What is the formula used to calculate the value of bt in the linear trend equation Ft+k =
at + btk while using double exponential smoothing?
A) bt = β(bt – bt–1) + (1 –β)bt–1
B) bt = αFt–1 + (1 – α)(at +1 + bt+1)
C) bt = αFt + (1 – α)(at –1 + bt-1)
D) bt = β(at – at–1) + (1 –β)bt–1
Which of the following charts provides a useful means for displaying data over time?
A) Scatter chart
B) A doughnut chart
C) Pie chart
D) Line chart
The Risk Solver Platform ________ feature allows you to determine the influence that
each uncertain model input has individually on an output variable based on its
correlation with the output variable.
A) trend chart
B) sensitivity chart
C) overlay chart
D) box-whisker chart
Which of the following is a continuous random variable?
A) the outcomes of rolling two dice
B) the time to complete a specific task
C) the number of new hires in a year
D) the number of hits on a Web site link
Which of the following is true about constructing PivotTables?
A) It is not possible to construct the PivotTable in the same worksheet.
B) Dragging a field into the Report Filter area allows addition of a third dimension to
the analysis.
C) Placing a field each in the row and column labels will automatically sum the variable
values in the table.
D) PivotTables cannot be duplicated by copying and pasting an existing table.
Consider the spreadsheet for a Newsvendor Model.
What is the value of mode?
A) $228
B) $245
C) $255
D) $264
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
What is the total amount shipped by the Atlanta plant to the distribution centers?
A) 600
B) 1,000
C) 1,250
D) 1,300
Which of the following types of data-mining methods provides probabilistic if-then
statements?
A) association rule
B) logistic regression
C) reduction
D) cause-and effect modeling
Validation data sets differ from training data sets in that validation data sets ________.
A) have known outcomes
B) test a model with unseen data
C) are used to teach data-mining algorithms
D) provide the most realistic test for models with known data
Which of the following describes a positively skewed histogram?
A) a histogram that tails off toward the right
B) a histogram that has no fluctuation in mass
C) a histogram where more mass tails off toward the left
D) a histogram where mass is only concentrated in the middle
If the given time series has no trend and no seasonality, the most appropriate forecasting
model to determine the forecast of the time series is the ________ model.
A) single moving average
B) Holt-Winters no-trend smoothing
C) double exponential smoothing
D) Holt-Winters additive
Which of the following is an example of a measure of dispersion?
A) median
B) mode
C) variance
D) midrange
Which of the following is true for a median?
A) A median is only meaningful for interval or ordinal data and not for ratio data.
B) Medians can be calculated no matter how the data is arranged.
C) Medians are affected by outliers.
D) For an even number of observations, the median is the mean of the two middle
numbers.
Misty Inc. launches a new range of perfumes for men and women. The probability of
high consumer demand for the product is 0.6 and low consumer demand is 0.4. The
probability of a favorable survey response given high consumer demand is 0.9 and the
probability of a favorable survey response given low consumer demand is 0.2.
What is the likelihood for high demand knowing that the market report is favorable?
A) 84%
B)) 90%
C) 87%
D) 80%
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 X-coordinate for the location of Shirley’s new
accommodation?
A) 54.62
B) 36.53
C) 25
D) 23.12
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.
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 percentage of the budget should be allocated to Stock 2?
A) 90%
B) 25%
C) 50%
D) 75%
________ is a data-mining technique used for classifying a set of observations into
predefined classes.
A) Logistic regression
B) k-Nearest Neighbors algorithm
C) Discriminant analysis
D) Linear regression
The worldwide sales of cars from 1981 -1990 are shown in the table below. Given: α =
0.2, γ = 0.05, and season length = 1. (Hint: Use XLMiner).
Calculate the value of the mean absolute percentage error using the Holt-Winters
no-trend model for the given data.
A) 8.10
B) 18.39
C) 21.70
D) 10.97
Stone Age Surfboards is a small manufacturer of two types of popular low-tide
surfboards, the Graystone and the Lava models. The manufacturing process consists of
two departments: fabrication and finishing. The fabrication department has 8 skilled
workers, each of whom works 9.25 hours per day. The finishing department has 5
workers, each of whom works a 6 -hour shift per day. Each pair of Graystone
surfboards requires 2.5 labor hours in the fabrication department and 2 labor hours in
finishing. The Lava model requires 4.2 labor-hours in fabrication and 3.6 labor-hours in
finishing. The company operates 6 days a week. It makes a per unit profit of $40 on the
Graystone model and $60 on the Lava model. The company anticipates selling at least
twice as many Lava models as Graystone models.
If the unit profit on both Graystone and Lava surfboards is increased by $10, what is the
Allowable Decrease for Lava surfboards?
A) 95.00
B) 38.46
C) 20.00
D) 11.11
Which of the following is true of the t-distribution?
A) It has narrower confidence intervals than the standard normal distribution.
B) It is only used to calculate confidence intervals where there is no known population
standard deviation.
C) It converges to the standard normal distribution as degrees of freedom increase.
D) It does not require parameters such as degrees of freedom.
In statistical terminology, the variable of interest is called a _____.
A) critical value
B) p-value
C) factor
D) test-statistic
If the given time series has a trend and no seasonality, the most appropriate forecasting
model to determine the forecast of the time series is the ________ model.
A) single exponential smoothing
B) Holt-Winters no trend smoothing
C) double exponential smoothing
D) Holt-Winters additive
Explain the concept of the “flaw of averages.”
A musical instruments retailer has 10,000 point-of-sale transactions out of which 1500
sales included both items of electric guitars and guitar cases, and out of which 750 had
sales of new strings. If the electric guitars are considered A, the guitar cases are
considered B, and the strings are considered C, then the associate rule for these sales
become “If A and B are purchased, then C is also purchased.” Calculate the confidence
level, expected confidence level, and lift for this rule, given that total transactions for C
is 3000.
Gruten Retailers sells Mother’s Day special greeting cards at their store at $6. They
make the cards for a dollar apiece. Most of the cards are sold by Mother’s Day, but the
actual demand is unknown. They have orders for 120 cards. In the past, they have had
sales of at least 100 cards by Mother’s Day. The remaining cards are sold at a 40 percent
discount. Calculate the net profit, if demand, D, is set at 110 units.
List out the different types of constraints that help model formulation.
= 1
I) = 120
Quantity sold will be the minimum value between demand and quantity purchased
which is 110 units here and surplus quantity is 10.
Therefore, net profit = 6 110 + 3.6 10 – 1 120 = $576.
When are logarithmic functions used in predictive analysis?
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 mean absolute deviation.
A musical instruments retailer has 10,000 point-of-sale transactions out of which 1500
sales included both items of electric guitars and guitar cases, and out of which 750 had
sales of new strings. If the electric guitars are considered A, the guitar cases are
considered B, and the strings are considered C, then the associate rule for these sales
become “If A and B are purchased, then C is also purchased.” Calculate the confidence
level, expected confidence level, and lift for this rule, given that total transactions for C
is 3000.
Using the following data, test for the independence of the variables. (Note: Assume a
significance level of 0.05 wherever necessary.)
