________ is the ratio of the number of transactions that include all items in the
consequent as well as the antecedent to the number of transactions that include all items
in the antecedent.
A) Lift
B) Logit
C) Support for the association rule
D) Confidence of the association rule
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 revenue
figure for Gold tickets based on its new price?
A) $432.93
B) $1,316.92
C) $1,116.03
D) $523.29
A(n) ________ is an extreme value that is different from the rest of the data.
A) critical value
B) standard error
C) expected value
D) outlier
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
The average cost for the sample of 5 sales of a product is = $230 and the
sample standard deviation is s = $17.50. The hypothesized mean is μ0 = $250.
Compute the value of the test statistic.
A) -2.56
B) -4.00
C) -1.67
D) -3.87
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 revenue if the demand is 60,000 units.
A) $2,750,000
B) $825,000
C) $75,000
D) $1,375,000
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 total profit when the demand is 20,000.
A) $825,000
B) $1,000,000
C) $1,100,000
D) ($925,000)
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
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 coefficient of variation obtained from the simulation results? [Hint: Choose
the approximate value.]
A) 0.386
B) 0.589
C) 0.415
D) 0.669
How many additional dummy variables are required if a categorical variable has 4
levels?
A) 2
B) 3
C) 1
D) 4
Latin Hypercube sampling differs from Monte Carlo sampling in that the Latin
Hypercube sampling ________.
A) selects random variates independently over the entire range of possible values of the
distribution
B) uses an uncertain variable whose probability distribution is divided into intervals of
equal probability
C) is used for evaluating the model performance under various what-if scenarios
D) achieves less accurate forecast statistics for a fixed number of trials
Regression models of ________ data focus on predicting the future.
A) missing
B) time-series
C) panel
D) cross-sectional
Pickson Luthiers Corporation makes four models of electric guitars, ScarCT, Dela Mort,
Warax, and Invazen. Each guitar must flow through five departments, assembly,
painting, sound testing, inspection, and packaging. The table below shows the relevant
data. Production rates are shown in units/hour. (ScarCT is assembled elsewhere).
Pickson wants to determine how many guitars to make to maximize monthly profit.
According to the linear optimization model, what would be the total time spent for
assembling the Invazen models?
A) 8
B) 4
C) 16
D) 10
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 3 to be produced with
Northrop?
A) 0
B) 35,000
C) 2,405
D) 32,595
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 revenue
figure for Silver tickets based on its new price?
A) $1,163.02
B) $1,132.08
C) $1,224.63
D) $1,316.92
Why is the ROUND function used in Excel?
A) to ensure that the values generated are whole numbers
B) to ensure that the values generated are multiples of ten
C) to ensure that the values generated are always positive
D) to ensure that the values are even numbers
Which of the following describes a positively skewed histogram?
A) a histogram that tails off toward the right
B) a histogram that has no fluctuation in mass
C) a histogram where more mass tails off toward the left
D) a histogram where mass is only concentrated in the middle
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 Houston?
A) 0
B) 175
C) 1,180
D) 750
Nominal data:
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.
Consider the spreadsheet for a Newsvendor Model.
Which of the following cells is defined as the uncertain function cell?
A) B12
B) B14
C) B15
D) B17
Which of the following formula is used to compute covariance between two variables X
and Y?
A) cov (X,Y) =
B) cov (X,Y) =
C) cov (X,Y) =
D) cov (X,Y) =