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%
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 is the constraint of nonnegativity for all values of i and j?
A) 13 X11 +15.25 X12 +10.99 X13 +18.48 X14 / 10.75 X21 +15.16 X22 + 9.65 X23
+18.5 X24 ≤ 0
B) Xij ≥ 0, for all i and j
C) Xij ≤ 0, for all i and j
D)
________ states that if the sample size is large enough, the sampling distribution of the
mean is approximately normally distributed, regardless of the distribution of the
population and that the mean of the sampling distribution will be the same as that of the
population.
A) Chebyshev’s theorem
B) Central limit theorem
C) Prime number theorem
D) Oppermann’s conjecture
The ________ is the average of the greatest and least values in the data set.
A) mean
B) median
C) midrange
D) mode
Below is the table showing rate of shoes sold per day and the highest-priced shoe sold
that day for a one-week period. The rate of shoes sold per day (X) and the price of the
shoes (Y).
Use Excel to calculate the z-score of X observation 27.
A) -0.24
B) 0
C) 0.18
D) 1.46
If bs are weights, Xs are input values, and c is a constant or intercept, provide the
equation for discriminant functions, L.
A) L =
B) L = b1X1 + b2X2 + … + bnXn + c
C) L =
Z) L =
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 net profit when the demand is 65,000.
A) $825,000
B) $1,650,000
C) $800,000
D) $925,000
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, which of the following bungalows is Shirley’s new
accommodation closest to?
A) Bungalow 1
B) Bungalow 5
C) Bungalow 2
D) Bungalow 4
The ________ measures the degree of asymmetry of observations around the mean. A)
coefficient of variation
B) return to risk factor
C) coefficient of skewness D) coefficient of kurtosis
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
Below is the spreadsheet for a project selection model:
Which of the following cells is set as the objective cell in Solver?
A) $G$12
B) $F$14
C) $G$14
D) $B$12
How is the return to risk described in financial statistics?
A) as the relative measure of the distance an observation is from the mean
B) as the reciprocal of coefficient of variation
C) as the square root of variance
D) as the ratio of excess returns to its standard deviation
________ means that the variation about the regression line is constant for all values of
the independent variable.
A) Autocorrelation
B) Normality of errors
C) Homoscedasticity
D) Linearity
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) =
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 1 to be produced on
Jaquard?
A) 50,000
B) 0
C) 27,420.8
D) 22,579.2
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 Baltimore plant to the distribution centers?
A) 750
B) 1,000
C) 1,250
D) 1,300
The details of the clock sales at a supermarket for the past 6 weeks are shown in the
table below. The time series appears to be relatively stable, without trend, seasonal, or
cyclical effects. The simple moving average value of k is set at 2.
For the given data, what is the value of the simple moving average mean square error?
A) 0.21
B) 20.12
C) 14.25
D) 207.13