MODULE 1

Quiz 1-A
The decisions concerning an organization's goals and future plans are called
which of the following? strategic decisions

Tactical decisions are concerned with which of the following? how the
organization should achieve the goals and objectives set by its strategy
Data dashboards are which of the following? a type of descriptive analytics

Which one of the following is used in predictive analytics? linear regression

Which of the following analytical techniques helps us arrive at the best

decision? prescriptive analytics

Simulation optimization helps which of the following? finding good decisions

in highly complex and highly uncertain settings
When a decision maker is faced with several alternatives and an uncertain
set of future events, s/he uses which of the following to develop an optimal
strategy? decision analysis

Which of the following are techniques that use models, constructed from past
data, to predict the future or to ascertain the impact of one variable on
another. predictive analytics

Which of the following use techniques that take input data and yield a best
course of action. prescriptive analytics

Quiz 1-B
Which of the following best exemplifies big data? Cellphone owners around
the world generate vast amounts of data by calling, texting, tweeting, and
browsing the Web on a daily basis.

In the financial sector, which of the following are used to construct financial
instruments such as derivatives? predictive models

Which of the following refers to a programming model used within Hadoop

that performs the two major steps for which it is named: the map step and
the reduce step? MapReduce
Which of the following is an open-source programming environment that
supports big data processing through distributed storage and distributed
processing on clusters of computers? Hadoop

In the spectrum of business analytics, which is the most complex?

prescriptive

The U.S. Internal Revenue Service uses which of the following to identify
patterns that distinguish questionable annual personal income tax filings?
data mining

Quiz 1-C

The General Data Protection Regulation went into effect in the European
Union in… 2018

The INFORMS Ethics Guidelines do not include guidelines relative to …

Academics
The INFORMS Ethics Guideline, "Analytics professionals should aspire to be
inclusive of all colleagues and rejecting discrimination and harassment in any
form" can be found in the Guidelines relative to … the Profession

The INFORMS Ethics Guideline, "Analytics professionals should aspire to be

honest in reporting their results, even when they fail to yield the desired
outcome" can be found in the Guidelines relative to… Society

The INFORMS Ethics Guideline, "Analytics professionals should aspire to be

alert to possible unintended or negative consequences that our results and
recommendations may have on others" can be found in the Guidelines
relative to… Organizations

MODULE 2
Quiz 3-A
Preattentive attributes related to visual perception include all of the following
except … design
The effort needed to accurately and efficiently process information
communicated by a data visualization is … cognitive load.

Data-ink is the ink used in a table or chart that _____. is necessary to convey
the meaning of the data to the audience
Deleting the grid lines in a table and the horizontal lines in a chart ______.
increases the data-ink ratio

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? It reduces the data-ink
ratio.

Quiz 3-B
Tables should be used instead of charts when _____. the values being
displayed have different units or very different magnitudes

Which one of the following statements is not true concerning PivotTables in

Excel? PivotTables can be built using data arrayed in rows.

What software package is referred to by the authors as "...a ubiquitous tool

used in business for basic data visualization?" Excel

Quiz 3-C
Which of the following is a graphical presentation of the relationship between
two quantitative variables? a scatter chart

Which of the following is a line that provides an approximation of the

relationship between the variables? a trendline
DJ needs to display data over time. Which of the following charts should he
use? Line chart

A line chart that has no axes but is used to provide information on overall
trends for time series data is called which of the following? a sparkline

Bar charts use which of the following? horizontal bars to display the
magnitude of the quantitative variable

The charts that are helpful in making comparisons between categorical

variables are which of the following? bar charts and column charts

A graphical presentation that uses vertical bars to display the magnitude of

quantitative data is known as which of the following? column chart

Of the charts used to compare categorical data, making visual comparisons

between categorical variables may be difficult in which of the following? a
pie chart
In order to visualize three variables in a two-dimensional graph, we use
which of the following? a bubble chart

An alternative for a stacked column chart when comparing more than a

couple of quantitative variables in each category is which of the following? a
clustered column chart

A useful chart for displaying multiple variables is which of the following? the
scatter chart matrix

