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 3?
A) 40%
B) 20%
C) 25%
D) 75%
Below is a table showing the costs per order of items bought by a computer hardware
store.
Calculate the mode for the cost per order data.
A) $174.17
B) $325
C) $88
D) $206.5
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.
Following is an extract from the Employee Payroll Database of HFR Informatics Inc.
What is the relative frequency of Female employees?
A) 0.65
B) 0.75
C) 0.25
D) 0.35
While checking for linearity by examining the residual plot, the residuals must:
A) exhibit a linear trend.
B) form a parabolic shape.
C) be randomly scattered.
D) be below the x-axis.
Skewness describes the lack of symmetry of data.
Belowisaspreadsheetofpurchaseordersfor acomputerhardwareretailer.
To find the number of orders with A/P terms less than 25 months, what Excel formula
should be used in A12?
A) =COUNTIF(F4:F10,”<25″)
B) =COUNT(F4:F10,25)
C) =AVERAGE(F4:F10,”<25″)
D) =COUNTIF(F4:F10,F5)
A company makes standard 130- inch-wide rolls of thin sheet metal and slits them into
smaller rolls to meet customer orders for widths of 10, 14, and 25 inches. Suppose that
the company has proposed the following cutting patterns:
Demands for the coming week are 950 10-inch rolls, 725 14-inch roles, and 640
25-inch rolls. Develop a model using the Analytic Solver Platform that will determine
how many 130-inch rolls to cut into each of the six patterns in order to meet demand
and minimize scrap.
What is the total number of 14-inch rolls produced?
A) 721
B) 725
C) 728
D) 740
Thefunctionreturnsavalueor referenceof thecellattheintersectionof a particular row and column in a
given range.
A) VLOOKUP(lookup_value, table_array, col_index_num)
B) INDEX(array, row_num, col_num)
C) MATCH(lookup_value, lookup_array, match_type)
D) HLOOKUP(lookup_value, table_array, row_index_num)
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 profit when the demand is 20,000.
A) $825,000
B) $1,000,000
C) $1,100,000
D) ($925,000)
Decision variables:
A) cannot be directly controlled by the decision maker.
B) are assumed to be constant.
C) are always uncertain.
D) can be selected at the discretion of the decision maker.
The Atlas Movies Theater has repriced 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 new price for the three
classes obtained using Solver.
Assume the distributions of elasticities for three classes of tickets are uniform with
minimum and maximum values equal to 75% and 125% of their estimated values,
respectively. Under this assumption, use Monte Carlo simulation to see what happens to
the prediction of tickets sold. The model is simulated for 10,000 trials.
Which of the following cells are defined to be uniformly distributed?
A) B6:B8
B) C6:C8
C) D6:D8
D) B13:B15
Troista Mobile Accessories sells mobile apps on their Web site. If a customer spends on
average, $12 per visit and visits the Web site 20 times each year, what is the average
nondiscounted gross profit during a customer’s lifetime? Given that Troista makes a
margin of 60 percent on the average bill, with 25 percent of customers not returning
each year.
A) $30
B) $75
C) $360
D) $576
Below is the spreadsheet for demand prediction of a company that sells chocolates.
If a dollar sign is used before the column label B4 ($B4), how will the formula at B10
be represented in C11 using absolute addressing?
A) $B5-C6*B11
B) $C5-C6*A10
C) $B4-C5*B11
D) $A5-C6*B11
If D is demand, P is the unit price, and c and d are constants (where d > 0 is the price
elasticity), which of the following is a nonlinear demand prediction model?
A) D = d + (c P)
B) D = (d P)c
C) D = cdP
D) D = cP-d
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
Use the table below to answer the following question(s).
The historical data of Velvetta Inc., a healthcare products manufacturer, have shown
that in a production process for filling bottles of shampoo, variance in the volume is
constant; however, clogs in the filling machine often affect the mean volume. The
historical standard deviation is 5 milliliters. In filling 250-milliliter bottles, a sample of
20 found a meanvolume of 242 milliliters.
From the table above, calculate the lower confidence interval estimate at a confidence
level of 95%
A) 239.49
B) 240.16
C) 239.81
D) 240.04
Belowisaspreadsheetofpurchaseordersfor acomputerhardwareretailer.
To find the total order cost, what Excel formula should be used in A12?
A) =COUNT(C4:C10)
B) =COUNT(C4:C7)
C) =MAX(C4:C10)
D) =SUM(E4:E10)
Calculate the standard deviation for cost per order in the following table.
How are probability, experiment, outcome, and sample space related to each other?
What are the differences between an aggressive strategy and a conservative strategy?
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.
How does Solver handle simple lower bounds and upper bounds compared to ordinary
constraints?
What are the four different outcomes of hypothesis testing?
Discuss how overbooking decisions are made by service businesses.
What are multiple parameterized simulations?