Stats Final

The objective function for a linear optimization problem is: Max 3x + 5y, with constraints x ≥ 0, y ≥ 0 and x and y are both integers and they are also the only decisions variables. This is an example of a(n) _____.

all-integer linear program

Spreadsheet models are referred to as what-if models because they _____.

allow easy instantaneous recalculation for a change in model inputs

The influence in an influence diagram is visually depicted by _____.

an arrow

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

Problem formulation

Which of the following is true of spreadsheet packages used in business analytics?

They come preloaded on computers.

Which of the following is true about the sensitivity analysis for integer optimization problems?

To determine the sensitivity of the solution to changes in model inputs for integer optimization problems, the data must be changed and the problem must be re-solved.

Which of the following states the objective of time series analysis?

To uncover a pattern in a time series and then extrapolate the pattern into the future

Which of the following would be a likely mathematical expression for Total Revenue?

Total Revenue = Production Volume × Revenue per Unit

The _____ function allows the user to pull a subset of data from a larger table of data based on some criterion.

VLOOKUP

A forecast is defined as a(n) _____.

prediction of future values of a time series

Which of the following is not true of a stationary time series?

the time series plot is a straight line

When formulating a constraint, care must be taken to ensure that _____.

the units of measurement on both sides of the constraint match

If a time series plot exhibits a horizontal pattern, then _____.

there is still not enough evidence to conclude that the time series is stationary

A set of observations on a variable measured at successive points in time or over successive periods of time constitute a _____.

time series

In the graph of the simple linear regression equation, the parameter ß0 represents the _____ of the true regression line.

y-intercept

In a binary integer linear program, the integer variables take only the values _____.

0 or 1

Suppose that profit for a particular product is calculated using the linear equation: Profit = 20S + 3D. Which of the following combinations of S and D would yield a maximum profit?

S = 405, D = 0

A _____ is used to visualize sample data graphically and to draw preliminary conclusions about the possible relationship between the variables.

Scatter Chart

A time series plot of a period of time (in months) versus sales (in number of units) is shown below. Which of the following data patterns best describes the scenario shown?

Seasonal pattern (the graph goes up and down consistently)

Trend refers to _____.

The long-run shift or movement in the time series observable over several periods of time.

A(n) _____ refers to a set of points that yield a fixed value of the objective function.

objective function contour

The graph of the simple linear regression equation is a(n) _____.

a. straight line

The imposition of an integer restriction is necessary for models where _____.

a. the decision variables cannot take fractional values

Which of the following would be a likely mathematical expression for Total Variable Cost?

b. Total Variable Cost = (Material Cost per Unit + Labor Cost per Unit) × Production Volume

In a production application involving a fixed setup cost and a variable cost, the use of _____ makes including the setup cost possible in a production model.

binary variables

The population parameters that describe the y-intercept and slope of the line relating y and x, respectively, are _____.

c. B0 and B1

Using the diagram below, which of the following would be a likely mathematical expression for Total Cost?

c. Total Cost = Fixed Cost + Total Variable Cost

The _____ of a set of points is the smallest intersection of linear inequalities that contain the set of points.

convex hull

The optimal solution to the integer linear program will be an extreme point of the _____.

convex hull

A _____ decision is one in which companies have to decide whether they should manufacture a product or outsource production to another firm.

d. make-versus-buy

An exponential trend pattern occurs when _____.

d. the percentage change between periods in the value of the variable is relatively constant

A controllable input for a linear programming model is known as a _____.

decision variable

In a linear regression model, the variable that is being predicted or explained is known as _____. It is denoted by y and is often referred to as the response variable.

dependent variable

In the simple linear regression model, the _____ accounts for the variability in the dependent variable that cannot be explained by the linear relationship between the variables.

error term

A(n) _____ solution satisfies all the constraint expressions simultaneously.

feasible

A binary mixed-integer programming problem in which the binary variables represent whether an activity, such as a production run, is undertaken or not is known as the _____.

fixed-cost problem

The conceptual model _____.

helps in organizing the data requirements

In a linear regression model, the variable (or variables) used for predicting or explaining values of the response variable are known as the _____. It(they) is(are) denoted by x.

independent variable

A(n) _____ is a visual representation that shows which entities affect others in a model.

influence diagram

A mathematical function in which each variable appears in a separate term and is raised to the first power is known as a _____.

linear function

The objective function for an optimization problem is: Max 5x - 3y, with constraints x ≥ 0, y ≥ 0 and y must be an integer. x and y are the only decisions variables. This is an example of a(n) _____.

mixed-integer linear program

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

objective function

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

operational variations

The _____ assumption necessary for a linear programming model to be appropriate means that the contribution to the objective function and the amount of resources used in each constraint are in accordance to the value of each decision variable.

proportionality

_____ is a statistical procedure used to develop an equation showing how two variables are related.

regression analysis

Constraints are _______________?

restrictions that limit the settings of the decision variables

A time series that shows a recurring pattern over one year or less is said to follow a _____.

seasonal pattern

The importance of _____ for integer linear programming problems is often intensified by the fact that a small change in one of the coefficients in the constraints can cause a relatively large change in the value of the optimal solution.

sensitivity analysis

A regression analysis involving one independent variable and one dependent variable is referred to as a _____.

simple linear regression

A procedure for using sample data to find the estimated regression equation is _____.

the least squares method