Business Analytics 2 Professor Winkofsky Final Exam
The _____ function in Excel is used to compute the statistics required to create a histogram. A) FREQUENCY B) RAND C) STDEV.S D) NORM.INV
A) FREQUENCY
Solving nonlinear problems with local optimal solutions is performed using _____, in Excel Solver, which is based on more classical optimization techniques. A) GRG Nonlinear B) Goal Seeker C) Simplex LP D) Linear Regression
A) GRG Nonlinear
The company identified in Chapter 12, Analytics in Action, is A) General Electric B) Procter & Gamble. C) ACCO Brands D) not a company but an industry.
A) General Electric
The company identified in Chapter 10, Analytics in Action, is Orbitz. Procter & Gamble. Wallmart.com. ACCO Brands.
Procter & Gamble.
Use the applet "Optimal Point in Feasible Region" to answer the following questions. (a) What is the profit that can be achieved by manufacturing the maximum number of Deluxe Bags without violating constraints? a) $4,860 b) $6,780 c) $7,080 d) $7,668 (b) What is the profit that can be achieved by manufacturing the maximum number of Standard Bags without violating constraints? a) $4,860 b) $6,780 c) $7,080 d) $7,668 (c) What is the maximum profit that can be achieved without violating constraints? a) $4,860 b) $6,780 c) $7,080 c) $7,668
(a) $4,860 (b) $7,080 (c) $7,668
Use the applet "Nonlinear Optimization in Feasible Region" to answer the following questions. (a) What is the approximate maximum possible profit achieved without violating constraints? A) $45,894 B) $48,918 C) $49,921 D) $52,125 (b) What is the approximate number of Standard Bags to produce to achieve the maximum possible profit without violating constraints? A) 308 B) 375 C) 459 D) 600 (c) What is the approximate number of Deluxe Bags to produce to achieve the maximum possible profit without violating constraints? A) 308 B) 375 C) 459 D) 600
(a) $49,921 (b) 459 (c) 308
Use the applet "Optimal Point in Integer Programming" to answer the following questions. (a) What is the annual cash flow that can be achieved by building the maximum number of Apartment Buildings without violating constraints? A) $45,000 B) $65,000 C) $70,000 D) $95,000 (b) What is the annual cash flow that can be achieved by building the maximum number of Townhouses without violating constraints? A) $45,000 B) $65,000 C) $70,000 D) $95,000 (c) What is the maximum cash flow that can be achieved without violating constraints? A) $45,000 B) $65,000 C) $70,000 D) $95,000
(a) $65,000 (b) $65,000 (c) $70,000
Use the applet "Confidence Interval for the Mean Value of y" to answer the following questions. (a) The best/most precise estimate of the mean value of y is located at the mean of the x values. A) True B) False (b) If you were thinking about opening up several new pizza places near colleges with 20,000 students, would you feel 95% confident that mean sales for those stores would be $175,000? A) Yes B) No
(a) A) True (b) B) No
Use the applet "Feasible Region" to answer the following questions. (a) Which constraint results in a least upper bound for the optimal number of Deluxe Bags? A) Inspection & Packaging B) Cutting & Dyeing C) Sewing D) Finishing (b) Which constraint results in a least upper bound for the optimal number of Standard Bags? A) Inspection & Packaging B) Cutting & Dyeing C) Sewing D) Finishing (c) Which constraint could be removed without affecting the feasible solution region? A) Inspection & Packaging B) Cutting & Dyeing C) Sewing D) Finishing
(a) Inspection & Packaging (b) Finishing (c) Sewing
Use the applet "Integer Linear Programming Constraints" to answer the following questions. (a) Which constraint limits the number of apartment buildings to 3 for feasible solutions? A) Townhouses Available B) Funds Available C) Manager's Time D) Interest Rate on Construction Loans (b) How many feasible solutions allow at least 2 Apartment Buildings? 3 8 10 12 (c) If there was no constraint on Townhouses Available, how many more feasible combinations of Apartment Buildings and Townhouses would be introduced? 0 1 4 8
(a) Manager's Time (b) 8 (c) 1
Use the applet "Least-Squares Best Fit for Estimating Regression Line" to answer the following questions. (a) Drag the end of the blue line on the scatter diagram up and down. How does the position of the line relate to the value of r-squared on the left? A) The position of the line does not affect the value of r-squared. B) The better the line fits the data the lower the value of r-squared. C) The better the line fits the data the higher the value of r-squared. (b) Next, hit the "Find Best Line" button and then the "Display/Hide Error Squares" button. Move the line up and down a few times. What does the total area of the orange squares represent? A) sum of squares due to error (SSE) B) sum of squares due to regression (SSR) C) total sum of squares (SST)
(a) The better the line fits the data the higher the value of r-squared. (b) sum of squares due to error (SSE)
Use the applet "Regression Analysis: Interactions" to answer the following questions. (a) Experiment with each slider. Set the sliders to different values and observe the effect on the slopes of the regression lines. Try to make the two lines parallel. Which slider do you need to use to make the lines have the same slope? a) b0 b) b1 c) b2 d) b3 (b) The groups g = 0 and g = 1 correspond to the values of the variable x1 = 0 and x1 = 1, respectively. That is, the line for g = 0 is the graph of the regression equation with 0 in place for x1, while the line for g = 1 is the graph of the regression equation with 1 in place for x1. Set all of the sliders to 0, then set b3 = 1. Now move the slider for b1 back and forth. Observe how this affects the y-intercept for each line. Set the slider for b1 = 1. Which of the following sets of equations describes the lines g = 0 and g = 1? A) g = 0: y = 1 + x2g = 1: y = 1 + x1 B) g = 0: y = 0 g = 1: y = 1 + x2 C) g = 0: y = 1 + x1g = 1: y = 1 + x2 D) g = 0: y = 1 + x2g = 1: y = 0
(a) b0 (b) g = 0: y = 0 g = 1: y = 1 + x2
Use the applet "Decomposition of Error in Simple Linear Regression" to answer the following questions. (a) Press the "Find Best Line" button. What does the blue portion of the vertical lines represent if the lines were squared and drawn on the graph? A) sum of squares due to regression (SSR) B) total sum of squares (SST) C) sum of squares due to error (SSE) (b) If sum of squares due to regression (SSR) is found to be 14,200, what is the value of total sum of squares (SST)? A) 15,725 B) 14,200 C) 16,200 D) 14,950
(a) sum of squares due to regression (SSR) (b) 15,725
The company identified in Chapter 3, Analytics in Action, is A) Cincinnati Zoo & Botanical Garden B) Alliance Data Systems C) U.S. Census Bureau D) Procter & Gamble
A) Cincinnati Zoo & Botanical Garden
Consider again the example introduced in Section 7.9 of a credit card company that has a database of information provided by its customers when they apply for credit cards. An analyst has created a multiple regression model for which the dependent variable in the model is credit card charges accrued by a customer in the data set over the past year (y), and the independent variables are the customer's annual household income in thousands of dollars (x1), number of members of the household (x2), and number of years of post-high school education (x3). The figure provides Excel output for a multiple regression model estimated using a data set the company created.
