Quiz 1
1st attempt
1) A classification model can be used to predict the future price of gasoline.
- False
Answer: Classification models predict categorical outputs. The price of gasoline is a numerical variable.
2) With modern computers integer programs such as the traveling salesman problem are easily
solved to guaranteed optimality.
- False
Answer: Many Integer programs, including the TSP, cannot be solved to guaranteed optimality when the
problem size gets large.
3) R works by creating new tabs in an Excel workbook.
a. False
Answer: R is a programming analytical tool
4) Which analytical tool is more closely integrated with Excel?
a. XL Miner
5) A professor puts together a spreadsheet that takes grades on multiple assignments before the
final is given. The spreadsheet estimates the grade on the final based on a data set from
previous semester. This can best be described as what type of model?
a. Predictive model
6) Which of the following statements is the best way to differentiate between a prediction model
and a classification model.
a. Predictions models allow all values to be integer numbers, classification models work on
real numbers
7) Sophia is the risk manager for a hedge fund. She is attempting to evaluate the fund’s risk
position by evaluating the possible values for the fund’s investment portfolio at the end of the
next trading day. Many of the fund’s investments are derivatives whose value can be calculated
based on the value of underlying assets such as Treasury Bonds or commodity prices, such as Oil
or Gold. She has developed a probability distribution for the price of each of these assets and
developed a model to calculate the value of the fund’s derivative holdings.
If Sophia wants to develop a probability distribution for the value of the fund’s portfolio so that
she can calculate a confidence interval, her problem can best be modeled as
a. A simulation model
This problem is easily modeled as a stochastic simulation model. For each asset Sophia could
enter the distribution of prices. Her model could then calculate the value of the derivative
investments. Simulating the model would allow her to estimate the probability distribution of
the fund’s value.
This problem is easily modeled as a Monte Carlo simulation model. For each asset Sophia could
enter the distribution of prices. Her model could then calculate the value of the derivative
, investments. Simulating the model would allow her to estimate the probability distribution of
the fund’s value.
8) Joe is a production planner for a contract manufacturer. The company has seen orders increase
significantly over the past several months and they are starting to become capacity constrained.
The company currently has a fixed order backlog for 8 different orders. The time required to
produce each product is variable depending on the quality of the input materials, the skill of the
operators and other random factors. Based on empirical data Joe has a probability distribution
estimate for the time to complete each order.
If Joe wants to estimate the probability that he can complete all orders before the end of the
month, his problem can best be modeled as.
a. A Monte Carlo simulation model
i. The simulation model will allow him to estimate the probability that all jobs can
be completed.
2nd Attempt
Question 1
pts
Operations Research is the application of Management Science to business problems.
True
False
IncorrectQuestion 2
pts
Static Monte Carlo simulation models track the evolution of a system over time
True
False
Static Monte Carlo models typically look at a fixed point in time, they do not have a dynamic time based
component.
Question 3
pts
1st attempt
1) A classification model can be used to predict the future price of gasoline.
- False
Answer: Classification models predict categorical outputs. The price of gasoline is a numerical variable.
2) With modern computers integer programs such as the traveling salesman problem are easily
solved to guaranteed optimality.
- False
Answer: Many Integer programs, including the TSP, cannot be solved to guaranteed optimality when the
problem size gets large.
3) R works by creating new tabs in an Excel workbook.
a. False
Answer: R is a programming analytical tool
4) Which analytical tool is more closely integrated with Excel?
a. XL Miner
5) A professor puts together a spreadsheet that takes grades on multiple assignments before the
final is given. The spreadsheet estimates the grade on the final based on a data set from
previous semester. This can best be described as what type of model?
a. Predictive model
6) Which of the following statements is the best way to differentiate between a prediction model
and a classification model.
a. Predictions models allow all values to be integer numbers, classification models work on
real numbers
7) Sophia is the risk manager for a hedge fund. She is attempting to evaluate the fund’s risk
position by evaluating the possible values for the fund’s investment portfolio at the end of the
next trading day. Many of the fund’s investments are derivatives whose value can be calculated
based on the value of underlying assets such as Treasury Bonds or commodity prices, such as Oil
or Gold. She has developed a probability distribution for the price of each of these assets and
developed a model to calculate the value of the fund’s derivative holdings.
If Sophia wants to develop a probability distribution for the value of the fund’s portfolio so that
she can calculate a confidence interval, her problem can best be modeled as
a. A simulation model
This problem is easily modeled as a stochastic simulation model. For each asset Sophia could
enter the distribution of prices. Her model could then calculate the value of the derivative
investments. Simulating the model would allow her to estimate the probability distribution of
the fund’s value.
This problem is easily modeled as a Monte Carlo simulation model. For each asset Sophia could
enter the distribution of prices. Her model could then calculate the value of the derivative
, investments. Simulating the model would allow her to estimate the probability distribution of
the fund’s value.
8) Joe is a production planner for a contract manufacturer. The company has seen orders increase
significantly over the past several months and they are starting to become capacity constrained.
The company currently has a fixed order backlog for 8 different orders. The time required to
produce each product is variable depending on the quality of the input materials, the skill of the
operators and other random factors. Based on empirical data Joe has a probability distribution
estimate for the time to complete each order.
If Joe wants to estimate the probability that he can complete all orders before the end of the
month, his problem can best be modeled as.
a. A Monte Carlo simulation model
i. The simulation model will allow him to estimate the probability that all jobs can
be completed.
2nd Attempt
Question 1
pts
Operations Research is the application of Management Science to business problems.
True
False
IncorrectQuestion 2
pts
Static Monte Carlo simulation models track the evolution of a system over time
True
False
Static Monte Carlo models typically look at a fixed point in time, they do not have a dynamic time based
component.
Question 3
pts
