Bana Final

An uncertain future event affecting the consequence associated with a decision is known as a

chance event.

The states of nature are defined so that they are ___________. This means that at least one state of nature must occur at a given time for a chance event.

collectively exhaustive

Choosing a decision alternative that maximizes the minimum profit is a feature of the __________ approach.

conservative

Aggie Power Generation supplies electrical power to residential customers for many U.S. cities. Its main power generation plants are located in Los Angeles, Tulsa, and Seattle. The attached data table shows Aggie Power Generation's major residential markets, the annual demand in each market (in Megawatts or MWs), and the cost to supply electricity to each market from each power generation plant (prices are in $/MW). AGGIE If there are no restrictions on the amount of power that can be supplied by any of the power plants, what is the the total annual power distribution cost? Enter your answer rounded to two decimal places and without a dollar sign.

creat cost column, DR* Min of each city. drag down. with no restrictions, find sum

The profit function for two types of iPod is where x1 and x2 represent number of units of production of basic and advanced iPods, respectively. Production time required for the basic iPod is 7 hours per unit, and production time required for the advanced iPod is 9 hours per unit. Currently, 60 hours are available. The cost of hours is already factored into the profit function. The attached spreadsheet, iPod, has a formulation of an optimization problem that can be used to find the optimal production quantity of basic and advanced iPods. Solve the optimization model, what is the optimal value of the objective function? Round your answer to two decimal places

create constraint , total hours =sumproduct(units produced, hours required). objective : max profit, change: units produced

A(n) ____________ refers to a model input that can be controlled in a spreadsheet model.

decision variable

Data dashboards are a type of _________ analytics.

descriptive

What would be the value added by a market analysis undertaken, if the expected value with sample information is $8.56 million and the expected value without sample information is $6.39 million?

difference between the expected value associated with sample informatio

The weekly demand for an item in a retail store follows a uniform distribution over the range 70 to 90. What would be the weekly demand if its corresponding computer-generated random value is 0.6? Round your answer to two decimal places

difference from range, multiply difference by generated random (given) Add to lower bound

A project has four activities (A, B, C, and D) that must be performed sequentially. The probability distributions for the time required to complete each of the activities are as follows: Suppose you constructed a spreadsheet simulation model to estimate the average length of the project. If in the first simulation trial you generated the following four random numbers for Activities A, B, C, D: 0.33, 0.78, 0.25 and 0.63.

pick activity time that is in range, add up from each.

In the file, MajorSalary, data have been collected from 111 College of Business graduates on their monthly starting salaries. Create a PivotTable. Which major has the second highest average salary?

pivot table, Row: Major, Values: Monthly salary (average)

The file TaxData contains information from federal tax returns filed in 2007 for all counties in the United States (3,142 counties in total). Create a PivotTable in Excel to answer the question below. The PivotTable should have State Abbreviation as Row Labels. The Values in the PivotTable should be the sum of adjusted gross income for each state.

pivot table. Rows : state abbreviation. Value : % of whole (SUM show as % of whole)

A description of the range and relative likelihood of possible values of an uncertain variable is known as a

probability distribution

A simulation model extends spreadsheet modeling by

replacing the use of single values for parameters with a range of possible values.

The difference between the observed value of the dependent variable and the value predicted using the estimated regression equation is known as the

residual

Exponential utility functions indicate that the decision maker is

risk averse

A _____ is a decision maker who would choose a guaranteed payoff over a lottery with a better expected payoff.

risk avoider

New information obtained through research or experimentation that enables an updating or revision of the state-of-nature probabilities is known as

sample information

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

sensitivity analysis

The study of how changes in the probability assessments for the states of nature or changes in the payoffs affect the recommended decision alternative is known as

sensitivity analysis.

The change in the optimal objective function value per unit increase in the right-hand side of a constraint is given by the

shadow price.

The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The attached file provides information concerning labor availability, labor utilization, and product profitability. Hartman Develop an integer linear programming to determine the optimal production quantitites. What is the optimal value of the objective function? Enter your answer without a dollar sign and rounded to two decimal places

solver, max, constraints: Hours used >=" ", Units produced INT

The parameter R in an exponential utility function represents

the decision maker's risk tolerance.

The shadow price of nonbinding constraints

will always be zero

Using the Table below, which is the recommended decision alternative using the optimistic approach?

For a maximization problem, the optimistic approach advocates choosing the decision alternative with the maximum payoff, which is given by the decision alternative D4.

Solving nonlinear problems with local optimal solutions is performed using _____________, in Excel Solver, which is based on more classical optimization techniques.

GRG Nonlinear

Cox Electric makes electronic components. Costs and revenues are identified in this file: Cox. Use Excel's Goal Seek to determine the break-even point. Round your answer to a whole number.

Goal seek, Set "profit to "0" by changing components produced

Meega airlines decided to offer direct service from Akron to Clearwater Beach, Florida. Management must decide between full-price service using a company's new fleet of jet aircraft and a discount-service using smaller capacity commuter planes. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service on Clearwater Beach: high, moderate, and low. The following table shows the estimated quarterly profits (in thousands of dollars). ​ The probabilities for the demand is P(High) = 0.3, P(Medium) = 0.5, and P(Low) = 0.2, respectively. What is the optimal decision strategy if perfect information were available?