(see 7.5 quiz for full question and answer)
To include education in a regression model where education is defined as: did not graduate high school, high school graduate, some college, undergraduate degree, at least one graduate degree, the number of dummy variables required is
4
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? A) 2.5 B) 3 C) −2.5 D) 2
A) 2.5
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? A) 33.3% B) −33.3% C) −25% D) 25%
A) 33.3%
_____ refers to the scenario in which the relationship between the dependent variable and one independent variable is different at different values of a second independent variable. A) Interaction B) Covariance C) Multicollinearity D) Autocorrelation
A) Interaction
_____ refers to the use of sample data to calculate a range of values that is believed to include the value of the population parameter. A) Interval estimation B) Statistical inference C) Point estimation D) Hypothesis testing
A) Interval estimation
The ratio of the amount of ink used in a table or chart that is necessary to convey information to the total amount of ink used in the table and chart is known as data-ink ratio. Using additional ink that is not necessary to convey information has what effect on the data-ink ratio? A) It reduces the data-ink ratio. B) It increases the data-ink ratio. C) It doesn't change the data-ink ratio. D) The data-ink ratio becomes zero.
A) It reduces the data-ink ratio.
A time series plot of a period of time (in years) versus sales (in thousands of dollars) is shown in the attachment below. Which of the following data patterns best describes the scenario shown? A) Linear trend pattern B) Cyclical pattern C) Nonlinear trend pattern D) Seasonal pattern
A) Linear trend pattern
_____ refers to the degree of correlation among independent variables in a regression model. A) Multicollinearity B) Tolerance C) Rank D) Confidence level
A) Multicollinearity
The company identified in Chapter 13, Analytics in Action, is A) Petrobras B) not a company but an industry. C) Procter & Gamble. D) General Electric.
A) Petrobras
_______________ analytics use techniques that take input data and yield a best course of action. A) Prescriptive B) Simulation C) Strategic D) Operational
A) Prescriptive
_____, or modeling, is the process of translating a verbal statement of a problem into a mathematical statement. A) Problem formulation B) Data preparation C) Data structuring D) Problem-solving approach
A) Problem formulation
The Excel function _____ generates integer values between lower and upper bounds. A) RANDBETWEEN B) LOWER C) UPPER D) RAND
A) RANDBETWEEN
Which of the following states the objective of time series analysis? A) To uncover a pattern in a time series and then extrapolate the pattern into the future B) To predict the values of a time series based on one or more other variables C) To analyze the cause-and-effect relationship of a dependent variable with a time series and one or more other variables D) To use present variable values to study what should have been the ideal past values
A) To uncover a pattern in a time series and then extrapolate the pattern into the future
Arrows pointing from the selected cell to cells that depend on the selected cell are generated by using the _____ button of the Formula Auditing group. A) Trace Dependents B) Trace Precedents C) Error Checking D) Watch Window
A) Trace Dependents
_____ is the data set used to build the candidate models. A) Training set B) Range C) Codomain D) Validation set
A) Training set
_____ is a measure of the total worth of a consequence reflecting a decision makers attitude toward considerations such as profit, loss, and risk. A) Utility B) Decision value C) Regret D) Cost-to-company
A) Utility
Which of the following is a likely constraint on the production quantity x associated with a maximum value, M, and a setup variable y in a fixed-cost problem? A) x ≤ My B) Mx ≤ y C) xy ≥ M D) x ≥ My
A) x ≤ My
Demand for a product and the forecasting departments forecast (naïve model) for a product are shown below in the attached file. Compute the mean absolute error. A) 2.5 B) 2 C) 1 D) 1.5
B) 2
_____ is used to test the hypothesis that the values of the regression parameters 𝛽1, 𝛽2, ... 𝛽q are all zero. A) The least squares method B) An F test C) Extrapolation D) A t test
B) An F test
_____ are visual methods of displaying data. A) PivotTables B) Charts C) Crosstabs D) Tables
B) Charts
_____ refers to the probability of one event, given the known outcome of a (possibly) related event. A) Decisive probability B) Conditional probability C) Priori probability D) Joint probability
B) Conditional probability
_____ analysis is a market research technique that can be used to learn how prospective buyers of a product value the products attributes. A) Part-worth B) Conjoint C) Sensitivity D) Regression
B) Conjoint
Which of the following is a disadvantage of using simulation? A) The simulation models are used to describe systems without requiring the assumptions that are required by mathematical models. B) Each simulation run provides only a sample of how the real system will operate. C) Experimenting directly with a simulation model is often not feasible. D) Simulation models warn against poor decision strategies by projecting disastrous outcomes such as system failures, large financial losses, and so on.
B) Each simulation run provides only a sample of how the real system will operate.
The company identified in Chapter 7, Analytics in Action, is ____________ A) U.S. Census Bureau B) Wallmart.com C) Alliance Data Systems D) Cincinnati Zoo & Botanical Garden
B) Wallmart.com
Which of the following is true of the relationship between the value of the optimal integer solution and the value of the optimal solution to the LP Relaxation? A) For any linear program involving either minimization or maximization, the value of the optimal solution to the LP Relaxation provides a value of the objective function that is always better than for the optimal integer solution. B) For integer linear programs involving minimization, the value of the optimal solution to the LP Relaxation provides a lower bound on the value of the optimal integer solution. C) For integer linear programs involving maximization, the value of the optimal solution to the LP Relaxation provides a lower bound on the value of the optimal integer solution. D) For integer linear programs involving minimization, the value of the optimal solution to the LP Relaxation provides an upper bound on the value of the optimal integer solution.
B) For integer linear programs involving minimization, the value of the optimal solution to the LP Relaxation provides a lower bound on the value of the optimal integer solution.
_____ is the amount by which the predicted value differs from the observed value of the time series variable. A) Mean forecast error B) Forecast error C) Smoothing constant D) Mean absolute error
B) Forecast error
The company identified in Chapter 14, Analytics in Action, is A) General Electric. B) Intercontinental Hotels C) not a company but an industry. D) Petrobras.
