Final BUSA 3132

If the unit profit for Space Rays decreases from $8 to $2 with all other parameters held constant, the optimal solution would stay the same. (7, r3)

False

In a simple regression the coefficient of determination is the square root of the coefficient of correlation.

False

In regression, the variable that is being predicted is usually referred to as the independent variable.

False

Suppose the allowable increase and decrease for an objective coefficient of a decision variable that has a current value of $50 are $25 (increase) and $10 (decrease). If the coefficient were to change from $50 to $60, the optimal value of the objective function will change.

False

The correlation coefficient can only range between 0 and 1.

False

The experimental region is the range of the previously observed values of the independent variable.

False

The least squares simple linear regression line minimizes the sum of the vertical deviations between the line and the data points.

False

The sign on the intercept coefficient in a simple regression model will always be the same as the sign on the correlation coefficient.

False

The simple linear regression model can be written in the form y = β0 + β1x1 + β2x1x2 + ε.

False

The slope of the regression line, y = 21 − 5x, is 21.

False

The values of the regression coefficients are found the sum of the residuals is minimized.

False

Which of the following summary measures for forecast errors does not depend on the units of the forecast variable?

MAPE (mean absolute percentage error)

In statistics, the Durbin-Watson statistic is a test statistic used to detect the presence of autocorrelation in the residuals from a regression analysis.

True

Regression methods can be pursued to estimate trends that are linear in time.

True

The cyclic component of a time series is more likely to exhibit business cycles that record periods of economic recession and inflation.

True

The feasible region only contains points that satisfy all constraints.

True

When a trucking firm uses the number of shipments for January of the previous year as the forecast for January next year, it is using a naïve forecasting model.When a trucking firm uses the number of shipments for January of the previous year as the forecast for January next year, it is using a naïve forecasting model.

True

For two households, one suburban and one rural, Abby's model predicts ________. (25,r1)

the rural household's monthly expenditures for groceries will be $49 more*

The shadow price of nonbinding constraints

Will always be zero*

The objective function coefficients for X1 ,X2, and X3 are 15, 32, and 48 respectively. Excel prints that their ranges of optimality are from 10 to 20, from 30 to 40, and from infinity to 50respectively. If the objective function coefficients are changed to 14, 31, and 45, the optimal solution

Will not change.*

A simple linear regression model is an equation that describes the straight-line relationship between a dependent variable and an independent variable.

true

A time series with a seasonal pattern can be modeled by treating the season as a

dummy variable

A market analyst is developing a regression model to predict monthly household expenditures on groceries as a function of family size, household income, and household neighborhood (urban, suburban, and rural). The response variable in this model is _____.

expenditures on groceries

If we reject H0: beta 1= beta 2 =0 using the F-test, then we should conclude that both slopes are different from zero.

fasle

When using the graphical method, the region that satisfies all of the constraints of a linear programming problem is called the:

feasible region.

Shadow prices are associated with nonbinding constraints, and show the change in the optimal objective function value when the right side of the constraint equation changes by one unit

true

The amount by which an objective function coefficient can change before a different set of values for the decision variables becomes optimal is the

range of optimality. *

Constraints are

restrictions that limit the settings of the decision variables

A correlation of -0.9 indicates a weak linear relationship between the variables.

False

A maximization problem can generally be characterized by having all

False

A time series can consist of four different components: trend, seasonal, horizontal, and random (or noise)

False

Causal models use exponential smoothing to forecast a time series variable by using other explanatory time series variables.

False

FarmFresh Foods manufactures a snack mix called TrailTime by blending three ingredients: a dried fruit mixture, a nut mixture, and a cereal mixture. Information about the three ingredients (per ounce) is shown below. The company needs to develop a linear programming model whose solution would tell them how many ounces of each mix to put into the TrailTime blend. TrailTime is packaged in boxes that will hold between three and four cups. The blend should contain no more than 1000 calories and no more than 25 grams of fat. Dried fruit must be at least 20% of the volume of the mixture, and nuts must be no more than 15% of the weight of the mixture. Develop a model that meets these restrictions and minimizes the cost of the blend. The objective function is given as: (1-5 (140-144), r3)

Min 0.35D + 0.50N + 0.20C*

Alan Bissell, a market analyst for City Sound Mart, is analyzing sales of heavy metal CD's. Alan's dependent variable is annual heavy metal CD sales (in $1,000,000's), and his independent variables are teenage population (in 1,000's) and type of sales district (0 = urban, 1 = rural). Regression analysis of the data yielded the following table.