The best way to differentiate chart elements is by using which of the

following? Labels

To summarize and analyze data with both a crosstabulation and charting,

Excel typically pairs which of the following? PivotCharts with PivotTables

Quiz 3-D
A two-dimensional graph representing the data using different shades of
color to indicate magnitude is called which of the following? a heat map

An effective display of trend and magnitude is achieved by using a

combination of which of the following? a heat map and sparklines

Which of the following is useful for visualizing hierarchical data along

multiple dimensions? a treemap

Which of the following is used for examining data with more than two
variables, and it includes a different vertical axis for each variable? a
parallel-coordinates plot

In a business, the values indicating the business's current operating

characteristics, such as its financial position, the inventory on hand, and
customer service metrics, are typically known as which of the following? key
performance indicators

A data visualization tool that updates in real time and gives multiple outputs
is called which of the following? a data dashboard

We create multiple dashboards _____. so that each dashboard can be viewed

on a single screen
MODULE 3
Quiz 8-A
A regression analysis involving one independent variable and one dependent
variable is referred to as which of the following? a simple linear regression

relating y and x, respectively, are which of the following? 𝛽0 and 𝛽1

The population parameters that describe the y-intercept and slope of the line

In the simple linear regression model, which of the following accounts for the
variability in the dependent variable that cannot be explained by the linear
relationship between the variables? error term

In a linear regression model, the variable that is being predicted or explained

is known as which of the following? It is denoted by y and is often referred to
as the response variable. dependent variable
In a linear regression model, the variable (or variables) used for predicting or
explaining values of the response variable are known as which of the
following? It(they) is(are) denoted by x. the independent variable(s)

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

Prediction of the value of the dependent variable outside the experimental

region is called which of the following? extrapolation

Quiz 8-B
Which of the following is a measure of the error that results from using the
estimated regression equation to predict the values of the dependent
variable in the sample? the sum of squares due to error (SSE)

The least squares regression line minimizes the sum of which of the
following? the squared differences between actual and predicted y-values

What would be the value of the sum of squares due to regression (SSR) if the
total sum of squares (SST) is 27.32 and the sum of squares due to error (SSE)
is 5.89? 21.43
Which of the following 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. coefficient of determination

What would be the coefficient of determination if the total sum of squares

(SST) is 23.24 and the sum of squares due to regression (SSR) is 11.01? 0.47

Regression analysis involving one dependent variable and more than one
independent variable is known as which of the following? multiple
regression

Quiz 8-C
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 which of the following? statistical inference

The process of making a conjecture about the value of a population

parameter, collecting sample data that can be used to assess this
conjecture, measuring the strength of the evidence against the conjecture
that is provided by the sample, and using these results to draw a conclusion
about the conjecture is known as which of the following? hypothesis testing

Which of the following refers to the use of sample data to calculate a range
of values that is believed to include the value of the population parameter?
interval estimation

Consider the following scatter chart.

A scatter chart has a horizontal axis labeled "x" and a vertical axis labeled
"e". The scatter chart has a large number of points and a horizontal line at 0
on the vertical axis. The points start close to the horizontal line and become
scattered further from the line as x increases.

The scatter chart above displays the residuals versus the dependent
variable, x. Which of the following conclusions can be drawn from the scatter
chart given below? The residuals have an increasing variance as the
dependent variable increases.

Consider the following scatter chart.

The scatter chart has a horizontal axis labeled "t" and a vertical axis labeled
"e". The scatter chart has 20 points with line segments connecting
consecutive points and a horizontal line at 0 on the vertical axis. The scatter
from the horizontal line doesn't appear to change as x increases. From left to
right, each group of four consecutive points has its first point below the line,
its second point above or nearly on the line, its third point above the second
point, and its fourth point below the first point.

The scatter chart above displays the residuals versus the dependent
variable, t. Which of the following conclusions can be drawn based upon this
scatter chart?

The residuals are not independent.

Consider the following scatter chart.

A scatter chart has a horizontal axis labeled "x" and a vertical axis labeled
"e". The scatter chart has a large number of points and a horizontal line at 0
on the vertical axis. A pattern starts above the line, goes down and right,
changes direction below the line, goes up and right, and ends above the line.
The points are scattered moderately from the pattern.

The scatter chart above displays the residuals versus the dependent
variable, x. Which of the following conclusions can be drawn based upon this
scatter chart?

