Questions

Linear Optimization

1) Which of the following best defines decision variables in an optimization model?

A) They are limitations, requirements, or other restrictions that are imposed on any solution.

B) They are the quantities that the model seeks to maximize or minimize.

C) They are quantities for which no feasible solutions exist.

D) They are unknown values that the model seeks to determine.

2) Which of the following best defines objective functions?

A) They are limitations, requirements, or other restrictions that are imposed on any solution in an optimization model.

B) They are quantities that an optimization model seeks to maximize or minimize.

C) They are quantities for which no feasible solutions exist in an optimization model.

D) They are unknown values that an optimization model seeks to determine.

3) Which of the following best defines constraints in an optimization problem?

A) They are limitations, requirements, or other restrictions that are imposed on any solution.

B) They are quantities that an optimization model seeks to maximize or minimize.

C) They are quantities for which no feasible solutions exist.

D) They are unknown values that the model seeks to determine.

4) Which of the following solving methods is selected in the Solver dialog for linear and linear integer optimization problems?

A) GRG Nonlinear

B) Simplex LP

C) SOCP Barrier Engine

D) Evolutionary

Use the following information to answer the question(s) below.

Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below.

A B C D E F

1 Cerebro

Manufacturing Model

2

3 Product Plugs Rails Rivets Clips Machine

Capacity

(mins./year)

4 Gross margin/unit $ 0.40 $ 1.20 $ 0.80 $ 1.10

5 Minutes/unit 1 2 3 1.5 250,000

6 Gross margin/minute

7 Maximum production

8 Profit

5) What is the gross margin per minute of plugs manufactured?

A) $ 0.60 B) $ 0.73 C) $ 0.40

D) $ 0.27

6) What is the gross margin per minute of rivets manufactured?

A) $ 0.60 B) $ 0.73 C) $ 0.40

D) $ 0.27

7) What is the maximum possible production of rails based on the machine capacity?

A) 250,000.00

B) 83,333.33

C) 166,666.67

D) 125,000.00

8) What is the maximum production of clips based on the machine capacity?

A) 250,000.00

B) 83,333.33

C) 166,666.67

D) 125,000.00

9) What is the total profit generated from the manufacture of only plugs?

A) $ 66,666.67

B) $ 100,000.00 C) $ 183,333.33

D) $ 150,000.00

10) What is the total profit generated from the manufacture of rivets?

A) $ 66,666.67

B) $ 100,000.00 C) $ 183,333.33

D) $ 150,000.00

11) Which of the following options is used if Solver gives an error message that linearity is not satisfied?

A) Ignore Integer Constraints

B) Show Iteration Results

C) Use Automatic Scaling

D) Use Multistart

12) When a model has a unique optimal solution, it means that ________.

A) the objective is maximized or minimized by more than one combination of decision

variables

B) there is no solution that simultaneously satisfies all the constraints

C) the Allowable Increase or Allowable Decrease values for changing cells are zero

D) there is exactly one solution that will result in the maximum or minimum objective

13) If a model has alternative optimal solutions, ________.

A) the objective is maximized or minimized by more than one combination of decision

variables

B) there is no solution that simultaneously satisfies all the constraints

C) the objective can be increased or decreased to infinity or negative infinity

D) there is exactly one solution that will result in the maximum or minimum objective

14) Alternate optimal solutions exist when the ________.

A) reduced cost is equal to the shadow price

B) ratio of the objective coefficient to the constraint coefficient is one

C) Allowable Increase values for changing cells are zero

D) final value of the changing cells is greater than that of the constraints

15) An unbounded problem is one for which ________.

A) the objective is maximized or minimized by more than one combination of decision variables

B) there is no solution that simultaneously satisfies all the constraints

C) the objective can be increased or decreased to infinity or negative infinity while the solution remains feasible

D) there is exactly one solution that will result in the maximum or minimum objective

16) An infeasible problem is one for which ________.