$1,566,666 lower sales in the rural district

Alan Bissell, a market analyst for City Sound Mart, is analyzing sales of heavy metal CD's. Alan's dependent variable is annual heavy metal CD sales (in $1,000,000's), and his independent variables are teenage population (in 1,000's) and type of sales district (1 = urban, 0 = rural). Regression analysis of the data yielded the following table. (16,1)

$1,566,666 lower sales in the urban district

The Electrocomp Corporation manufactures two types of kites: old-fashioned diagonal and box kites. These kites are made from high-strength paper and wood. Each diagonal kite, which nets the company a $3 profit, requires 8 square feet of paper and 4 linear feet of wood (including waste). Box kites net a $5 profit and, including waste, require 6 square feet of paper and 8 linear feet of wood. Each is packaged in similar boxes. This week Electrocomp Corporation has 1500 boxes and capacity to tailor 10,000 square feet of paper and 12,000 linear feet of wood for kite production. How many of each type of kite do you recommend Electrocomp Corporation produce this week? If the capacity of wood is reduced by 600 linear feet, how much reduction would the optimal profit change by?

($300)

The Electrocomp Corporation manufactures two types of kites: old-fashioned diagonal and box kites. These kites are made from high-strength paper and wood. Each diagonal kite, which nets the company a $3 profit, requires 8 square feet of paper and 4 linear feet of wood (including waste). Box kites net a $5 profit and, including waste, require 6 square feet of paper and 8 linear feet of wood. Each is packaged in similar boxes. This week Electrocomp Corporation has 1500 boxes and capacity to tailor 10,000 square feet of paper and 12,000 linear feet of wood for kite production. How many of each type of kite do you recommend Electrocomp Corporation produce this week?

((3, 6))

The Electrocomp Corporation manufactures two types of kites: old-fashioned diagonal and box kites. These kites are made from high-strength paper and wood. Each diagonal kite, which nets the company a $3 profit, requires 8 square feet of paper and 4 linear feet of wood (including waste). Box kites net a $5 profit and, including waste, require 6 square feet of paper and 8 linear feet of wood. Each is packaged in similar boxes. This week Electrocomp Corporation has 1500 boxes and capacity to tailor 10,000 square feet of paper and 12,000 linear feet of wood for kite production. How many of each type of kite do you recommend Electrocomp Corporation produce this week? What is the maximum profit that Electrocomp Corporation can make?

(7,500)

The Electrocomp Corporation manufactures two types of kites: old-fashioned diagonal and box kites. These kites are made from high-strength paper and wood. Each diagonal kite, which nets the company a $3 profit, requires 8 square feet of paper and 4 linear feet of wood (including waste). Box kites net a $5 profit and, including waste, require 6 square feet of paper and 8 linear feet of wood. Each is packaged in similar boxes. This week Electrocomp Corporation has 1500 boxes and capacity to tailor 10,000 square feet of paper and 12,000 linear feet of wood for kite production. How many of each type of kite do you recommend Electrocomp Corporation produce this week? Write down the constraint for paper.

(8D + 6B <= 10,000)

The Electrocomp Corporation manufactures two types of kites: old-fashioned diagonal and box kites. These kites are made from high-strength paper and wood. Each diagonal kite, which nets the company a $3 profit, requires 8 square feet of paper and 4 linear feet of wood (including waste). Box kites net a $5 profit and, including waste, require 6 square feet of paper and 8 linear feet of wood. Each is packaged in similar boxes. This week Electrocomp Corporation has 1500 boxes and capacity to tailor 10,000 square feet of paper and 12,000 linear feet of wood for kite production. How many of each type of kite do you recommend Electrocomp Corporation produce this week?

