Coursera Answers

Q: In the model described in Q2, what is the best interpretation of the coefficient 100? or Q: Which interpretation of the coefficient 100 in the model presented in Q2 is the most accurate? The variable costs are 100 USD The elasticity of cost respect to quantity is 100 Fixed costs are 100,000 USD Fixed costs are 100 USD Explanation: The coefficient 100 represents the fixed costs when the quantity produced ( qq q ) is zero. Therefore, the fixed costs in actual dollar amounts are 100×1,000=100,000100 \times 1,000 = 100,000 100 × 1 , 000 = 100 , 000 USD.

Q: Which of the following features is a defining aspect of a deterministic model? or Q: Which of these characteristics best describes a deterministic model? It cannot be used as a basis for a subsequent optimization It always uses discrete input values There is no randomness in the model It only uses linear functions Explanation: A deterministic model is defined by the fact that it produces the same output from a given set of inputs without any randomness or variability. In these models, the relationship between inputs and outputs is clear and predictable, meaning that if you run the model with the same inputs multiple times, you will always get the same results.

Q: If you had two variables, the weight of a car measured in pounds and the fuel economy measured in miles per gallon, then which of the following quantitative modeling methodologies would be preferred for modeling fuel economy as a function of weight? or Q: Which of the following quantitative modeling approaches would be most suited for simulating fuel economy as a function of weight if you had two variables: the car’s weight in pounds and its fuel efficiency in miles per gallon? A Markov chain A probability tree A Monte Carlo Simulation A regression model Explanation: A regression model is specifically designed to analyze the relationship between a dependent variable (in this case, fuel economy) and one or more independent variables (in this case, weight). By using regression analysis, you can quantify how changes in the weight of a car are associated with changes in its fuel economy, allowing for predictions and insights into this relationship.

Q: Assuming that a Normal distribution model is reasonable for the tire wear, what is the approximate probability that a randomly drawn driver gets more than 25,000 miles of use from their tires? Use the value for the mean and standard deviation from Q8. or Q: What is the estimated likelihood that a randomly selected driver would have tires that have more than 25,000 miles on them, assuming that a normal distribution model makes sense for tire wear? Utilize the Q8 mean and standard deviation values. 0.16 0.84 0.95 0.5 Explanation: Thus, the approximate probability that a randomly drawn driver gets more than 25,000 miles of use from their tires is 0.84 (rounded).

Q: For which of the following random variables would the use of a Normal distribution as a model be a clear error? or Q: Using a normal distribution as a model would be obviously incorrect for which of the following random variables? The number of houses that an individual owns The number of minutes that a battery lasts in a cell phone Student test scores on an exam The daily percentage change on a stock Explanation: Normal distribution is characterized by its continuity and the ability to take on any real number, including negative values. However, the number of houses an individual owns is a discrete random variable that can only take on non-negative integer values (0, 1, 2, …). It cannot be negative and has a limited range, making it unsuitable for modeling with a Normal distribution, which is continuous and can have values across the entire real number line.

Q: When would you choose to use a dynamic model for a business process? or Q: For a business process, when would you decide to employ a dynamic model? When all of the inputs are random variables When there is more than one input to the model When there is specific interest in the state to state transitions of the process When there is considerable uncertainty as to what the inputs should be Explanation: Dynamic models focus on how a system evolves, making them particularly useful when analyzing changes from one state to another and the processes that drive these transitions.

Q: For which of the following business processes is a log function particularly useful in modeling the output? or Q: Which of the following business processes benefits most from the usage of a log function to represent the output? A process that exhibits a constant growth rate A process that exhibits diminishing returns to scale A process that is increasing at a constant rate A process that exhibits seasonality Explanation: In such processes, the log function can effectively capture the relationship where increases in input lead to progressively smaller increases in output, reflecting diminishing returns. This makes log functions suitable for representing situations where growth slows down as the scale of production or input increases.

