As the value of R2 gets higher, the line will be a better fit for the data.
Which of the following is the mathematical model for deriving the break-even volume?
A) Q = (C – V
C) + F
B) Q = F / (C -V)
C) Q = (V +
C) / F
D) Q = F / (VC –
C)
Below are four options for an investment decision.
Which of the following is the average utility for the index fund decision?
A) 1.05
B) 0.70
C) 0.60
D) 0.45
Below are four options for an investment decision.
Which of the following is the average utility for the bond fund decision?
A) 1.18
B) 0.38
C) 0.54
D) 0.43
_________ of money measures the worth of a stream of cash flows, taking into account
the time value
A) Accounting rate of return
B) Net present value
C) Internal rate of return
D) Adjusted present value
The R2 value:
A) is the variability of the observed Y-values from the predicted values.
B) indicates that as the independent variable increases, the intercept term does too.
C) gives the proportion of variation in the dependent variable that is explained by the
independent variable.
D) transforms the cumulative probability scale (vertical axis) so that the graph of the
cumulative normal distribution is a straight line.
Which of the following is true of judgment sampling?
A) It selects samples based on expert opinion.
B) It selects samples based on ease of data collection.
C) It selects samples based on random procedures.
D) It selects samples based on full representation of all subsets in a population.
After choosing the PivotTable, the PivotChart can be found on the ________ tab.
A) Design
B) View
C) Options
D) Layout
The means of all possible samples of a fixed size n from some population will form a
distribution which is known as the ________.
A) corollary of the mean
B) sampling distribution of the mean
C) standard error of the mean
D) point estimate
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
Which of the following is the inherent reason why sampling errors occur?
A) because samples represent the whole population
B) because samples are only a subset of the population
C) because samples never provide enough data to estimate standard deviation
D) because the means cannot be accurately estimated using samples
What are three types of Risk Solver Platform charts used to obtain multiple simulation
results?
What is the purpose of a heat map?
Below is a decision tree illustrating the R&D process for a new drug.
Let us assume that if market is large, payoff is lognormally distributed with a mean of
$4,900 million and a standard deviation of $1,000 million; if market is medium, payoff
is lognormally distributed with a mean of $2,500 million and a standard deviation of
$500 million; and if market is small, payoff is normally distributed with a mean of
$1,800 million and standard deviation of $200 million. Let us also assume that the cost
of clinical trials is uncertain and estimates are modeled with a triangular distribution
with a minimum of -$ 700 million, a most likely value of – $550 million, and a
maximum of -$500 million. Use 10,000 trials and a random seed of 1.
Discuss how overbooking decisions are made by service businesses.
The table below is the data set of the Shiller Real Home Price Index for the years
1946-1956.
Setting k = 3, determine the value of root mean square of errors.