Question 1

RISKSIMTABLE is a function in @RISK for running several simulations simultaneously,one for each setting of an input or decision variable.

Accepted Answer

A) True 
 B)False

Question 2

A random number from a binomial distribution indicates the number of successes in a certain number of identical trials.

Accepted Answer

A) True 
 B)False

Question 3

The deterministic (non-simulation)approach,using best guesses for the uncertain inputs,is

Accepted Answer

A) better to use in complicated real-world applications. 
B) a good estimate of what the answer will be using a simulation approach. 
C) generally not the appropriate model. 
D) the preferred approach when there is correlation between input variables. 
A) better to use in complicated real-world applications. 
B) a good estimate of what the answer will be using a simulation approach. 
C) generally not the appropriate model. 
D) the preferred approach when there is correlation between input variables.

Question 4

The flaw of averages is the reason deterministic models can be very misleading.

Accepted Answer

A) True 
 B)False

Question 5

One of the primary advantages of simulation models is that they enable managers to answer what-if questions about changes in systems without actually changing the systems themselves.

Accepted Answer

A) True 
 B)False

Question 6

The "random" numbers generated by the RAND function (or by any other package's random number generator)are not really random.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is correct regarding the graph of a discrete probability distribution?

Accepted Answer

A) It is a series of spikes. 
B) The height of each spike is the probability of the corresponding value. 
C) There is an empty space between adjacent spikes. 
D) All of these statements are correct. 
A) It is a series of spikes. 
B) The height of each spike is the probability of the corresponding value. 
C) There is an empty space between adjacent spikes. 
D) All of these statements are correct.

Question 8

Suppose you run a simulation model several times with different order quantities.What can we infer about the quantity that maximizes the output,the company's profit?

Accepted Answer

A) This quantity is the optimal order quantity. 
B) This quantity might be the optimal order quantity,but we also need to consider the company's attitude toward risk. 
C) This is not necessarily the optimal order quantity,because it may have produced the largest profit by luck. 
D) We cannot infer anything about the quantity. 
A) This quantity is the optimal order quantity. 
B) This quantity might be the optimal order quantity,but we also need to consider the company's attitude toward risk. 
C) This is not necessarily the optimal order quantity,because it may have produced the largest profit by luck. 
D) We cannot infer anything about the quantity.

Question 9

Which of the following statements are false regarding the graph of a continuous probability distribution?

Accepted Answer

A) It is characterized by a density function,a smooth curve. 
B) It is a series of spikes. 
C) The height of the density curve above any point is not actually a probability-that is,it is not necessarily between 0 and 1. 
D) Heights above the density function indicate relative likelihoods but are not necessarily values between 0 and 1. 
A) It is characterized by a density function,a smooth curve. 
B) It is a series of spikes. 
C) The height of the density curve above any point is not actually a probability-that is,it is not necessarily between 0 and 1. 
D) Heights above the density function indicate relative likelihoods but are not necessarily values between 0 and 1.

Question 10

If you add several normally distributed random numbers,the result is normally distributed,where the mean of the sum is the sum of the individual means,and the variance of the sum is the sum of the individual variances.This result is difficult to prove mathematically,but it is easy to demonstrate with simulation.To do so,run a simulation where you add three normally distributed random numbers,each with mean 100 and standard deviation 10.Your single output variable should be the sum of these three numbers.Verify with @RISK that the distribution of this output is approximately normal with mean 300 and variance 300 (hence,standard deviation = 17.32).

Accepted Answer

@#IMG-DLM& The above output distribution

Question 11

Which statement is true regarding the triangular distribution?

Accepted Answer

A) It is a discrete distribution with the minimum and maximum and most likely values. 
B) It is more flexible and intuitive than the normal distribution. 
C) It is a skewed right distribution. 
D) It is a skewed left distribution. 
A) It is a discrete distribution with the minimum and maximum and most likely values. 
B) It is more flexible and intuitive than the normal distribution. 
C) It is a skewed right distribution. 
D) It is a skewed left distribution.