Q: Using four random instances of the demand for regular apartments from Q5 and four random instances of the demand for luxury apartments from Q6, calculate the four corresponding total profit values obtained from sales of both regular and luxury apartments. Based on this four values, estimate the likelihood of the total profit to be above $52 million. Choose the closest from the answers below. or Q: Determine the four equivalent total profit values from the sales of ordinary and luxury apartments using four randomly selected examples of the demand for regular apartments from Q5 and four randomly selected examples of the demand for luxury apartments from Q6. Calculate the probability that the overall profit will exceed $52 million based on these four figures. From the following responses, select the one that is closest. 0.75 0.9 0.5 0.1 0.25 Explanation: The likelihood of the total profit being above $52 million is 0.75.

Q: Suppose that the actual demand for regular apartments at the $500,000 profit margin, DR, is such that the Stargrove realized a profit of $500,000 from selling regular apartments to the real estate investment company at the salvage profit margin of $100,000 per apartment. How much profit, in $ millions, did the Stargrove earn from the sales of the remaining regular apartments at the $500,000 profit margin for the same realization of demand DR? Choose the closest from the answers below. or Q: Assume that sales of normal flats to the real estate investment business at the salvage profit margin of $100,000 per unit resulted in a profit of $500,000 for Stargrove due to the actual demand for regular apartments at the $500,000 profit margin, DR. At the $500,000 profit margin for the same demand DR realization, how much money, in millions, did Stargrove make from the sale of the remaining standard apartments? From the following responses, select the one that is closest. 46.2 46 46.5 45.5 45...

Q: What is maximum amount of profit, in $ millions, that the company can earn from the sales of regular apartments, including the sales at the $500,000 profit margin as well as the sales at the $100,000 profit margin? Note that you should not count the profit from the sales of luxury apartments. Choose the closest from the answers below. or Q: What is the highest profit, expressed in millions of dollars, that the business can make by selling ordinary flats, including those with a $500,000 profit margin and those with a $100,000 profit margin? Keep in mind that the profit from the sale of luxury residences should not be included. From the following responses, select the one that is closest. 48.2 47.2 51.6 4 48 Explanation: Thus, the maximum profit the company can earn from regular apartments (with all sold at a higher margin) is 48 million .

Q: Suppose that the demand for regular apartments turns out to be DR = 94. How much profit, in $ millions, will the company earn from the sales of regular apartments, including the sales at the $500,000 profit margin as well as the sales at the $100,000 profit margin? Note that you should not count the profit from the sales of luxury apartments. Choose the closest from the answers below. or Q: Assume that DR = 94 is the actual demand for standard units. How much money, expressed in millions, will the business make by selling standard flats, including those with a $500,000 profit margin and those with a $100,000 profit margin? Keep in mind that the profit from the sale of luxury residences should not be included. From the following responses, select the one that is closest. 48 47 48.2 47.2 51.6 Explanation: Since there is no specific breakdown of how many apartments were sold at each profit margin, we can only solve this if we have additional information such as how many apartments fal...

Q: A sports team named Philadelphia Streets has a probability of (2/3) for winning each game against their division rivals Hockeytown. They play 12 games against each other during the season. Assume that the outcome of any particular game is independent from an outcome of any other game. Let X be the random variable that stands for the number of wins that Philadelphia Streets will have in those 12 games. What is the expected value of X? or Q: The odds of Philadelphia Streets, a sports team, defeating Hockeytown, their division opponents, in every game are 2/3. Throughout the season, they face off in 12 games. Assume that each game’s result is unrelated to the results of any other games. The amount of victories Philadelphia Streets will have in those 12 games may be represented by the random variable X. What is X’s anticipated value? 12 8 4 6 10 Explanation: The expected number of wins E(X)E(X) E ( X ) for the Philadelphia Streets in 12 games against Hockeytown is 8.