The model fails to capture the relationship between the variables accurately.

Consider the following scatter chart.

A scatter chart has a horizontal axis labeled "x" and a vertical axis labeled
"e". The scatter chart has a large number of points and a horizontal line at 0
on the vertical axis. The majority of the points lie below the horizontal line.
Points above the line are scattered further from the line compared to those
below the line.

The scatter chart above displays the residuals versus the dependent
variable, x. Which of the following conclusions can be drawn based upon this
scatter chart?

The residual distribution is not normally distributed.

Which of the following is an indication of how frequently interval estimates

based on samples of the same size taken from the same population using
identical sampling techniques will contain the true value of the parameter we
are estimating? the confidence level

Which of the following refers to the degree of correlation among independent

variables in a regression model? multicollinearity

MODULE 4
Quiz 8-D
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
which of the following? a dummy variable

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

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? quadratic regression model

Quiz 8-E
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 which of the following? knot
Which of the following 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? interaction

Fitting a model too closely to sample data, resulting in a model that does not
accurately reflect the population is termed as which of the following?
overfitting

Assessing the regression model on data other than the sample data that was
used to generate the model is known as which of the following? cross-
validation

Which of the following is the data set used to build the candidate models?
training set

Which of the following refers to the data set used to compare model
forecasts and ultimately pick a model for predicting values of the dependent
variable? validation set

Which of the following is an interval estimate of an individual y-value, given

values of the independent variables? a prediction interval

MODULE 5
Quiz 9-A
A set of observations on a variable measured at successive points in time or
over successive periods of time constitute which of the following? a time
series

Which of the following states the objective of time series analysis? to

uncover a pattern in a time series and then extrapolate the pattern into the
future

Trend refers to which of the following? the long-run shift or movement in the
time series observable over several periods of time

A time series plot of a period of time (in weeks) versus sales (in 1,000's of
gallons) is shown below.
Which of the following data patterns best describes the scenario shown? time
series with a horizontal pattern

A time series plot of a period of time (in years) versus sales (in thousands of
dollars) is shown below.

Which of the following data patterns best describes the scenario shown?
linear trend pattern

A time series plot of a period of time (in years) versus revenue (in millions of
dollars) is shown below.
Which of the following data patterns best describes the scenario shown?
nonlinear trend pattern

A time series plot of a period of time (in months) versus sales (in number of
units) is shown below.

Which of the following data patterns best describes the scenario shown?
seasonal pattern

A time series plot of a period of time (quarterly) versus quarterly sales (in
$1,000s) is shown below.
Which of the following data patterns best describes the scenario shown?

seasonal pattern and linear trend

With reference to time series data patterns, a cyclical pattern is the

component of the time series that does which of the following? shows a
periodic pattern lasting more than one year

Quiz 9-B
Which of the following is the amount by which the predicted value differs
from the observed value of the time series variable? forecast error

If the forecasted value of the time series variable for period 2 is 24.5 and the
actual value observed for period 2 is 28, what is the forecast error in period
2? 3.5

A positive forecast error indicates that the forecasting method did which of
the following? underestimated the dependent variable

Which of the following measures of forecast accuracy is susceptible to the

problem of positive and negative forecast errors offsetting one another?
mean forecast error
Quiz 9-C
Which of the following is true about the moving averages forecasting
method? It uses the average of the most recent data values in the time
series as the forecast for the next period.

The moving averages and exponential smoothing methods are appropriate

for a time series exhibiting which of the following? a horizontal pattern

Which of the following statements is the objective of the moving averages

and exponential smoothing methods? to smooth out random fluctuations in
the time series
Using a large value for order k in the moving averages method is effective in
which of the following? smoothing out random fluctuations

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 which of the following? the smoothing
constant

The exponential smoothing forecast for period

t+1

period t with weight 𝛼 and the forecast for period t with weight
is a weighted average of which of the following? the actual value in

1−𝛼

Which of the following is true of the exponential smoothing constant? It is

chosen as the value that minimizes a selected measure of forecast accuracy
such as the mean squared error.

Quiz 9-D
Which of the following is true about autoregressive models? They occur
whenever all the independent variables are previous values of the time
series.