A) the objective is maximized or minimized by more than one combination of decision variables

B) there is no solution that simultaneously satisfies all the constraints

C) the objective can be increased or decreased to infinity or negative infinity

D) there is exactly one solution that will result in the maximum or minimum objective

17) The ________ indicates how much the value of the objective function will change as the right-hand side of a constraint is increased by 1.

A) objective coefficient

B) shadow price

C) binding constraint

D) reduced cost

18) A constraint function is a function of the decision variables in the problem. True or False?

19) Any solution that satisfies all constraints of a problem is called a feasible solution. True or False?

20) A binding constraint is one for which the Cell Value is greater than the right-hand side of the value of the constraint. True or False?

21) Which of the following best defines Monte Carlo simulation?

A) It is a tool for building statistical models that characterize relationships among a dependent variable and one or more independent variables.

B) It is a collection of techniques that seeks to group or segment a collection of objects into subsets.

C) It is the process of selecting values of decision variables that minimizes or maximizes some quantity of interest.

D) It is the process of generating random values for uncertain inputs in a model and computing the output variables of interest.

22) As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the more precise is the result. True or False?

23) Which of the following is included in the data mining approach of data exploration and reduction?

A) analyzing data to predict how to classify a new data element

B) identifying groups in which the elements of the groups are in some way similar

C) creating rules for target marketing based on association of variables

D) developing analytic models to describe the relationship between metrics

24) Spam filtering for e-mails can be seen as an example of which of the following types of approaches of data mining?

A) reduction

B) association

C) cause-and-effect modeling

D) classification

25) U-botit.com is an electronic commerce company that sells music online. It keeps a tab of what genre of music their registered customers buy. If u-botit.com were to use the data mining approach of association, which of the following actions would it take?

A) send recommendations to customers based on their buying habits

B) conduct surveys to customers to gauge customer satisfaction

C) classify the customers based on the genre of music they listen to

D) provide discounts to certain genre buyers where sales are less

26) 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.

A) association

B) reduction

C) cause-and-effect modeling

D) classification

27) Sendstars is a package delivering company that recently made a study on its customer retention and service renewal metrics. They found that most customers defected from using Sendstars' services due to customer dissatisfaction stemming from delivery personnel being rude or ill-mannered. To curb this issue, Sendstars gave special training to its employees in customer service. Which of the following data mining approaches did Sendstars employ when they decided to train their employees in customer care based on the study?

A) association

B) cause-and-effect modeling

C) classification

D) reduction

28) ________ is a collection of techniques that seek to group or segment a collection of objects or observations into subsets, such that those within each subset are more closely related to one another than objects assigned to different subsets.

A) Association rule mining

B) Discriminant analysis

C) Cluster analysis

D) Logistic regression

29) Which of the following is true of cluster analysis?

A) It is a cause-and-modeling type of analytic model.

B) It does not provide a definitive answer from analyzing the data.

C) It is primarily a prescriptive analytical method.

D) It uses clustered data that are not affected by the specific method used.

30) Which of the following is true of hierarchical clustering?

A) All clusters must have the same number of data.

B) No single cluster can have all objects

C) The data are not partitioned into a particular cluster in a single step.

D) All clusters must have more than one object in it.

31) Divisive clustering method is different from agglomerative clustering methods in that divisive clustering methods ________.

A) can only have a pair of subjects in each cluster

B) separate objects into a particular cluster in one step

C) separate n objects successively into finer groupings

D) can only have a single subject in each cluster

32) If the Euclidean distance were to be represented in a right triangle, which of the following would be considered the distance between two objects of a cluster?

A) the hypotenuse

B) the small leg

C) the long leg

D) the average of the sum of both the legs

33) Which of the following formulas calculates the Euclidean distance between X and Y?

A)

B)

C)

D)

34) Which of the following is true of logistic regression as a classifying method? A) Its dependent variable is always categorical.

B) Its independent variable is always continuous or numerical.

