GBA 327 Test 3 Solved

GBA 327 Test 3 Question 1. 1. A trader who wants to predict short-term movements in stock prices is likely to use ________ analytics. (Points : 6) predictive descriptive normative ...

GBA 327 Test 3 Question 1. 1. A trader who wants to predict short-term movements in stock prices is likely to use ________ 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