High: Full Price Medium: Full Price Low: Discount

The linear program that results from dropping the integer requirements for the variables in an integer linear program is known as

LP relaxation.

Which one of the following is used in predictive analytics?

Linear Regression

A ___________ uses repeated random sampling to represent uncertainty in a model representing a real system and that computes the values of model outputs.

Monte Carlo simulation

The __________ option in Excel Solver is helpful when the solution to a problem appears to depend on the starting values for the decision variables.

Multistart

In the file, MajorSalary, data have been collected from 111 College of Business graduates on their monthly starting salaries. To predict monthly starting salaries, one of the factors to be used will be undergraduate major. Considering the attached file, how many dummy variables will be needed to represent undergraduate major?

N-1, # of different majors -1

Making visual comparisons between categorical variables is possible but difficult in a

Pie Chart

_________ refer to the probabilities of the states of nature after revising the prior probabilities based on sample information.

Posterior probabilities

_______________ analytics use techniques that take input data and yield a best course of action.

Prescriptive

The __________ function is used to generate a pseudorandom number in Excel.

RAND()

The Excel function __________ generates integer values between lower and upper bounds.

RANDBETWEEN

___________ is the study of the possible payoffs and probabilities associated with a decision alternative or a decision strategy in the face of uncertainty.

Risk analysis

What would be the coefficient of determination if the total sum of squares (SST) is 15, the sum of squares due to regression (SSR) is 10, and the sum of squares due to error (SSE) is 5? Round your answer to three decimal places.

SSR/SST 10/6= 0.667

A _____________ is a graphical presentation of the relationship between two quantitative variables.

Scatter chart

_____________ are possible outcomes for chance events that affect the consequences associated with a decision alternative.

States of nature

Using the data below, which of the following would be the posterior probabilities, P(Sj|U)?

Step 1 =Prior Probabilities P(Sj) MULTIPLY Conditional Probabilities P(U|Sj) Step 2 = divide by sum

A feasible solution is __________ if there are no other feasible points with a better objective function value in the entire feasible region.

a global optimum

A one-way data table summarizes

a single input's impact on the output of interest.

In binary integer linear program, the integer variables take only the values

0 or 1.

Using the data below, what would be the joint probabilities, P( U∩ Sj)? ​

=Prior Probabilities P(Sj) MULTIPLY Conditional Probabilities P(U|Sj)

Aggie Power Generation supplies electrical power to residential customers for many U.S. cities. Its main power generation plants are located in Los Angeles, Tulsa, and Seattle. The attached data table shows Aggie Power Generation's major residential markets, the annual demand in each market (in Megawatts or MWs), and the cost to supply electricity to each market from each power generation plant (prices are in $/MW). AGGIE1 For the solution given in the file, what is the the total annual power distribution cost? Enter your answer rounded to two decimal places and without a dollar sign.

=sumproduct(distribution cost , allocations)

The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: If the decision maker knows nothing about the probabilities of the three states of nature, what is the recommended decision using the Minimax regret approach?

???

Using the Table below, which is the recommended decision alternative using the conservative approach?

????

In a nonlinear optimization problem

at least one term in the objective function or a constraint is nonlinear.

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

feasible

The amount of loss (lower profit or higher cost) from not making the best decision for each state of nature is known as

opportunity loss

The ___________ approach evaluates each decision alternative in terms of the best payoff that can occur.

optimistic

A(n) _________ refers to the result obtained when a decision alternative is chosen and a chance event occurs.

outcome

With reference to a spreadsheet model, an uncontrollable model input is known as a(n)

parameter

A special case of sample information where the information tells the decision maker exactly which state of nature is going to occur is known as_____ information.

perfect

________________ is used to test the hypothesis that the values of the regression parameters B 1, B 2, ... B q are all zero.

An F test

The __________forecasting model uses nonlinear optimization to forecast the adoption of innovative and new technologies in the marketplace.

Bass

In order to visualize three variables in a two-dimensional graph, we use a

Bubble Chart

_____ refers to the probability of one event, given the known outcome of a (possibly) related event.

Conditional probability

Data-ink is the ink used in a table or chart that

Correctc. is necessary to convey the meaning of the data to the audience.

Constraints are

Correctd. restrictions that limit the settings of the decision variables.

Professor Rao would like to accurately calculate the grades for the 58 students in his Operations Planning and Scheduling class (OM 455). He has thus far constructed a spreadsheet. The Course Average is calculated by weighting the Midterm Score and Final Score 50% each. Use the VLOOKUP function with the table shown to generate the Course Grade for each student. Use the COUNTIF function to determine the number of students receiving each letter grade. How many students received a B?

Course grade =vlookup(course average, $data table$,column you are looking for). then use countif= course grade , "B" (grade you are looking for, reference B in a cell don't type.