C) It predicts the probability of output variables based on dependent variables.

D) It cannot be used when the dependent variable is binary.

35) When using logistic regression, where p being the probability that the dependent variable Y = 1, X1, X2 ...,Xk are the independent variables, andß0, ß1, ß2 ..., ßk are unknown regression coefficients, ________ is called the odds of belonging to category 1(Y = 1).

A) p(ß0 + ß1X1 + ß2X2 + ...+ ßkXk)

B)

C)

D)

36) Which of the following is true of association rule mining?

A) It develops analytic models to describe the relationship between metrics that drive business performance.

B) It identifies attributes that occur frequently together in a given data set.

C) It seeks to classify a categorical outcome into one of two or more categories.

D) It is a data reduction technique that reduces large information into smaller heterogeneous groups.

37) Which of the following types of data-mining methods provides probabilistic ifthen statements?

A) association rule

B) logistic regression

C) reduction

D) cause-and effect modeling

38) Which of the following typically describes the support for the association rule?

A) the number of transactions that include all items that are in the antecedent parts of the rule B) the number of transactions that include all items in the antecedent and consequent parts of the rule

C) the number of transactions that include half from the antecedent and half from the consequent

D) the number of transactions that include all items that are in the consequent parts of the rule

39) ________ is the ratio of the number of transactions that include all items in the consequent as well as the antecedent to the number of transactions that include all items in the antecedent.

A) Lift

B) Logit

C) Support for the association rule

D) Confidence of the association rule

40) The strength of the association rule, known as lift, is calculated as the ratio of the ________.

A) sum of the antecedents and the consequents to the antecedents

B) antecedents to the consequents

C) support to the confidence level

D) confidence to expected confidence

Topic: Spreadsheet Modeling and Spreadsheet Engineering Using the spreadsheet below to answer the following question(s).

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

41) Which of the following formulas would be used to calculate the net income value using only the data value? A) =SUM(B5:B10)-B11

B) =SUM(B5:B11)

C) =B5-SUM(B6:B11)

D) =B5-SUM(B6:B10)+B11

42) Which of the following is true of the lift value in association rule?

A) Its strength is directly proportional to the strength of the association rule.

B) It cannot have a value that is more than 1 to be considered a good minimum.

C) It provides information on the increase of the antecedent given the consequent.

D) It does not require the expected confidence to be calculated.

43) In the cause-and-effect modeling, internal metrics, such as employee satisfaction, productivity, and turnover are considered to be ________ measures.

A) logit

B) life

C) leading

D) lagging

44) Which of the following is an example of a simple bounds constraint?

A) confirming that production does not go beyond a certain unit value

B) reducing production due to scarcity of resources

C) meeting targets for a specific sales job

D) equaling production in September with the resources available at the end of August

45) Problem statements such as production must be sufficient to meet promised customer orders would be categorized as a ________ constraint.

A) limitations

B) requirements

C) proportional relationships

D) balance

46) ________ constraints essentially state that input = output and ensure that the flow of material or money is accounted for at locations or between time periods.

A) Requirements

B) Proportional relationships

C) Balance

D) Limitations

47) ________ is the parameter that specifies when the Solver algorithm will terminate an optimization process with integer constraints.

A) Mutation Rate

B) Population Size

C) Integer Tolerance

D) Convergence

48) What should be the value of Integer Tolerance in order to find the guaranteed optimal integer solution?

A) -1

B) 0

C) 0.5

D) 1

of 11

Below is a decision tree for the airline revenue management.

Create a one-way table and answer the following questions.

49) What is the expected value of the ticket when a discount is offered on the full fare? [Hint: Choose the approximate value.]

A) $ 442.50 B) $ 472.00 C) $ 410.00

D) $ 501.50

50) If the probability of selling the full-fare ticket is 0.80, what is the expected value of the ticket?

A) $ 442.50 B) $ 472.00 C) $ 501.50

D) $ 531.00

of 11

Linear Optimization

1) Which of the following best defines decision variables in an optimization model?

