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.
Consider an event Z that includes all outcomes of rolling two dice whose sum is odd.
What is the probability that either event Y or Z occurs?
A) 26/36
B) 22/36
C) 10/36
D) 18/36
Peige, a stock broker, has data consisting of price, price/earnings ratio, and market
capitalization for seven different stocks on one particular day. She wishes to plot these
three variables in two dimensions. Which of the following charts must Peige use?
A) Stock chart
B) Surface chart
C) Bubble chart
D) Line chart
Which of the following is the ideal next step if you get the message “Solver has
converged to the current solution./All constraints are satisfied,” when using Solver for
nonlinear optimization models?
A) Accept the values, but run Solver again from the current solution.
B) Do not accept the Solver values and re-run Solver with the starting values.
C) Accept the values and run simulations with different values.
D) Accept the values, and then tweak the values, and re-run Solver on tweaked values.
Below is a spreadsheet for Trance Electronics.
Suppose that the project manager of Trance Electronics has identified the following
uncertain variables in the model and the distributions and parameters that describe
them, as follows: Market size: normal with mean of 20,000,000 units and standard
deviation of 4,000,000 units. R&D costs: uniform between $600,000,000 and
$800,000,000.
Clinical trial costs: lognormal with mean of $150,000,000 and standard deviation
$30,000,000. Annual market growth factor: triangular with minimum = 2%,
maximum = 6%, and most likely = 3%.
Annual market share growth rate: triangular with minimum = 15%, maximum =
25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim. Random Seed of 2. Run
the simulation and answer the following questions using the Risk Solver Platform.
What are the chances that the product will show a cumulative net profit in the fourth
year?
A) approximately 25%
B) approximately 18%
C) approximately 11%
D) approximately 32%
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 2 to be purchased?
A) 50,000
B) 62,000
C) 0
D) 2,405
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.
How often will overtime be needed if 4.55 Rockwell and 9.09 Limestone surfboards,
the optimal solution, are scheduled each day?
A) more than 60%
B) more than 87%
C) more than 75%
D) more than 52%
Given that Q = order quantity, D = annual demand, C = unit cost of the item, C0 = cost
per order placed, i = inventory carrying charge per unit, which of the following
represents the holding cost per unit?
A) D/Q
B) iC
C) (D/Q)C0
D) iCQ/2
Stone Age Surfboards is a small manufacturer of two types of popular low-tide
surfboards, the Graystone and the Lava models. The manufacturing process consists of
two departments: fabrication and finishing. The fabrication department has 8 skilled
workers, each of whom works 9.25 hours per day. The finishing department has 5
workers, each of whom works a 6 -hour shift per day. Each pair of Graystone
surfboards requires 2.5 labor hours in the fabrication department and 2 labor hours in
finishing. The Lava model requires 4.2 labor-hours in fabrication and 3.6 labor-hours in
finishing. The company operates 6 days a week. It makes a per unit profit of $40 on the
Graystone model and $60 on the Lava model. The company anticipates selling at least
twice as many Lava models as Graystone models.
What will be the total profit contribution from Lava surfboards?
A) $ 391.30
B) $ 521.74
C) $ 130.43
D) $ 276.65
Which of the following is a differentiation between calculating using the functions
COUNT
and COUNTIF?
A) COUNT does not require a range of cells; COUNTIF requires a range of cells.
B) COUNT only requires a range of cell and can be obtained without a special criteria,
COUNTIF requires range and special criteria to be calculated.
C) COUNT requires a range of cells; COUNTIF does not require a range of cells, only
special criteria.
D) COUNT calculates the sum of values for a range of cells; COUNTIF finds the
largest value in a range of cells.
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, which of the following is the weighted distance between the
phone charger and Paint cell?
A) 36.00
B) 12.00
C) 24.00
D) 0
Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following observations is closest to the third quartile?
A) 35 N102 nuts for $190.40
B) 59 S103 screws for $556.96
C) 13 N103 nuts for $22.62
D) 2 NG102 nailgun packs for $550.90
Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following does the 38th percentile of the costs per order indicate?
A) 62% of the costs per order are more than or equal to $190.40.
B) 38% of the costs per order are less than or equal to $189.20.
C) 62% of the costs per order are less than or equal to $484.16.
D) 38% of the costs per order are more than or equal to $501.80.
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 is the squared term value for Stock 3 variance?
A) 0.00018
B) 0.00080
C) 0.00096
D) 0.00194
Which of the following is true about the classical definition of probability?
A) It is based on judgment and experience.
B) If the process that generates the outcomes is known, probabilities can be deduced
from theoretical arguments.
C) The probability that an outcome will occur is simply the relative frequency
associated with that outcome.
D) It is based on observed data.
Which of the following is the ideal next step if you get the message “Solver has
converged to the current solution./All constraints are satisfied,” when using Solver for
nonlinear optimization models?
A) Accept the values, but run Solver again from the current solution.
B) Do not accept the Solver values and re-run Solver with the starting values.
C) Accept the values and run simulations with different values.
D) Accept the values, and then tweak the values, and re-run Solver on tweaked values.
Below are four options for an investment decision.
Based on the average utility, which of the following is considered the worst decision?
A) Bank CD
B) Bond fund
C) Index fund
D) Growth fund
Explain the significance of using double moving average and double exponential
smoothing models.
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.
From the above table, provide the objective function for the best location of the
charging point. What kind of solution technique from Solver can be used to make the
optimization model based on the data?
What are the assumptions made when developing an economic order quantity (EOQ)
model?
What is the importance of Integer Tolerance in Solver?
Give an account of biased and unbiased estimators in sampling methods.
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%.
Using the table above, provide the objective function for minimal variance, and the
constraints for creating an optimization model.
Give an account of balance constraints with some examples of verbal clues.
How is the strength of an association measured?