(D + B <= 1,500)

What is the optimal solution for the following problem? Maximize P = 3x + 15y subject to 2x + 4y ≤ 12 5x + 2y ≤ 10 and x ≥ 0, y ≥ 0.

(x, y) = (0, 3)

Using Excel's Solver add-in, find the optimal solution for the following problem? Maximize P = 8x + 3y subject to 2x + 4y ≤ 20 6x + 3y ≤ 18 and x ≥ 0, y ≥ 0.

(x, y) = (3, 0)

Given the following 2 constraints, which solution is a feasible solution for a maximization problem? (1) 14x1 + 6x2 ≤ 42 (2) x1 − x2 ≤ 3

(x1, x2) = (2, 1)

Which of the following statements is FALSE

A linear programming problem always has a unique optimal solution.*

If the forecasted value of the time series variable for period 2 is 22.5 and the actual value observed for period 2 is 22, what is the forecast error in period 2?

-.05

You are using linear programming to try to maximize profits from selling mugs (M), t-shirts (T), and posters (P) at the World Cup and you are stocking your inventory to achieve that goal. It is recommended that the number of t-shirts be at least 40% of the total number of items in inventory. Which of the following constraints achieves tha

-0.4M + 0.6T - 0.4P

Mr. Smith has some money to invest. He selected three stocks and two bond funds as possible investments, shown in the following table. One of Mr. Smith's investment requirements is "at least 40% of the funds invested in stocks are to be in low-risk stock". Which option represents this constraint? Note: (X1, X2, X3, X4, and X5 are investment in stock A, stock B, stock C, long term bond and short term bond, respectively (14,3)

-0.4X1 - 0.4X2 + 0.6X3 ≥ 0

What clue does Excel give to the possible existence of alternate optimal solutions?

Allowable increase or decrease for all decision variables equals zero in the optimal solution

The coefficient of correlation in a simple regression analysis is = - 0.6. The coefficient of determination for this regression would be ______

.36

In a regression analysis if SSE = 500 and SSR = 300, r 2 = _________.

.3750

In a regression analysis if SST = 200 and SSR = 185, r^2

.925

The slack value for binding constraints is

0

What is the shadow price for the "Total Production" constraint?(8,r3)

0

In exponential smoothing models, the value of the smoothing constant may be any number between

0 and 1*

You are using linear programming to try to maximize profits from selling mugs (M), t-shirts (T), and posters (P) at the World Cup and you are stocking your inventory to achieve that goal. It is recommended that the number of t-shirts be at least 40% of the total number of items in inventory. Which of the following constraints achieves that?

0.6T -0.4M - 0.4P ≥ 0

A naive forecast is identical to an exponential smoothing forecast with a smoothing constant of ________

1.0

Jim Royo, manager of Billings Building Supply (BBS), wants to develop a model to forecast BBS's monthly sales (in $1,000's). He selects the dollar value of residential building permits (in $10,000) as the predictor variable. An analysis of the data yielded the following tables.the critical value of the Durbing- Watson Statistic, dU is (17,2)

1.17

The following data is to be used to construct a regression model: x= 5,8,4,15,12,9 y= 8,9,12,26,16,13 The value of the slope is ___________.

1.36

Jim Royo, manager of Billings Building Supply (BBS), wants to develop a model to forecast BBS's monthly sales (in $1,000's). He selects the dollar value of residential building permits (in $10,000) as the predictor variable. An analysis of the data yielded the following tables. Using α = 0.05 the critical value of the Durbin-Watson statistic, dU, is __

1.43

The following ANOVA table is from a multiple regression analysis. Soure. df . SS. MS. F. P Regression 5(df). 2000(SS) Error 25(df) total 2500(SS) The MSE value is ________

20

Using a three-month moving average, the forecast value for November in the following time series is (5,r2)

10

The forecast value for August was 12 and the actual value turned out to be 5. Using exponential smoothing with α = 0.20, the forecast value for September would be ____

10.6

The restriction on fat may be represented as:

10N + C ≤ 25*

Abby Kratz, a market specialist at the market research firm of Saez, Sikes, and Spitz, is analyzing household budget data collected by her firm. Abby's dependent variable is monthly household expenditures on groceries (in $'s), and her independent variable is annual household income (in $1,000's). Regression analysis of the data yielded the following tables. (27,1)

11

A manager wishes to predict the annual cost (y) of an automobile based on the number of miles (x) driven. The following model was developed: y = 1,550 + 0.36x.If a car is driven 30,000 miles, the predicted cost is ____________.