A) They are limitations, requirements, or other restrictions that are imposed on any solution.

B) They are the quantities that the model seeks to maximize or minimize.

C) They are quantities for which no feasible solutions exist.

D) They are unknown values that the model seeks to determine.

2) Which of the following best defines objective functions?

A) They are limitations, requirements, or other restrictions that are imposed on any solution in an optimization model.

B) They are quantities that an optimization model seeks to maximize or minimize.

C) They are quantities for which no feasible solutions exist in an optimization model.

D) They are unknown values that an optimization model seeks to determine.

3) Which of the following best defines constraints in an optimization problem?

A) They are limitations, requirements, or other restrictions that are imposed on any solution.

B) They are quantities that an optimization model seeks to maximize or minimize.

C) They are quantities for which no feasible solutions exist.

D) They are unknown values that the model seeks to determine.

4) Which of the following solving methods is selected in the Solver dialog for linear and linear integer optimization problems?

A) GRG Nonlinear

B) Simplex LP

C) SOCP Barrier Engine

D) Evolutionary

Use the following information to answer the question(s) below.

Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below.

A B C D E F

1 Cerebro

Manufacturing Model

2

3 Product Plugs Rails Rivets Clips Machine

Capacity

(mins./year)

4 Gross margin/unit $ 0.40 $ 1.20 $ 0.80 $ 1.10

5 Minutes/unit 1 2 3 1.5 250,000

6 Gross margin/minute

7 Maximum production

8 Profit

5) What is the gross margin per minute of plugs manufactured?

A) $ 0.60 B) $ 0.73 C) $ 0.40

D) $ 0.27

6) What is the gross margin per minute of rivets manufactured?

A) $ 0.60 B) $ 0.73 C) $ 0.40

D) $ 0.27

7) What is the maximum possible production of rails based on the machine capacity?

A) 250,000.00

B) 83,333.33

C) 166,666.67

D) 125,000.00

8) What is the maximum production of clips based on the machine capacity?

A) 250,000.00

B) 83,333.33

C) 166,666.67

D) 125,000.00

9) What is the total profit generated from the manufacture of only plugs?

A) $ 66,666.67

B) $ 100,000.00 C) $ 183,333.33

D) $ 150,000.00

10) What is the total profit generated from the manufacture of rivets?

A) $ 66,666.67

B) $ 100,000.00 C) $ 183,333.33

D) $ 150,000.00

11) Which of the following options is used if Solver gives an error message that linearity is not satisfied?

A) Ignore Integer Constraints

B) Show Iteration Results

C) Use Automatic Scaling

D) Use Multistart

12) When a model has a unique optimal solution, it means that ________.

A) the objective is maximized or minimized by more than one combination of decision

variables

B) there is no solution that simultaneously satisfies all the constraints

C) the Allowable Increase or Allowable Decrease values for changing cells are zero

D) there is exactly one solution that will result in the maximum or minimum objective

13) If a model has alternative optimal solutions, ________.

A) the objective is maximized or minimized by more than one combination of decision

variables

B) there is no solution that simultaneously satisfies all the constraints

C) the objective can be increased or decreased to infinity or negative infinity

D) there is exactly one solution that will result in the maximum or minimum objective

14) Alternate optimal solutions exist when the ________.

A) reduced cost is equal to the shadow price

B) ratio of the objective coefficient to the constraint coefficient is one

C) Allowable Increase values for changing cells are zero

D) final value of the changing cells is greater than that of the constraints

15) An unbounded problem is one for which ________.

A) the objective is maximized or minimized by more than one combination of decision variables

B) there is no solution that simultaneously satisfies all the constraints

C) the objective can be increased or decreased to infinity or negative infinity while the solution remains feasible

D) there is exactly one solution that will result in the maximum or minimum objective

16) An infeasible problem is one for which ________.