B) Intercontinental Hotels
Rob is a financial manager with Sharez, an investment advisory company. He must select specific investmentsfor example, stocks and bondsfrom a variety of investment alternatives. Which of the following statements is most likely to be the objective function in this scenario? A) Minimization of tax dues B) Maximization of expected return C) Maximization of investment risk D) Minimization of the number of stocks held
B) Maximization of expected return
Which of the following is a second way of formulating the Markowitz model? A) Minimize the expected return of the portfolio subject to a constraint on variance. B) Maximize the expected return of the portfolio subject to a constraint on variance. C) Maximize the variance of the portfolio subject to a constraint on the expected return of the portfolio. D) Maximize the variance of the portfolio with no constraint needed for the expected return of the portfolio.
B) Maximize the expected return of the portfolio subject to a constraint on variance.
Which of the following measures of forecast accuracy is susceptible to the problem of positive and negative forecast errors offsetting one another? A) Mean absolute error B) Mean forecast error C) Mean squared error D) Mean absolute percentage error
B) Mean forecast error
A canned food manufacturer has its manufacturing plants in three locations across a state. Their product has to be transported to 3 central distribution centers, which in turn disperse the goods to 72 stores across the state. Which of the following is most likely to be the objective function in this scenario? A) Increasing the number of goods manufactured at the plant B) Minimizing the cost of shipping goods from the plant to the store C) Decreasing the cost of their raw material sourcing D) Minimizing the quantity of goods distributed across the stores
B) Minimizing the cost of shipping goods from the plant to the store
For a given mean and standard deviation, the _____ function in Excel is used to generate a value for the random variable characterized by a normal distribution. A) VLOOKUP B) NORM.INV C) RAND D) FREQUENCY
B) NORM.INV
A canned food manufacturer has its manufacturing plants in three locations across a state. Their product has to be transported to 3 central distribution centers, which in turn disperse the goods to 72 stores across the state. Which of the following visualization tools could help understand this problem better? A) Time-series plot B) Network graph C) Scatter chart D) Contour plot
B) Network graph
Which of the following cannot be modeled by a continuous distribution? A) Weight of a finished manufactured product B) Number of products produced in an hour C) Length of time it takes to manufacture a product D) Height of the finished manufactured product
B) Number of products produced in an hour
Which of the following analytical techniques helps us arrive at the best decision? A) Predictive analytics B) Prescriptive analytics C) Descriptive analytics D) Data mining
B) Prescriptive analytics
A time series plot of a period of time (in months) versus sales (in thousands of dollars) is shown in the attachment below. Which of the following data patterns best describes the scenario shown? A) Logarithmic trend B) Seasonal pattern C) Linear trend pattern D) Exponential trend
B) Seasonal pattern
The VLOOKUP with range set to _____ takes the first argument and searches the first column of the table for the last row that is strictly less than the first argument. A) FALSE B) TRUE C) LESS D) NULL
B) TRUE
The scatter chart in the file below displays the residuals versus the dependent variable, x. Which of the following conclusions can be drawn from this scatter chart? A) The model captures the relationship between the variables accurately. B) The residuals have an increasing variance as the dependent variable increases. C) The residual distribution is consistently scattered about zero. D) The regression model follows the standard normal probability distribution.
B) The residuals have an increasing variance as the dependent variable increases.
A time series plot of a period of time (in weeks) versus sales (in 1,000s of gallons) is shown in the attachment below. Which of the following data patterns best describes the scenario shown? A) Time series with a nonlinear trend pattern B) Time series with a horizontal pattern C) Time series with no pattern D) Time series with a linear trend pattern
B) Time series with a horizontal pattern
The _____ button, located in the Formula Auditing group, creates arrows pointing to the selected cell from cells that are part of the formula in that cell. A) Watch Window B) Trace Precedents C) Trace Dependents D) Error Checking
B) Trace Precedents
The company identified in Chapter 15, Analytics in Action, is A) Petrobras. B) U.S. Centers for Disease Control and Prevention C) Intercontinental Hotels D) General Electric.
B) U.S. Centers for Disease Control and Prevention
The user can monitor how listed cells change with a change in the model without searching through the worksheet or changing from one worksheet to another by using the _____ functionality. A) Goal Seek B) Watch Window C) Trial-and-Error D) Evaluate Formula
B) Watch Window
The worksheet formulation for integer linear programs and linear programming problems is exactly the same except that the _____ for integer linear programs. A) objective function using Set Objective in the Solver Parameters dialog box is set to Value Of option B) constraints must be added in the Solver Parameters dialog box to identify the integer variables and the value for Tolerance in the Integer Options dialog box may need to be adjusted C) decision variables must be added in By Changing Variable Cells in the Solver Parameters dialog box along with selecting the Ignore Integer Constraints in the Integer Options dialog box D) decision variables need not be added in By Changing Variable Cells in the Solver Parameters dialog box
B) constraints must be added in the Solver Parameters dialog box to identify the integer variables and the value for Tolerance in the Integer Options dialog box may need to be adjusted
Which one of the following is used in predictive analytics? A) Data visualization B) Linear regression C) Optimization model D) Data dashboard
B) linear regression
The impact of two inputs on the output of interest is summarized by a _____. A) Goal Seek B) two-way data table C) multiple-way data table D) Watch Window
B) two-way data table
In a binary integer linear program, the integer variables take only the values _____. A) 1 or 1 B) 0 or 8 C) 0 or 1 D) 1 or 8
C) 0 or 1
The company identified in Chapter 8, Analytics in Action, is A) U.S. Census Bureau B) Wallmart.com C) ACCO Brands D) Cincinnati Zoo & Botanical Garden
C) ACCO Brands
The calculations of a cell can be investigated in great detail by using the _____ button. A) Calculation Options B) Error Checking C) Evaluate Formula D) Show Formulas
C) Evaluate Formula
Excels _____ tool allows the user to determine the value of an input cell that will cause the value of a related output cell to equal some specified value. A) Data Validation B) Watch Window C) Goal Seek D) XLMiner
C) Goal Seek
Which of the following is true about generating alternatives in binary optimization? A) If the second-best solution is very close to optimal, it is always preferred over the true optimal solution because of factors outside the model. B) If alternative solutions exist, it would not help management because some factors that make one alternative are not preferred over the factors that make another alternative. C) If the solution is a unique optimal solution, it would be good for management to know how much worse the second-best solution is than the unique optimal solution. D) If any alternative solution exists, it would only be a second-best next to the optimal solution because there is no third-best or an alternative second-best solution to any binary integer programming problem.
