If bs are weights, Xs are input values, and c is a constant or intercept, provide the
equation for discriminant functions, L.
A) L =
B) L = b1X1 + b2X2 + … + bnXn + c
C) L =
Z) L =
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
Which of the following constraints is used in Solver?
A) $F$16:$F$19 >= $F$6:$F$9
B) $B$20:$E$20 < $B$10:$E$10
C) $B$20:$E$20 = binary
D) $F$16:$F$19 <= $F$6:$F$9
Which of the following is an example of a simple bounds constraint?
A) confirming that production does not go beyond a certain unit value
B) reducing production due to scarcity of resources
C) meeting targets for a specific sales job
D) equaling production in September with the resources available at the end of August
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, which of the following is the amount shipped
from Dallas to San Jose?
A) 0
B) 95
C) 230
D) 325
Which of the following is true of calculating confidence intervals for larger samples?
A) For larger samples, the t-distribution is indistinguishable from the standard normal
distribution.
B) For larger samples, both the t-distribution and the standard normal distribution
require standard deviation values to be calculated.
C) For larger samples, the degrees of freedom cannot be calculated accurately.
D) For larger samples, only z-values provide a true sampling distribution of the mean.
While constructing a histogram, how is group width calculated?
A) number of groups (lower limit of the last group + upper limit of the first group)
B) (upper limit of the last group – lower limit of the first group) / number of groups
C) (upper limit of the first group + number of groups) lower limit of the last group +
number of groups)
D) (lower limit of the first group – number of groups) upper limit of the last group
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the net production at the end of the second quarter?
A) 75
B) 200
C) 450
D) 600
Roger wants to compare values across categories using vertical rectangles. Which of the
following charts must Roger use?
A) Line chart
B) Clustered column chart
C) Pie chart
D) Stacked column chart
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.
From the “what if” values, calculate the net profit when the demand is 65,000.
A) $825,000
B) $1,650,000
C) $800,000
D) $925,000
An unbounded problem is one for which ________.
A) the objective is maximized or minimized by more than one combination of decision
variables
B) there is no solution that simultaneously satisfies all the constraints
C) the objective can be increased or decreased to infinity or negative infinity while the
solution remains feasible
D) there is exactly one solution that will result in the maximum or minimum objective
If the given time series has a trend and no seasonality, the most appropriate forecasting
model to determine the forecast of the time series is the ________ model.
A) single exponential smoothing
B) Holt-Winters no trend smoothing
C) double exponential smoothing
D) Holt-Winters additive
Below are four options for an investment decision.
Based on the average utility, which of the following is considered the best decision?
A) Bank CD
B) Bond fund
C) Index fund
D) Growth fund
Which of the following is true of covariance, between two variables, when one of the
deviations from the mean is positive and the other is negative?
A) the degree of linear association is high between the two variables
B) there is no covariance between the two variables
C) the covariance will be negative
D) the covariance will be positive
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
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
A ________ is one that provides a range for anticipating the value of a new observation
from the same population.
A) prediction interval
B) confidence interval
C) t-distribution
D) standard normal distribution
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 amount of Fabric 1 to be purchased?
A) 27,420.8
B) 50,000
C) 22,579.2
D) 32,595
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 gross margin per minute of rivets manufactured?
A) $ 0.60
B) $ 0.73
C) $ 0.40
D) $ 0.27
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 mean absolute deviation obtained from the simulation results?
A) 3
B) 6
C) 8
D) 10
Which of the following formulas is used to determine the exponential utility function?
A) U(x) = 1 + e‘”x/R
B) U(x) = 1 ex/R
C) U(x) = 1/ exR
D) U(x) = 1 ‘” e‘”x/R
Jonathan Reese is considering three stocks in which to invest with a fixed budget. The
table below provides information on Jonathan’s expected returns for each stock. The
table also provides information, collected from market researchers, on the
variance-covariance matrix of the individual stocks. He expects a total return of at least
10%.
Develop a quadratic optimization model to find the optimal allocation of the budget to
each stock, and variance calculations for squared terms and cross-products based on the
variance-covariance matrix.
According to the model, what percentage of the budget should be allocated to Stock 2?
A) 90%
B) 25%
C) 50%
D) 75%
Which of the following is true about multiple linear regression?
A) It is a linear regression model with more than one dependent variable.
B) The regression coefficients are called fractional regression coefficients.
C) It uses least squares to estimate the intercept and slope coefficients.
D) The ANOVA tests for the significance of each variable separately.
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 value of standard deviation obtained from the simulation results?
A) 5
B) 4
C) 8
D) 10
Below is the spreadsheet for a project selection model.
Answer the following question(s) using a model with uncertainty on project selection.
Assume that the distribution on each project return is LogNormal. Use 10,000 trials and
1 for random seed for the simulation.
What is the value of standard deviation obtained from the simulation results? [Hint:
Choose the approximate value.]
A) $ 89,236
B) $ 180,278
C) $ 236,745
D) $ 107,892
When using logistic regression, where p being the probability that the dependent
variable Y = 1, X1, X2 …, Xk are the independent variables, and β0, β1, β2 …, βk are
unknown regression coefficients, ________ is called the odds of belonging to category
1(Y = 1).
A) p(β0 + β1X1 + β2X2 + …+ βkXk)
B)
C)
D)