Below is the spreadsheet for an economic order quantity model.
Assume that the distribution of demand is normal with a mean of 20,000 and standard
deviation of 2,000.
Which of the following cells is defined to be normally distributed using the function =
PsiNormal(20000,2000)?
A) B5
B) B6
C) B7
D) B12
For which of the following is the value of the estimator said to be biased?
A) if the expected value of the estimator does not equal the population parameter
B) if the expected value of the estimator equals the population parameter
C) only if the expected value of the estimator is zero
D) only if the expected value of the estimator goes below zero
Misty Inc. launches a new range of perfumes for men and women. The probability of
high consumer demand for the product is 0.6 and low consumer demand is 0.4. The
probability of a favorable survey response given high consumer demand is 0.9 and the
probability of a favorable survey response given low consumer demand is 0.2.
What is the likelihood for high demand knowing that the market report is favorable?
A) 84%
B)) 90%
C) 87%
D) 80%
Nominal
A) are ranked according to some relationship to one another.
B) have constant differences between observations.
C) are continuous and have a natural zero.
D) are sorted into categories according to specified characteristics.
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential
new drug. The total R&D costs are estimated to reach around $875,000,000 with
clinical trials mounting to $145,000,000. The current market size is estimated to be
around 3,000,000 and is expected to grow at 4 percent every year. The market share
Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25
percent each year for the next 4 years. A monthly prescription is anticipated to generate
revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is
assumed.
Calculate the projected profit for the third year.
A) $31,315,200
B) $2,373,996,000
C) $1,149,876,000
D) $1,494,838,800
In sampling, ________ involves assessing the value of an unknown population
parameter’“ such as a population mean, population proportion, or population
variance’“using sample data.
A) distribution
B) randomization
C) estimation
D) substitution
Problem statements such as production must be sufficient to meet promised customer
orders would be categorized as a ________ constraint.
A) limitations
B) requirements
C) proportional relationships
D) balance
The Ransin Sports Company has noted that the size of individual customer orders is
normally distributed with a mean of $112 and a standard deviation of $9. If a soccer
team of 11 players were to make the next batch of orders, what would be the standard
error of the mean?
A) 1.64
B) 2.71
C) 3.67
D) 0.82
Following are the components of a data set containing purchase details of a shoe
manufacturing company. Identify the ratio data.
A) Item Number
B) Rank of suppliers
C) Item cost
D) Arrival Date
_________ 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
Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following observations is closest to the 87th percentile of costs per order?
A) 75 SD104 screwdrivers for $183.00
B) 66 N103 nuts for $114.84
C) 73 B101 bolts for $1,200.12
D) 49 S101 screws for $1,001.56
Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following will give the value for the third quartile?
A) PERCENTILE.INC(array, 0.75)
B) QUARTILE.INC(array, 0.75)
C) DECILE.INC(array, 0.30)
D) QUARTILE.INC(array, 0.25)
Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters
as part of the winter collection for $65 with an inventory of 1500. The main selling
season is 60 days between November and December. The store then sells the remaining
units in a clearance sale at 65 percent discount. Out of the 60 main retail days, Fiberia
sells the sweaters at full retail price for only 45 days, while giving a discount of 25
percent for the remaining 15 days. The demand functions a, and b are given as 79.5 and
1.1 respectively.
Calculate the total number of units sold during the full retail sales period.
A) 33.33
B) 520
C) 187.5
D) 360
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 as the uncertain output cell?
A) D15
B) D16
C) D19
D) D22
The details of the clock sales at a supermarket for the past 6 weeks are shown in the
table below. The time series appears to be relatively stable, without trend, seasonal, or
cyclical effects. The simple moving average value of k is set at 2.
For the given data, the simple moving average mean absolute deviation is ________.
A) 0.21
B) 20.12
C) 14.25
D) 207.13
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, what is the new price for Silver tickets?
A) $7.40
B) $12.17
C) $11.50
D) $12.50
Consider the following spreadsheet for an outsourcing decision model.
We assume that the production (demand) volume is normally distributed with a mean of
1,000 and a standard deviation of 100. For the unit cost, select the triangular
distribution. It has a minimum value of $150, most likely value of $165, and a
maximum value of $190. The number of trials per simulation is equal to 5,000 at a Sim.
Random Seed of 1. Run the simulation and answer the following question(s) using the
Risk Solver Platform.
What is the cost difference lower cutoff in thousands of dollars if the likelihood is 60%?
A) approximately 13.56
B) approximately 22.45
C) approximately 29.67
D) approximately 38.97
________ involves selecting items from a population so that every subset of a given
size has an equal chance of being selected.
A) Convenience sampling
B) Subjective sampling
C) Judgment sampling
D) Simple random sampling
Below is a decision tree for the airline revenue management.
The expected value of perfect information (EVPI) is equal to the ________.
A) Expected Monetary Value (EMV) with perfect information minus the EMV without
any information
B) EMV with perfect information divided by the EMV without any information
C) sum of the EMV with information and the EMV without any information
D) EMV without any information minus the EMV with perfect information
In an event X, the probability of rolling a sum of 8 on two dice is 5/36 while the
probability of
rolling an 11 is 2/36. In another event Y, the probability of rolling a 2 is 1/36, the
probability of
rolling a 9 is 4/36, and the probability of rolling a 4 is 3/36.
What is the probability that either event X or Y occurs?
A) 8/36
B) 15/36
C) 7/36
D) 1/36
Which of the following describes standard deviation?
A) It is the average of the greatest and least values in the data set.
B) It is the square root of the variance.
C) It is the difference between the first and third quartiles of a data set.
D) It is the average of the squared deviations of the observations from the mean.
Which of the following charts shows three-dimensional data?
A) Surface chart
B) Column chart
C) Stock chart
D) Doughnut chart
Validation data sets differ from training data sets in that validation data sets ________.
A) have known outcomes
B) test a model with unseen data
C) are used to teach data-mining algorithms
D) provide the most realistic test for models with known data
What should be the value of Integer Tolerance in order to find the guaranteed optimal
integer solution?
A) -1
B) 0
C) 0.5
D) 1