Q: Use Excel to generate descriptive statistics for the four profit values in Q9 and calculate the 95% confidence interval for the true expected value of the total profit. If this interval has the form [$N, $M], what is the value of M-N, i.e., what is width of the 95% confidence interval for the expected value of the total profit? Express the value in millions and choose the closest from the answers below. or Q: Compute the 95% confidence interval for the actual expected value of the total profit using Excel, and create descriptive statistics for each of the four profit numbers in Q9. What is M-N, or the breadth of the 95% confidence interval for the predicted value of the total profit, if this interval takes the form [$N, $M]? Decide which of the following responses best represents the value in millions. 9.2 2.9 1.4 4.6 Explanation: None of these options matches our calculated width of 11.04 million. There may be an error in my calculations or in the assumptions made regarding the pr...

Q: Consider the decision to build R=88 regular and L=16 luxury apartments. Using the four random instances of the demand for regular apartments from Q5 and four random instances of the demand for luxury apartments from Q6, calculate the four corresponding total profit values obtained from sales of both regular and luxury apartments under this decision. Based on this four values, estimate the likelihood of the total profit to be above $52 million. Choose the closest from the answers below. or Q: Think about the choice to construct R=88 standard flats and L=16 upscale apartments. Using the four random instances of the demand for regular apartments from Q5 and four random instances of the demand for luxury apartments from Q6, calculate the four corresponding total profit values obtained from sales of both regular and luxury apartments under this decision. Calculate the probability that the overall profit will exceed $52 million based on these four figures. From the following responses, se...

Q: Use Excel to generate descriptive statistics for the four profit values in Q7 and calculate the 95% confidence interval for the true expected value of the total profit. If this interval has the form [$X, $Y], what is the value of X, expressed in millions? Choose the closest from the answers below. or Q: Compute the 95% confidence interval for the actual expected value of the total profit using Excel, and create descriptive statistics for each of the four profit numbers in Q7. What is the value of X in millions if this interval has the form [$X, $Y]? From the following responses, select the one that is closest. 6.8 62 48.5 55.3 2.1 Explanation: The lower bound of the confidence interval, XX X , is approximately 48.5 million .

Q: Suppose that the same simulation as in Q5 generated the following random instances for the demand for luxury apartments, DL: 5, 7, 12, and 13. Calculate the four corresponding values of the profit from the sales of luxury apartments (i.e., the sum of profits at both the high profit margin of $900,000 and the low profit margin of $150,000) and use Excel to generate the descriptive statistics for this sample of four profit values. What is the sample standard deviation, in millions of $, of these four profit values? Choose the closest from the answers below. or Q: Assume that the following random cases for the demand for luxury flats, DL: 5, 7, 12, and 13, were produced by the same simulation as in Q5. In Excel, create descriptive statistics for this sample of four profit values by calculating the four equivalent values of the profit from the sales of luxury flats (that is, the total of profits at both the high profit margin of $900,000 and the low profit margin of $150,000). What is t...

Q: Suppose that we have set up a simulation with n=4 simulation runs that generated the following random instances for the demand for regular apartments, DR: 88, 91, 97, and 103. Calculate the four corresponding values of the profit from the sales of regular apartments (i.e., the sum of profits at both the high profit margin of $500,000 and the low profit margin of $100,000) and use Excel to generate the descriptive statistics for this sample of four profit values. What is the sample mean, in millions of $, of these four profit values? Choose the closest from the answers below. or Q: The following random instances for the demand for normal apartments, DR, were produced by a simulation with n=4 runs, let’s say: 88, 91, 97, and 103. Using Excel, create the descriptive statistics for this sample of four profit values. Determine the four equivalent values of the profit from the sales of normal apartments, that is, the total of the profits at the high profit margin of $500,000 and the ...

Q: The forecast monthly revenues for a firm are modeled using a random variable that is distributed according to a normal distribution with mean $850,000 and standard deviation $165,000. What is median value of this distribution, in $? or Q: A random variable distributed according to a normal distribution with a mean of $850,000 and a standard deviation of $165,000 is used to represent a company’s anticipated monthly sales. What is this distribution’s median value in dollars? 200,000 520,000 1,180,000 1,015,000 850,000 685,000 Explanation: In summary, for any normally distributed random variable, the mean and median are identical, making it straightforward to conclude that the median revenue for this firm is $850,000.