A time series with a seasonal pattern can be modeled by treating the season
as which of the following? a dummy variable
Which of the following is true about causal models? They relate a time series
to other variables that are believed to explain or cause its behavior.
A causal model provides evidence of which of the following between an
independent variable and the variable to be forecast? an association

The value of an independent variable from the prior period is referred to as

which of the following? a lagged variable

For causal modeling, which of the following are used to detect linear or
nonlinear relationships between the independent and dependent variables?
scatter charts

MODULE 6
Quiz 12-A
Which of the following is true of spreadsheet packages used in business
analytics? They come preloaded on computers.

Why are spreadsheet models referred to as what-if models? They allow easy
instantaneous recalculation for a change in model inputs.

Which of the following is a visual representation that shows which entities

affect others in a model? an influence diagram
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? separating the parameters from the spreadsheet model

Navigation in a spreadsheet model can be facilitated by which of the

following? using clear labels and proper formatting and alignment

Quiz 12-B
Which of the following quantifies the impact of changing the value of a
specific input on an output of interest. Excel Data Table

A one-way data table summarizes which of the following? a single input's

impact on the output of interest
The impact of two inputs on the output of interest is summarized by which of
the following? two-way data table

Which of the following Excel tools 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. Goal Seek

Quiz 12-C
What does the SUM function in Excel do? It adds up all the numbers in a
range of cells.

Which of the following functions 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. SUMPRODUCT

With reference to the SUMPRODUCT function, which of the following

statements is true? The arrays that appear as arguments must be of the
same dimension.

Which of the following functions is used for the conditional computation of

expressions in Excel? IF

The arguments supplied to the IF function, in order, are which of the

following? the condition for execution, the result if condition is true, and the
result if condition is false

Within a given range of cells, the number of times a particular condition is

satisfied is computed by using which of the following functions? COUNTIF

Which of the following functions allows the user to pull a subset of data from
a larger table of data based on some criterion? XLOOKUP

Quiz 12-D
Which of the following buttons, located in the Formula Auditing group,
creates arrows pointing to the selected cell from cells that are part of the
formula in that cell? Trace Precedents button

Arrows pointing from the selected cell to cells that depend on the selected
cell are generated by using which of the following buttons of the Formula
Auditing group? Trace Dependents button
The following table is used to lookup information on a specific product. The
Product ID is entered into cell B2 and the information is returned in the
shaded box. There are several formulas in the table. How could I look at the
cells that use the value in cell B2? Select "Trace Dependents" in the Formula
Auditing Group on the Formulas tab.

The function of Trace Precedents and Trace Dependents is to do which of the

following? highlight errors in copying and formula construction

Which of the following buttons in the Formula Auditing group allows the user
to inspect each formula in detail in its cell location? Show Formulas button

The calculations of a cell can be investigated in great detail by using which of

the following buttons? The calculations of a cell can be investigated in great
detail by using which of the following buttons?

Which of the following buttons provides an automatic means of checking for

mathematical errors within formulas of a worksheet? Error Checking
button

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 which of the following? the Watch Window functionality

Which of the following is true about the Watch Window? It is observable

across different worksheets of a workbook.

MODULE 7
Quiz 13-A
Which of the following uses repeated random sampling to represent
uncertainty in a model representing a real system and computes the values
of model outputs? Monte Carlo simulation

The outcome of a simulation experiment is which of the following? a

probability distribution for one or more output measures

An input to a simulation model that is selected by the decision maker is

known as which of the following? a controllable input
The process of evaluating a decision in the face of uncertainty by quantifying
the likelihood and magnitude of an undesirable outcome is known as which
of the following? risk analysis
In a base-case scenario, the output is determined by assuming which of the
following? the most likely values for the random variables of a model
Which of the following involves considering alternative values for the random
variables and computing the resulting value for the output? a what-if
analysis

Which of the following is a disadvantage of simple what-if analyses? There is

no indication of the likelihood of various output values.

The values for random variables in a Monte Carlo simulation are which of the
following? generated randomly from probability distributions

The choice of the probability distribution for a random variable can be guided
by which of the following? historical data

A set of simulated values for the random variables of interest is called which
of the following? a trial

The range of computer-generated random numbers is which of the following?

