As the number of degrees of freedom increases, the t-distribution converges to the
standard normal distribution.
For any sample of fixed size n, the true standard deviation of the sampling distribution
of the mean is the standard deviation of the population.
The economic order quantity is the amount to order that minimizes the total cost of
ordering and holding.
An outcome over which the decision maker has complete control is called an event
node.
Monte Carlo simulation is an inappropriate tool to analyze cash budgets because of the
inherent uncertainty of the sales forecasts on which most cash budgets are based.
For any sample of fixed size n, the true standard deviation of the sampling distribution
of the mean is the standard deviation of the population.
In conducting a hypothesis test, what is usually to be proven statistically is identified as
the null hypothesis.
Logistic regression cannot be employed when the dependent variable is binary.
As the sample size increases, the width of the confidence interval decreases.
The indexes in the forecasting indicators provide a complete forecast.
Expected confidence assumes independence between the consequent and the
antecedent.
Lagging and leading measures in cause-and-effect modeling are uncorrelated.
Using a $ sign before both the row and column labels keeps the reference to that cell
fixed no matter where the formula is copied.
Two-way data tables can evaluate only one output variable.
The process of developing good, useful, and correct spreadsheet models is known as
spreadsheet engineering.
Monte Carlo simulation is an inappropriate tool to analyze cash budgets because of the
inherent uncertainty of the sales forecasts on which most cash budgets are based.
A payoff table is a matrix whose rows correspond to events and whose columns
correspond to decisions.
The binominal distribution:
A) is a discrete distribution used to model the number of occurrences in some unit of
measure.
B) assumes that the average number of occurrences per unit is a constant and that
occurrences are independent.
C) is symmetric irrespective of the value of the probability of success.
D) models n independent replications of a Bernoulli experiment, each with a probability
p of success.
Which of the following formula is used to make the recording decision in B20?
A) =IF(B19>0,”In-house”,”Studio”)
B) =IF(B19<=0,”Studio”,”In-house”)
C) =SUM(B19<=0,”Studio”)
D) =IF(B19>0,”Studio”,”In-house”)
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails,
rivets, and clips-which are machined on two CNC machining centers. The machining
centers have a capacity of 250,000 minutes per year. The gross margin per unit and
machining requirements are shown in the spreadsheet below.
What is the total profit generated from the manufacture of rivets?
A) $ 66,666.67
B) $ 100,000.00
C) $ 183,333.33
D) $ 150,000.00
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.
Below are four options for an investment decision.
Which of the following is the average utility for the index fund decision?
A) 1.05
B) 0.70
C) 0.60
D) 0.45
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.
According to the model, what is the total weighted distance between the 5 production
cells and the phone charger?
A) 253.50
B) 113.00
C) 172.50
D) 165.50
For two variables, a positive correlation coefficient indicates ________.
A) a linear relationship exists for which one variable increases as the other also
increases
B) a linear relationship exists for one variable that increases while the other decreases
C) that the two variables have no linear relationship with each other
D) a nonlinear relationship with no linear correlation between the two variables
In an Economic Order-Quantity (EOQ) model, ________ is the estimate on how long it
takes an order to be received after it is placed.
A) lead time
B) safety stock
C) time limit
D) cycle time
Which of the following is the mathematical model for deriving the break-even volume?
A) Q = (C – V
C) + F
B) Q = F / (C -V)
C) Q = (V +
C) / F
D) Q = F / (VC –
C)
In the equation for calculating a confidence interval for a proportion, p za/2,
what
does represent?
A) the mean for the sampling distribution of the proportion
B) the degree of freedom for the sampling distribution of the proportion
C) the standard error for the sampling distribution of the proportion
D) the estimator for sampling distribution of the proportion
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
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.).
Which of the following best defines a binary variable?
A) It is a general integer variable that is restricted to being between -1 and 1.
B) It is a general integer variable that is restricted to being a multiple of 2.
C) It is a general integer variable that is restricted to being between 0 and 1.
D) It is a general integer variable that is restricted to being greater than 2.
Which of the following is true about variance?
A) It measures the uncertainty of a random variable.
B) Higher variance implies low uncertainty.
C) It is the square root of a random variable’s standard deviation.
D) It is the weighted average of all possible outcomes.
Which of the following is a weighted average of the squared deviations from the
expected value?
A) skewness
B) mean difference
C) kurtosis
D) variance
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, determine the cumulative probability for z at a 95% confidence
level.
A) 0.975
B) 0.950
C) 1
D) 0.987
State the three empirical rules in standard deviation.
How does Excel distinguish between vertical and horizontal bar charts?
What is the expected value of perfect information?
How does Excel’s Solver help interpret reduced cost as shadow price for bounded
variables?
Why is regression analysis necessary in business? What categories of regression models
are used?
A goal of Korel & Marke, a dot-com company, is to gain strategic advantage over its
rival firms. How can Korel & Marke use analytics and exploit social media to
accomplish this goal?
Describe how to sort the data by inventory value to compute cumulative percentage of
total inventory value to help the restaurateur conduct a Pareto analysis. (Assume that no
damages were caused to the inventory purchased over the three months)
