Quiz architecture 5

Which of the following statements is false?

• Correlation is a measure of the strength of the relationship between two variables

• Correlation values are always positive

• The correlation between two variables can be positive or negative

• The correlation between two independent variables is zero

The Analytic Solver Platform ________ allows you to determine the influence that each uncertain input variable has on an output variable based on the correlation between the input and the output variable.

• Trend chart

• Overlay chart

• Box-whisker chart

• Sensitivity chart

The Analytic Solver Platform ________ allows you to superimpose the frequency distributions of selected output variables in order to compare them.

• Trend chart

• Overlay chart

• Box-whisker chart

• Sensitivity chart

The Flaw of Averages typically results when a single number, the average value, is used in a spreadsheet model to represent an uncertain future quantity.

• True

• False

The average value for an output cell in a deterministic spreadsheet model that uses average values for uncertain input cells is always the same as the average value for the same output cell obtained with a Monte Carlo simulation.

• True

• False

Which of the following statements are true? (Select all that apply.)

• Optimization has been defined as the process of selecting the values of decision variables that minimize or maximize some quantity of interest.

• Optimization started in the area of operations management but it is now used in all areas of business.

• Optimization models are prescriptive because their outcome is a recommendation of what to do.

In an optimization model, decision variables are:

• The unknowns for which the optimization process will find the best values.

• The functions to be maximized or minimized.

• The restrictions or limitations that are either related to technical and practical considerations or they are imposed by managerial policies.

• The parameter values provided by the analyst.

In a linear programming model, both the objective function and the constraints are formulated as linear functions of the decision variables.

• True

• False

What is the goal in the optimization of the transportation problem?

• Find the values of the decision variables that use all supplier capacities.

• Find the decision variable values (i.e., the shipment quantities) that result in the best objective function (i.e., lowest total cost) and satisfy all constraints.

• Find the values of the decision variables that satisfy all the demand constraints.

• None of these.

What does the Excel =SUMPRODUCT(A1:A3, B1:B3) function do?

• Sums each range and multiplies the sums. That is, (A1+A2+A3) * (B1+B2+B3).

• Sums each pair of cells and multiplies each sum. That is, (A1+B1)*(A2+B2)*(A3+B3).

• Multiplies each range and sums the products. That is, (A1*A2*A3)+(B1*B2*B3).

• Multiplies each pair of cells and sums the products. That is, (A1*B1)+(A2*B2)+(A3*B3).