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
One of the measures of location is calculated as 88. Which of the following measures of
location corresponds to this value?
A) mean
B) mode
C) median
D) midrange
In statistics, ________ refers to the peakedness or flatness of a histogram.
A) Sharpe ratio
B) entropy rate
C) Markov chain
D) kurtosis
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 projected sales figure
for Classic tickets at the new price?
A) 32
B) 90
C) 175
D) 202
Letherin Hides is a company that makes boots specifically targeting college students.
Forecasts of sales for the next year are 200 in the summer, 450 in the autumn, and 500
in the winter. Accessories that are used on the boots are purchased from a supplier for
$31.66. The cost of capital is estimated to be 24% per year (or 6% per quarter); thus, the
holding cost per item is 0.06($31.66) = $1.9 per quarter (rounded figure). Letherin
Hides hires freelance art designers at part-time to craft designs during the summer, and
they earn $ 6 per hour. In the autumn, labor is more difficult to keep, and the owner
must pay $6.5 per hour to retain qualified help. Because of the high demand for
part-time help during the winter holiday season, labor rates are higher in the winter, and
workers earn $7.75 per hour. Each boot design takes 2 hours to complete. How should
production be planned over the three quarters to minimize the combined production and
inventory holding costs?
The table below provides information on Letherin Hides boot design cost and
production.
According to the linear optimization model, what is the total amount to be produced in
summer?
A) 200
B) 100
C) 550
D) 0
Which of the following is true of prediction intervals?
A) It provides estimates for variables that can have only two possible outcomes.
B) It is associated with the distribution of a random variable.
C) It provides an interval estimate of a population parameter.
D) It is associated with the sampling distribution of a statistic.
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.
Calculate the variable cost when the demand is 60,000 units.
A) $1,430,000
B) $1,375,000
C) $2,750,000
D) $1,320,000
Which of the following is included in the data mining approach of data exploration and
reduction?
A) analyzing data to predict how to classify a new data element
B) identifying groups in which the elements of the groups are in some way similar
C) creating rules for target marketing based on association of variables
D) developing analytic models to describe the relationship between metrics
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
Categorical variables that have been coded are called _______.
A) limited dependent variables
B) dummy variables
C) instrumental variables
D) observable variables
Which of the following can be used to quickly create cross-tabulations?
A) Frequency distribution
B) COUNTIF function
C) PivotTable
D) Sort & Filter
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 expected sales figure
based on the computed price?
A) 149.47
B) 719.7
C) 575.45
D) 500
Greg is indifferent between receiving $2,000, and taking a chance at $2,500 with
probability 0.7 and losing $1200 with probability 0.5. What is the expected value of this
gamble?
A) $ 1,150
B) $ 1,800
C) $ 1,460
D) $ 2,045
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)
Following is the Sales database of Pointler’s Inc., a manufacturer of clothing material.
Use Excel to calculate the total $ amount earned from sales of all denim items to
Prioland
A) $4449.42
B) $22213
C) $388
D) $57.25
The sort buttons in Excel can be found under:
A) the Data tab in the Sort & Filter group.
B) the Home tab in the Styles group.
C) the Insert tab in the Sort group.
D) the Sort tab in the Filter group.
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
Which of the following is true of the binomial distribution?
A) The expected value of the binomial distribution is np(1 – p), where n is the number
of experiments and p is the probability of success.
B) The binomial distribution can assume different shapes and amounts of skewness,
depending on the parameters.
C) In Excel’s binomial distribution function, setting cumulative to TRUE will provide
the probability mass function for a specified value.
D) The expected value of the binomial distribution is λ, a constant.