A) the objective is maximized or minimized by more than one combination of decision variables

B) there is no solution that simultaneously satisfies all the constraints

C) the objective can be increased or decreased to infinity or negative infinity

D) there is exactly one solution that will result in the maximum or minimum objective

17) The ________ indicates how much the value of the objective function will change as the right-hand side of a constraint is increased by 1.

A) objective coefficient

B) shadow price

C) binding constraint

D) reduced cost

18) A constraint function is a function of the decision variables in the problem. True or False?

19) Any solution that satisfies all constraints of a problem is called a feasible solution. True or False?

20) A binding constraint is one for which the Cell Value is greater than the right-hand side of the value of the constraint. True or False?

21) Which of the following best defines Monte Carlo simulation?

A) It is a tool for building statistical models that characterize relationships among a dependent variable and one or more independent variables.

B) It is a collection of techniques that seeks to group or segment a collection of objects into subsets.

C) It is the process of selecting values of decision variables that minimizes or maximizes some quantity of interest.

D) It is the process of generating random values for uncertain inputs in a model and computing the output variables of interest.

22) As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the more precise is the result. True or False?

23) Which of the following is included in the data mining approach of data exploration and reduction?

A) analyzing data to predict how to classify a new data element

B) identifying groups in which the elements of the groups are in some way similar

C) creating rules for target marketing based on association of variables

D) developing analytic models to describe the relationship between metrics

24) Spam filtering for e-mails can be seen as an example of which of the following types of approaches of data mining?

A) reduction

B) association

C) cause-and-effect modeling

D) classification

25) U-botit.com is an electronic commerce company that sells music online. It keeps a tab of what genre of music their registered customers buy. If u-botit.com were to use the data mining approach of association, which of the following actions would it take?

A) send recommendations to customers based on their buying habits

B) conduct surveys to customers to gauge customer satisfaction

C) classify the customers based on the genre of music they listen to

D) provide discounts to certain genre buyers where sales are less

26) 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.

A) association

B) reduction

C) cause-and-effect modeling

D) classification

27) Sendstars is a package delivering company that recently made a study on its customer retention and service renewal metrics. They found that most customers defected from using Sendstars' services due to customer dissatisfaction stemming from delivery personnel being rude or ill-mannered. To curb this issue, Sendstars gave special training to its employees in customer service. Which of the following data mining approaches did Sendstars employ when they decided to train their employees in customer care based on the study?

A) association

B) cause-and-effect modeling

C) classification

D) reduction

28) ________ is a collection of techniques that seek to group or segment a collection of objects or observations into subsets, such that those within each subset are more closely related to one another than objects assigned to different subsets.

A) Association rule mining

B) Discriminant analysis

C) Cluster analysis

D) Logistic regression

29) Which of the following is true of cluster analysis?

A) It is a cause-and-modeling type of analytic model.

B) It does not provide a definitive answer from analyzing the data.

C) It is primarily a prescriptive analytical method.

D) It uses clustered data that are not affected by the specific method used.

30) Which of the following is true of hierarchical clustering?

A) All clusters must have the same number of data.

B) No single cluster can have all objects

C) The data are not partitioned into a particular cluster in a single step.

D) All clusters must have more than one object in it.

31) Divisive clustering method is different from agglomerative clustering methods in that divisive clustering methods ________.

A) can only have a pair of subjects in each cluster

B) separate objects into a particular cluster in one step

C) separate n objects successively into finer groupings

D) can only have a single subject in each cluster

32) If the Euclidean distance were to be represented in a right triangle, which of the following would be considered the distance between two objects of a cluster?

A) the hypotenuse

B) the small leg

C) the long leg

D) the average of the sum of both the legs

33) Which of the following formulas calculates the Euclidean distance between X and Y?

A)

B)

C)

D)

34) Which of the following is true of logistic regression as a classifying method? A) Its dependent variable is always categorical.

B) Its independent variable is always continuous or numerical.

