GBA 327 Test 3
Question 1. 1.
A trader who wants to predict short-term movements in stock prices is likely to use ________
... [Show More] analytics.
(Points : 6)
predictive
descriptive
normative
prescriptive
Question 2. 2.
Following are the components of a data set containing purchase details of a shoe manufacturing company. Identify the ratio data.
(Points : 6)
Item Number
Rank of suppliers
Item cost
Arrival Data
Question 3. 3. Prescriptive decision models help: (Points : 6)
make predictions of how demand is influenced by price.
make trade-offs between greater rewards and risks of potential losses.
decision makers identify the best solution to decision problems.
describe relationships and influence of various elements in the model.
Question 4. 4.
Which of the following is the mathematical model for deriving the break-even volume?
(Points : 6)
Q = (C - VC) + F
Q = F / (C -V)
Q = (V + C) / F
Q = F / (VC - C)
Question 5. 5.
Which of the following is a disadvantage of ordinal data?
(Points : 6)
They bear no relationship to one another.
They have no fixed units of measurement.
They have no natural zero.
They are not comparable with each other.
Question 6. 6.
To copy a formula from a single cell or range of cells down a column or across a row, first ________, click and hold the mouse on the small square in the lower right-hand corner of the cell, and drag the formula to the "target" cells which you wish to copy.
(Points : 6)
press Ctrl-C
select the cell or range
press Ctrl-Enter
select the whole spreadsheet
Question 7. 7.
A positive NPV means that the investment will provide added value because the projected return exceeds the ________.
(Points : 6)
modified internal rate of return
discount rate
accounting rate of return
adjusted present value
Question 8. 8.
For which of the following MATCH functions must the values in the lookup_array be ordered in a descending order?
(Points : 6)
When match_type = -1
When match_type>1
When match_type = 0
When match_type = 1
Question 9. 9.
The spreadsheet below shows the net income model for a company that sells shoes.
A
B
1
Net Income Model
2
3
Data
4
5
Sales
$10,000,000
6
Cost of Goods Sold
$ 6,400,000
7
Administrative Expenses
$ 500,000
8
Selling Expenses
$ 900,000
9
Depreciation Expenses
$ 750,000
10
Interest Expenses
$ 70,000
11
Taxes
$ 620,000
12
13
Model
14
15
Gross Profit
$ 3,600,000
16
Operating Expenses
$ 2,150,000
17
Net Operating Income
$ 1,450,000
18
Earnings Before Taxes
$ 1,380,000
19
20
Net Income
Which of the following would be used to calculate the gross profit?
(Points : 6)
=SUM(B7:B11)-B6
=B5-B6
=B5-(B6-B11)
=B5-B6+(B11-B10)
Question 10. 10. The ________ reflects the opportunity costs of spending funds now versus achieving a return through another investment, as well as the risks associated with not receiving returns until a later time. (Points : 6)
modified internal rate of return
payback period
accounting rate of return
discount rate
Question 11. 11.
In the equation to calculate the economic value of a customer, V = R × F × M/D, how is the value for F estimated?
(Points : 6)
It is estimated to be the total number of purchases the customer has made.
It is estimated to be the number of visits of the customer without actually spending on an item.
It is estimated to be the purchase frequency per year.
It is estimated to be the number of customers defecting per year.
Question 12. 12.
Sujito Electronix makes headphones for $22 and sells them for $32. Sujito has sold at least 50 headphones on average per week in the past, though the actual demand is unknown. Sujito has also often run short of supply in the past. After three months of release, the headphones are sold at 40 percent discount. The spreadsheet below shows Sujito's sales and demand for the headphones. We take demand at 51, and quantity produced at 55.
Newsvendor model for
Sujito's headphones
Data
Selling Price
$32
Cost
$22
Discount Price
$19.2
Model
Demand
51
Produced Quantity
55
Quantity Sold
Surplus Quantity
Which of the following is the value for quantity sold?
(Points : 6)
51
50
4
55
Question 13. 13.
