In a database file, which is organized in a two-dimensional table, the rows represent
records of related data elements.
Explain the similarity between the formulas for computing population mean and
expected value of discrete random variable X.
For nonlinear models, the Lagrange multipliers are only approximate indicators of
shadow prices.
If a time series has seasonality but no trend, the most appropriate model used for
forecasting is the Holt-Winters multiplicative model.
The indexes in the forecasting indicators provide a complete forecast.
A confidence interval is a range of values between which the value of the population
parameter is believed to be.
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. Apply a decision rule using the
observed level of significance and draw a conclusion.
A global optimum solution is one for which all points close by are no better than the
solution.
Explain the similarity between the formulas for computing population mean and
expected value of discrete random variable X.
According to the empirical rules of standard deviation in statistics, approximately 68%
of the observations will fall within three standard deviations of the mean.
The beta distribution is a function of three parameters, the minimum, a; maximum, b;
and most likely, c.
In association analysis, the antecedent and consequent are sets of items that do not have
any items in common.
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 revenue during the full retail sales period.
A) $23,400
B) $16,200
C) $2,880
D) $17,550
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. Which of the
following is the answer for the probability that the next individual who buys a product
will make a purchase of more than $116?
A) 71%
B) 48%
C) 33%
D) 42%
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
Which of the following constraints is used in Solver?
A) $F$16:$F$19 >= $F$6:$F$9
B) $B$20:$E$20 < $B$10:$E$10
C) $B$20:$E$20 = binary
D) $F$16:$F$19 <= $F$6:$F$9
Below is the spreadsheet for Memphis Designs fixed cost model:
Which of the following constraints is used in Solver?
A) $B$14:$D$14 > = $B$18:$D$18
B) $B$16:$D$16 = binary
C) $B$19:$D$19 < = $B$8:$D$8
D) $B$15:$D$15 = binary
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 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
Which of the following describes standard deviation?
A) It is the average of the greatest and least values in the data set.
B) It is the square root of the variance.
C) It is the difference between the first and third quartiles of a data set.
D) It is the average of the squared deviations of the observations from the mean.
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.
Which of the following cells is defined as the uncertain output cell?
A) B13
B) C15
C) C19
D) B22
To construct a frequency distribution for categorical data, the
A) observations that appear in each category must be summed up.
B) number of observations that appear in each category must be counted.
C) observations in each category must be multiplied by observations in the
corresponding category.
D) number of observations in each category must be divided by the total number of
observations in all categories.
What is the mean absolute deviation obtained from the simulation results?
A) 1.25
B) 0.65
C) 0.24
D) 0.99
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 covariance between variables X and Y.
A) 2.67
B) 0.02
C) 16.71
D) 7.04
Belowisaspreadsheetofpurchaseordersfor acomputerhardwareretailer.
For which of the following columns can the COUNT function be performed?
A) column G
B) column E
C) column B
D) column A
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.
In a sensitivity report, a solution is considered a(n) ________ solution if the
right-hand-side value of any constraint has a zero Allowable Increase or Allowable
Decrease.
A) algorithmic
B) unbounded
C) infeasible
D) degenerate
Below is a room overbooking model spreadsheet for the Metza, a hotel chain. The hotel
has 425 rooms priced at $180 per day each, and is usually fully booked. Reservations
can be cancelled any time before 5:00 p.m. with no penalty. The hotel estimates an
average overbooking cost of $150. Customer demand is set at 400 with an average
cancellation of 20.
Which of the following is the excel formula used to estimate overbooked customers?
A) =MIN(0,B5-B15)
B) =MAX(0,B15-B5)
C) =MAX(B11,B12)
D) =MIN(B11-B12,B11-B14)
The payoff table given below lists four mortgage options:
The probability of rates rising is 0.6, rates stable is 0.3, and rates falling is 0.1.
Which of the following decisions has the largest expected payoff?
A) 1-year ARM
B) 3-year ARM
C) 5-year ARM
D) 30-year fixed
What is the expected value for a 90 year-old piece of furniture?
A) $1002.45
B) $997.98
C) $934.56
D) $1033.21
The confidence coefficient is denoted by:
A) α
B) 1 – β
C) β
D) 1 – α
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.
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 as the uncertain output cell?
A) D15
B) D16
C) D19
D) D22
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 as the uncertain output cell?
A) D15
B) D16
C) D19
D) D22
Which of the following can be used to quickly create cross-tabulations?
A) Frequency distribution
B) COUNTIF function
C) PivotTable
D) Sort & Filter
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?
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.
Profit is computed as the difference between total revenue from sales and total cost of
production. Revenue depends on the market share captured by a company and the size
of the target market. Various marketing decisions taken by managers are reflected upon
the market share. The decisions also have an impact on marketing costs which in turn
will affect the total cost of production. Construct an influence diagram that relates these
variables.
How can outliers be identified in a data set?
List the four major categories of inventory costs and explain how they are influenced by
the timing of the ordering decision and amount ordered.
Explain the assumptions underlying ANOVA along with their violations.