Sujito Electronix makes headphones for $22 and sells them for $32. Sujito has sold at
least 50 headphones on average per week in the past, though the actual demand is
unknown. Sujito has also often run short of supply in the past. After three months of
release, the headphones are sold at 40 percent discount. The spreadsheet below shows
Sujito’s sales and demand for the headphones. We take demand at 51, and quantity
produced at 55.
Calculate the net profit for the headphones.
A) $586.8
B) $498.8
C) $1653.8
D) $466.8
The table provided below gives the sales details of the number of android smart phones
at an electronic retail store for the past 6 weeks. The time series appears to be relatively
stable, without trend, seasonal, or cyclical effects. (Hint: Optimize α value in 0.1
increments)
Calculate the value of the mean absolute percentage error for the given data.
A) 20.90
B) 16.60
C) 21.72
D) 29.97
Which of the following inputs of a decision model is an example of data?
A) estimated consumer demand
B) inflation rates
C) costs
D) investment allocations
Following is an extract from the Employee Payroll Database of HFR Informatics Inc.
What is the cumulative relative frequency of employees on a ‘A to D’ pay scale?
A) 1.00
B) 0.80
C) 0.30
D) 0.60
Below is a decision tree illustrating the R&D process for a new drug.
Let us assume that if market is large, payoff is lognormally distributed with a mean of
$4,900 million and a standard deviation of $1,000 million; if market is medium, payoff
is lognormally distributed with a mean of $2,500 million and a standard deviation of
$500 million; and if market is small, payoff is normally distributed with a mean of
$1,800 million and standard deviation of $200 million. Let us also assume that the cost
of clinical trials is uncertain and estimates are modeled with a triangular distribution
with a minimum of -$ 700 million, a most likely value of – $550 million, and a
maximum of -$500 million. Use 10,000 trials and a random seed of 1.
What is the value of standard deviation obtained from the simulation results? [Hint:
Choose the approximate value.]
A) $ 119.1
B) $ 116.1
C) $ 105.7
D) $ 94.4
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 units sold during the discount sales period.
A) 388.13
B) 25.88
C) 133.3
D) 39.28
Below is a payoff table with three mortgage options:
What is the expected opportunity loss for the 1-year ARM?
A) $ 7,979.60
B) $ 3,959.40
C) $ 6,853.50
D) $ 8,621.40
Which of the following is a weighted average of the squared deviations from the
expected value?
A) skewness
B) mean difference
C) kurtosis
D) variance
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 Sensitivity report on the model, by what price should the unit cost of
shipment reduce to make shipment from Dallas to Houston feasible?
A) $8.68
B) $2.16
C) $10.84
D) $3.41
A(n) ________ is also called a minimax regret strategy.
A) opportunity-loss strategy
B) aggressive strategy
C) conservative strategy
D) average payoff strategy
Below is a payoff table that lists four mortgage options:
Which of the following decisions has the best average payoff?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
Bolton Computer’s
Laptop
Pricing Decision
Inputs
Price
Model
Sales -3.85 price + 1150.9
Outputs
Total revenue sales price
Bolton Computers are planning to release a new line of low-end laptops. Using Excel’s
Solver, develop a nonlinear model to calculate the optimal price for the laptops, given
that sales = -3.85 price + 1150.9.
A) 342.40
B) 380.90
C) 719.70
D) 149.47
Which of the following is true about the rejection region?
A) The rejection region is chosen to determine the probability of a Type I error.
B) With a true null hypothesis, the test statistic falls into the rejection region.
C) If the test statistic is in the nonrejection region, the null hypothesis is rejected.
D) The rejection region occurs in the tails of the sampling distribution of the test
statistic.
Roger wants to compare values across categories using vertical rectangles. Which of the
following charts must Roger use?
A) Line chart
B) Clustered column chart
C) Pie chart
D) Stacked column chart
Which of the following describes variance?
A) It is the difference between the maximum value and the minimum value in the data
set.
B) It is the difference between the first and third quartiles of a data set.
C) It is the average of the squared deviations of the observations from the mean.
D) It is the average of the greatest and least values in the data set.
A company makes standard 130- inch-wide rolls of thin sheet metal and slits them into
smaller rolls to meet customer orders for widths of 10, 14, and 25 inches. Suppose that
the company has proposed the following cutting patterns:
Demands for the coming week are 950 10-inch rolls, 725 14-inch roles, and 640
25-inch rolls. Develop a model using the Analytic Solver Platform that will determine
how many 130-inch rolls to cut into each of the six patterns in order to meet demand
and minimize scrap.
What is the total number of 10-inch rolls produced?
A) 940
B) 946
C) 950
D) 960
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 with a triangular distribution?
A) B6
B) D6
C) B7
D) D7
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
What is the total amount shipped by the Atlanta plant to the distribution centers?
A) 600
B) 1,000
C) 1,250
D) 1,300
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
What is the total cost incurred?
A) $ 27,297
B) $ 35,233
C) $ 42,675
D) $ 47,864
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
During a study, individuals were asked to rate a product on a scale of 1-5. From the
following data, help the researcher determine whether any significant differences exist
in opinions among individuals from different regions. (Note: Assume a significance
level of 0.05 wherever necessary.)
What is the probability that profit will be less than $1,900?
What are three types of Risk Solver Platform charts used to obtain multiple simulation
results?
How can outliers be identified in a data set?
What is a value at risk constraint?
The following extract from a manufacturer’s database shows a sample of 10 suppliers,
their transportation charges, and the estimated and actual total costs of supplying
materials. (Note: Assume a significance level of 0.05 wherever necessary.)
Conduct the appropriate type of one-sample test-statistic to determine whether the
average transportation charge is less than $430.
Give an account of how data is used in predictive models.