What is the slope of the sales function D = a -bP?
A) 4
B) 9
C) 12
D) 17
Answer:
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%
Answer:
What is a stream of historical data known as?
A) a time series
B) an index
C) a complex number
D) an orthopole
Answer:
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.
Which of the following is the constraint for total amount shipped from Atlanta?
A) X11 + X12 + X13 + X14 – X21 + X22 + X23 + X24 ≤ 850
B) X21 + X22 + X23 + X24 ≤ 750
C) X21 + X22 + X23 + X24 ≤ 1250
D) X11 + X12 + X13 + X14 ≤ 1250
Answer:
Pickson Luthiers Corporation makes four models of electric guitars, ScarCT, Dela Mort,
Warax, and Invazen. Each guitar must flow through five departments, assembly,
painting, sound testing, inspection, and packaging. The table below shows the relevant
data. Production rates are shown in units/hour. (ScarCT is assembled elsewhere).
Pickson wants to determine how many guitars to make to maximize monthly profit.
According to the linear optimization model, what is the total profit contribution by the
Invazen model?
A) $205,200
B) $20,000
C) $10,000
D) $4,000
Answer:
In which of the following ways does demand influence profit?
A) It predicts how many units will be sold.
B) It directly influences the fixed cost of production.
C) It helps in reducing the variable cost of production.
D) It reduces the unit cost of production.
Answer:
Below is a decision tree illustrating the R&D process for a new drug.
Let us assume that if market is large, payoff is lognormally distributed with a mean of
$4,900 million and a standard deviation of $1,000 million; if market is medium, payoff
is lognormally distributed with a mean of $2,500 million and a standard deviation of
$500 million; and if market is small, payoff is normally distributed with a mean of
$1,800 million and standard deviation of $200 million. Let us also assume that the cost
of clinical trials is uncertain and estimates are modeled with a triangular distribution
with a minimum of -$ 700 million, a most likely value of – $550 million, and a
maximum of -$500 million. Use 10,000 trials and a random seed of 1.
What is the value of standard deviation obtained from the simulation results? [Hint:
Choose the approximate value.]
A) $ 119.1
B) $ 116.1
C) $ 105.7
D) $ 94.4
Answer:
A manufacturer wishes to determine if the average profit from the sale of his product
exceeds $6,710. Which of the following is the appropriate hypothesis test?
A) H0: population mean profit from sale > $6,710 vs. H1: population mean profit from
sale ≤ $6,710
B) H0: population mean profit from sale ≤ $6,710 vs. H1: population mean profit
from sale > $6,710
C) H0: population mean profit from sale < $6,710 vs. H1: population mean profit from
sale ≥ $6,710
D) H0: population mean profit from sale ≥ $6,710 vs. H1: population mean profit
from sale < $6,710
Answer:
The worldwide sales of cars from 1981 -1990 are shown in the table below. Given: α =
0.2, γ = 0.05, and season length = 1. (Hint: Use XLMiner).
Which of the following is the value of the root mean square error for the given data?
A) 252.55
B) 367.35
C) 21.70
D) 109.76
Answer:
Greg is indifferent between receiving $2,000, and taking a chance at $2,500 with
probability 0.7 and losing $1200 with probability 0.5. What is the expected value of this
gamble?
A) $ 1,150
B) $ 1,800
C) $ 1,460
D) $ 2,045
Answer:
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
Answer:
Thefunctionreturnsavalueor referenceof thecellattheintersectionof a particular row and column in a
given range.
A) VLOOKUP(lookup_value, table_array, col_index_num)
B) INDEX(array, row_num, col_num)
C) MATCH(lookup_value, lookup_array, match_type)
D) HLOOKUP(lookup_value, table_array, row_index_num)
Answer:
Which of the following is true about determining the proper form of the hypotheses?
A) H0 is statistically proved true while testing
B) failure to reject H0 proves H1 wrong
C) H0 is always assumed to be true in testing
D) H1 is always assumed to be true in testing
Answer:
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.