[0, 1)

Which of the following functions is used to generate a pseudorandom

number in Excel? RAND()
Quiz 13-B
All the values of computer-generated random numbers are which of the
following? uniformly distributed

For a given mean and standard deviation, which of the following functions in
Excel is used to generate a value for the random variable characterized by a
normal distribution? NORM.INV

Which of the following numbers cannot result from the Excel function
=NORM.INV(RAND( ), 100, 10)? 96 116 122 All of these numbers can result
from this Excel function.

Which of the following functions computes a value such that 1.5% of the area
under the standard normal distribution lies in the upper tail defined by this
value? =NORM.S.INV(0.985)

Quiz 13-C
Which of the following Excel functions generates integer values between
lower and upper bounds? RANDBETWEEN

Which of the following functions allows the user to pull a subset of data from
a larger table of data based on some criterion? XLOOKUP

Resampling is … sampling directly from sample data.

MODULE 8
Quiz 13-D
In which of the following can a random variable take any value in a specified
range? a continuous probability distribution

In simulation analysis, which of the following can be adjusted to determine

the impact of the assumptions about the shape of the uncertainty on the
results? the probability distributions of random variables
Quiz 13-E
The process of determining that a computer program implements a
simulation model as it is intended is known as which of the following?
verification

Which of the following is the process of determining that a simulation model

provides an accurate representation of a real system? validation

Which of the following is true of verification? It is largely a debugging task.

Which of the following is a disadvantage of using simulation? Each simulation

run provides only a sample of how the real system will operate.

MODULE 9
Quiz 14-A
Which of the following terms refers to the expression that defines the
quantity to be maximized or minimized in a linear programming model.
objective function

Constraints are which of the following? restrictions that limit the

settings of the decision variables

Which of the following, also known as modeling, is the process of translating

a verbal statement of a problem into a mathematical statement? problem
formulation

Which of the following is true in problem formulation? The objective is

expressed in terms of the decision variables.

Nonnegativity constraints ensure that which of the following? The solution

to the problem will contain only nonnegative values for the decision
variables.

A mathematical function in which each variable appears in a separate term

and is raised to the first power is known as which of the following? a linear
function

Quiz 14-B
Which type of solution satisfies all the constraint expressions
simultaneously? a feasible solution

The points where constraints intersect on the boundary of the feasible region
are termed as which of the following? the extreme points

Which of the following refers to a constraint that can be expressed as an

equality at the optimal solution? a binding constraint

Geometrically, binding constraints intersect to form which of the following?

optimal point

Which of the following values for each less-than-or-equal-to constraint

indicates the difference between the left-hand and right-hand values for a
constraint? the slack value

The slack value for binding constraints is which of the following? zero

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 which of the
following? a surplus variable

Quiz 14-C
Which of the following refers to a set of points that yield a fixed value of the
objective function? an objective function contour

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 which of the following? alternative optimal solutions

Which of the following is the situation in which no solution to the linear

programming problem satisfies all the constraints? Infeasibility

Problems with infeasible solutions arise in practice for which of the following
reasons? Too many restrictions have been placed on the problem.

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
which of the following? Unbounded

Which of the following error messages is displayed in Excel Solver when

attempting to solve an unbounded problem? Objective Cell values do not
converge.
In linear programming models of real problems, the occurrence of an
unbounded solution means which of the following? The 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 which of the following?
sensitivity analysis

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

Which of the following is true of the shadow price of nonbinding constraints?

It will always be zero.

The reduced cost for a decision variable that appears in a Sensitivity Report
refers to which of the following? the shadow price of the nonnegativity
constraint for that variable

MODULE 10
Quiz 14-D
Mena is a financial manager with Sharez, an investment advisory company.
Mena must select specific investments—for example, stocks and bonds—
from a variety of investment alternatives. Which of the following statements
is most likely to be the objective function in this scenario? maximization of
expected return
Rob is a financial manager with Sharez, an investment advisory company. He
must select specific investments—for example, stocks and bonds—from a
variety of investment alternatives. Restrictions on the type of permissible
investments would be which of the following in this case? a constraint

A canned food manufacturer has its manufacturing plants in three locations

across a state. Their product has to be transported to 4 central distribution
centers, which in turn disperse the goods to 74 stores across the state.
Which of the following is most likely to be the objective function in this
scenario? minimizing the cost of shipping goods from the plant to the
store

