Which of the following is the test statistic for a one-sample test for mean when the
population standard deviation is unknown?
A) t =
B) z =
C) z =
D) t =
Coppell Services contracts with outsourcing partners to handle various customer service
functions. Based on a study of call volumes provided by one of the firm’s partners, the
minimum number of staff needed for each hour of the day is as follows:
Mr. Coppell hires 6 permanent employees and wants to staff the remaining
requirements using part-time employees who work 4-hour shifts (four consecutive
hours starting as early as 8 A.M. or as late as 1 P.M.).
How many excess employees are present in the noon-1 time slot?
A) 2
B) 4
C) 5
D) 6
Below is the spreadsheet for a project selection model:
What is the return obtained from Project 5?
A) $ 200,000
B) $ 125,000
C) $ 275,000
D) $ 225,000
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%
The Ransin Sports Company has noted that the size of individual customer orders is
normally distributed with a mean of $112 and a standard deviation of $9. If a soccer
team of 11 players were to make the next batch of orders, what would be the standard
error of the mean?
A) 1.64
B) 2.71
C) 3.67
D) 0.82
Below is the table showing rate of shoes sold per day and the highest-priced shoe sold
that day for a one-week period. The rate of shoes sold per day (X) and the price of the
shoes (Y).
Use Excel to calculate the mean for X.
A) 16.71
B) 7.04
C) 2.67
D) 0.02
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 probability that the drug will not reach the market? [Hint: Choose the
approximate value.]
A) 0.95
B) 0.89
C) 0.77
D) 0.82
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 Graystone surfboards is increased by $10, what is the Allowable
Increase for Lava surfboards?
A) 30.00
B) 85.00
C) 16.67
D) 58.75
Following is an extract from the Cost per Order Database of Grogtes LLC.
What is the rank of the 42nd percentile of the costs per order ?
A) 17
B) 13.35
C) 19
D) 33.75
________ states that for any set of data, the proportion of values that lie within k
standard deviations (k > 1) of the mean is at least 1 – 1/k2.
A) Prime number theorem
B) Bertrand’s postulate
C) Oppermann’s conjecture
D) Chebyshev’s theorem
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 cost incurred by Remington for producing the
three fabrics?
A) $96,540.47
B) $149,240.47
C) $96,227.82
D) $88,862.65
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 Graystone surfboards is increased by $10, what is the total profit
generated?
A) $ 489.13
B) $ 521.74
C) $ 423.91
D) $ 554.35
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.
What will be the total profit contribution from Lava surfboards?
A) $ 391.30
B) $ 521.74
C) $ 130.43
D) $ 276.65
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, which of the following is the total projected revenue
for the new sales figures?
A) $1,637.72
B) $2,970.09
C) $1,316.92
D) $2,865.89
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.
What is the value of slack obtained from the answer report?
A) 46.78
B) 38.46
C) 59.24
D) 23.85
Which of the following is true about the rejection region?
A) The rejection region is chosen to determine the probability of a Type I error.
B) With a true null hypothesis, the test statistic falls into the rejection region.
C) If the test statistic is in the nonrejection region, the null hypothesis is rejected.
D) The rejection region occurs in the tails of the sampling distribution of the test
statistic.
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.
How often will overtime be needed if 4.55 Rockwell and 9.09 Limestone surfboards,
the optimal solution, are scheduled each day?
A) more than 60%
B) more than 87%
C) more than 75%
D) more than 52%
Explain the simplex method used by Solver.
What is simple exponential smoothing?
What is Monte Carlo simulation?
Explain the method of solving models with general integer variables.
Use the data given below to answer the following question(s).
At a casino, a combination of two spinners is used to decide the winner based on the
sum of scores from spinning. The spinners each have four colored spaces – red, yellow,
blue, and green. Red = 1, Yellow = 2, Blue = 3, and Green = 4
Compute the expected value of the random variable that denotes the possible summed
scores from the
two spinners.
The table below is the data set of the Shiller Real Home Price Index for the years
1946-1956.
Setting k = 3, determine the simple moving average forecast for the year 1950.
Following is an extract from a firm’s database detailing the number of hours spent on
the job by employees and their corresponding pay. (Note: Assume a level of
significance of 0.05 wherever necessary.)
Interpret residual output.
How is a frequency distribution calculated for categorical and numerical data?
What are the three components of decision support systems (DSS)?