Mathematically, a binary variable x can be represented as x > 2 and integer.
A correlation of 0 indicates that the two variables have no linear relationship with each
other.
As Monte Carlo simulation is essentially statistical sampling, the larger the number of
trials used, the more precise is the result.
The first step in a chi-square test is to compute the observed frequency between each
cell of the cross-tabulation if the two variables are independent.
All quadratic optimization models have nonlinear constraints.
A constraint function is a function of the decision variables in the problem.
As the number of degrees of freedom increases, the t-distribution converges to the
standard normal distribution.
The expected value and variance of the Poisson distribution are equal to λ.
The first step in a chi-square test is to compute the observed frequency between each
cell of the cross-tabulation if the two variables are independent.
A normal distribution has a limited range and can be skewed in either direction.
Using a $ sign before both the row and column labels keeps the reference to that cell
fixed no matter where the formula is copied.
The mathematical form Y ≤ 450 would be considered as representing a simple
bounds constraint.
Two different sets of data can never have the same z-scores.
In predictive modeling, validity refers to how well a model represents reality.
To invoke the binary constraints on the variables, the option bin is chosen from the
dropdown box in the Add Constraint dialog.
A value at risk measure considers the magnitude of the violation when the constraint is
not satisfied.
A deterministic model is one in which all model input information is either known or
assumed to be known with certainty.
The complexity of a problem increases when the problem belongs to an individual
rather than a group.
A sample is a subset of a population.
A graphical depiction of a frequency distribution for numerical data in the form of a
column chart is called a ________.
A) cartogram
B) correlogram
C) histogram
D) dendogram
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.
Which of the following is true of the nonlinear model created for the Atlas movie ticket
repricing scenario?
A) The projected revenue for the Gold class is infeasible within the price range
provided.
B) The projected value for most tickets sold is for the Silver class.
C) The total projected tickets sold exceed the total seating capacity.
D) The projected revenue is lowest for the Gold tickets.
For the given data, calculate the value of the simple moving average mean absolute
percentage error.
A) 20.90
B) 23.45
C) 14.39
D) 25.56
Which of the following is true of a training data set?
A) They are primarily used to fine-tune models.
B) They provide the most realistic estimate for a model’s performance.
C) They are used to build models where the data is unknown.
D) They have known outcomes.
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.
What is the value of standard deviation obtained from the simulation results?
A) 35.0
B) 49.0
C) 56.0
D) 41.0
Below is the spreadsheet for a project selection model:
What is the total amount of cash used for all five projects?
A) $ 175,000
B) $ 163,000
C) $ 215,000
D) $ 260,000
The accuracy of the model on the test data gives a realistic estimate of the performance
of the model on completely unseen data.
Shirley Templeton is a real estate agent for Paralol Realty. Shirley is given the
responsibility to manage potential customers for 5 of the Realty’s bungalows. These 5
bungalows are situated in close proximity. In order to make traveling easier, Shirley
decides to move to a location closer to the 5 bungalows. The table below gives the
location (X and Y coordinates) of the 5 bungalows along with the number of trips she
would have to make to each bungalow. Create a nonlinear model based on the data
given in the table below noting that the objective is to reduce the weighted distance
between Shirley’s accommodation and the 5 bungalows.
According to the model, what is the X-coordinate for the location of Shirley’s new
accommodation?
A) 54.62
B) 36.53
C) 25
D) 23.12
Which of the following is true about problem solving?
A) Recognizing problems involves stating goals and objectives.
B) Analyzing the problem involves characterizing the possible decisions.
C) Decision making involves translating the results of the model in the organization.
D) Structuring the problem involves identifying constraints.
Which of the following is a definition of distance between two clusters in a complete
linkage clustering?
A) the average of distances between all pairs of objects, where each pair is made up of
one object from each group
B) the distance between the most distant pair of objects, one from each group
C) the sum of squares of the distance between clusters
D) the distance between the value of the shortest link between the clusters
Identify the correct statement from the following.
A) The events that a respondent is female and chooses Math are not independent.
B) All events are independent of each other.
C) The events that a respondent is male and chooses Science are not dependent.