C) If the solution is a unique optimal solution, it would be good for management to know how much worse the second-best solution is than the unique optimal solution.
_____ is the situation in which no solution to the linear programming problem satisfies all the constraints. A) Optimality B) Divisibility C) Infeasibility D) Unboundedness
C) Infeasibility
Which of the following is true of verification? A) It is performed prior to the development of the computer procedure for simulation. B) It deals with the accurate modeling of real system operations. C) It is largely a debugging task. D) It requires an agreement among analysts and managers.
C) It is largely a debugging task.
______________ analytics are techniques that use models, constructed from past data, to predict the future or to ascertain the impact of one variable on another A) Descriptive B) Simulation C) Predictive D) Prescriptive
C) Predictive
Which of the following regression models is used to model a nonlinear relationship between the independent and dependent variables by including the independent variable and the square of the independent variable in the model? A) Least squares regression model B) Simple regression model C) Quadratic regression model D) Multiple regression model
C) Quadratic regression model
The _____ function is used to generate a pseudorandom number in Excel. A) NORM.INV() B) ROUND() C) RAND() D) FREQUENCY()
C) RAND()
Which of the following design guidelines, if followed, enables the user to update the model parameters without the risk of mistakenly creating an error in a formula? A) Documenting the spreadsheet model B) Using simple formulas C) Separating the parameters from the spreadsheet model D) Using numbers in the spreadsheet formula
C) Separating the parameters from the spreadsheet model
Which of the following cannot be described by a discrete probability distribution? A) Sales of two medical devices in which Device A generates $35 per unit sold and will likely constitute 30% of the sales and Device B generates $50 per unit sold and will likely constitute 70% of the sales. B) The number of units produced in a given day, where 20% of the time 99 units are produced and 80% of the time 100 units are produced. C) The cost of parts for manufacturing an item, where the parts can take on any value between $80 and $100. D) The labor cost for manufacturing goods, where one-third of the units cost $10 in labor, one-third cost $15 in labor, and one-third cost $50 in labor.
C) The cost of parts for manufacturing an item, where the parts can take on any value between $80 and $100.
_____ is the process of determining that a simulation model provides an accurate representation of a real system. A) Regression B) Verification C) Validation D) Consideration
C) Validation
______ refers to the data set used to compare model forecasts and ultimately pick a model for predicting values of the dependent variable. A) Range B) Codomain C) Validation set D) Training set
C) Validation set
The company identified in Chapter 11, Analytics in Action, is A) Wallmart.com. B) ACCO Brands. C) not a company but an industry. D) Procter & Gamble.
C) not a company but an industry.
Demand for a product and the forecasting departments forecast (naïve model) for a product are shown below in the attached file. Compute the mean absolute error. A) 2.5 B) 1.5 C) 1 D) 2
D) 2
Demand for a product and the forecasting departments forecast (naïve model) for a product are shown below. Compute the mean squared error. A) 5.33 B) 6.67 C) 3.33 D) 4.67
D) 4.67
Which of the following best exemplifies big data? A) Five hundred Facebook users upload one thousand pictures per day. B) A pharmacy keeps track of customer purchases to send its customers coupons. C) A local grocery store collects data from those that scan their loyalty card. D) Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing the Web on a daily basis.
D) Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing the Web on a daily basis.
An Excel _____ quantifies the impact of changing the value of a specific input on an output of interest. A) Chart B) Goal Seek C) Watch Window D) Data Table
D) Data Table
_____ refers to the technology that allows data, collected from sensors in all types of machines, to be sent over the Internet to repositories where it can be stored and analyzed. A) MapReduce B) Hadoop C) Advanced analytics D) Internet of Things (IoT)
D) Internet of Things (IoT)
Using the graph in the file below, which of the following is true of its function? A) It has single local minimum. B) It has no maxima and minima. C) It has single local maximum. D) It has multiple local optima.
D) It has multiple local optima.
Which of the following error messages is displayed in Excel Solver when attempting to solve an unbounded problem? A) Solver could not find a bounded solution. B) Solver could not find a feasible solution. C) Solver cannot improve the current solution. All constraints are satisfied. D) Objective Cell values do not converge.
D) Objective Cell values do not converge.
_____ refer to the probabilities of the states of nature after revising the prior probabilities based on sample information. A) Preliminary probabilities B) Joint probabilities C) Perfect probabilities D) Posterior probabilities
D) Posterior probabilities
Which of the following parameters is required to convert a computer-generated random variable into a uniform random variable? A) Variance of the distribution B) Mean of the distribution C) Moments of the distribution D) Range of the distribution
D) Range of the distribution
The _____ function pairs each element of the first array with its counterpart in the second array, multiplies the elements of the pairs together, and adds the results. A) SUM B) VLOOKUP C) SUMIF D) SUMPRODUCT
D) SUMPRODUCT
_____ are possible outcomes for chance events that affect the consequences associated with a decision alternative. A) Payoffs B) Forecasts C) Decision trees D) States of nature
D) States of nature
Data dashboards are a type of _________ analytics. a) predictive b) prescriptive c) decision d) descriptive
D) descriptive
The reduced cost for a decision variable that appears in a Sensitivity Report indicates the change in the optimal objective function value that results from changing the right-hand side of the nonnegativity constraint from _____. a) 0 to 1 b) 1 to 0 c) 0 to 1 d) 1 to 0
a) 0 to 1
What would be the coefficient of determination if the total sum of squares (SST) is 23.29 and the sum of squares due to regression (SSR) is 10.03? a) 0.43 b) 0.89 c) 0.19 d) 2.32
a) 0.43
What would be the value of the sum of squares due to regression (SSR) if the total sum of squares (SST) is 25.32 and the sum of squares due to error (SSE) is 6.89? a) 18.43 b) 15.32 c) 31.89 d) 19.32
a) 18.43
The weekly demand for an item in a retail store follows a uniform distribution over the range 70 to 83. What would be the weekly demand if its corresponding computer-generated value is 0.5? a) 76.5 b) 83 c) 90.1 d) 50.85
a) 76.5
A data visualization tool that updates in real time and gives multiple outputs is called _____. a) a data dashboard b) the GIS c) a data table d) a metrics table
a) a data dashboard
The Analytics in Action example in Chapter 13 concerned a) a routing problem. b) inventory analysis. c) risk analysis. d) production capacity planning.
a) a routing problem.