What is the expected payoff for the 1-year ARM?
A) $ 53,082.00
B) $ 16,951.00
C) $ 56,938.00
D) $ 18,979.30
Answer:
For a two-sample hypothesis test for differences in population parameters (1) and (2),
which of the following is the correct form of an upper-tailed test?
A) H0: population parameter (1) – population parameter (2) ≥ 0 vs. H1: population
parameter (1) – population parameter (2) < 0
B) H0: population parameter (1) – population parameter (2) > 0 vs. H1: population
parameter (1) – population parameter (2) ≤ 0
C) H0: population parameter (1) – population parameter (2) < 0 vs. H1: population
parameter (1) – population parameter (2) > 0
D) H0: population parameter (1) – population parameter (2) ≤ 0 vs. H1: population
parameter (1) – population parameter (2) > 0
Answer:
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 cross-product value for Stock 1 variance?
A) 0.00176
B) 0.00450
C) -0.00047
D) 0.00194
Answer:
Which of the following best defines decision variables in an optimization model?
A) They are limitations, requirements, or other restrictions that are imposed on any
solution.
B) They are the quantities that the model seeks to maximize or minimize.
C) They are quantities for which no feasible solutions exist.
D) They are unknown values that the model seeks to determine.
Answer:
Which of the following uses the sum of squares between the objects in the cluster when
measuring their distances?
A) divisive clustering
B) average group linkage clustering
C) Ward’s hierarchical clustering
D) single linkage clustering
Answer:
Below is the spreadsheet for a project selection model:
What is the amount of personnel used for Project 2?
A) 3
B) 4
C) 6
D) 11
Answer:
For two variables, a positive correlation coefficient indicates ________.
A) a linear relationship exists for which one variable increases as the other also
increases
B) a linear relationship exists for one variable that increases while the other decreases
C) that the two variables have no linear relationship with each other
D) a nonlinear relationship with no linear correlation between the two variables
Answer:
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.
What is the value of mean obtained from the simulation results?
A) 450
B) 300
C) 400
D) 250
Answer:
Which of the following is a Type I error?
A) the null hypothesis is actually true, and the hypothesis test correctly fails to reject it
B) the null hypothesis is actually false, but the test incorrectly fails to reject it
C) the null hypothesis is actually false, and the test correctly rejects it
D) the null hypothesis is actually true, but the hypothesis test incorrectly rejects it
Answer:
Sendstars is a package delivering company that recently made a study on its customer
retention and service renewal metrics. They found that most customers defected from
using Sendstars’ services due to customer dissatisfaction stemming from delivery
personnel being rude or ill-mannered. To curb this issue, Sendstars gave special training
to its employees in customer service. Which of the following data mining approaches
did Sendstars employ when they decided to train their employees in customer care
based on the study?
A) association
B) cause-and-effect modeling
C) classification
D) reduction
Answer:
In the spreadsheet below, there is data on the price, cost, demand, and quantity
produced for an item. There are also different “what if” values that can help a manager
to calculate costs and revenue with variability in demand.
Calculate the total revenue when the quantity produced is 55,000 and demand is 60,000.
A) $1,375,000
B) ($1,320,000)
C) $1,430,000
D) $2,750,000
Answer:
Shirley Templeton is a real estate agent for Paralol Realty. Shirley is given the
responsibility to manage potential customers for 5 of the Realty’s bungalows. These 5
bungalows are situated in close proximity. In order to make traveling easier, Shirley
decides to move to a location closer to the 5 bungalows. The table below gives the
location (X and Y coordinates) of the 5 bungalows along with the number of trips she
would have to make to each bungalow. Create a nonlinear model based on the data
given in the table below noting that the objective is to reduce the weighted distance
between Shirley’s accommodation and the 5 bungalows.
According to the model, what is the weighted distance between Shirley’s new
accommodation and Bungalow 5?
A) 435.89
B) 1529.39
C) 589.25
D) 250.78
Answer: