Question 1. Which of the following ways would × /100 - 73 be represented in an Excel spreadsheet?
10(2) * 5(3) / 100 ^ 73
10(2) ^ 5(3) / 100 - 73
10^2 * 5^3 / 100 - 73
10*2 ^ 5*3 / 100 - 73

Question 2.  Monte Carlo sampling differs from Latin Hypercube sampling in that the Monte Carlo sampling:
results in a more even distribution of output values.
uses the entire range of the distribution in a more consistent manner.
selects random variates independently over the entire range of possible values of the distribution.
uses an uncertain variable whose probability distribution is divided into intervals of equal probability.

Question 3.  Which of the following inputs of a decision model is an example of data?
Estimated consumer demand
Inflation rates
Costs
Investment allocations

Question 4.  Descriptive decision models:

aim to predict what will happen in the future.
do not tell a manager what to do.
help analyze the risks associated with various decisions.
do not facilitate evaluation of different decisions.

Question 5.  Which of the following symbols is used to represent exponents in Excel?
^
*
#
!

Question 6.  Following are the components of a data set containing purchase details of a shoe manufacturing company. Identify the ratio data.
Item Number
Rank of suppliers
Item cost
Arrival Date

Question 7.  During which phase in problem solving is a formal model often developed?
Analyzing the problem
Structuring the problem
Defining the problem
Implementing the solution

Question 8.  Which of the following is necessary to calculate the variable cost of production for the company to develop a profit model?
Unit sale price
Quantity of item produced
Quantity of item sold
Fixed cost of production

Question 9.  When will a company use a predictive decision model?
When it wishes to determine the best product pricing to maximize revenue.
When it wishes to know how best to use advertising strategies to influence sales.
When it wishes to know sales patterns to plan inventory levels.
When it wishes to ensure that a specified level of customer service is achieved.

Question 10.  The demand for coffee beans over a period of three months has been represented in the form of an L-shaped curve. Which form of model was used here?
Mathematical model
Visual model
Kinesthetic model
Verbal model

Question 11.  Prescriptive decision models help:
Make predictions of how demand is influenced by price.
Make trade-offs between greater rewards and risks of potential losses.
Decision makers identify the best solution to decision problems.
Describe relationships and influence of various elements in the model.

Question 12.  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.
association
reduction
cause-and-effect modeling
classification

Question 13.  In the cause-and-effect modeling, internal metrics, such as employee satisfaction, productivity, and turnover are considered to be ________ measures.
logit
life
leading
lagging

Question 14.  In the ________ method, the distance between groups is defined as the distance between the closest pair of objects, where only pairs consisting of one object from each group are considered.
Ward's linkage clustering
single linkage clustering
divisive clustering
average group linkage clustering

Question 15.  Which of the following is true of hierarchical clustering?
All clusters must have the same number of data.
No single cluster can have all objects
The data are not partitioned into a particular cluster in a single step.
All clusters must have more than one object in it.

Question 16.  Which of the following typically describes the support for the association rule?
The number of transactions that include all items that are in the antecedent parts of the rule
The number of transactions that include all items in the antecedent and consequent parts of the rule
The number of transactions that include half from the antecedent and half from the consequent
The number of transactions that include all items that are in the consequent parts of the rule

Question 17.  Which of the following is true of cluster analysis?
It is a cause-and-modeling type of analytic model.
It does not provide a definitive answer from analyzing the data.
It is primarily a prescriptive analytical method.
It uses clustered data that are not affected by the specific method used.

Question 18.  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?

Association

Cause-and-effect modeling
Classification
Reduction

Question 19.  ________ is a data-mining technique used for classifying a set of observations into predefined classes.
Logistic regression
k-Nearest Neighbors algorithm
Discriminant analysis
Linear regression

Question 20.  Which of the following would be considered a lagging measure in a restaurant using the cause-and-modeling method of data mining?
A manager who is having trouble meeting the daily demands
A waiter's behavior toward a customer
An accurately billed meal
A satisfied customer

Question 21.  Which of the following is true of random partitioning?
It cannot be used for creating training data sets.
It can contain any non-negative value from the observations.
It can include negative-value observations in its data.
It selects its data based on observations that have similar properties.

Question 22.  Divisive clustering method is different from agglomerative clustering methods in that divisive clustering methods:
can only have a pair of subjects in each cluster.
separate objects into a particular cluster in one step.
separate n objects successively into finer groupings.
can only have a single subject in each cluster.

Question 23.  Uniform or triangular distributions are used in the absence of data.
True
False

Question 24.  A normal distribution has a limited range and can be skewed in either direction.
True
False

Question 25.  Monte Carlo simulation is an inappropriate tool to analyze cash budgets because of the inherent uncertainty of the sales forecasts on which most cash budgets are based.
True
False