A one-way data table summarizes _____. a) a single inputs impact on the output of interest b)values of the input cells that will cause the single output value to equal zero c) values of cells when not all of the model is observable on the screen d) multiple inputs' impact on a single output of interest
a) a single inputs impact on the output of interest
In a nonlinear optimization problem, _____ a) at least one term in the objective function or a constraint is nonlinear. b) the objective function is a nonlinear function of the constraints. c) both the objective function and the constraints must have all nonlinear terms. d) all the constraints are nonlinear only when the objective is to maximize the function of the decision variables.
a) at least one term in the objective function or a constraint is nonlinear.
A _____ refers to a constraint that can be expressed as an equality at the optimal solution a) binding constraint b) first class constraint c) nonnegativity constraint d) slack variable
a) binding constraint
An uncertain future event affecting the consequence associated with a decision is known as a _____. a) chance event b) decision alternative c) payoff d) decision node
a) chance event
Chapter 3 focuses on __________. a) data visualization b) spreadsheet models c) linear regression d) descriptive statistics
a) data visualization
When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses _____ to develop an optimal strategy. a) decision analysis b) utility theory c) data mining d) predictive analytics
a) decision analysis
A time series with a seasonal pattern can be modeled by treating the season as a _____. a) dummy variable b) quantitative variable c) predictor variable d) dependent variable
a) dummy variable
Deleting the grid lines in a table and the horizontal lines in a chart ______. a) increases the data-ink ratio b) decreases the data-ink ratio c) increases the non-data-ink ratio d) does not affect the data-ink ratio
a) increases the data-ink ratio
A(n) _____ is a visual representation that shows which entities affect others in a model. a) influence diagram b) decision tree diagram c) entity chart d) time series plot
a) influence diagram
Chapter 13 focuses on a) integer optimization models. b) spreadsheet models. c) simulation models. d) linear optimization models.
a) integer optimization models.
A global minimum _____. a) is also a local minimum b) need not be a local maximum, but vice versa is true c) need not be local minimum, but vice versa is true d) is also a local maximum
a) is also a local minimum
Data-ink is the ink used in a table or chart that _____ a) is necessary to convey the meaning of the data to the audience b) helps in presenting data when the audience need not know exact values c) increases the non-data-ink ratio d) does not help in conveying the data to the audience
a) is necessary to convey the meaning of the data to the audience
Chapter 7 focuses on a) linear regression b) spreadsheet models c) descriptive statistics d) data visualization
a) linear regression
Regression analysis involving one dependent variable and more than one independent variable is known as ____. a) multiple regression b) linear regression c) None of these are correct d) simple regression
a) multiple regression
The minimax regret approach is _____. a) neither purely optimistic nor purely conservative b) both purely optimistic and purely conservative c) purely conservative d) purely optimistic
a) neither purely optimistic nor purely conservative
The term _____ refers to the expression that defines the quantity to be maximized or minimized in a linear programming model. a) objective function b) problem formulation c) decision variable d) association rule
a) objective function
A(n) _____ refers to the result obtained when a decision alternative is chosen and a chance event occurs. a) outcome b) state of nature c) node d) payoff table
a) outcome
With reference to a spreadsheet model, an uncontrollable model input is known as a(n) _____. a) parameter b) decision variable c) dummy variable d) statistic
a) parameter
A measure of the outcome of a decision such as profit, cost, or time is known as a _____. a) payoff b) forecasting index c) regret d) branch
a) payoff
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. a) perfect b) mutual c) conditional d) prior
a) perfect
A _____ is an interval estimate of an individual y value, given values of the independent variables. a) prediction interval b) regression c) confidence interval d) interval estimation
a) prediction interval
A _____is the shadow price of a binding simple lower or upper bound on the decision variable. a) reduced gradient b) binary variable c) local optimum d) binding constraint
a) reduced gradient
The Analytics in Action example in Chapter 14 concerned a) revenue management. b) production capacity planning. c) a routing problem. d) risk analysis.
a) revenue management.
The Analytics in Action example in Chapter 11 concerned a) risk analysis. b) inventory analysis. c) managing packaging of orders. d) sales forecasting.
a) risk analysis.
The Analytics in Action example in Chapter 8 concerned a) sales forecasting. b) a data dashboard. c) weather forecasting. d) managing packaging of orders.
a) sales forecasting.
New information obtained through research or experimentation that enables an updating or revision of the state-of-nature probabilities is known as _____. a) sample information b) expected utility c) conditional probability d) joint probability
a) sample information
A _____ is a graphical presentation of the relationship between two quantitative variables. a) scatter chart b) histogram c) bar chart d) pie chart
a) scatter chart
For causal modeling, _____ are used to detect linear or nonlinear relationships between the independent and dependent variables. a) scatter charts b) contingency tables c) descriptive statistics on the data d) pie charts
a) scatter charts
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. a) sensitivity analysis b) objective function c) optimization analysis d) decision variables
a) sensitivity analysis
The _____ value for each less-than-or-equal-to constraint indicates the difference between the left-hand and right-hand values for a constraint. a) slack b) unbounded c) surplus d) objective function coefficient
a) slack
Using a large value for order k in the moving averages method is effective in _____. a) smoothing out random fluctuations b) providing a forecast when only the most recent time series are relevant c) eliminating the effect of seasonal variations in the time series d) tracking changes in a time series more quickly
a) smoothing out random fluctuations
A line chart that has no axes but is used to provide information on overall trends for time series data is called a _____. a) sparkline b) bubble chart c) trendline d) time series plot
a) sparkline
The graph of the simple linear regression equation is a(n) _____. a) straight line b) hyperbola c) ellipse d) parabola
a) straight line
The reduced cost for a decision variable that appears in a Sensitivity Report refers to the _____ of the nonnegativity constraint for that variable. a) range of optimality b) shadow price c) range of feasibility d) slack value
b) shadow price
A disadvantage of the simple what-if analyses is that _____. a) there is no indication of the likelihood of various output values b) the optimal solutions are not guaranteed c) there are errors induced as a result of rounding d) it cannot compute alternate optimal solutions
a) there is no indication of the likelihood of various output values
A set of observations on a variable measured at successive points in time or over successive periods of time constitute a _____. a) time series b) time invariant set c) geometric series d) logarithmic series
a) time series
Problems with infeasible solutions arise in practice because _____. a) too many restrictions have been placed on the problem b) of errors in objective function formulation c) there are too few decision variables d) management doesnt specify enough restrictions
a) too many restrictions have been placed on the problem
Chapter 11 focuses on a) linear regression. b) simulation models. c) spreadsheet models. d) forecasting.
b) simulation models.
