The table below provides the sales data for JD Inc. for the year 1998. Given: α = 0.2,
β = 0.15, and γ = 0.05 (Hint: Use an additive Holt-Winters model.)
Umbrella Sales of JD Inc.
Using an appropriate Holt -Winters trend model, calculate the value of the mean
absolute percentage error for the given data.
A) 8.10
B) 330.01
C) 384.83
D) 7.21
What is the confidence coefficient when the level of significance is 0.03?
A) 0.9700
B) 0.0376
C) 0.7924
D) 0.7776
Below is a payoff table with three mortgage options:
What is the expected opportunity loss for the 30-year fixed decision?
A) $ 7,979.60
B) $ 3,959.40
C) $ 6,853.50
D) $ 8,621.40
Consider the spreadsheet for a Newsvendor Model.
Which of the following cells is defined as the uncertain function cell?
A) B12
B) B14
C) B15
D) B17
In a lower one -tailed hypothesis test, chosen level of significance = 0.10, sample size =
55, and t-test statistic = -1.76.
For a two-sample hypothesis which tests for differences in population parameters (1)
and (2), a two-tailed test seeks evidence that population parameter:
A) seeks evidence that population parameter (2) is larger than parameter (1).
B) seeks evidence that population parameter (2) is the same as parameter (1).
C) seeks evidence that population parameter (2) is smaller than parameter (1).
D) seeks evidence that population parameters (1) and (2) do not belong to the same
data.
For a simple linear regression model, significance of regression is:
A) a measure of how well the regression line fits the data.
B) a hypothesis test of whether the true regression coefficient 1 is zero.
C) a statistic that modifies the value of R2 by incorporating the sample size and the
number of explanatory variables in the model.
D) the variability of the observed Y-values from the predicted values.
In a k-Nearest Neighbors algorithm, similarity of records is based on the ________.
A) closeness of a record to numerical predictors in the other records
B) sum of the squares of the distance between the numerical predictors
C) set of linear functions of predictors called discriminant functions
D) nearness of a record to its own observations
A children’s welfare fundraiser involves selling one thousand $70 tickets to win a
$20,000 grand prize. If the probability of winning is only 0.005, what is the expected
payoff?
A) -$40
B) -$50
C) $30
D) $60
The weights for determining the discriminant functions are determined by ________.
A) assessing the number of outliers that are present in each group
B) calculating the distance between the two closest observations in each group
C) measuring the closeness between predictor values of each set
D) maximizing the between-group variance relative to the within-group variance
Below is the spreadsheet for demand prediction of a company that sells chocolates.
If, in the spreadsheet, cells B9 and B10 were empty, which of the following formulas
should be entered in B8 so that the formula can be dragged to B9 and B10 to obtain
their correct values?
A) B4-B5*A8
B) B4-B5*$A8
C) $B4-B5*$A8
D) $B$4-$B$5*$A8
Which of the following is true about the Random Number Generation tool?
A) The Random Number Generation dialog presents only three distributions to choose
from: beta, lognormal, and triangular.
B) The default distribution in this tool is the continuous distribution.
C) Repeating the process generates a new set of sample values.
D) Pressing the recalculation (F9) key is an easy way to change the values generated.
The ________ algorithm is a classification scheme that attempts to find records in a
database that are similar to one we wish to classify.
A) linear regression
B) logistic regression
C) k-Nearest Neighbors
D) discriminant analysis
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.
Which of the following cells is defined with a triangular distribution?
A) B6
B) D6
C) B7
D) D7
_________ ofmoney measures the worth of a stream of cash flows, taking into account the
time value
A) Accounting rate of return
B) Net present value
C) Internal rate of return
D) Adjusted present value
Bolton Computer’s
Laptop
Pricing Decision
Inputs
Price
Model
Sales -3.85 price + 1150.9
Outputs
Total revenue sales price
According to the nonlinear model, which of the following is the total revenue expected
from the sales?
A) 22,340.91
B) 86,011.09
C) 107,571.78
D) 74,733.77
From the data in the table below, calculate the total annual cost using the economic
order quantity (EOQ) model.
Explain the process of running a simulation using Risk Solver Platform.
How can managers judge the validity of a model?
The table below shows the weights of female individuals in Catherine’s family.
Calculate the sample variance in the weights, and the standard deviation.
Weights of female individuals in Catherine’s family (in lbs)
163
160
155
161
158
155
149
151
158
171
What is the importance of binary variables in integer optimization models?