To find the average of the total cost of orders from Rex Technologies, what Excel
formula should be used in A12?
A) =AVERAGE(C4:C10)
B) =AVERAGE(C4:C7)
C) =AVERAGE(E4:E7)
D) =AVERAGE(E4:E10)
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 3 variance?
A) 0.00049
B) 0.00283
C) -0.00047
D) 0.00074
Which of the following is true about multicollinearity?
A) The effect of a dependent variable on another becomes difficult to isolate.
B) Regression coefficients become clearer and are easier to interpret.
C) P-values reduce significantly leading to rejection of null hypothesis.
D) It is best measured using the statistic variance inflation factor (VIF).
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.
From the “what if” values, calculate the revenue if the demand is 60,000 units.
A) $2,750,000
B) $825,000
C) $75,000
D) $1,375,000
Below is the profit model spreadsheet for the Lazarus Shoe Company producing their
latest model of shoes for the month of January.
Calculate the variable cost of production.
A) $1,786,000
B) $836,000
C) $600,000
D) $1,436,000
Below is a spreadsheet for a hotel overbooking model.
Answer the following question(s) using multiple parameterized simulations. The range
of historical customer demand is 400-430. Assume a uniform integer distribution for
customer demand, and run parameterized simulations for different reservation limits.
Use 5,000 trials and 1 for random seed.
Which of the following is the best number of reservations to accept?
A) 400
B) 410
C) 420
D) 430
Which of the following is true of calculating confidence intervals for larger samples?
A) For larger samples, the t-distribution is indistinguishable from the standard normal
distribution.
B) For larger samples, both the t-distribution and the standard normal distribution
require standard deviation values to be calculated.
C) For larger samples, the degrees of freedom cannot be calculated accurately.
D) For larger samples, only z-values provide a true sampling distribution of the mean.
A(n) ________ is a single number derived from sample data that is used to estimate the
value of a population parameter.
A) confidence interval
B) frequentist interference
C) interval estimate
D) point estimate
Below is the spreadsheet for Memphis Designs fixed cost model:
What is the net production at the end of the third quarter?
A) 75
B) 200
C) 450
D) 600
Which of the following features of classification, used in Excel, for a particular
database will necessarily be coded to a certain value?
A) categorical variables
B) non-numerical variables
C) predictor variables
D) numerical variables
For which of the following MATCH functions must the values in the lookup_array be
ordered in a descending order?
A) When match_type = -1
B) When match_type >1
C) When match_type = 0
D) When match_type = 1
Which of the following is true of linear functions used in predictive analytical models?
A) It is used when the rate of change in a variable decreases or increases quickly and
then levels out.
B) It is used when there is a steady decrease or increase over a range of a variable.
C) It is used when there is increase at a specific rate.
D) It is used when there is a rise or fall at a constantly increasing rate.
Below is a spreadsheet for a hotel overbooking model.
Assume that each reservation has a constant probability p = 0.04 of being cancelled.
Answer the question(s) using the Risk Solver Platform.
With respect to B14, what should the number of trials correspond to in the Parameters
section of the Binomial dialog?
A) reservation limit
B) customer demand
C) reservations made
D) customer arrivals
The ________ is the average of the greatest and least values in the data set.
A) mean
B) median
C) midrange
D) mode
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 mean absolute deviation obtained from the simulation results?
A) 3
B) 6
C) 8
D) 10
Which of the following allow meaningful comparison of ranges, averages and other
statistics?
A) interval data
B) categorical data
C) ratio data
D) ordinal data
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).
Calculate the value of the mean absolute percentage error using the Holt-Winters
no-trend model for the given data.
A) 8.10
B) 18.39
C) 21.70
D) 10.97
The total cost of reaching consumers (C) depends upon the number of consumers (N),
advertising costs (A), and transportation costs (T). The linear cost prediction model is
represented as:
C = c – nN + aA + tT
where c, n, a, and t are constants and c estimates the total cost when the remaining
variables are zero. Which of the following interpretations is true about this model?
A) Change in variables N, A, and T will cause n, a, and t to change.
B) As n decreases, c will increase.
C) When variables N, A, and T are zero, C = c – n + a + t.
D) Change in variables N, A, and T will not reflect any changes in c.