A _____ uses repeated random sampling to represent uncertainty in a model representing a real system and that computes the values of model outputs. a) deterministic model b) Monte Carlo simulation c) discrete event simulation d) what-if analysis
b) Monte Carlo simulation
The Analytics in Action example in Chapter 3 concerned a) predictive analytics b) a data dashboard c) weather forecasting d) descriptive statistics.
b) a data dashboard
A variable used to model the effect of categorical independent variables in a regression model which generally takes only the value zero or one is called _____. a) the coefficient of determination b) a dummy variable c) interaction d) a residual
b) a dummy variable
A feasible solution is _____ if there are no other feasible points with a better objective function value in the entire feasible region. a) infeasible b) a global optimum c) nonlinear d) unbounded
b) a global optimum
If there are no other feasible solutions with a larger objective function value in the immediate neighborhood, then the feasible solution is known as _____. a) infeasible b) a local maximum c) a nonlinear solution d) a global maximum
b) a local maximum
The exponential smoothing forecast for period t + 1 is a weighted average of the _____. a) forecast value in period t − 1 with weight 𝛼 and the forecast for period t with weight 1 − 𝛼 b) actual value in period t with weight 𝛼 and the forecast for period t with weight 1 − 𝛼 c) actual value in period t + 1 with weight 𝛼 and the forecast for period t with weight 1 − 𝛼 d) forecast value in period t with weight 𝛼 and the actual value for period t with weight 1 − 𝛼
b) actual value in period t with weight 𝛼 and the forecast for period t with weight 1 − 𝛼
In order to visualize three variables in a two-dimensional graph, we use a _____. a) 2-D chart b) bubble chart c) column chart d) 3-D chart
b) bubble chart
A _____ problem is a binary integer programming problem that involves choosing which possible projects or activities provide the best investment return. a) market share optimization b) capital budgeting c) location d) fixed-cost
b) capital budgeting
Chapter 10 focuses on a) forecasting. b) spreadsheet models. c) data visualization. d) linear regression
b) spreadsheet models.
The _____ is a measure of the goodness of fit of the estimated regression equation. It can be interpreted as the proportion of the variability in the dependent variable y that is explained by the estimated regression equation. a) residual b) coefficient of determination c) interaction variable d) dummy variable
b) coefficient of determination
In the Bass forecasting model, the _____ measures the likelihood of adoption, assuming no influence from someone who has already purchased (adopted) the product. a) coefficient of independence b) coefficient of innovation c) coefficient of imitation d) coefficient of correlation
b) coefficient of innovation
Choosing a decision alternative that maximizes the minimum profit is a feature of the _____ approach. a) expected value b) conservative c) optimistic d) maximin regret
b) conservative
In order to choose the best solution for implementation, practitioners usually recommend re-solving the integer linear program several times with variations in the _____. a) decision variables b) constraint coefficients c) integer constraints d) objective function
b) constraint coefficients
Assessing the regression model on data other than the sample data that was used to generate the model is known as _____. a) postulation b) cross-validation c) approximation d) graphical validation
b) cross-validation
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. a) model parameter b) error term c) constant term d) residual
b) error term
A(n) _____ solution satisfies all the constraint expressions simultaneously. a) infeasible b) feasible c) extreme d) objective
b) feasible
A two-dimensional graph representing the data using different shades of color to indicate magnitude is called a _____. a) column chart b) heat map c) bubble chart d) pie chart
b) heat map
The moving averages and exponential smoothing methods are appropriate for a time series exhibiting _____. a) a cyclical pattern b) horizontal pattern c) seasonal effects d) trends
b) horizontal pattern
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. a) regression variable b) independent variable c) dependent variable d) residual variable
b) independent variable
The value of an independent variable from the prior period is referred to as a _____. a) categorical variable b) lagged variable c) dummy variable d) predictor variable
b) lagged variable
One of the ways to formulate the Markowitz model is to _____. a) maximize the variance of the portfolio subject to a constraint on the expected return of the portfolio b) minimize the variance of the portfolio subject to a constraint on the expected return of the portfolio c) minimize the expected return of the portfolio subject to a constraint on variance d) minimize the expected return of the portfolio with no constraint on variance
b) 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 _____. a) branch probabilities and utility b) monetary value and utility c) regret and utility d) decision alternative and utility
b) monetary value and utility
Autoregressive models _____. a) are used to smooth out random fluctuations in time series b) occur whenever all the independent variables are previous values of the time series c) use the average of the most recent data values in the time series as the forecast for the next period d) relate a time series to other variables that are believed to explain or cause its behavior
b) occur whenever all the independent variables are previous values of the time series
Fitting a model too closely to sample data, resulting in a model that does not accurately reflect the population is termed as _____. a) hypothesizing b) overfitting c) postulating d) approximation
b) overfitting
Advanced analytics generally refers to _____. a) decision analysis b) predictive and prescriptive analytics c) descriptive and prescriptive analytics d) simulation
b) predictive and prescriptive analytics
In the financial sector, _____ are used to construct financial instruments such as derivatives. a) descriptive and prescriptive models b) predictive models c) prescriptive models d) descriptive models
b) predictive models
In the Bass forecasting model, parameter m _____. a) measures the likelihood of adoption due to a potential adopter being influenced by someone who has already adopted the product b) refers to the number of people estimated to eventually adopt the new product c) refers to the number of people who have already adopted the new product d) measures the likelihood of adoption, assuming no influence from someone who has already adopted the product
b) refers to the number of people estimated to eventually adopt the new product
Constraints are _____. a) quantities to be minimized in a linear programming model b) restrictions that limit the settings of the decision variables c) input variables that can be controlled during optimization d) quantities to be maximized in a linear programming model
b) restrictions that limit the settings of the decision variables
Exponential utility functions assume that the decision maker is _____. a) a risk taker b) risk averse c) risk neutral d) a risk monitor
b) risk averse
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 _____. a) uncertainty analysis b) sensitivity analysis c) probability analysis d) cost analysis
b) sensitivity analysis
The Lagrangian multiplier is the _____ for a constraint in a nonlinear problem. a) reducing gradient b) shadow price c) payoff value d) reduced cost
b) shadow price
The least squares regression line minimizes the sum of the _____ a) absolute deviations between actual and predicted y values b) squared differences between actual and predicted y values c) differences between actual and predicted y values d) absolute deviations between actual and predicted x values
b) squared differences between actual and predicted y values
Trend refers to _____. a) the short-run shift or movement in the time series observable for some specific period of time. b) the long-run shift or movement in the time series observable over several periods of time. c) the recurring patterns observed over successive periods of time. d) the outcome of a random experiment.
b) the long-run shift or movement in the time series observable over several periods of time.