A canned food manufacturer has its manufacturing plants in three locations

across a state. Their product has to be transported to 4 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? network graph

MODULE 11
Quiz 15-A
The imposition of an integer restriction is necessary for models where the
decision variables cannot take fractional values

The objective function for a linear optimization problem is: Max 3x + 5y, with
constraints

x ≥ 0, y ≥ 0 and x and y are both integers and they are also the only
decisions variables. This is an example of which of the following? all-integer
linear program

The objective function for an optimization problem is: Min 3x − 2y, with
constraints x ≥ 0,

y ≥ 0. x and y must be integers. Suppose that the integer restriction on the

variables is removed. If so, this would be a familiar two-variable linear
program; however, it would also be an example of which of the following? an
LP relaxation of the integer linear program

The objective function for an optimization problem is: Max 5x − 3y, with
constraints x ≥ 0,

y ≥ 0 and y must be an integer. x and y are the only decisions variables. This
is an example of which of the following? a mixed-integer linear
program

In a binary integer linear program, the integer variables take only which of
the following values? 0 or 1

Which of the following is true of rounding the optimized solution of a linear

program to an integer? It may or may not be feasible.

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? 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.
The worksheet formulation for integer linear programs and linear
programming problems is exactly the same except that, for integer linear
programs, the following is true. The 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.
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. sensitivity analysis

Which of the following is true about the sensitivity analysis for integer
optimization problems? To determine the sensitivity of the solution to
changes in model inputs for integer optimization problems, the data
must be changed and the problem must be re-solved.

Quiz 15-B
The objective function for a linear optimization problem is: Max 3x + 2y, with
one of the constraints being x and y both only take the values 0, 1.
Also x and y are the only decision variables. This is an example of which of
the following? binary integer linear program

Which of the following problems is a binary integer programming problem

that involves choosing which possible projects or activities provide the best
investment return? capital budgeting

Binary variables are identified with the _____ designation in the Solver
Parameters dialog box. bin

In a production application involving a fixed setup cost and a variable cost,

the use of which of the following makes including the setup cost possible in a
production model? binary variables
In a fixed-cost model, each fixed cost is associated with a binary variable and
a specification of which of the following. the upper bound for the
corresponding production variable

Which of the following is a market research technique that can be used to

learn how prospective buyers of a product value the product's attributes?
conjoint analysis
Which of the following is the utility value that a consumer attaches to each
level of each attribute in a conjoint analysis model. the part-worth
The part-worth for each of the attribute levels in a conjoint analysis is
determined by which of the following? regression analysis

An apparel designing company is planning to enter the women's trousers

market. They are in the process of developing a product that will appeal most
to customers. In an integer programming model for this problem, the
available sizes of the trousers will be represented as which of the following?
attributes

An apparel designing company is planning to enter the women's trousers

market. They are in the process of developing a product that will appeal most
to customers. They plan to offer trousers in pink, green, and black. With
regard to the color attribute, pink, green, and black would be known as
what? levels

Quiz 15-C
1. For a location problem, if the variables are defined as

xi = 1

if an outlet store is established in region i and 0 otherwise, the objective

function is best defined by which of the following for

i = 1, 2, ,n

number of outlet stores included in the problem?

2. A constraint specifying that the sum of two or more binary variables must
be less than or equal to one is known as which of the following. mutually
exclusive constraint

3. 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 which of the following? a conditional constraint

4. Which of the following constraints is a constraint requiring that two binary

variables be equal and that thus are both either in or out of the solution
together? a corequisite constraint

5. Which of the following is true about generating alternatives in binary

optimization? 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.

MODULE 13
Quiz 16-A
Which of the following is true in a nonlinear optimization problem? At least
one term in the objective function or a constraint is nonlinear.

