________ states that for any set of data, the proportion of values that lie within k
standard deviations (k > 1) of the mean is at least 1 – 1/k2.
A) Prime number theorem
B) Bertrand’s postulate
C) Oppermann’s conjecture
D) Chebyshev’s theorem
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, what is the new price for Gold tickets?
A) $16.50
B) $15.50
C) $16
D) $16.11
Which of the following formulas is used to determine the exponential utility function?
A) U(x) = 1 + e‘”x/R
B) U(x) = 1 ex/R
C) U(x) = 1/ exR
D) U(x) = 1 ‘” e‘”x/R
While constructing a histogram, how is group width calculated?
A) number of groups (lower limit of the last group + upper limit of the first group)
B) (upper limit of the last group – lower limit of the first group) / number of groups
C) (upper limit of the first group + number of groups) lower limit of the last group +
number of groups)
D) (lower limit of the first group – number of groups) upper limit of the last group
Which of the following is true of logistic regression as a classifying method?
A) Its dependent variable is always categorical.
B) Its independent variable is always continuous or numerical.
C) It predicts the probability of output variables based on dependent variables.
D) It cannot be used when the dependent variable is binary.
Identify the equation for calculating the net present value for a stated period of time,
where
Ft = cash flow in period t, and i is the discount rate.
A) NPV =
B) NPV =
C) NPV =
D) NPV =
Which of the following is true of the R-squared (R value in Excel’s Trendline function?
A) A value of 1.0 for R2 indicates maximum deviation of the data from the line.
B) If the value of R2 is above 1.0, the line will be at a perfect fit for the data.
C) The value of R2 will always be between -1 and 1.
D) As the value of R2 gets higher, the line will be a better fit for the data.
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 annual cost incurred for the second year.
A) $1,224,120,000
B) $884,520,000
C) $491,400,000
D) $638,820,000
If D is demand, P is the unit price, and c and d are constants (where d > 0 is the price
elasticity), which of the following is a nonlinear demand prediction model?
A) D = d + (c P)
B) D = (d P)c
C) D = cdP
D) D = cP-d
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 mean for X.
A) 16.71
B) 7.04
C) 2.67
D) 0.02
Which of the following tests is used to determine if two categorical variables are
independent?
A) Chi-square test
B) t-test
C) z-test
D) ANOVA
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 in the finishing hours used?
A) 32.46
B) 8.33
C) 26.84
D) 16.67
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 revenue
figure for Classic tickets based on its new price?
A) $1,314.72
B) $1,116.03
C) $521.68
D) $1,312.52
Roger wants to compare values across categories using vertical rectangles. Which of the
following charts must Roger use?
A) Line chart
B) Clustered column chart
C) Pie chart
D) Stacked column chart
While rolling two dice, what is the probability of rolling a sum of 7 or more?
A) 7/12
B) 5/9
C) 1/6
D) 5/36
