Deck 9: Building and Using Decision Models

Question 1

Which of the following functions is used when the rate of change in a variable increases or decreases quickly and then levels out,such as with diminishing returns to scale?

A)linear function
B)exponential function
C)power function
D)logarithmic function

Answer 1

logarithmic function

Question 2

The following spreadsheet shows a simple outsourcing decision model of a company that sells shoes.Use the spreadsheet to answer the question(s)below.
How will the formula to calculate A17 be represented in B17?

A)B10 ∗ B14
B)B6 + B10 ∗ B14
C)B7 ∗ B14
D)B6 + B7 ∗ B14

Answer 2

B10 ∗ B14

Question 3

The following spreadsheet shows a simple outsourcing decision model of a company that sells shoes.Use the spreadsheet to answer the question(s)below.
How will the formula to calculate A16 be represented in B16?

A)B10 ∗ B14
B)B6 + B10 ∗ B14
C)B7 ∗ B14
D)B6 + B7 ∗ B14

Answer 3

B6 + B7 ∗ B14

Question 4

The following spreadsheet shows the production and sales data for a particular product.Use the data to answer the question(s)below.
What is the total revenue generated by the product?

A)$7,320,000
B)$4,860,000
C)$12,000,000
D)$3,600,000

Question 5

The following spreadsheet shows the production and sales data for a particular product.Use the data to answer the question(s)below.
What is the total cost of the product?

A)$7,320,000
B)$4,580,000
C)$3,600,000
D)$12,030,000

Question 6

What is the maximum number of variables that the Excel Scenario Manager can handle?

A)32
B)24
C)48
D)40

Question 7

Excel includes an add-in called ________ to find optimal solutions to optimization problems formulated as spreadsheet models.

A)Goal Seek
B)Scenario Manager
C)Consolidator
D)Solver

Question 8

The following spreadsheet shows a simple outsourcing decision model of a company that sells shoes.Use the spreadsheet to answer the question(s)below.
What is the total manufacturing cost incurred by the company?

A)$525,000
B)$675,000
C)$600,000
D)$450,000

Question 9

The following spreadsheet shows the production and sales data for a particular product.Use the data to answer the question(s)below.
What is the profit generated by the company?

A)$280,000
B)$980,000
C)$1,260,000
D)$540,000

Question 10

The Excel ________ tool allows the creation of sets of values that are saved and can be substituted automatically on the worksheet.

A)Data Table
B)Scenario Manager
C)Goal Seek
D)Auto Outline

Question 11

The following spreadsheet shows the production and sales data for a particular product.Use the data to answer the question(s)below.
Mr.Wilson drives his car to work.He drives to work 20 days per month and 12.4 miles per day.If his car gets 24.0 miles per gallon in fuel economy,how many gallons of fuel are consumed per month?

A)38.7 gallons
B)14.9 gallons
C)10.3 gallons
D)3.56 gallons

Question 12

Which of the following is considered a decision variable?

A)customer demand
B)investment returns
C)staffing level
D)inflation rate

Question 13

Which of the following is considered an uncontrollable variable?

A)staffing level
B)inflation rate
C)production quantity
D)investment allocation

Question 14

The following spreadsheet shows the production and sales data for a particular product.Use the data to answer the question(s)below.
How will the formula to calculate A10 be represented in B10?

A)B3 ∗ B4
B)B7 ∗ B8
C)B7 + B3 ∗ B4
D)B7 + B8 ∗ B9

Question 15

Which of the following functions defines phenomena that increase at a specific rate?

A)linear function
B)polynomial function
C)power function
D)logarithmic function

Question 16

Revenue models that incorporate price elasticity are most likely to be ________.

A)linear functions
B)polynomial functions
C)power functions
D)logarithmic functions

Question 17

What is the value of the breakeven volume?

A)214
B)60
C)500
D)1500

Question 18

The following spreadsheet shows a simple outsourcing decision model of a company that sells shoes.Use the spreadsheet to answer the question(s)below.
What is the total outsourcing cost incurred by the company?

A)$525,000
B)$675,000
C)$600,000
D)$450,000

Question 19

Which of the following best defines heuristics?