Question 12

Which of the following statements are false?

Accepted Answer

A) A probability distribution is discrete if it has a finite number of possible values. 
B) A probability distribution is continuous if its possible values fall along some continuum. 
C) An example of a discrete probability distribution is the amount of rain that falls during the month of June in Michigan. 
D) An example of a continuous distribution is the amount of time it takes for a person calling into a call center to reach a representative. 
A) A probability distribution is discrete if it has a finite number of possible values. 
B) A probability distribution is continuous if its possible values fall along some continuum. 
C) An example of a discrete probability distribution is the amount of rain that falls during the month of June in Michigan. 
D) An example of a continuous distribution is the amount of time it takes for a person calling into a call center to reach a representative.

Question 13

Which of the following statements are true?

Accepted Answer

A) A probability distribution is symmetric (around some point)if the distribution to the left of the point is a mirror image of the distribution to the right of the point. 
B) We say a distribution is skewed to the right (or positively skewed)if the "longer tail" is the right tail. 
C) We say a distribution is skewed to the left (or negatively skewed)if the "longer tail" is the left tail. 
D) All of these choices are correct. 
A) A probability distribution is symmetric (around some point)if the distribution to the left of the point is a mirror image of the distribution to the right of the point. 
B) We say a distribution is skewed to the right (or positively skewed)if the "longer tail" is the right tail. 
C) We say a distribution is skewed to the left (or negatively skewed)if the "longer tail" is the left tail. 
D) All of these choices are correct.

Question 14

A correlation matrix must always be symmetric,so that the correlations above the diagonal are a mirror image of those below it.

Accepted Answer

A) True 
 B)False

Question 15

When we run simulation,the @RISK automatically keeps statistics such as averages and standard deviations,and can also create graphs such as histograms based on the values generated in the output cells in the simulation model.

Accepted Answer

A) True 
 B)False

Question 16

If a model contains uncertain outputs,it can be very misleading to build a deterministic model by using the means of the inputs to predict an output.This is called the

Accepted Answer

A) Law of Large Numbers. 
B) Flaw of Averages. 
C) Law of Inevitable Disappointment. 
D) Central Limit Theorem. 
A) Law of Large Numbers. 
B) Flaw of Averages. 
C) Law of Inevitable Disappointment. 
D) Central Limit Theorem.

Question 17

A primary difference between standard spreadsheet models and simulation models is that at least one of the input variable cells in a simulation model contains random numbers.

Accepted Answer

A) True 
 B)False

Question 18

A common guideline in constructing confidence intervals for the mean is to place upper and lower bounds one standard error on either side of the average to obtain an approximate 95% confidence interval.

Accepted Answer

A) True 
 B)False

Question 19

Data tables in spreadsheet simulations are useful for taking a "prototype" simulation and replicating its key results a desired number of times.

Accepted Answer

A) True 
 B)False

Question 20

The binomial distribution is a discrete distribution that is applied to situations where n independent and identical "trials" occur,with each trial resulting in a "success" or "failure," and where we want to generate the random number of successes in the n trials.

Accepted Answer

A) True 
 B)False

RISKSIMTABLE is a function in @RISK for running several simulations simultaneously,one for each setting of an input or decision variable.

A random number from a binomial distribution indicates the number of successes in a certain number of identical trials.

The deterministic (non-simulation)approach,using best guesses for the uncertain inputs,is

The flaw of averages is the reason deterministic models can be very misleading.

One of the primary advantages of simulation models is that they enable managers to answer what-if questions about changes in systems without actually changing the systems themselves.

The "random" numbers generated by the RAND function (or by any other package's random number generator)are not really random.

Which of the following statements is correct regarding the graph of a discrete probability distribution?

Suppose you run a simulation model several times with different order quantities.What can we infer about the quantity that maximizes the output,the company's profit?

Which of the following statements are false regarding the graph of a continuous probability distribution?

Which statement is true regarding the triangular distribution?

Which of the following statements are false?