Q: The number of shares of a stock traded during a day for a firm is approximated by a random variable that is normally distributed with mean 3192 and standard deviation 1181. What is the probability that the number of shares traded is less than or equal to 4200? or Q: A normally distributed random variable with a mean of 3192 and a standard deviation of 1181 approximates the number of shares of a firm’s stock that are exchanged in a given day. How likely is it that there will be fewer than or equal to 4200 shares traded? 0.9998 0.20 0.80 0.002 0.50 0.0002 Explanation: Thus, the probability that the number of shares traded is less than or equal to 4200 is approximately 0.8023 .

Q: A financial advisor at a financial consulting firm spends time with his investing clients throughout the year. Based on the historical data, he finds that the consulting time T spent with a client can be modeled as a continuous, uniformly distributed random variable, with the minimum value of 50 minutes and the maximum value of 183 minutes. What is the probability that his consulting time with an investor client will not exceed 2 hours (i.e., 120 minutes)? Choose the closest answer. or Q: Throughout the year, a financial adviser at a financial consulting business spends time with his customers who are investors. The consultation time T with a customer may be represented as a continuous, uniformly distributed random variable with a minimum value of 50 minutes and a maximum value of 183 minutes, he concludes based on the historical data. How likely is it that he will confer with an investment customer for no more than two hours, or 120 minutes? Select the most accurate response. 0.007...

Q: For what value of the demand for regular apartments, DR, the profit from selling regular apartments at the high profit margin of $500,000 is equal to the profit of selling regular apartments to real estate investment company at the salvage profit margin of $100,000? or Q: The profit from selling regular apartments at the high profit margin of $500,000 is equivalent to the profit from selling regular apartments to a real estate investment business at the modest profit margin of $100,000. What is the value of the demand for regular flats, DR? 46 6 26 36 16 Explanation: The value of DRD_R D R ​ that makes the profits equal is 16. Therefore, the correct answer is 16.

Q: Re-examine the medical drug success example in the videos. Recall that the number of the successes is distributed binomially (i.e., according to a binomial distribution). Based on the definition of the mode, what is the mode of the distribution of successes? (Recall that the mode is the most likely value that a random variable can take). or Q: Review the films’ example of a successful medicinal medication. Remember that the number of successes follows a binomial distribution, or is distributed binomially. What is the mode of the distribution of successes according to the definition of the mode? Remember that the most likely value for a random variable is its mode. 12 6 4 10 8 Explanation: The mode based on p=0.5p = 0.5 p = 0.5 would indeed be 6. If the success probability pp p were different, please specify, and we can recalculate accordingly.

Q: A financial advisor at a financial consulting firm spends time with his investing clients throughout the year. Based on the historical data, he finds that the consulting time T spent with a client can be modeled as a continuous, uniformly distributed random variable, with the minimum value of 50 minutes and the maximum value of 183 minutes. What is the pdf value of this distribution at T=67 minutes? or Q: Throughout the year, a financial adviser at a financial consulting business spends time with his customers who are investors. The consultation time T with a customer may be represented as a continuous, uniformly distributed random variable with a minimum value of 50 minutes and a maximum value of 183 minutes, he concludes based on the historical data. At T=67 minutes, what is this distribution’s pdf value? 0.9825 0.67 0.47 0.0075 0.33 0.53 Explanation: The correct answer is 0.0075. This value represents the height of the probability density function at T=67T = 67 T = 67 minu...

Q: The forecast monthly revenues for a firm are modeled using a random variable that is distributed according to a normal distribution with mean $850,000 and standard deviation $165,000. What is the probability that revenues will exceed 1 million dollars? Choose the closest answer. or Q: A random variable distributed according to a normal distribution with a mean of $850,000 and a standard deviation of $165,000 is used to represent a company’s anticipated monthly sales. How likely is it that revenues will surpass $1 million? Select the most accurate response. 0.73 0.82 0.50 0.90 0.18 0.27 0.10 Explanation: Thus, the probability that revenues will exceed $1,000,000 is approximately 0.18. This indicates that there is an 18% chance that the firm’s revenues will exceed that threshold in any given month, according to the normal distribution model used for forecasting.