D) The events that a respondent is female and that she chooses Science are independent.
In a linear relationship, which of the following accounts for the many possible values of
the dependent variable that vary around the mean?
A) the coefficient of the dependent variable X
B) the value of the intercept 0
C) the random error term ε
D) the standard error SYX
Which of the following denotes the power of the test?
A) α
B) 1 – β
C) β
D) 1 – α
Which of the following is an example of a measure of continuous metrics?
A) four errors revealed in an invoice
B) a delivery delayed by seven days
C) weight and volume of a sheet of steel
D) three incomplete orders on a day
The worldwide sales of cars from 1981-1990 are shown in the table below. Given: α =
0.2 and β = 0.15 (Hint: Use XLMiner)
Which of the following equations is the trend line equation for the given data? (Note:
the fitted model assumes that the years are numbered 1 through 10, not the actual
dates.)
A) 60.123x + 481.56
B) 48.16x + 481.86
C) 32.17x + 931.87
D) 57.15x + 503.81
Which of the following is true of linear functions used in predictive analytical models?
A) It is used when the rate of change in a variable decreases or increases quickly and
then levels out.
B) It is used when there is a steady decrease or increase over a range of a variable.
C) It is used when there is increase at a specific rate.
D) It is used when there is a rise or fall at a constantly increasing rate.
Using an empirical distribution precludes sampling values outside the range of the
actual data.
The worldwide sales of cars from 1981 -1990 are shown in the table below. Given: α =
0.2, γ = 0.05, and season length = 1. (Hint: Use XLMiner).
Determine the value of the mean absolute deviation using the Holt-Winters no-trend
model for the given data.
A) 367.35
B) 18.39
C) 21.70
D) 252.55
In an Economic Order-Quantity (EOQ) model, ________ is the estimate on how long it
takes an order to be received after it is placed.
A) lead time
B) safety stock
C) time limit
D) cycle time
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.
What is the value of standard deviation obtained from the simulation results?
A) 1.20
B) 2.50
C) 3.80
D) 5.00
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.
In a sensitivity report, a solution is considered a(n) ________ solution if the
right-hand-side value of any constraint has a zero Allowable Increase or Allowable
Decrease.
A) algorithmic
B) unbounded
C) infeasible
D) degenerate
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.
Which of the following gives the constraint for the demand met at a distribution center?
A) X11 + X21 = 1,250
B) X13 + X23 ≥ 210
C) X13 + X23 = 770
D) X13 + X23 = 480
15 students were asked to choose between the broad categories of Arts, Science, and
Math as their preferred area of study.
What is the probability that a respondent is male and prefers Arts?
A) 8/15
B) 10/15
C) 2/15
D) 6/15
In a k-Nearest Neighbors algorithm, similarity of records is based on the ________.
A) closeness of a record to numerical predictors in the other records
B) sum of the squares of the distance between the numerical predictors
C) set of linear functions of predictors called discriminant functions
D) nearness of a record to its own observations
In multiple regression, R Square is referred to as the:
A) multiple correlation coefficient.
B) coefficient of autocorrelation.
C) coefficient of multiple determination.
D) multiple significance coefficient.
The table below shows the weights of female individuals in Catherine’s family.
Calculate the sample variance in the weights, and the standard deviation.
Weights of female individuals in Catherine’s family (in lbs)
163
160
155
161
158
155
149
151
158
171
How can managers judge the validity of a model?
What is the probability that profit will be less than $1,900?
To meet consumer demand, Nib ‘N’ Ink must produce 800 gel-ink refills. Should the
company produce them in-house or outsource them from the supplier? (Hint: Use the
mathematical descriptive model).
Give an account of how the design and format of spreadsheets can be improved.
What are the two basic properties of a linear optimization model?
Find the range of volumes at which it is more economical for Nib ‘N’ Ink to produce the
refills in-house or outsource them. (Hint: Use the break-even decision model).
The table below is the data set of the Shiller Real Home Price Index for the years
1946-1956.
Setting k = 5, calculate the simple moving average forecast for the year 1951.
What is the purpose of a heat map?