12,350

Consider the following time series data: week 1= 1,2,3,4,5,6 Value= 18,13,16,11,17,14 Using α = 0.8 what is the exponential smoothing value for week 7?

14.40

A multiple regression analysis produced the following tables. The sample size for this analysis is ____________. (33,1)

15

Consider the following time series data: Compute the 2-month moving average for the 6th month. (27,2)

15.5

The owner of Crackers, Inc. produces both Deluxe (D) and Classic (C) crackers. She only has 4,800 ounces of sugar, 9,600 ounces of flour, and 2,000 ounces of salt for her next production run. A box of Deluxe crackers requires 2 ounces of sugar, 6 ounces of salt, and 1 ounce of flour to produce. A box of Classic crackers requires 3 ounces of sugar, 2 ounces of flour, and 8 ounces of salt to produce. Profits are 40 cents for a box of Deluxe crackers and 50 cents for a box of Classic crackers. Cracker's, Inc. would like to maximize profits. What is the flour constraint?

1D + 2C ≤ 9,600

Hope Hernandez, Marketing Manager of People's Pharmacy, Inc., wants a regression model to predict sales in the greeting card department. Her data set includes two qualitative variables: the pharmacy neighborhood (urban, suburban, and rural), and lighting level in the greeting card department (soft, medium, and bright). The number of dummy variables needed for "lighting level" in Hope's regression model is _____

2

Hope Hernandez, Marketing Manager of People's Pharmacy, Inc., wants a regression model to predict sales in the greeting card department. Her data set includes two qualitative variables: the pharmacy neighborhood (urban, suburban, and rural), and lighting level in the greeting card department (soft, medium, and bright). The number of dummy variables needed for "lighting level" in Hope's regression model is ______.

2

Yvonne Yang, VP of Finance at Discrete Components, Inc. (DCI), wants a regression model which predicts the average collection period on credit sales. Her data set includes two qualitative variables: sales discount rates (0%, 2%, 4%, and 6%), and total assets of credit customers (small, medium, and large). The number of dummy variables needed for "total assets of credit customer" in Yvonne's regression model is ________.

2

The following ANOVA table is from a multiple regression analysis with n = 35 and four independent variables. The number of degrees of freedom for error is __________. (32,1)

30

The following data is to be used to construct a regression model: x=5,7,4,15,12,9 y=8,9,12,26,16,13 The value of the intercept is ___________.

2.16

if the forecasted value of the time series variable for period 2 is 22.5 and the actual value observed for period 2 is 25, what is the forecast error in period

2.5

The table below presents the actual monthly sales for a company over the first six months of 1986. Using a 3-month moving average, what is the predicted sales for the month of July?(18,2)

263.33

The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S). There are at most 12 hours per day of production time and 1,500 gallons per day of carbonated water available. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. The firm's goal is to maximize profits.What is the time constraint?

2R + 3S ≤ 720.

Galaxy Company manufactures two types of dolls: Space Ray (S) and Zapper (Z). Preston is the production manager for this company. To produce a Space Ray doll requires 2 minutes of time and 5 special plastics. Each Zapper needs 4 minutes of time and 3 special plastics. The company's production time is limited to 8 hour per day. The company can only work with 675 special plastics per day. Currently, the unit profit to manufacture a Space Ray doll is $3 and $2 for a Zapper doll. Preston's goal is to maximize the company's profit.

2S + 4Z ≤ 480.