A)They are data charts that evaluate an output variable over a range of values for two different input variables.
B)They are sets of values that are saved and substituted automatically on the worksheet.
C)They are limitations,requirements,or other restrictions that are imposed on any solution.
D)They are solution procedures that generally find good solutions without guarantees of finding an optimal solution.

Question 20

________ are data that are assumed to be constant for purposes of the model.

A)Investment returns
B)Inflation rates
C)Machine capacities
D)Production quantities

Question 21

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is Trance Electronics' market share in the fifth year?

A)12.25%
B)15.74%
C)10.35%
D)13.69%

Question 22

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
In which year has Trance Electronics generated the highest profit?

A)second year
B)fifth year
C)third year
D)first year

Question 23

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the quantity of sales generated in the third year?

A)514,950
B)736,592
C)360,000
D)615,880

Question 24

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the cumulative net profit generated at the end of the third year?

A)$(696,400,000)
B)$(494,942,298)
C)$1,270,950,988
D)$153,894,400

Question 25

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the profit generated by the company at the end of the fourth year?

A)$648,836,698
B)$928,106,394
C)$776,008,690
D)$542,505,600

Question 26

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the cumulative net profit generated at the end of the first year?

A)$(153,894,400)
B)$1,270,950,988
C)$2,199,057,382
D)$(696,400,000)

Question 27

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the size of the market in the second year?

A)4,326,400
B)4,679,434
C)4,499,456
D)4,160,000

Question 28

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the quantity of sales generated in the fifth year?

A)360,000
B)736,592
C)514,950
D)615,880

Question 29

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the annual cost incurred at the end of the fifth year?

A)$662,933,138
B)$387,504,000
C)$554,291,922
D)$463,454,784

Question 30

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
In which year has the company generated the lowest profit?

A)fifth year
B)second year
C)third year
D)first year

Question 31

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the cumulative net profit generated at the end of the fifth year?

A)$2,199,057,382
B)$1,270,950,988
C)$(696,400,000)
D)$(153,894,400)

Question 32

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the annual cost incurred at the end of the third year?

A)$554,291,922
B)$387,504,000
C)$463,454,784
D)$662,933,138

Question 33

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the total project cost incurred by Trance Electronics?

A)$450,000,000
B)$1,150,000,000
C)$650,000,000
D)$1,400,000,000

Question 34

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the quantity of sales generated in the first year?

A)615,880
B)430,560
C)736,592
D)360,000

Question 35

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the profit generated by the company at the end of the second year?

A)$453,600,000
B)$776,008,690
C)$542,505,600
D)$648,836,698

Question 36

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the annual cost incurred at the end of the first year?

A)$463,454,784
B)$324,000,000
C)$554,291,922
D)$387,504,000

Question 37

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the total revenue generated at the end of the fourth year?

A)$1,330,300,612
B)$1,112,291,482
C)$930,009,600
D)$1,591,039,532

Question 38

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the size of the market in the fourth year?

A)4,326,400
B)4,679,434
C)4,499,456
D)4,160,000

Question 39

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the total revenue generated at the end of the second year?

A)$1,330,300,612
B)$1,112,291,482
C)$930,009,600
D)$777,600,000

Question 40

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is Trance Electronics' market share in the third year?

A)15.74%
B)11.90%
C)10.35%
D)13.69%

Question 41

The following spreadsheet illustrates a newsvendor model.Use the spreadsheet to answer the question(s)below.
How will the formula to calculate A17 be represented in B17?

A)B14 B5 + B15 B7 - B12 B6
B)B14 B7 + B15 B4 - B12 B6
C)B12 B6 + B15 B7 - B14 B5
D)B15 B7 + B12 B5 - B14 B6

Question 42

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the early start time for Activity M?

A)110
B)84
C)76
D)89

Question 43

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the latest start time for Activity J?

A)84
B)79
C)110
D)105

Question 44

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the early finish time for Activity I?

A)76
B)68
C)84
D)106

Question 45

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the value of slack for Activity Q?

A)135
B)0
C)142
D)7

Question 46

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the value of slack for Activity C?

A)25
B)40
C)15
D)55

Question 47

The following spreadsheet shows demand and booking data for Toretto Car Rentals.Use the spreadsheet to answer the question(s)below.
What is the total number of reservations made?

