1.
A sales division in a large IT consulting company prepares proposals and bids on engagements with companies who are considering purchasing new information systems. There is some randomness at work in this process, with varying numbers of competitors in each case and other factors affecting the customers’ decisions. Generally they win 20% of the contracts that they bid on. If you were to build a model of the division’s activity and wanted to include a random variable for winning contracts, what type of distribution would you use?
Uniform
All of these
Bernoulli
Normal
Discrete
1
point
2.
Please check all that apply.
Monte Carlo simulations are useful to include in models when:
Manual what-if testing isn’t feasible
There are many variables with complex interactions
Stakes are high
A small amount of extra precision is valuable
1
point
3.
There are four main steps in building a Monte Carlo simulation: select probability distribution(s); run the simulation model through a large number of trials; analyze results of multiple trials to assess risks and opportunities; and generate ______ variables.
1
point
4.
In the simulation model shown below, what is the primary purpose of the standard deviation formula in cell H11?
None of these are the primary purpose
To add a constraint needed for an optimization function
To help assess risk
To select a probability distribution for generating random variables
1
point
5.
In a linear programming model, all of the following are examples of variables Solver changes to generate an optimal solution, except:
Allocation of scarce resources
Composition of a product
Profit margin targets
Production levels of alternative products
How much to purchase of various components from suppliers
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point
6.
Which of the following can be set as the objective of a linear programming optimization model using Excel’s Solver function (check all that apply)?
Random variables
Average
A specific target value
Min
Max
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point
7.
In the Innovative Speakers case, Solver was used to generate an optimal outcome by trying every possible value in a range of cells in the model.
That range in the model was:
H4
C13:E13
C4:E4
F8:H10
All of these
1
point
8.
In the model shown below, decisions about investments in research and development across three possible product development projects are constrained by the overall R&D budget.
In the Solver Parameters form shown, what is the expression required to implement the staffing constraint?
1
point
9.
Please check all that apply:
Which of the following business scenarios are examples of problems that can be addressed by linear program models?
Determining mix of economy or coach, business class and first class seats on an airplane?
Planning staffing levels for a call center given uncertain customer demand
Allocating a fixed R&D budget across multiple development projects
Setting truck routes for small deliveries
1
point
10.
Assume that in the Innovative Speaker simulation, the standard deviation of 1000 trials was 8404 and the mean was 16,808, as shown below.
What are the chances that the actual cashflow could still be negative? Express your answer as a decimal with 3 decimal places. For example, 50% should be written as .500
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