A time series with forecast values and error terms is presented in the following table. The mean absolute deviation (MAD) for this forecast is _________ (1,r2)

3.10

Suppose for a particular week, the forecasted sales were $4,000. The actual sales were $3,000. What is the value of the mean absolute percentage error

33.3%*

17. Demand for a product and the forecasting department's forecast (naïve model) for a product are shown below. Compute the mean squared error (17,r2)

4.67

Fitting a linear trend to 36 monthly data points (January 2000 = 1, February 2000 =2, March 2000 = 3, etc.) produced the following tables. The projected trend value for May 2003 is ________________ (20,2)

408.25

Squire Leathers produces two sizes of wallets from cowhide. The first requires 60 square inches of cowhide and the second requires 100square inches.The company has 1000square feetof cowhide. Part of the model i

60X1 +100 X2 <= 144,000

A manager wishes to predict the annual cost (y) of an automobile based on the number of miles (x) driven. The following model was developed: y = 1,550 + 0.36x.If a car is driven 15,000 miles, the predicted cost is ____________.

6950

Given an actual demand of 61, forecast of 85, and a smoothing constant of .43, what would the forecast for the next period be using simple exponential smoothing?

74.68

A manager wants to predict the cost (y) of travel for salespeople based on the number of days (x)spent on each sales trip. The following model has been developed: y = $400 + 120x . If a trip took 3 days, the predicted cost of the trip is ___________

760

Using a three-month moving average (with weights of 6, 3, and 1 for the most current value, next most current value and oldest value, respectively), the forecast value for November in the following time series is (6,r2)

8.60

Demand for a product and the forecasting department's forecast (naïve model) for a product are shown below. Compute the mean squared error. (26,2)

8.67

The forecast value for August was 5 and the actual value turned out to be 12. Using exponential smoothing with α = 0.60, the forecast value for September would be ______.

9.22

The optimal solution to a linear program can be found at which point of the feasible region?

An extreme point*

Which of the following is not a question answered by sensitivity analysis?

By how much will the objective function value change if the right-hand side value of a constraint changes beyond the range of feasibility

The constraint 150D + 400N + 50C ≤ 1000 represents the restriction on _______.

Calories*

If there is perfect negative correlation between two sets of numbers, then _______.

r= -1*

In a linear regression model, the variable that is being predicted or explained is known as

Dependent variable*

Where is the objective cell located? (12,3)

F10

Which of the following iterative search procedures for model-building in a multiple regression analysis adds variables to model as it proceeds, but does not reevaluate the contribution of previously entered variables?

Forward selection

For a certain data set the regression equation is y = 21 + 3x. The correlation coefficient between y and x in this data set _______.

Is positive

Consider the following time series. What type of pattern exists in the data (20,r2)

Linear trend with a decreasing pattern*

I am a measure for forecast errors but I don't depend on the forecast variable's units. Who am I?

MAPE (mean absolute percentage error)

Which of the following measures of forecast accuracy is susceptible to the problem of positive and negative forecast errors offsetting one another?

Mean forecast error

Which of the following error messages is displayed in Excel Solver when attempting to solve an unbounded problem?

Objective Cell values do not converge.

Which of the following is not present in a time series?

Operational variations

Which of the following is not present in a time series?

Operational variations*

An electronics firm produces two models of pocket calculators: the A-100 (A) and the B-200 (B). Each model uses one circuit board, of which there are only 2,500 available for this week's production. In addition, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators. Each A-100 requires 15 minutes to produce while each B-200 requires 30 minutes to produce. The firm forecasts that it could sell a maximum of 4,000 of the A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each and profits for the B-200 are $4.00 each. The firm's goal is to maximize profits.

P = 1A + 4B

Kellogg wants to maximize their profits from their main products: Strawberry Krispies (SK) and Frosted Flakes (FF). Kellogg uses 300 pounds of Fiber per week and 200 pounds of Sugar per week. Profits for the Strawberry Krispies are $2.00 per pound, and profits for the Frosted Flakes are $1.00 per pound. Each pound of Strawberry Krispies requires 12 ounces of Fiber and 4 ounces of Sugar, while a pound of Frosted Flakes uses 8 ounces of Sugar and 8 ounces of Fiber. What is the objective function?

P = 2SK + FF.