Q: The forecast monthly revenues for a firm are modeled using a random variable that is distributed according to a normal distribution with mean $850,000 and standard deviation $165,000. What is the probability that the revenues will be less than $700,000? Choose the closest numerical answer. or Q: A random variable distributed according to a normal distribution with a mean of $850,000 and a standard deviation of $165,000 is used to represent a company’s anticipated monthly sales. How likely is it that revenues will fall short of $700,000? Select the solution with the closest number. 0.90 0.10 0.50 0.82 0.27 0.73 0.18 Explanation: Thus, the probability that the revenues will be less than $700,000 is approximately 0.18. This indicates that there is an 18% chance that the firm’s revenues will fall below that threshold in any given month, according to the normal distribution model used for forecasting.

Q: The number of shares of a stock traded during a day for a firm is approximated by a random variable that is normally distributed with mean 3192 and standard deviation 1181. Calculate the pdf value at x=3200. or Q: A normally distributed random variable with a mean of 3192 and a standard deviation of 1181 approximates the number of shares of a firm’s stock that are exchanged in a given day. Determine the value of the pdf at x=3200. 0.9997 0.202 0.0003 0.801 0.003 0.502 Explanation: The closest answer is 0.0003. The pdf value indicates how likely it is to observe exactly 32003200 3200 shares traded on a given day, given the normal distribution of shares traded around the mean of 31923192 3192 . Since this value is quite low, it suggests that trading exactly 32003200 3200 shares is relatively rare compared to the distribution of shares traded over many days.

Q: Monte Carlo simulations are useful to include in models when: or Q: It is beneficial to incorporate Monte Carlo simulations into models when: Stakes are high There are many variables with complex interactions A small amount of extra precision is valuable Manual what-if testing isn’t feasible Explanation: The other options can also be relevant, but the key strength of Monte Carlo simulations lies in their ability to manage complex, variable-driven models. Therefore, the most direct answer is There are many variables with complex interactions.

Q: 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? or Q: A big IT consulting firm’s sales section drafts bids and proposals for engagements with businesses considering investing in new information systems. With different numbers of rivals in each scenario and other factors influencing the customers’ decisions, some randomness is involved in this process. They typically receive 20% of the contracts they bid for. What kind of distribution would you use to incorporate a random variable for winning co...

Q: Ignore the setting of Q3 and consider the original problem formulation. One of the senior managers at Hudson Readers believes that the constraint on the net sales increase for the enhanced version severely limits company’s ability to generate the total net sales increase. Suppose that this constraint is ignored, while all other constraints in the original problem formulation remain unchanged. Which of the following statements describes the optimal advertising spending plan in the absence of this constraint? or Q: Consider the original issue formulation and disregard the Q3 setting. According to one of Hudson Readers’ top managers, the company’s capacity to produce a net sales rise in a whole is significantly hampered by the upgraded version’s net sales increase limitation. Assume that this requirement is disregarded and that the original issue formulation’s other constraints stay the same. Without this restriction, which of the following assertions best charac...

Q: Consider the following two ways to allocate the advertising budget: (S1) ASI = 60, ASC = 22, AEI = 3, AEC = 110 (S2) ASI = 55, ASC = 10, AEI = 15, AEC = 115 Which of the following statements is correct: or Q: Take into account the two options listed below for allocating the advertising budget: (S1) AEI = 3, AEC = 110, ASI = 60, and ASC = 22 (S2) AEC = 115, AEI = 15, ASC = 10, and ASI = 55 Out of the following assertions, which is true? Both S1 and S2 are feasible Both S1 and S2 are infeasible S1 is infeasible, and S2 is feasible S1 is feasible, and S2 is infeasible Explanation: If the maximum allowable budget is 195 , then both S1 and S2 are feasible because the total spending does not exceed this amount

