In order to reject the null hypothesis, the F-test statistic must be greater than the_____.
A) p-value
B) variance
C) df
D) F crit
The data for the number of hand-held gaming devices sold for the past 5 weeks are 15
units, 20 units, 25 units, 30 units, and 17 units respectively. The time series appears to
be relatively stable, without trend, seasonal, or cyclical effects; thus, a moving average
model would be appropriate. Setting k = 3 the three-period moving average forecast for
week 6 is ________.
A) 20 units
B) 24 units
C) 30 units
D) 17 units
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 increase in total cost?
A) $ 280
B) $ 590
C) $ 353
D) $ 450
A(n) ________ is a matrix whose rows correspond to decisions and whose columns
correspond to events.
A) decision tree model
B) payoff table
C) utility function table
D) scoring model
Below is a decision tree for the airline revenue management.
If the probability of selling the full-fare ticket is 0.80, what is the expected value of the
ticket?
A) $ 442.50
B) $ 472.00
C) $ 501.50
D) $ 531.00
Which of the following questions will prescriptive analytics help a company address?
A) How many and what types of complaints did they resolve?
B) What is the best way of shipping goods from their factories to minimize costs?
C) What do they expect to pay for fuel over the next several months?
D) What will happen if demand falls by 10% or if supplier prices go up 5%?
Which of the following will hold true if events X and Y are independent?
A) P(X) = P(Y) P(X and Y)
B) P(Y) = P(X|Y)
C) P(X and Y) = [P(X) + P(Y)] – P(X or Y) D) P(X) = P(X|Y)
Using a$ signbeforeacolumnlabel____________.
A) keeps the reference to both the row and column fixed
B) keeps the reference to the row fixed, but allows the column reference to change
C) keeps the reference to column fixed, but allows the row reference to change
D) allows both the row and column references to change
For a lower-tail test, the p-value in the output from an Excel tool:
A) is correct if the test-statistic is negative.
B) is the difference from 1.0 if the test-statistic is negative.
C) is correct if the test-statistic is zero.
D) is correct if the test-statistic is positive.
A children’s welfare fundraiser involves selling one thousand $70 tickets to win a
$20,000 grand prize. If the probability of winning is only 0.005, what is the expected
payoff?
A) -$40
B) -$50
C) $30
D) $60
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
Following is an extract from the database of a construction company. The table shows
the height of walls in feet and the cost of raising them. The estimated simple linear
regression equation is given as Ŷ = b0 + b1X. (Hint: Use Excel functions).
What is the value of the coefficient b0?
A) -2.25321
B) 0.010697
C) 254.8371
D) 86.81704
Which of the following is true about the observed errors associated with estimating the
value of the dependent variable using the regression line?
A) They are the horizontal distances between slopes and y-intercepts.
B) The errors are also referred to as critical values.
C) They are always maximized by the regression lines.
D) The errors can be negative or positive.
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.
In classification, which of the following would be considered as a categorical variable
of interest for a credit approval decision for a requester?
A) age of the requester
B) income of the requester
C) revolving balance of the requester
D) reject or accept credit approval
In the equation Cp = (upper specification – lower specification)/total variation, what
does Cp denote?
A) capacity variation index
B) capability pattern
C) process capability index
D) capability push
The Excel function of
A) SUM(range)
B) COUNT(range)
C) MAX(range)
D) COUNTIF(range, criteri A)
Which of the following is true about using sample data?
A) All samples have the same characteristics and hence always adequately represent the
underlying population.
B) It can limit the ability to predict uncertain events that may occur because potential
values outside the range of the sample data are not included.
C) It is better to use sample data than trying to identify the underlying probability
distribution and fitting a theoretical distribution to it.
D) Using sample data in a decision model increases the ability to predict uncertain
events.
Spam filtering for e-mails can be seen as an example of which of the following types of
approaches of data mining?
A) reduction
B) association
C) cause-and-effect modeling
D) classification
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 correlation of the market size with the NPV with reference to the sensitivity
chart?
A) 0.043
B) 0.888
C) -0.341
D) -0.026
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
Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential
new drug. The total R&D costs are estimated to reach around $875,000,000 with
clinical trials mounting to $145,000,000. The current market size is estimated to be
around 3,000,000 and is expected to grow at 4 percent every year. The market share
Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25
percent each year for the next 4 years. A monthly prescription is anticipated to generate
revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is
assumed.
Calculate the market size for the second year.
A) 3,000,000
B) 273,000
C) 3,244,800
D) 3,120,000
In a lower one -tailed hypothesis test, chosen level of significance = 0.10, sample size =
55, and t-test statistic = -1.76.
Which of the following is the conclusion?
A) This is a high probability and the conclusion is difficult.
B) The null hypothesis is rejected.
C) There are many sampling errors.
D) The null hypothesis cannot be rejected.