Which of the following mathematical functions, used in predictive analytical models, is represented by the formula y = ax3 + bx2dx + e?
(Points : 6)
exponential functions
power functions
logarithmic functions
polynomial functions
Question 14. 14.
In Excel's Trendline tool, the value of the________ gives the measure of fit of the line to the data.
(Points : 6)
linear function
R-squared
moving average
set intercept
Question 15. 15.
________ is the term used by Risk Solver Platform for systematic methods of "what-if" study.
(Points : 6)
Scenario
Validity
Parametric sensitivity analysis
Goal Seek
Question 16. 16.
Which of the following best defines Monte Carlo simulation?
(Points : 6)
It is a tool for building statistical models that characterize relationships among a dependent variable and one or more independent variables.
It is a collection of techniques that seek to group or segment a collection of objects into subsets.
It is the process of selecting values of decision variables that minimize or maximize some quantity of interest.
It is the process of generating random values for uncertain inputs in a model and computing the output variables of interest.
Question 17. 17. How does the Risk Solver Platform define an uncertain function cell? (Points : 6)
It is a cell that contains a triangular distribution function.
It is a cell in which a distribution of output values is created from the model.
It is a cell in which an uncertain variable is used to define a distribution.
It is a cell that can only be defined by discrete distributions.
Question 18. 18. Latin Hypercube sampling differs from Monte Carlo sampling in that the Latin Hypercube sampling ________. (Points : 6)
selects random variates independently over the entire range of possible values of the distribution
uses an uncertain variable whose probability distribution is divided into intervals of equal probability
is used for evaluating the model performance under various what-if scenarios
achieves less accurate forecast statistics for a fixed number of trials
Question 19. 19.
The Risk Solver Platform ________ feature allows you to determine the influence that each uncertain model input has individually on an output variable based on its correlation with the output variable.
(Points : 6)
trend chart
sensitivity chart
overlay chart
box-whisker chart
Question 20. 20.
Use the information below to answer the following question(s).
Below is a spreadsheet for a hotel overbooking model.
A
B
C
D
E
1
Hotel Overbooking Model
Demand
Probability
2
290
0.03
3
Data
295
0.05
4
300
0.08
5
Rooms available
350
305
0.12
6
Price
$ 120
310
0.15
7
Overbooking cost
$ 100
315
0.20
8
320
0.15
9
Model
325
0.10
10
330
0.05
11
Reservation limit
350
335
0.02
12
Customer demand
320
340
0.14
13
Reservations made
345
0.05
14
Cancellations
15
15
Customer arrivals
16
17
Overbooked customers
18
Net revenue
Assume that each reservation has a constant probability p = 0.04 of being cancelled. Answer the question(s) using the Risk Solver Platform.
With respect to B12, what is the range for values given in the Parameters section in the Discrete dialog? (Points : 6)
$E$2:$E$13
$D$2:$D$8
$D$2:$D$13
$E$2:$E$8
Question 21. 21.
The data mining approach called ________ involves the developing of analytic models to describe the relationship between metrics that drive business performance like profitability, customer satisfaction, or employee satisfaction.
(Points : 6)
association
reduction
cause-and-effect modeling
classification
Question 22. 22.
Divisive clustering method is different from agglomerative clustering methods in that divisive clustering methods ________.
(Points : 6)
can only have a pair of subjects in each cluster
separate objects into a particular cluster in one step
separate n objects successively into finer groupings
can only have a single subject in each cluster
Question 23. 23.
Which of the following data sets provides the most realistic estimate of the performance of a model on completely unseen data?
(Points : 6)
validation data set
test data set
training data set
linear regression data set
Question 24. 24.
The ________ algorithm is a classification scheme that attempts to find records in a database that are similar to one we wish to classify.
(Points : 6)
linear regression
logistic regression
k-Nearest Neighbors
discriminant analysis
Question 25. 25. Which of the following types of data-mining methods provide probabilistic if-then statements? (Points : 6)
association rule
logistic regression
reduction
cause-and-effect modeling [Show Less]