Q: Suppose you are working on a project based on some complex data from your firm. You have broken down the 1344 data points that you have into 35 buckets or bins. You are now testing the goodness of fit, using a chi-square test for a distribution that is characterized by 3 parameters. What is the number of degrees of freedom associated with your chi-square test? or Q: Let’s say that you are working on a project that involves some intricate data from your company. The 1344 data points you have are divided into 35 buckets or bins. Using a chi-square test, you are now evaluating the goodness of fit for a distribution with three parameters. How many degrees of freedom are involved in your chi-square test? 1344 31 35 7 2 1340 3 32 Explanation: The number of degrees of freedom associated with your chi-square test is 31.

Q: A snow tire manufacturer believes that a typical set of snow tires lasts on average for 30,000 miles. They also believe that 95% of drivers get between 20,000 and 40,000 miles of use from the tires. What value of σ, the standard deviation, would be needed to make the information above approximately consistent with a Normal distribution model for tire wear? You should use the Empirical Rule to answer this question. or Q: According to a snow tire manufacturer, the average lifespan of a set of snow tires is 30,000 miles. Additionally, 95% of drivers are thought to get between 20,000 and 40,000 miles out of their tires. To make the data above somewhat consistent with a normal distribution model for tire wear, what value of σ, the standard deviation, would be required? To respond to this question, you ought to apply the Empirical Rule. 5,000 20,000 10,000 3,333 Explanation: The value of σ\sigma σ , the standard deviation, that would be needed to make the information approximately consis...

Q: A bank savings account that pays an interest rate based on the balance at the end of each month is an example of None of these or Q: An illustration of this would be a bank savings account that, at the end of each month, pays an interest rate determined by the balance. Not one of these Exponential growth or decay Arithmetic growth Proportionate or geometric growth Constant growth Explanation: Proportionate or geometric growth occurs when a quantity grows by a percentage of its current value. In this case, the interest earned is a percentage of the account balance, leading to compounding growth over time. As the balance increases, the amount of interest earned also increases, resulting in exponential growth.

Q: A new baby thermometer uses an innovative design in which a monitor patch measures a baby’s temperature each second and transfers that reading with a timecode to a smartphone application. This is an example of the use of or Q: A new baby thermometer uses an innovative design in which a monitor patch measures a baby’s temperature each second and transfers that reading with a timecode to a smartphone application. Here’s an illustration of how to utilize Discrete time Constant time Cannot be determined from this information Continuous time Explanation: Continuous-time refers to systems where measurements or readings are taken at every moment (or continuously) over time. In this case, the thermometer measures the baby’s temperature every second and transmits that data continuously to the smartphone app.

Q: The spreadsheet below shows average outside temperature and retail food sales by a street vendor. What’s the relationship between temperature and sales? or Q: The average outside temperature and street vendor retail food sales are displayed in the spreadsheet below. What connection exists between sales and temperature? The correlation is weak The correlation is strong Relationship cannot be determined with this data The correlation is moderate Explanation: To determine the relationship between temperature and sales, we would need to calculate the correlation coefficient between the two variables. The correlation coefficient (typically represented as “r”) tells us the strength and direction of a linear relationship between two variables.

Q: The Data Analysis Toolpak in Excel and Sheets generates random numbers based on what kind of probability distribution: or Q: Excel and Sheets’ Data Analysis Toolpak creates random numbers according to the kind of probability distribution: Discrete Uniform Normal All of these Bernoulli Explanation: Thus, the correct answer is All of these . The Toolpak offers a variety of distributions, allowing users to choose based on the problem they are modeling, including uniform and normal distributions, as well as generating discrete or binary outcomes.

Q: Rand between generates random numbers based on what kind of probability distribution: or Q: Rand between determines what type of probability distribution is used to generate random numbers: Bernoulli Uniform All of these Normal Discrete Explanation: With RANDBETWEEN , each number within the specified range has an equal probability of being selected, which is the defining characteristic of a uniform distribution.