Which of the following statements are true?

A correlation matrix must always be symmetric,so that the correlations above the diagonal are a mirror image of those below it.

When we run simulation,the @RISK automatically keeps statistics such as averages and standard deviations,and can also create graphs such as histograms based on the values generated in the output cells in the simulation model.

If a model contains uncertain outputs,it can be very misleading to build a deterministic model by using the means of the inputs to predict an output.This is called the

A primary difference between standard spreadsheet models and simulation models is that at least one of the input variable cells in a simulation model contains random numbers.

A common guideline in constructing confidence intervals for the mean is to place upper and lower bounds one standard error on either side of the average to obtain an approximate 95% confidence interval.

Data tables in spreadsheet simulations are useful for taking a "prototype" simulation and replicating its key results a desired number of times.

The binomial distribution is a discrete distribution that is applied to situations where n independent and identical "trials" occur,with each trial resulting in a "success" or "failure," and where we want to generate the random number of successes in the n trials.

Introduction to Business Analytics

Describing the Distribution of a Variable

Finding Relationships Among Variables

Business Intelligence Bifor Data Analysis

Probability and Probability Distributions

Decision Making Under Uncertainty

Sampling and Sampling Distributions

Confidence Interval Estimation

Hypothesis Testing

Regression Analysis: Estimating Relationships

Regression Analysis: Statistical Inference

Time Series Analysis and Forecasting

Introduction to Optimization Modeling

Optimization Models

Simulation Models

Data Mining

Analysis of Variance and Experimental Design

Statistical Process Control

Filters

Exam 15: Introduction to Simulation Modeling

RISKSIMTABLE is a function in @RISK for running several simulations simultaneously,one for each setting of an input or decision variable.

A random number from a binomial distribution indicates the number of successes in a certain number of identical trials.

The deterministic (non-simulation)approach,using best guesses for the uncertain inputs,is

The flaw of averages is the reason deterministic models can be very misleading.

One of the primary advantages of simulation models is that they enable managers to answer what-if questions about changes in systems without actually changing the systems themselves.

The "random" numbers generated by the RAND function (or by any other package's random number generator)are not really random.

Which of the following statements is correct regarding the graph of a discrete probability distribution?

Suppose you run a simulation model several times with different order quantities.What can we infer about the quantity that maximizes the output,the company's profit?

Which of the following statements are false regarding the graph of a continuous probability distribution?

Which statement is true regarding the triangular distribution?

Which of the following statements are false?

Which of the following statements are true?

A correlation matrix must always be symmetric,so that the correlations above the diagonal are a mirror image of those below it.

When we run simulation,the @RISK automatically keeps statistics such as averages and standard deviations,and can also create graphs such as histograms based on the values generated in the output cells in the simulation model.

If a model contains uncertain outputs,it can be very misleading to build a deterministic model by using the means of the inputs to predict an output.This is called the

A primary difference between standard spreadsheet models and simulation models is that at least one of the input variable cells in a simulation model contains random numbers.

A common guideline in constructing confidence intervals for the mean is to place upper and lower bounds one standard error on either side of the average to obtain an approximate 95% confidence interval.

Data tables in spreadsheet simulations are useful for taking a "prototype" simulation and replicating its key results a desired number of times.

The binomial distribution is a discrete distribution that is applied to situations where n independent and identical "trials" occur,with each trial resulting in a "success" or "failure," and where we want to generate the random number of successes in the n trials.

Introduction to Business Analytics

Describing the Distribution of a Variable

Finding Relationships Among Variables

Business Intelligence Bifor Data Analysis

Probability and Probability Distributions

Decision Making Under Uncertainty

Sampling and Sampling Distributions

Confidence Interval Estimation

Hypothesis Testing

Regression Analysis: Estimating Relationships

Regression Analysis: Statistical Inference

Time Series Analysis and Forecasting

Introduction to Optimization Modeling

Optimization Models

Simulation Models

Data Mining

Analysis of Variance and Experimental Design

Statistical Process Control

Filters