C) It predicts the probability of output variables based on dependent variables.

D) It cannot be used when the dependent variable is binary.

35) When using logistic regression, where p being the probability that the dependent variable Y = 1, X1, X2 ...,Xk are the independent variables, andß0, ß1, ß2 ..., ßk are unknown regression coefficients, ________ is called the odds of belonging to category 1(Y = 1).

A) p(ß0 + ß1X1 + ß2X2 + ...+ ßkXk)

B)

C)

D)

36) Which of the following is true of association rule mining?

A) It develops analytic models to describe the relationship between metrics that drive business performance.

B) It identifies attributes that occur frequently together in a given data set.

C) It seeks to classify a categorical outcome into one of two or more categories.

D) It is a data reduction technique that reduces large information into smaller heterogeneous groups.

37) Which of the following types of data-mining methods provides probabilistic ifthen statements?

A) association rule

B) logistic regression

C) reduction

D) cause-and effect modeling

38) Which of the following typically describes the support for the association rule?

A) the number of transactions that include all items that are in the antecedent parts of the rule B) the number of transactions that include all items in the antecedent and consequent parts of the rule

C) the number of transactions that include half from the antecedent and half from the consequent

D) the number of transactions that include all items that are in the consequent parts of the rule

39) ________ is the ratio of the number of transactions that include all items in the consequent as well as the antecedent to the number of transactions that include all items in the antecedent.

A) Lift

B) Logit

C) Support for the association rule

D) Confidence of the association rule

40) The strength of the association rule, known as lift, is calculated as the ratio of the ________.

A) sum of the antecedents and the consequents to the antecedents

B) antecedents to the consequents

C) support to the confidence level

D) confidence to expected confidence

Topic: Spreadsheet Modeling and Spreadsheet Engineering Using the spreadsheet below to answer the following question(s).

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

41) Which of the following formulas would be used to calculate the net income value using only the data value? A) =SUM(B5:B10)-B11

B) =SUM(B5:B11)

C) =B5-SUM(B6:B11)

D) =B5-SUM(B6:B10)+B11

42) Which of the following is true of the lift value in association rule?

A) Its strength is directly proportional to the strength of the association rule.

B) It cannot have a value that is more than 1 to be considered a good minimum.

C) It provides information on the increase of the antecedent given the consequent.

D) It does not require the expected confidence to be calculated.

43) In the cause-and-effect modeling, internal metrics, such as employee satisfaction, productivity, and turnover are considered to be ________ measures.

A) logit

B) life

C) leading

D) lagging

44) Which of the following is an example of a simple bounds constraint?

A) confirming that production does not go beyond a certain unit value

B) reducing production due to scarcity of resources

C) meeting targets for a specific sales job

D) equaling production in September with the resources available at the end of August

45) Problem statements such as production must be sufficient to meet promised customer orders would be categorized as a ________ constraint.

A) limitations

B) requirements

C) proportional relationships

D) balance

46) ________ constraints essentially state that input = output and ensure that the flow of material or money is accounted for at locations or between time periods.

A) Requirements

B) Proportional relationships

C) Balance

D) Limitations

47) ________ is the parameter that specifies when the Solver algorithm will terminate an optimization process with integer constraints.

A) Mutation Rate

B) Population Size

C) Integer Tolerance

D) Convergence

48) What should be the value of Integer Tolerance in order to find the guaranteed optimal integer solution?

A) -1

B) 0

C) 0.5

D) 1

of 11

Below is a decision tree for the airline revenue management.

Create a one-way table and answer the following questions.

49) What is the expected value of the ticket when a discount is offered on the full fare? [Hint: Choose the approximate value.]

A) $ 442.50 B) $ 472.00 C) $ 410.00

D) $ 501.50

50) If the probability of selling the full-fare ticket is 0.80, what is the expected value of the ticket?

A) $ 442.50 B) $ 472.00 C) $ 501.50

D) $ 531.00

of 11

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