Q: Please check all that apply: Which of the following business scenarios are examples of problems that can be addressed by linear program models? or Q: Please make sure everything is applicable: Which of the following business situations exemplifies an issue that linear program models can solve? Allocating a fixed R&D budget across multiple development projects Planning staffing levels for a call center given uncertain customer demand Setting truck routes for small deliveries Determining mix of economy or coach, business class and first class seats on an airplane Explanation: Linear programming can help optimize how to allocate limited resources (in this case, budget) across competing projects to maximize the return or meet specific objectives. This can also be solved by linear programming, particularly if it’s framed as a transportation problem where the goal is to minimize costs or time while meeting delivery constraints. This involves balancing different seating classes t...

Q: 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. or Q: By attempting every value in a range of model cells, Solver was utilized in the Innovative Speakers scenario to provide the best result. F8:H10 C13:E13 C4:E4 H4 All of these Explanation: Solver requires an objective function to be a single value (e.g., a cell with a formula to maximize, minimize, or set to a specific value). The cell contains the result that the Solver will try to optimize.

Q: 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)? or Q: Using Excel’s Solver tool, which of the following can be the goal of an optimization model for linear programming? Make sure to tick all that apply. Min A specific target value Average Max Random variables Explanation: Solver can minimize an objective, such as minimizing costs or resource use. Solver can maximize an objective, like profit or production output.A specific target value: Solver can be set to achieve an exact value, such as targeting a specific profit or production level.

Q: In a linear programming model, all of the following are examples of variables Solver changes to generate an optimal solution, except: or Q: Examples of variables that the solver modifies to provide an ideal solution in a linear programming model include the following, with the exception of: Allocation of scarce resources Production levels of alternative products How much to purchase of various components from suppliers Profit margin targets Composition of a product Explanation: In a linear programming model, profit margin targets are not typically variables that Solver changes to generate an optimal solution.

Q: In the simulation model shown below, what is the primary purpose of the standard deviation formula in cell H11? or Q: What is the main function of the standard deviation formula in cell H11 of the simulation model below? To help assess risk To add a constraint needed for an optimization function None of these are the primary purpose To select a probability distribution for generating random variables Explanation: The primary purpose of the standard deviation formula in a simulation model is typically to help assess risk .

Q: Which of the following are on an Income Statement? (there can be more than one) or Q: On an income statement, which of the following is true? (more than one may exist.) Cost of Goods Sold Retained Earnings Interest Expense Selling, General, and Administrative Expense Explanation: This reflects the direct costs of producing the goods that a company sells. This represents the cost incurred on borrowed funds. This includes the overhead costs related to selling products and running the business.

Q: Which of the following are on a Balance Sheet? (there can be more than one) or Q: Which of the following are on a Balance Sheet? (more than one may exist.) Retained Earnings Accounts Payable Depreciation Expense Cash Sales Revenue Explanation: This represents the accumulated earnings of a company that have not been distributed to shareholders as dividends. This is a liability account that represents money owed to suppliers for goods and services purchased on credit. This is an asset account that represents the amount of cash a company has on hand or in its bank accounts.

Q: This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls Re-set everything in the spreadsheet. In particular, make sure that the tax rate is 40%, the initial sales volume is 2000, and the R&D costs are $20,000 in years 1 and 2. Check that everything is correctly reset by making sure the NPV = $26,624 and the IRR = 11.5%. Suppose we offer to let customers pay later in the hope that it stimulates more sales. Specifically, suppose customers only pay 80% of the purchase price in the year of the sale (and 20 percent the next year), but that this increases Sales volume per year to 2300 units. What is new Net Present Value of the proposed new product venture? or This question refers to the spreadsheet that we used in our lectures to analyze a New Product Venture. This spreadsheet is titled MODULE 4 – NEW PRODUCT VENTURE – BASE CASE.xls  Reset the spreadsheet in its en...