________ constraints essentially state that input = output and ensure that the flow of
material or money is accounted for at locations or between time periods.
A) Requirements
B) Proportional relationships
C) Balance
D) Limitations
Categorical variables that have been coded are called _______.
A) limited dependent variables
B) dummy variables
C) instrumental variables
D) observable variables
The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas
and Atlanta. They ship them to major distribution centers in Houston, San Jose,
Jacksonville, and Memphis. The accounting, production, and marketing departments
have provided the information in the table below, which shows the unit cost of shipping
between any plant and distribution center, plant capacities over the next planning
period, and distribution center demands. RTC’s supply chain manager faces the problem
of determining how much to ship between each plant and distribution center to
minimize the total transportation cost, not exceed available capacity, and meet customer
demand.
Assume Xij = amount shipped from plant i to distribution center j, where i = 1
represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on.
According to the transportation model, what is the total cost incurred by Riviera
Transport Company?
A) $29,016.95
B) $26,698.95
C) $20,331.35
D) $41,978.75
Which of the following is true about probability density functions?
A) A graph of the density function must lie at or below the x-axis.
B) The total area under the density function below the x-axis is 2.0.
C) It calculates the probability of a random variable lying within a certain interval.
D) P (a) x P (b) is the area under the density function between two numbers a and b.
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
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $ 75,000. She
expects a salary increase of 5 percent every year. Her retirement plan requires her to
pay 9 percent of her salary, while the company matches it at 32 percent. She expects an
annual return of 7 percent on her retirement portfolio. Using a predictive model for
Sheila’s first five years, calculate the following, assuming that the salary increases at the
same rate every year, and the return of interest does not change.
What will be the amount of employee contribution to retirement plan when Sheila has
reached the age of 38?
A) $7,441.88
B) $7,813.97
C) $24,450
D) $2381.40
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.
What is the coefficient of variation obtained from the simulation results?
A) 0.086
B) 0.120
C) 0.014
D) 0.048
Explain with an example the filtering tool provided by Excel for simple criteria.
Below is a spreadsheet for a hotel overbooking model.
Answer the following question(s) using multiple parameterized simulations. The range
of historical customer demand is 400-430. Assume a uniform integer distribution for
customer demand, and run parameterized simulations for different reservation limits.
Use 5,000 trials and 1 for random seed.
What is the number of reservations made that will generate a net revenue of $59,000?
A) 400
B) 410
C) 420
D) 430
Below is a decision tree for the airline revenue management.
If the probability of selling the full-fare ticket is 0.80, what is the expected value of the
ticket?
A) $ 442.50
B) $ 472.00
C) $ 501.50
D) $ 531.00
During which phase in problem solving is a formal model often developed?
A) analyzing the problem
B) structuring the problem
C) defining the problem
D) implementing the solution
If a data set has ‘c’ number of observations, the relative frequency of category ‘l’ is
computed as ________.
A) (frequency of category ‘l’) / ‘c’
B) ‘c’ (number of observations in category ‘l’)
C) (sum of all observations in category ‘l’) / ‘c’
D) sum of (‘c’ + each observation in category ‘l’)
Which of the following is the mathematical model for deriving total cost of only
manufacturing?
A) TC = VC + (C Q)
B) TC = F + (C Q)
C) TC = F + C
D) TC = F + (V Q)
Which of the following is the mathematical model for deriving total cost of only
manufacturing?
A) TC = VC + (C Q)
B) TC = F + (C Q)
C) TC = F + C
D) TC = F + (V Q)
Prescriptive decision models help:
A) make predictions of how demand is influenced by price.
B) make trade-offs between greater rewards and risks of potential losses.
C) decision makers identify the best solution to decision problems.
D) describe relationships and influence of various elements in the model.