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Midterm Exam

Total questions: 25

Worksheet time: 25mins

Name
Class
Date
1.

Two events are mutually exclusive if:

a)

Their probabilities are less than 1.

b)

Their probabilities sum to 1.

c)

Both events cannot occur at the same time.

d)

They contain Every possible outcome of an experiment.

2.

Which of the following distributions is discrete?

a)

Binomial

b)

Exponential

c)

Normal

d)

All of the above

3.

If alpha in exponential smoothing is equal to 1, the forecasts are the same as the naïve model.

a)

True

b)

False

4.

The first step in exponential smoothing forecasting should be to use naïve model.

a)

True

b)

False

5.

For any two statistically independent events, P(A or B) = P(A) + P(B).

a)

True

b)

False

6.

Probability distribution are always based on subjective beliefs about what should happen.

a)

True

b)

False

7.

A numeric description of the outcome of an experiment.

a)

Continuous random variable

b)

Discrete random variable

c)

Random variable

d)

Expected value

8.

Although physical in form, it does not have a physical appearance similar to the real object or situation it represents.

a)

Iconic model

b)

Mathematical model

c)

Analog model

d)

Super model

9.

A representation of a real object or situation.

a)

Problem

b)

Variable

c)

Probability

d)

Model

10.

The probability distribution for a discrete random variable, used to compute the probability of x occurrences over a specified interval.

a)

Normal probability distribution

b)

Poisson probability distribution

c)

Standard normal distribution

d)

Exponential probability distribution

11.

The number of periods one should use in a moving average model may be determined by statistical equations.

a)

True

b)

False

12.

Random variables are numerical values corresponding to each possible outcome of an experiment and are between 0 and 1.

a)

True

b)

False

13.

For a discrete random variable such as Poisson random variable, the expected value is always a nonnegative number.

a)

True

b)

False

14.

Events that have no sample points in common.

a)

Ven diagram

b)

Mutually exclusive events

c)

Joint probability

d)

none of the above

15.

In an exponential smoothing model with

 α=5\alpha=\cdot5   a negative forecast error results in the next period’s forecast being lower than the current forecast.

a)

True

b)

False

16.

If you were to use exponential smoothing with an alpha equals to zero, your forecasts would remain constant from period to period.

a)

True

b)

False

17.

Arrivals at a service facility are generally described by the:

a)

Normal distribution

b)

Binomial distribution

c)

Poisson Distribution

d)

None of the above

18.

The symbol P(AB) denotes a:

a)

Marginal probability

b)

Joint probability

c)

Conditional probability

d)

Classical probability

19.

A time series is a set of data collected at:

a)

Random intervals

b)

Regular intervals

c)

Convenient intervals

d)

All of the above

20.

In a time-series regression model, the dependent variable is sales and the independent variable is:

a)

Price

b)

Seasonality

c)

Trend

d)

Some function of time

21.

In exponential smoothing, the smoothing parameter, , always lies between:

a)

0 and 100

b)

5 and 500

c)

0 and 1

d)

0 and 1000

22.

A physical replica, or representation, of a real object.

a)

Iconic model

b)

Mathematical model

c)

Analog model

d)

Super model

23.

The process of defining the problem, identifying the alternatives, determining the criteria, evaluating the alternatives, and choosing the alternative.

a)

Problem Solving

b)

Decision making

c)

Subjective judgement

d)

Statistical analysis

24.

A continuous probability distribution that is useful in describing the time to complete a task or the time between occurrences of an event.

a)

Normal probability distribution

b)

Poisson probability distribution

c)

Standard normal distribution

d)

Exponential probability distribution

25.

The classical approach to probability theory requires that the total number of possible outcomes be known or calculated and that each of the outcomes be equally likely.

a)

True

b)

False