Which of the following generates a scatter chart in Excel with the values predicted by
the regression model included?
A) Trendline
B) Residual Plots
C) R Square
D) Line Fit Plots
Which of the following is true of an unbiased estimator value?
A) The expected value will align perfectly with the population mean.
B) The expected value will not equal the population’s parameters.
C) The expected value will not be greater than zero.
D) The expected value will equal the population’s parameter.
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, calculate the / value at a 95% confidence interval.
A) 1.64
B) 1.84
C) 1.96
D) 2.19
Which of the following is a difference between a mean and a median?
A) A mean divides the data half above it and half below it; a median does not.
B) A median is not affected by outliers; a mean is affected by outliers.
C) A mean is an observation that occurs most frequently; a median is the average of all
observations.
D) A median is not meaningful for ratio data; a mean is meaningful to ratio data.
Below is a payoff table that lists three mortgage options:
What is the maximum opportunity loss incurred for the 2-year ARM?
A) $ 8,626
B) $ 13,716
C) $ 14,369
D) $ 10,581
Below is a spreadsheet for a hotel overbooking model.
Assume that each reservation has a constant probability p = 0.04 of being cancelled.
Answer the question(s) using the Risk Solver Platform.
With respect to B12, what is the range of weights given in the Parameters section in the
Discrete dialog?
A) $E$2:$E$13
B) $D$2:$D$8
C) $D$2:$D$13
D) $E$2:$E$8
Which of the following types of distributions use z-values to establish confidence
intervals?
A) Gaussian q-distribution
B) t-distribution
C) log-normal distribution
D) standard normal distribution
Qualis Investments is a private limited business that manages personal financial
portfolios. The company manages six mutual funds and has a client that has acquired
$750,000 from an inheritance. Characteristics of the funds are given in the table below.
The company recommends that no more than $300,000 be invested in any individual
fund, and that at least $80,000 be invested in each of the mid-cap stock and mortgage
fund. The total amount invested in the low-priced and multinational funds are at least
35% of the total investment. The client would like an average return of at least 6%.
Assume that X1- X6 represent the dollar amounts invested in funds 1 through 6,
respectively.
Which of the following is the objective function minimize total risk?
A) 11.87 X1 + 12.62 X2 + 13.72 .X3 + 3.37 X4 + 8.4 X5 + 6.91 X6
B) 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6
C) 11.87 X1 + 12.62 X2 + 13.72 .X3 + 3.37 X4 + 8.4 X5 + 6.91 X6 / 750,000
D) 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ≥ 6%
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.
The Atlas Movies Theater has repriced 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 new price for the three
classes obtained using Solver.
Assume the distributions of elasticities for three classes of tickets are uniform with
minimum and maximum values equal to 75% and 125% of their estimated values,
respectively. Under this assumption, use Monte Carlo simulation to see what happens to
the prediction of tickets sold. The model is simulated for 10,000 trials.
Which of the following cells is defined as the output cell?
A) E16
B) E18
C) F17
D) F18
Trace the process of copying and pasting a cell, which has a formula in it, such that the
formula is not retained in the pasted cell.
A) Home – Paste – Paste Special – Paste Values
B) Home – Paste – Paste Special – Paste Validation
C) Home – Paste – Paste Special – Paste Formats
D) Home – Paste – Paste Special – Paste Formulas
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the net production at the end of the second quarter?
A) 75
B) 200
C) 450
D) 600
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.
From the Sensitivity Report, which of the following would reduce the total cost by
$1.568 for each additional hour of capacity for the Jaquard looms?
A) decreasing the Northrop loom cost per hour by $0.58
B) decreasing the Northrop loom capacity down by 534.4
C) increasing the Jaquard loom capacity up by 4896.5 hours
D) increasing the Jaquard loom capacity up by 4032 hours
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
What is a stream of historical data known as?
A) a time series
B) an index
C) a complex number
D) an orthopole
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
In the equation for calculating a confidence interval for a proportion, p za/2,
what
does represent?
A) the mean for the sampling distribution of the proportion
B) the degree of freedom for the sampling distribution of the proportion
C) the standard error for the sampling distribution of the proportion
D) the estimator for sampling distribution of the proportion
Standard residuals:
A) help detect outliers that may bias the results of a regression analysis.
B) cause differences in the regression equation by changing the slope and intercept.
C) point out the ranges for the population intercept and slope at a 95% confidence level.
D) provide information for testing hypothesis associated with the intercept and slope.
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 reorder point required to attain a 95% service level?
A) 460.0
B) 750.5
C) 571.0
D) 640.5
Which of the following is a difference between interval estimates and point estimates?
A) Point estimates cannot be used to calculate statistical error, while interval estimate is
used to calculate statistical error.
B) Point estimates provide only a single value for a sample, while interval estimates
provide a range of values.
C) Point estimates indicate the magnitude of potential error in the estimate, while
interval estimates don’t.
D) Point estimates on an average provide more information than interval estimates.
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 Increase for Lava surfboards produced?
A) 30
B) 24
C) 12
D) 18
Explain how the Data Validation feature in Excel helps in increasing spreadsheet
quality.
Develop a prescriptive model that will help Goody Woods identify the price that
maximizes the total revenue.
How do test statistics for two-sample tests vary depending on whether the population
standard deviations are known, and if not, whether they are assumed to be equal?
Give an account of how the design and format of spreadsheets can be improved.
Why is regression analysis necessary in business? What categories of regression models
are used?
Explain the method of solving models with general integer variables.
What are the three elements required to characterize decisions with uncertain
consequences?
Explain the concept of curvilinear regression model.
Following is an extract from a firm’s database detailing the number of hours spent on
the job by employees and their corresponding pay. (Note: Assume a level of
significance of 0.05 wherever necessary.)
Interpret the confidence intervals.
Compare between the t-distribution and the standard normal distribution.