Question 1

What are three types of Risk Solver Platform charts used to obtain multiple simulation results?

Accepted Answer

The overlay chart feature allows you to

Question 2

Monte Carlo sampling differs from Latin Hypercube sampling in that the Monte Carlo sampling ________.

Accepted Answer

A) results in a more even distribution of output values 
B) uses the entire range of the distribution in a more consistent manner 
C) selects random variates independently over the entire range of possible values of the distribution 
D) uses an uncertain variable whose probability distribution is divided into intervals of equal probability 
A) results in a more even distribution of output values 
B) uses the entire range of the distribution in a more consistent manner 
C) selects random variates independently over the entire range of possible values of the distribution 
D) uses an uncertain variable whose probability distribution is divided into intervals of equal probability

Question 3

Use the information below to answer the following question(s).
Below is a spreadsheet for Trance Electronics.
   
Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows:
 : normal with mean of 2,000,000 units and standard deviation of 400,000 units.
 : uniform between $600,000,000 and $800,000,000.
 : lognormal with mean of $150,000,000 and standard deviation $30,000,000.
 : triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
 : triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim.Random Seed of 2.Run the simulation and answer the following questions using the Risk Solver Platform.
-What is the correlation of the R&D cost with the NPV with reference to the sensitivity chart?

Accepted Answer

A) -0.361 
B) 0.028 
C) 0.908 
D) -0.194 
A) -0.361 
B) 0.028 
C) 0.908 
D) -0.194

Question 4

Answer the following question(s)using the Risk Solver Platform (5000 trials per simulation).
Consider the spreadsheet for a Newsvendor Model.
  
-What is the value of mean profit?

Accepted Answer

A) $255.90 
B) $251.45 
C) $245.98 
D) $264.00 
A) $255.90 
B) $251.45 
C) $245.98 
D) $264.00

Question 5

How does the Risk Solver Platform define an uncertain function cell?

Accepted Answer

A) It is a cell that contains a triangular distribution function. 
B) It is a cell in which a distribution of output values is created from the model. 
C) It is a cell in which an uncertain variable is used to define a distribution. 
D) It is a cell that can only be defined by discrete distributions. 
A) It is a cell that contains a triangular distribution function. 
B) It is a cell in which a distribution of output values is created from the model. 
C) It is a cell in which an uncertain variable is used to define a distribution. 
D) It is a cell that can only be defined by discrete distributions.

Question 6

As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the more precise is the result.

Accepted Answer

A) True 
 B)False

Question 7

Use the information below to answer the following question(s).
Below is a spreadsheet for Trance Electronics.
   
Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows:
 : normal with mean of 2,000,000 units and standard deviation of 400,000 units.
 : uniform between $600,000,000 and $800,000,000.
 : lognormal with mean of $150,000,000 and standard deviation $30,000,000.
 : triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
 : triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim.Random Seed of 2.Run the simulation and answer the following questions using the Risk Solver Platform.
-What are the chances that the product will show a cumulative net profit in the fourth year?

Accepted Answer

A) approximately 25% 
B) approximately 18% 
C) approximately 11% 
D) approximately 32% 
A) approximately 25% 
B) approximately 18% 
C) approximately 11% 
D) approximately 32%

Question 8

If a simulation has multiple output variables that are related to one another, the distributions of all output variables can be viewed on a single Risk Solver Platform chart called a(n)________.

Accepted Answer

A) trend chart 
B) sensitivity chart 
C) overlay chart 
D) box-whisker chart 
A) trend chart 
B) sensitivity chart 
C) overlay chart 
D) box-whisker chart