What will you say about the errors if the Durbin-Watson statistic is 1.456?

Positive Autocorrelation *

_____, or modeling, is the process of translating a verbal statement of a problem into a mathematical statement.

Problem formulation*

Which constraint(s) is/are binding? (9,r3)

Production time and Plastic*

A time series plot of a period of time (quarterly) versus quarterly sales (in $1,000s) is shown below. Which of the following data patterns best describes the scenario shown? (29,2)

Seasonal pattern and linear trend

The study of how changes in the input parameters of a linear programming problem affect the optimal solution is known a

Sensitivity analysis*

As related to sensitivity analysis in linear programming, when the profit increases with a unit increase in labor, this change in profit is referred to as the:

Shadow Price

Which algorithm, developed by George Dantzig and utilized by Excel Solver, is effective at investigating extreme points in an intelligent way to find the optimal solution to even very large linear programs?

Simplex algorithm

X3A+X3B≤150 is the correct constraint for: (31,3)

Source node 3

Which of the following iterative search procedures for model-building in a multiple regression analysis reevaluates the contribution of variables previously include in the model after entering a new independent variable

Stepwise regression*

Abby Kratz, a market specialist at the market research firm of Saez, Sikes, and Spitz, is analyzing household budget data collected by her firm. Abby's dependent variable is monthly household expenditures on groceries (in $'s), and her independent variables are annual household income (in $1,000's) and household neighborhood (0 = suburban, 1 = rural). Regression analysis of the data yielded the following table. According to the coding, which household neighborhood is the "Base" for the regression model? (24,r1)

Suburban

In a multiple regression analysis with N observations and k independent variables, the degrees of freedom for the residual error is given by (N - k - 1).

True

In the solver dialog box shown below, the "By Changing Cells" input field is meant for (2,3)

The variables of the model (i.e., decision variables)

A time series plot of a period of time (in weeks) versus sales (in 1,000's of gallons) is shown below. Which of the following data patterns best describes the scenario shown? (31,2)

Time series with a horizontal pattern

A time series plot of a period of time (in weeks) versus sales (in 1,000's of gallons) is shown below. Which of the following data patterns best describes the scenario sho

Time series with a horizontal pattern*

Which of the following statements is the objective of the moving averages and exponential smoothing methods

To smooth out random fluctuations in the time series*

A linear programming problem can have multiple optimal solutions.

True

A scatterplot can help determine if two variables are related in some systematic way

True

A small value of the Durbin-Watson statistic indicates that successive error terms are positively correlated.

True

A t-test is used in testing the significance of an individual independent variable.

True

Every form of exponential smoothing model has at least one smoothing constant, which is always between 0 and 1.

True

Forecast error is the difference between the value of the response variable and forecast variable.

True

Mr. Smith has some money to invest. He selected three stocks and two bond funds as possible investments, shown in the following table. One of Mr. Smith's investment requirements is "the total amount invested cannot exceed $50,000". Which option represents this constraint? Note: (X1, X2, X3, X4, and X5 are investment in stock A, stock B, stock C, long term bond and short term bond, respectively (13,3)

X1 + X2 + X3 + X4 + X5 ≤ 50,000

The following table represents the cost to ship from Distribution Center 1, 2, or 3 to Customer A, B, or C. In the following, X1A denotes the flow from DC1 to Customer A, X1B denotes the flow from DC1 to Customer B, etc. The constraint that represents the quantity supplied by DC 1 is: (30,3)

X1A+X1B+X1C≤500

The following table represents the cost to ship from Distribution Center 1, 2, or 3 to Customer A, B, or C. In the following, X1A denotes the flow from DC1 to Customer A, X1B denotes the flow from DC1 to Customer B, etc. The constraint that represents the quantity demanded by Customer B is (28,3)

X1B+X2B+X3B=350

In a model with two decision variables, the restriction 3x1+2x2≥6 represents: (29,3)

a linear constraint

The exponential smoothing forecast for period t + 1 is a weighted average of the

actual value in period t with weight α and the forecast for period t with weight 1 - α.

