Which of the following best defines objective functions?
A) They are limitations, requirements, or other restrictions that are imposed on any
solution in an optimization model.
B) They are quantities that an optimization model seeks to maximize or minimize.
C) They are quantities for which no feasible solutions exist in an optimization model.
D) They are unknown values that an optimization model seeks to determine.
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 is the expected loss ratio obtained from the simulation results of the net present
value?
A) 93.50%
B) 72.45%
C) 67.32%
D) 86.32%
Theeasiestway tolocateaparticularfunctionistoselectacellandclickon theInsert
function button represented by
A) fx
B) Σ
C) $
D) %
How does the Risk Solver Platform define an uncertain function cell?
A) It is a cell that contains a triangular distribution function.
B) It is a cell in which a distribution of output values is created from the model.
C) It is a cell in which an uncertain variable is used to define a distribution.
D) It is a cell that can only be defined by discrete distributions.
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
In which of the following plants is the total amount shipped to the distribution centers
equal to zero?
A) Dallas
B) Atlanta
C) Detroit
D) Baltimore
Below is a room overbooking model spreadsheet for the Metza, a hotel chain. The hotel
has 425 rooms priced at $180 per day each, and is usually fully booked. Reservations
can be cancelled any time before 5:00 p.m. with no penalty. The hotel estimates an
average overbooking cost of $150. Customer demand is set at 400 with an average
cancellation of 20.
Calculate the net revenue.
A) $72,900
B) $76,500
C) $64,650
D) $68,400
Which of the following helps in evaluation of autocorrelation?
A) Breusch-Pagan test
B) Durbin-Watson statistic
C) Hosmer-Lemeshow test
D) Cochran-Mantel-Haenszel statistics
Below is the spreadsheet for demand prediction of a company that sells chocolates.
If a dollar sign is used after the column in B5 (B$5), how will the formula at B8 be
represented in C9 using absolute addressing?
A) C3-B$5*C9
B) C5-C$6*B9
C) C5-C$6*C9
D) C5-C$5*B9
The spreadsheet below shows the net income model for a company that sells shoes.
Which of the following would be used to calculate the gross profit?
A) =SUM(B7:B11)-B6
B) =B5-B6
C) =B5-(B6-B11)
D) =B5-B6+(B11-B10)
Consider the spreadsheet for a Newsvendor Model.
What is the value of mean profit?
A) $255.90
B) $251.45
C) $245.98
D) $264.00
In which of the following ways does demand influence profit?
A) It predicts how many units will be sold.
B) It directly influences the fixed cost of production.
C) It helps in reducing the variable cost of production.
D) It reduces the unit cost of production.
In a MATCH function,if the match_type = 0, then _____
A) the function finds the largest value that is less than or equal to lookup_value
B) the function finds the smallest value that is greater than or equal to lookup_value
C) MATCH finds the first value that is exactly equal to lookup_value
D) the values in the lookup_array must be in a particular order
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
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 is the Allowable Decrease in the fabrication hours used?
A) 26.84
B) 16.67
C) 8.33
D) 38.46
Below is the spreadsheet for a newsvendor model.
Answer the following question(s) using multiple parameterized simulations. The range
for the historical demand is 40-51. Assume a uniform integer distribution for demand,
and run 12 simulations for different purchase quantities. Use 5,000 trials and 1 for
random seed.
What is the value of mean profit generated by the simulation if the purchase quantity is
equal to 45?
A) $ 234
B) $ 255
C) $ 216
D) $ 222.
The strength of the association rule, known as lift, is calculated as the ratio of the
________.
A) sum of the antecedents and the consequents to the antecedents
B) antecedents to the consequents
C) support to the confidence level
D) confidence to expected confidence
Which of the following charts allows plotting of multiple dimensions of several data
series?
A) Doughnut chart
B) Bubble chart
C) Radar chart
D) Area chart
In statistical notation, the elements of a data set are typically labeled as ________.
A) summation operators
B) letters in capitals
C) Greek letters
D) subscripted variables