In a MATCH function, if match_type = 1, then the function finds the smallest value that
is greater than or equal to lookup_value.
The standard error may be assumed to be large if the data are clustered close to the
regression line.
The market share of a business would be considered a lagging measure in the
cause-and-effect modeling of data mining.
In a minimin strategy, the decision which minimizes the minimum payoff is chosen.
Using a $ sign before both the row and column labels keeps the reference to that cell
fixed no matter where the formula is copied.
Two variables can only have a statistical relationship if there is a cause-and-effect factor
between them.
A normal distribution has a limited range and can be skewed in either direction.
In stock trading, the higher the coefficient of variation for the stock, the smaller the
relative risk is for the return provided.
For the average payoff strategy, the decision with the best average payoff is chosen.
The complexity of a problem increases when the problem belongs to an individual
rather than a group.
The Excel function NORM.DIST finds probabilities for the standard normal
distribution.
Changes to the type of chart, data included in the chart, and chart layout and styles can
be made from the Layout tab.
When constructing frequency distributions for numerical data, SUMIF is used to count
the frequencies of each discrete value.
Below is a payoff table that lists three mortgage options:
What is the maximum opportunity loss incurred for the 5-year ARM?
A) $ 8,626
B) $ 13,716
C) $ 14,369
D) $ 10,581
Jonathan Reese is considering three stocks in which to invest with a fixed budget. The
table below provides information on Jonathan’s expected returns for each stock. The
table also provides information, collected from market researchers, on the
variance-covariance matrix of the individual stocks. He expects a total return of at least
10%.
Develop a quadratic optimization model to find the optimal allocation of the budget to
each stock, and variance calculations for squared terms and cross-products based on the
variance-covariance matrix.
According to the model, what is the squared term value for Stock 2 variance?
A) 0.00236
B) -0.00031
C) 0.00080
D) 0.00430
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
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.
According to the nonlinear model, which of the following is the projected sales figure
for Classic tickets at the new price?
A) 32
B) 90
C) 175
D) 202
Following is an extract from the Cost per Order Database of Grogtes LLC.
Which of the following is true about quartiles?
A) The 25th percentile is called the fourth quartile.
B) One-fourth of the data fall below the fourth quartile.
C) Three-fourths of the data are below the third quartile.
D) The 50th quartile is the third percentile.
Regression models of ________ data focus on predicting the future.
A) missing
B) time-series
C) panel
D) cross-sectional
Misty Inc. launches a new range of perfumes for men and women. The probability of
high consumer demand for the product is 0.6 and low consumer demand is 0.4. The
probability of a favorable survey response given high consumer demand is 0.9 and the
probability of a favorable survey response given low consumer demand is 0.2.
If the marketing report is unfavorable, what is the probability of low demand?
A) 84%
B) 90%
C) 87%
D) 80%
________ is the ratio of the number of transactions that include all items in the
consequent as well as the antecedent to the number of transactions that include all items
in the antecedent.
A) Lift
B) Logit
C) Support for the association rule
D) Confidence of the association rule
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
The Ransin Sports Company has noted that the size of individual customer orders is
normally distributed with a mean of $112 and a standard deviation of $9. If a soccer
team of 11 players were to make the next batch of orders, what is the probability that
the mean purchase would exceed $116?
A) 11%
B) 3%
C) 33%
D) 7%
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)
What is the difference between the forecasted and the actual value for the 3rd week?
A) 1 phones
B) 6 phones
C) 4 phones
D) 3 phones
Calculate the coefficient of variation from the following data:
z-score = 1.32; standard deviation = 0.173; mean = 4.7; total variation = 0.6
A) 27.16
B) 156.66
C) 0.04
D) -0.5
Which of the following formulas calculates the Euclidean distance between X and Y?
A)
B)
C)
D)
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.
Which of the following is the value for quantity sold?
A) 51
B) 50
C) 4
D) 55
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 table below provides the sales data for JD Inc. for the year 1998. Given: α = 0.2,
β = 0.15, and γ = 0.05 (Hint: Use an additive Holt-Winters model.)
Umbrella Sales of JD Inc.
What will be the predicted sales for umbrellas for the month of February of year 2?
A) 4530.19
B) 4648.21
C) 4883.76
D) 4818.07
Which of the following is an example of a subset?
A) The number of individuals who have a Ford car
B) The number of IT employees out of all employees working in an office of Google
C) The number of members in the Democratic Party
D) The population of Canada
Identify the uncontrollable variable from the following inputs of a decision model.
A) investment returns
B) machine capacities
C) staffing levels
D) intercity distances
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails,
rivets, and clips-which are machined on two CNC machining centers. The machining
centers have a capacity of 250,000 minutes per year. The gross margin per unit and
machining requirements are shown in the spreadsheet below.
What is the maximum production of clips based on the machine capacity?
A) 250,000.00
B) 83,333.33
C) 166,666.67
D) 125,000.00
Develop a prescriptive model that will help Goody Woods identify the price that
maximizes the total revenue.
The table below is the data set of the Shiller Real Home Price Index for the years
1946-1956.
Setting k = 3, determine the value of root mean square of errors.
Gruten Retailers sells Mother’s Day special greeting cards at their store at $6. They
make the cards for a dollar apiece. Most of the cards are sold by Mother’s Day, but the
actual demand is unknown. They have orders for 120 cards. In the past, they have had
sales of at least 100 cards by Mother’s Day. The remaining cards are sold at a 40 percent
discount. Calculate the net profit, if demand, D, is set at 110 units.
Explain how data are used by accountants, economists, and operations managers.
P(Q|P) = P(P or Q) – P(Q)
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).
Using the following data, test for the independence of the variables. (Note: Assume a
significance level of 0.05 wherever necessary.)
What are the properties of a probability mass function?
Which of the following computes the probability of an event P given that event Q is
known to have occurred?