The following residuals plot indicates _______________. (36,1)

a nonconstant error variance

the following residuals plot indicates _______________ (5,r1)

a nonconstant error variance*

A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a function of batch size (the number of boards produced in one lot or batch). The explanatory variable is ______.

batch size

The numerical value of the coefficient of correlation must be _______

between -1 and +1

A __________ refers to a constraint that can be expressed as an equality at the optimal solution.

binding constraint

In regression analysis, R-squared is also called the _______.

coefficient of determination

The proportion of variability of the dependent variable accounted for or explained by the independent variable is called the _______.

coefficient of determination

The proportion of variability of the dependent variable accounted for or explained by the independent variable is called the ______

coefficient of determination*

Rob is a financial manager with Sharez, an investment advisory company. He must select specific investments—for example, stocks and bonds—from a variety of investment alternatives. Restrictions on the type of permissible investments would be a __________ in this case

constraint*

The points where constraints intersect on the boundary of the feasible region are termed as the

extreme points.

Minimization linear programming models may not involve ≤ constraints

false

The range of admissible values for the R square value is −1 to +1.

false

You are given the following sample data for two variables: Y= 10,8,12,15,16,10,10,8,12 X=100,110,90,200,150,100,80,90,150 The sample correlation coefficient for these data is approximately r = 0.755

false

The assumption of constant error variance in regression analysis is called _______.

homoscedasticity*

A market analyst is developing a regression model to predict monthly household income as a function of family size, household expenditures on groceries, and household neighborhood (urban, suburban, and rural). The response variable in this model is _____.

household income

An over-constrained linear programming problem results in what type of solution?

infeasible

The effect of deleting a linear constraint from a linear programming model depends on whether or not that constrain

is binding. *

If the coefficient of determination is 0.9, the percentage of variation in the dependent variable explained by the variation in the independent variable

is 90%

For a certain data set the regression equation is y = -3x + 2. The correlation coefficient between y and x in this data set _______.

is negative

The value of an independent variable from the prior period is referred to as a

lagged variable.*

The multiple regression formulas used to estimate the regression coefficients are designed to ________________.

minimize the sum of squares of error (SSE)

From the following scatter plot, we can say that between y and x there is _______. (14,r1)

negative correlation

The term __________ refers to the expression that defines the quantity to be maximized or minimized in a linear programming model.

objective function

The term __________ refers to the expression that defines the quantity to be maximized or minimized in a linear programming model.

objective function*

A negative forecast error indicates that the forecasting method ________ the dependent variable.

overestimated

The feasible region does not include:

points which violate at least one of the functional or non-negativity constraints. *

Consider the following scatter plot and regression line. At x = 17, the residual (error term) is _______. (39,1)

positive

A forecast is defined as a(n)

prediction of future values of a time series.*

For causal modeling, __________ are used to detect linear or nonlinear relationships between the independent and dependent variables

scatter charts*

The study of how changes in the input parameters of a linear programming problem affect the optimal solution is known as

sensitivity analysis

With reference to exponential forecasting models, a parameter that provides the weight given to the most recent time series value in the calculation of the forecast value is known as

smoothing constant.*

If x and y in a regression model are totally unrelated, ______

the coefficient of determination would be 0*

The constraint 0.25D + 0.375N + 1.0C ≤ 4 represents ________.

the constraint on maximum volume that can be packaged.*

The assumptions underlying simple regression analysis include ______________.

the error terms are independent*

One of the assumptions made in simple regression is that ______________.

the model is linear

A multiple regression analysis produced the following tables. These results indicate that ____________. (35,1)

x2 is significant at the 5% level

Inspection of the following table of correlation coefficients for variables in a multiple regression analysis reveals potential multicollinearity with variables ___________. (21,1)

x4 and x2

Abby Kratz, a market specialist at the market research firm of Saez, Sikes, and Spitz, is analyzing household budget data collected by her firm. Abby's dependent variable is monthly household expenditures on groceries (in $'s), and her independent variable is annual household income (in $1,000's). Regression analysis of the data yielded the following tables. Abby's regression model is __________. (38,1)

y = 39.15 + 1.79x