Question 9

Use the information below to answer the following question(s).
Consider the following spreadsheet for an outsourcing decision model.
 $$\begin{array} { | l | l | l | } 
\hline 1 & \ { \text { A } } & \text { B } \
\hline 2 & \text { Outsourcing Decision Model } & \
\hline 3 & \text { Data } & \
\hline 4 & & \
\hline 5 & \text { Manufactured in-house } & \
\hline 6 & \text { Fixed cost } & \$ 60,000 \
\hline 7 & \text { Unit variable cost } & \$ 130 \
\hline 8 & & \
\hline 9 & \text { Purchased from supplier } & \
\hline 10 & \text { Unit cost } & \$ 180 \
\hline 11 & & \
\hline 12 & \text { Demand volume } & \$ 1,600 \
\hline 13 & & \
\hline 14 & \text { Model } & \
\hline 15 & & \
\hline 16 & \text { Total manufacturing cost } & \
\hline 17 & \text { Total purchased cost } & \
\hline 18 & & \
\hline 19 & \text { Difference } & \
\hline 20 & \text { Decision } & \
\hline
\end{array}$$ 
We assume that the production (demand)volume is normally distributed with a mean of 1,000 and a standard deviation of 100.For the unit cost, select the triangular distribution.It has a minimum value of $150, most likely value of $165, and a maximum value of $190.The number of trials per simulation is equal to 5,000 at a Sim.Random Seed of 1.Run the simulation and answer the following question(s)using the Risk Solver Platform.
-What is the value of mode obtained from the simulation results?

Accepted Answer

A) $28,435 
B) $26,287 
C) $27,198 
D) $25,394 
A) $28,435 
B) $26,287 
C) $27,198 
D) $25,394

Question 10

Latin Hypercube sampling differs from Monte Carlo sampling in that the Latin Hypercube sampling ________.

Accepted Answer

A) selects random variates independently over the entire range of possible values of the distribution 
B) uses an uncertain variable whose probability distribution is divided into intervals of equal probability 
C) is used for evaluating the model performance under various what-if scenarios 
D) achieves less accurate forecast statistics for a fixed number of trials 
A) selects random variates independently over the entire range of possible values of the distribution 
B) uses an uncertain variable whose probability distribution is divided into intervals of equal probability 
C) is used for evaluating the model performance under various what-if scenarios 
D) achieves less accurate forecast statistics for a fixed number of trials

What are three types of Risk Solver Platform charts used to obtain multiple simulation results?

Monte Carlo sampling differs from Latin Hypercube sampling in that the Monte Carlo sampling ________.

Answer the following question(s)using the Risk Solver Platform (5000 trials per simulation). Consider the spreadsheet for a Newsvendor Model. -What is the value of mean profit?

How does the Risk Solver Platform define an uncertain function cell?

As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the more precise is the result.

If a simulation has multiple output variables that are related to one another, the distributions of all output variables can be viewed on a single Risk Solver Platform chart called a(n)________.

Latin Hypercube sampling differs from Monte Carlo sampling in that the Latin Hypercube sampling ________.

Introduction to Business Analytics

Analytics on Spreadsheets

Visualizing and Exploring Data

Descriptive Statistical Measures

Probability Distributions and Data Modeling

Sampling and Estimation

Statistical Inference

Predictive Modeling and Analysis

Regression Analysis

Forecasting Techniques

Introduction to Data Mining

Linear Optimization

Applications of Linear Optimization

Integer Optimization

Nonlinear and Non-Smooth Optimization

Optimization Models with Uncertainty

Decision Analysis

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Exam 11: Simulation and Risk Analysis

What are three types of Risk Solver Platform charts used to obtain multiple simulation results?

Monte Carlo sampling differs from Latin Hypercube sampling in that the Monte Carlo sampling ________.

Answer the following question(s)using the Risk Solver Platform (5000 trials per simulation). Consider the spreadsheet for a Newsvendor Model. -What is the value of mean profit?

How does the Risk Solver Platform define an uncertain function cell?

As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the more precise is the result.

If a simulation has multiple output variables that are related to one another, the distributions of all output variables can be viewed on a single Risk Solver Platform chart called a(n)________.

Latin Hypercube sampling differs from Monte Carlo sampling in that the Latin Hypercube sampling ________.

Introduction to Business Analytics

Analytics on Spreadsheets

Visualizing and Exploring Data

Descriptive Statistical Measures

Probability Distributions and Data Modeling

Sampling and Estimation

Statistical Inference

Predictive Modeling and Analysis

Regression Analysis

Forecasting Techniques

Introduction to Data Mining

Linear Optimization

Applications of Linear Optimization

Integer Optimization

Nonlinear and Non-Smooth Optimization

Optimization Models with Uncertainty

Decision Analysis

Filters