A)80
B)70
C)10
D)75

Question 48

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the latest start time for Activity P?

A)135
B)139
C)131
D)127

Question 49

The following spreadsheet shows demand and booking data for Toretto Car Rentals.Use the spreadsheet to answer the question(s)below.
What is the net revenue generated by Toretto Car Rentals?

A)$3,200
B)$2,800
C)$2,200
D)$1,750

Question 50

The following spreadsheet illustrates a newsvendor model.Use the spreadsheet to answer the question(s)below.
What is the total profit generated?

A)$357
B)$1341
C)$489
D)$612

Question 51

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the early finish time for Activity O?

A)95
B)129
C)113
D)97

Question 52

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the latest finish time for Activity I?

A)76
B)110
C)84
D)105

Question 53

The following spreadsheet illustrates a newsvendor model.Use the spreadsheet to answer the question(s)below.
What is the surplus quantity of the product available?

A)3
B)60
C)57
D)117

Question 54

The following spreadsheet shows demand and booking data for Toretto Car Rentals.Use the spreadsheet to answer the question(s)below.
What is the total number of customer arrivals?

A)80
B)70
C)55
D)65

Question 55

The following spreadsheet shows demand and booking data for Toretto Car Rentals.Use the spreadsheet to answer the question(s)below.
What is the total number of overbooked customers?

A)0
B)10
C)15
D)25

Question 56

The following spreadsheet shows demand and booking data for Toretto Car Rentals.Use the spreadsheet to answer the question(s)below.
How will the formula to calculate A18 be represented in B18?

A)MIN(B15,B5)∗ B6 - B16 ∗ B7
B)MAX(B15,B5)∗ B6 - B16 ∗ B7
C)MIN(B15,B5)∗ B6 + B16 ∗ B7
D)MAX(B15,B5)∗ B6 + B16 ∗ B7

Question 57

The following spreadsheet illustrates a newsvendor model.Use the spreadsheet to answer the question(s)below.
What is the quantity of the product sold?

A)3
B)60
C)57
D)117

Question 58

The following spreadsheet shows financial data for Trance Electronics.Use the spreadsheet to answer the question(s)below.
What is the net present value of the company?

A)$975,567,800
B)$3,867,334,190
C)$1,700,178,021
D)$2,246,145,678

Question 59

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the early start time for Activity F?

A)15
B)40
C)4
D)22

Question 60

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the latest finish time for Activity M?

A)115
B)110
C)105
D)113

Question 61

What is the total balance at the age of 32?

A)$46,602
B)$88,238
C)$105,982
D)$72,566

Question 62

What is the employee's salary at the age of 28?

A)$53,529
B)$47,641
C)$42,400
D)$63,754

Question 63

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
What is the project completion time?

A)135
B)142
C)131
D)110

Question 64

What is the employee contribution at the age of 49?

A)$12,829
B)$9,586
C)$13,598
D)$16,196

Question 65

Two-way data tables can only evaluate one output variable.

Question 66

What is the total balance at the age of 38?

A)$148,663
B)$202,830
C)$271,210
D)$126,036

Question 67

Investment allocations are considered uncontrollable variables in a decision model.

Question 68

Below is a spreadsheet designed to calculate the project completion time.Use the spreadsheet to answer the following question(s).
Which of the following formulas is used to compute the slack for an activity?

A)latest start - activity time
B)latest finish - early finish
C)latest finish - activity time
D)latest start - early start

Question 69

For small volumes,the cost to manufacture in-house will be lower than outsourcing.

Question 70

What is the employer contribution at the age of 40?

A)$4,351
B)$5,494
C)$3,068
D)$2,730

Question 71

In an outsourcing decision model,the total purchased cost is the product of the unit cost of outsourcing and demand volume.

Question 72

What is the employer contribution at the age of 27?

A)$1,438
B)$1,925
C)$2,292
D)$1,280

Question 73

What is the employee contribution at the age of 33?

A)$6,375
B)$4,764
C)$8,049
D)$5,353

Question 74

What is the employee's salary at the age of 45?

A)$161,957
B)$144,141
C)$128,285
D)$107,711