Which of the following is the equation used for computing the sample correlation
coefficient?
A) rxy = cov(X,Y)(sxsy)
B) rxy = cov(X,Y)/SxSy
C) rxy =
D) rxy =
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
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.
What is the value of mode obtained from the simulation results? [Hint: Choose the
approximate value.]
A) $ 119.0
B) $ 116.1
C) $ 105.7
D) $ 94.1
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.
From the “what if” values, calculate the net profit when the demand is 65,000.
A) $825,000
B) $1,650,000
C) $800,000
D) $925,000
In sampling, ________ involves assessing the value of an unknown population
parameter’“ such as a population mean, population proportion, or population
variance’“using sample data.
A) distribution
B) randomization
C) estimation
D) substitution
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)
What is the forecasted value for the 3rd week?
A) 53 phones
B) 64 phones
C) 71 phones
D) 49 phones
Below is a spreadsheet for Stone Age Surfboards.
Assume that the finishing time for a pair of Rockwell surfboards is triangular with a
minimum value of 1.4, a most likely value of 1.5, and a maximum value of 1.8 and that
finishing time for a pair of Limestone surfboards is also triangular with a minimum
value of 1.8, a most likely value of 2.0, and a maximum value of 2.4. The number of
trials per simulation is equal to 5000.
What is the value of mean obtained from the simulation results?
A) 15.65
B) 25.91
C) 20.78
D) 30.42
In statistics, ________ refers to the peakedness or flatness of a histogram.
A) Sharpe ratio
B) entropy rate
C) Markov chain
D) kurtosis
The effectiveness of a classification rule can be judged making a probability of
misclassification errors and summarizing the results in a ________.
A) classification matrix
B) classification hierarchy
C) dendogram
D) classification algorithm
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
In a database, information is stored and maintained in ________.
A) fields
B) measurements
C) entities
D) attributes
Identify the equation for calculating the net present value for a stated period of time,
where
Ft = cash flow in period t, and i is the discount rate.
A) NPV =
B) NPV =
C) NPV =
D) NPV =
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
In which of the following plants is the total amount shipped to the distribution centers
equal to zero?
A) Dallas
B) Atlanta
C) Detroit
D) Baltimore
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.
According to the model, which of the following is the weighted distance between the
phone charger and Paint cell?
A) 36.00
B) 12.00
C) 24.00
D) 0
Below is a spreadsheet for Stone Age Surfboards.
Assume that the finishing time for a pair of Rockwell surfboards is triangular with a
minimum value of 1.4, a most likely value of 1.5, and a maximum value of 1.8 and that
finishing time for a pair of Limestone surfboards is also triangular with a minimum
value of 1.8, a most likely value of 2.0, and a maximum value of 2.4. The number of
trials per simulation is equal to 5000.
What is the coefficient of variation obtained from the simulation results?
A) 0.098
B) 0.134
C) 0.047
D) 0.020
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 coefficient of variation obtained from the simulation results?
A) 0.28
B) 0.10
C) 0.45
D) 0.60
Which of the following formula is used to make the recording decision in B20?
A) =IF(B19>0,”In-house”,”Studio”)
B) =IF(B19<=0,”Studio”,”In-house”)
C) =SUM(B19<=0,”Studio”)
D) =IF(B19>0,”Studio”,”In-house”)
Below is the spreadsheet for a portfolio allocation model.
Answer the following question(s) using a model with uncertainty on type of investment
return. Assume that the distributions of life insurance annual return is uniform with
minimum 4% and maximum 6%, bond mutual funds annual return is normal with mean
7% and standard deviation 1%, stock mutual funds annual return is lognormal with
mean 11% and standard deviation 4%. Use 10,000 trials and 1 for random seed for the
simulation.
What is the coefficient of variation obtained from the simulation results for maximizing
the total expected return? [Hint: Choose the approximate value.]
A) 1.2451
B) 0.4865
C) 0.8917
D) 0.1284
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.
From the “what if” values, calculate the total cost when demand is 40,000.
A) $ 2,000,000
B) $1,925,000
C) $1,100,000
D) $75,000
Which of the following is true of random partitioning?
A) It cannot be used for creating training data sets.
B) It can contain any non-negative value from the observations.
C) It can include negative-value observations in its data.
D) It selects its data based on observations that have similar properties.
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 projected sales for the first year.
A) 273,000
B) 210,000
C) 378,000,000
D) 268,230
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 the weighted return?
A) X1 + X2 + X3 + X4 + X5 + X6 = 750,000
B) 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ≥ 6.00
C) ( 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ) / 750,000 ≥ 6.00
D) ( 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ) / 750,000
Observations consisting of pairs of variable data are required to construct a ________
chart.
A) doughnut
B) scatter
C) radar
D) line
Which of the following cases require the mean of a sample to be calculated using the
formula
= , where N represents the sample size?
A) the sample has no mode value
B) there is direct access to the raw data
C) sample data are grouped in a frequency distribution
D) the coefficient of skewness is 1 or less than -1
What is a conditional value at risk constraint?
How does a tornado chart help make sense of inputs in analyzing data and models?
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.
What are the Excel functions to avoid in linear optimization?
From the data in the table below, calculate the total annual cost using the economic
order quantity (EOQ) model.
= 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.
What is a service level?
Explain the different types of Holt-Winters models used in forecasting.
Construct a relative frequency distribution for items in the purchase order database and
show the proportions of the frequencies visually using a pie chart.