Tables should be used instead of charts when _____. a) there are more than two columns of data b) the values being displayed have different units or very different magnitudes c) the reader need not differentiate the columns and rows d) the reader needs relative comparisons of data
b) the values being displayed have different units or very different magnitudes
The situation in which the value of the solution may be made infinitely large in a maximization linear programming problem or infinitely small in a minimization problem without violating any of the constraints is known as _____. a) infiniteness b) unbounded c) infeasibility d) semi-optimality
b) unbounded
When the mean value of the dependent variable is independent of variation in the independent variable, the slope of the regression line is _____. a) negative b) zero c) positive d) infinite
b) zero
The linear program that results from dropping the integer requirements for the variables in an integer linear program is known as _____. a) convex hull b) a binary integer linear program c) LP relaxation d) a mixed-integer linear program
c) LP relaxation
To summarize and analyze data with both a crosstabulation and charting, Excel typically pairs _____. a) bubble charts with trendlines b) stacked column charts with PivotTables c) PivotCharts with PivotTables d) heat maps with trendlines
c) PivotCharts with PivotTables
Spreadsheet models are referred to as what-if models because they _____. a) are mathematical and logic-based models b) come preloaded on computers c) allow easy instantaneous recalculation for a change in model inputs d) have specialized functions to perform detailed analysis
c) allow easy instantaneous recalculation for a change in model inputs
Binary variables are identified with the _____ designation in the Solver Parameters dialog box. a) dif b) 0 and 1 c) bin d) int
c) bin
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. a) objective function coefficients b) location variables c) binary variables d) noninteger constraints
c) binary variables
In the Bass forecasting model, the _____ measures the likelihood of adoption due to a potential adopter being influenced by someone who has already adopted the product. a) coefficient of innovation b) coefficient of the objective function c) coefficient of imitation d) coefficient of regression
c) coefficient of imitation
_____ constraint is a constraint requiring that two binary variables be equal and that thus are both either in or out of the solution together. a) conditional constraint b) k out of n alternatives constraint c) corequisite constraint d) mutually exclusive constraint
c) corequisite constraint
Chapter 15 focuses on a) nonlinear optimization models b) linear optimization models. c) decision analysis. d) integer optimization models.
c) decision analysis
A(n) _____ is a set of points defining the minimum possible risk for a set of return values. a) reduced gradient b) contour c) efficient frontier d) unity constraint
c) efficient frontier
Bayes theorem _____. a) cannot be used to calculate posterior probabilities b) is useful for determining optimal decisions without requiring knowledge of probabilities of the states of nature c) enables the use of sample information to revise prior probabilities d) can be used only for cases where conditional probabilities are unknown
c) enables the use of sample information to revise prior probabilities
The Analytics in Action example in Chapter 15 concerned a) revenue management. b) a routing problem. c) eradication strategies. d) production capacity planning.
c) eradication strategies.
The weighted average of the payoffs for a chance node is known as the _____ a) median value b) risk measure c) expected value d) variance of the node
c) expected value
The points where constraints intersect on the boundary of the feasible region are termed as the _____. a) objective function contour b) feasible edges c) extreme points d) feasible points
c) extreme points
The Analytics in Action example in Chapter 10 concerned a) managing packaging of orders. b) a data dashboard. c) inventory analysis. d) sales forecasting.
c) inventory analysis.
In a business, the values indicating the businesss current operating characteristics, such as its financial position, the inventory on hand, and customer service metrics, are typically known as ________________________ a) company performance indicators b) performance indicators c) key performance indicators d) business performance indicators
c) key performance indicators
The prespecified value of the independent variable at which its relationship with the dependent variable changes in a piecewise linear regression model is referred to as the ______. a) milestone b) watchpoint c) knot d) tipping point
c) knot
The attached image is a _____. a) gridline b) sparkline c) line chart d) trendline
c) line chart
The _____ option in Excel Solver is helpful when the solution to a problem appears to depend on the starting values for the decision variables. a) restart b) convergence c) multistart d) derivatives
c) multistart
The sum of two or more binary variables must be less than or equal to one in a _____ constraint. a) conditional b) corequisite c) mutually exclusive d) multiple-choice
c) mutually exclusive
The _____ of a solution is a mathematical concept that refers to the set of points within a relatively close proximity of the solution. a) objective function contour b) Lagrangian multiplier c) neighborhood d) regression equation
c) neighborhood
The amount of loss (lower profit or higher cost) from not making the best decision for each state of nature is known as _____. a) risk profile b) utility c) opportunity loss d) best payoff
c) opportunity loss
Making visual comparisons between categorical variables may be difficult in a _____. a) scatter chart b) line chart c) pie chart d) column chart
c) pie chart
The outcome of a simulation experiment is a(n) _____. a) what-if scenario b) objective function c) probability distribution for one or more output measures d) single number
c) probability distribution for one or more output measures
The Analytics in Action example in Chapter 12 concerned a) risk analysis. b) sales forecasting. c) production capacity planning. d) inventory analysis.
c) production capacity planning.