The attached data shows data for 48 national universities. The Graduation Rate column is the percentage of students who initially enrolled at the university and graduated. The % of Classes Under 20 column shows the percentages of classes with fewer than 20 students that are offered. The Student/Faculty Ratio column is the number of students enrolled divided by the total number of faculty. Finally, the Alumni Giving Rate column is the percentage of alumni who made a donation to the university Develop an estimated multiple linear regression model that could be used to predict the alumni giving rate using the Graduation Rate, % of Classes Under 20, and Student/Faculty Ratio as independent variables. Which variables are not significant at a 5% level of significance?

Data analysis, Descriptive analysis. Labels in first row checked. Input range (data with header) Lower than 0.5 (significant ) if above not significant

Bicycling World, a magazine devoted to cycling, reviews hundreds of bicycles throughout the year. Its Road-Race category contains reviews of bicycles used by riders primarily interested in racing. One of the most important factors in selecting a bicycle for racing is its weight. The attached data show the weight (pounds) and price ($) for ten racing bicycles reviewed by the magazine: BicyclingWorld Use the data to develop an estimated regression equation that could be used to estimate the price for a bicycle, given its weight. What proportion of the variation in the prices in the sample does the estimated regression explain? Enter your answer as a decimal rounded to three places.

Data analysis, Regression, X(weight) Y(price) with labels. Find R square

Using the attached LineSpeed data, develop an estimated regression equation to predict the number of defective parts found given the line speed. What is the predicted number of defective parts if the line speed is 55? Enter your answer rounded to one decimal place.

Data analysis, regression, using the numbers in coeffincentts. = intercept +linespeed * 55(given)

A retail store owner offers a discount on product A and predicts that the customers would purchase products B and C in addition to product A. Identify the technique used to make such a prediction.

Data mining

__________ is a measure of the total worth of a consequence reflecting a decision maker's attitude toward considerations such as profit, loss, and risk.

Utility

____________ is the process of determining that a simulation model provides an accurate representation of a real system.

Validation

We are determining where to locate our manufacturing plants in the United States. The locations are represented by the binary variables P1through P5. Each plant may or may not have a warehouse associated with it. These warehouses are represented by the binary variables W1 through W5. A warehouse can only be opened if the associated plant is opened. To accommodate this requirement we will add five constraints of the form that

Wi is less than or equal to Pi for i = 1 to 5.

Lines showing the alternatives from decision nodes and the outcomes from chance nodes are called

branches

Bayes' theorem

enables the use of sample information to revise prior probabilities.

The distance between two cities in the United States can be approximated by the following formula, where lat1 and long1 are the latitude and longitude of city 1 and lat2 and long2 are the latitude and longitude of city 2: Ted's daughter is getting married, and he is inviting relatives from 15 different locations in the United States. The DATAfile Wedding gives the longitude, latitude, and number of relatives in each of the 15 locations. Ted would like to find the location to hold the wedding that minimizes the demand-weighted distance, where demand is the number of relatives at each location. Find the optimal location. Enter the latitude of the optimal location rounded to two decimal places.

everything given, Change (long & lat ) . Minimize objective. answer is

The weighted average of the payoffs for a chance node is known as the

expected value.

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

extreme points.

(The answer was generated using 2,000 trials and native Excel functionality.) A project has four activities (A, B, C, and D) that must be performed sequentially. The probability distributions for the time required to complete each of the activities are as follows: The attached file, Project, contains a spreadsheet simulation model to estimate the average length of the project and the standard deviation of the project length. Create 2000 simulation trials. What is the project length? Round your answer to one decimal place.

get first row drag to 2000, data table, row input( empty), column( empty random cell) length is mean

The choice of the probability distribution for a random variable can be guided by

historical data.

Consider the clustered bar chart of the dashboard developed to monitor the performance of a call center: This chart allows the IT manager to

identify a particular type of problem by location. The clustered bar chart shows the call volume in the call center by type of problem (Email, Internet, or Software) for each of three cities in Texas. This chart allows the IT manager to quickly identify if there is a particular type of problem by location.

In a simulation process, the error of the estimates of the output can be reduced by

increasing the number of trials per simulation.

A disadvantage of stacked-column charts and stacked-bar charts is that

it can be difficult to perceive small differences in areas.

A feasible solution is a(n) ___________ if there are no other feasible solutions with a better objective function value in the immediate neighborhood.

local optimum

One of the ways to formulate the Markowitz model is to

minimize the variance of the portfolio subject to a constraint on the expected return of the portfolio.

The utility function for money is a curve that depicts the relationship between

monetary value and utility

The degree of correlation among independent variables in a regression model is called

multicollinearity

Below is the Sensitivity Report for the Par Inc. What would be the increase in the objective function if 10 additional hours were available in the Finishing Department? Enter your answer without a dollar sign and rounded to two decimal places.

multiply shadow price of department by 10(given)

No more than one state of nature can occur at a given time for a chance event. This indicates that the states of nature are defined such that they are

mutually exclusive

The minimax regret approach is

neither purely optimistic nor purely conservative.

An intersection or junction point of a decision tree is called a(n)

node.

You have solved a linear programming problem to determine an investment strategy that will maximize the return to shareholders. Now you are told that another constraint needs to be added to reduce risk exposure. You know that the addition of the new constraint will

not increase the current optimal value of the return to shareholders.

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

objective function