Which of the following is the shadow price of a binding simple lower or upper
bound on the decision variable? a reduced gradient

The Lagrangian multiplier is which of the following? the shadow price for a
constraint in a nonlinear problem

A feasible solution is which of the following if there are no other feasible

solutions with a better objective function value in the immediate
neighborhood? a local optimum

A feasible solution is which of the following if there are no other feasible

points with a better objective function value in the entire feasible region? a
global optimum
A function that is bowl-shaped down is called which of the following? a
concave function

A function that is bowl-shaped up is called which of the following? a convex

function
Which of the following options in Excel Solver is helpful when the solution to
a problem appears to depend on the starting values for the decision
variables? the multistart option

Which of the following is used in Excel Solver for solving nonlinear problems
with local optimal solutions and is based on more classical optimization
techniques? GRG Nonlinear

Quiz 16-B
A portfolio optimization model used to construct a portfolio that minimizes
risk subject to a constraint requiring a minimum level of return is known as
which of the following? the Markowitz mean-variance portfolio model

The measure of risk most often associated with the Markowitz portfolio
model is which of the following? the variance of the portfolio's return
The portfolio variance is which of the following? the average of the sum of
the squares of the deviations from the mean value under each investment
scenario

If the portfolio variance were equal to zero, the amount of risk would be
which of the following? Zero

One of the ways to formulate the Markowitz model is which of the following?
minimize the variance of the portfolio subject to a constraint on the expected
return of the portfolio

Which of the following is a set of points defining the minimum possible risk
for a set of return values? an efficient frontier

Quiz 16-C
Which forecasting model uses nonlinear optimization to forecast the adoption
of innovative and new technologies in the marketplace? Bass

In the Bass forecasting model, which of the following is true about the
parameter m? It refers to the number of people estimated to eventually
adopt the new product.

In the Bass forecasting model, which of the following measures the likelihood
of adoption, assuming no influence from someone who has already
purchased (adopted) the product? the coefficient of innovation

Which of the following is based on a method that searches for an optimal

solution by iteratively adjusting a population of candidate solutions? Excel
Solver's Evolutionary Solver

MODULE 14
Quiz 17-A
An uncertain future event affecting the consequence associated with a
decision is known as which of the following? a chance event

Which of these terms refers to the result obtained when a decision

alternative is chosen and a chance event occurs? an outcome

Which of the following are possible outcomes for chance events that affect
the consequences associated with a decision alternative? states of nature
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
which of the following? mutually exclusive

How are the states of nature defined where at least one state of nature must
occur at a given time for a chance event? collectively exhaustive
A measure of the outcome of a decision such as profit, cost, or time is known
as which of the following? a payoff

Which of the following evaluate each decision alternative in terms of the best
payoff that can occur? the optimistic approach
Choosing a decision alternative that maximizes the minimum profit is a
feature of which of the following? the conservative approach

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

The minimax regret approach is which of the following?

neither purely optimistic nor purely conservative
The weighted average of the payoffs for a chance node is known as which of
the following? expected value
Which of these is the study of the possible payoffs and probabilities
associated with a decision alternative or a decision strategy in the face of
uncertainty? risk analysis

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 which of the following? sensitivity analysis

Quiz 17-B
New information obtained through research or experimentation that enables
an updating or revision of the state-of-nature probabilities is known as which
of the following? sample information

Which of the following refer to the probabilities of the states of nature after
revising the prior probabilities based on sample information? posterior
probabilities

What would be the value added by a market analysis undertaken if the

expected value with sample information is $8.59 million and the expected
value without sample information is $6.35 million? $2.24 million
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 which of
the following? perfect information

The probability of one event given the known outcome of a (possibly) related
event is known as which of the following probabilities? Conditional

Which of the following is true about Bayes' theorem? It enables the use of
sample information to revise prior probabilities.

Quiz 17-C
Which of the following is a measure of the total worth of a consequence
reflecting a decision maker's attitude toward considerations such as profit,
loss, and risk? utility

Which of the following is a decision maker who would choose a guaranteed

payoff over a lottery with a better expected payoff? a risk avoider

The utility function for money is a curve that depicts the relationship
between which of the following? monetary value and utility

Exponential utility functions assume that the decision maker is which of the
following? risk averse

The parameter R in an exponential utility function represents which of the

following? the decision maker's risk tolerance

Which of the following is the value of e, the mathematical constant used in

the exponential utility function,

U(x) = 1 − e−x⁄R? 2.71828

The parameter R in the exponential utility function

U(x) = 1 − e−x⁄R

represents the decision maker's risk tolerance. Larger values of R indicate

which of the following about the decision maker? They are less risk averse
(closer to neutral).