A simulation model extends spreadsheet modeling by _____. a) using historical data to make predictions about future values and expected trends b) extending the range of parameters for which solutions are computed c) replacing the use of single values for parameters with a range of possible values d) using real-time values for parameters from the application to formulate solutions
c) replacing the use of single values for parameters with a range of possible values
What is the difference between the observed value of the dependent variable and the value predicted using the estimated regression equation? a) standard error b) variance c) residual d) prediction interval
c) residual
The process of evaluating a decision in the face of uncertainty by quantifying the likelihood and magnitude of an undesirable outcome is known as _____. a) data mining b) regression analysis c) risk analysis d) decision tree analysis
c) risk analysis
A _____ is a decision maker who would choose a guaranteed payoff over a lottery with a better expected payoff. a) risk-creator b) risk taker c) risk avoider d) risk-neutral
c) risk avoider
The change in the optimal objective function value per unit increase in the right-hand side of a constraint is given by the _____. a) objective function coefficient b) restrictive cost c) shadow price d) allowable increase
c) shadow price
In a simple linear regression model, y = 𝛽0 + 𝛽1x + 𝜀 the parameter 𝛽1 represents the _____. a) intercept b) error term c) slope of the true regression line d) mean value of x
c) slope of the true regression line
The process of making estimates and drawing conclusions about one or more characteristics of a population through analysis of sample data drawn from the population is known as _____ a) inductive inference b) deductive inference c) statistical inference d) Bayesian inference
c) statistical inference
The imposition of an integer restriction is necessary for models where _____. a) nonnegativity constraints are needed b) variables can take negative values c) the decision variables cannot take fractional values d) possible values of variables are restricted to particular intervals
c) the decision variables cannot take fractional values
If the portfolio variance were equal to zero, the amount of risk would be _____. a) unity b) a positive number greater than 1 c) zero d) negative always
c) zero
In cases where Excel Solver experiences excessive run times when solving integer linear problems, the Integer Optimality is set to _____. a) 0% b) a value equal to the number of integer constraints c) infinity d) 5%
d) 5%
A scenario in which the optimal objective function contour line coincides with one of the binding constraint lines on the boundary of the feasible region leads to _____ solutions. a) infeasible b) unique optimal c) binding d) alternative optimal
d) alternative optimal
A causal model provides evidence of _____between an independent variable and the variable to be forecast. a) a causal relationship b) no relationship c) a seasonal relationship d) an association
d) an association
The charts that are helpful in making comparisons between categorical variables are _____. a) column charts and line charts b) bar charts and scatter charts c) scatter charts and line charts d) bar charts and column charts
d) bar charts and column charts
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. a) optimistic outcomes b) mutually exclusive c) certain events d) collectively exhaustive
d) collectively exhaustive
The modeling process begins with the framing of a _____ model that shows the relationships between the various parts of the problem being modeled. a) correlation b) circular c) mathematical d) conceptual
d) conceptual
A constraint involving binary variables that does not allow certain variables to equal one unless certain other variables are equal to one is known as a _____. a) mutually exclusive constraint b) corequisite constraint c) k out of n alternatives constraint d) conditional constraint
d) conditional constraint
Rob is a financial manager with Sharez, an investment advisory company. He must select specific investmentsfor example, stocks and bondsfrom a variety of investment alternatives. Restrictions on the type of permissible investments would be a _____ in this case. a) feasible solution b) surplus variable c) slack variable d) constraint
d) constraint
A(n) _____ refers to a model input that can be controlled in a spreadsheet model. a) outlier b) dummy variable c) parameter d) decision variable
d) 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. a) independent variable b) residual variable c) regression variable d) dependent variable
d) dependent variable
Chapter 8 focuses on a) linear regression. b) data visualization. c) spreadsheet models. d) forecasting.
d) forecasting.
Consider the attached clustered bar chart of the dashboard developed to monitor the performance of a call center. This chart allows the IT manager to _____. a) identify how often a problem is related to hardware b) identify the percent of customers who do not have one of the listed problems c) identify which city contains the most customers d) identify the frequency of a particular type of problem by location
d) identify the frequency of a particular type of problem by location
A mathematical function in which each variable appears in a separate term and is raised to the first power is known as a _____. a) nonlinear function b) what-if function c) power function d) linear function
d) linear function
The Analytics in Action example in Chapter 7 concerned _____________ a) descriptive statistics b) weather forecasting c) a data dashboard d) managing packaging of orders
d) managing packaging of orders
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 _____. a) independent outcomes b) collectively exhaustive c) conservative events d) mutually exclusive
d) mutually exclusive
Chapter 14 focuses on a) linear optimization models. b) simulation models. c) integer optimization models. d) nonlinear optimization models.
d) nonlinear optimization models
The _____ approach evaluates each decision alternative in terms of the best payoff that can occur. a) conservative b) maximin regret c) expected value d) optimistic
d) optimistic
A description of the range and relative likelihood of possible values of an uncertain variable is known as a _____. a) risk analysis b) simulation optimization c) base-case scenario d) probability distribution
d) probability distribution
In linear programming models of real problems, the occurrence of an unbounded solution means that the _____. a) mathematical models sufficiently represent the real-world problems b) constraints have been excessively used in modeling c) resultant values of the decision variables have no bounds d) problem formulation is improper
d) problem formulation is improper
The study of how changes in the input parameters of a linear programming problem affect the optimal solution is known as _____. a) regression analysis b) model analysis c) optimality analysis d) sensitivity analysis
d) 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 the a) moving average b) mean forecast error c) regression coefficient smoothing constant d) smoothing constant
d) smoothing constant
A variable subtracted from the left-hand side of a greater-than-or-equal to constraint to convert the constraint into an equality is known as a(n) _____. a) binding constraint b) unbounded variable c) slack variable d) surplus variable
d) surplus variable
The condition that VLOOKUP assumes is that _____. a) there are no nonzero values in the range. b) all the arguments are of the same dimension. c) the columns with empty cells are to be neglected. d) the first column of the table is sorted in ascending order.
d) the first column of the table is sorted in ascending order.
The arguments supplied to the IF function, in order, are the condition for execution, _____. a) the array1 of data cells to test, and the array2 of data cells to output b) the result if condition is false, and the result if condition is true c) and the range of cells to test d) the result if condition is true, and the result if condition is false
d) the result if condition is true, and the result if condition is false
A disadvantage of the simple what-if analyses is that _____. a) it cannot compute alternate optimal solutions b) the optimal solutions are not guaranteed c) there are errors induced as a result of rounding d) there is no indication of the likelihood of various output values
d) there is no indication of the likelihood of various output values
A _____ is a line that provides an approximation of the relationship between the variables. a) sparkline b) gridline c) line chart d) trendline
d) trendline
A positive forecast error indicates that the forecasting method _____ the dependent variable. a) overestimated b) closely approximated c) accurately estimated d) underestimated
d) underestimated
The moving averages method refers to a forecasting method that _____. a) is used when considerable trend, cyclical, or seasonal effects are present b) relates a time series to other variables that are believed to explain or cause its behavior c) uses regression relationship based on past time series values to predict the future time series values d) uses the average of the most recent data values in the time series as the forecast for the next period
d) uses the average of the most recent data values in the time series as the forecast for the next period
The measure of risk most often associated with the Markowitz portfolio model is the _____ a) annual interest on the portfolio b) expected return of the portfolio c) number of investments listed in the portfolio d) variance of the portfolios return
d) variance of the portfolios return
The process of determining that a computer program implements a simulation model as it is intended is known as _____. a) optimization b) validation c) correlation d) verification
d) verification
The slack value for binding constraints is _____. a) always a positive integer b) equal to the sum of the optimal points in the solution c) a negative integer d) zero
d) zero