CAP EXAM QUESTIONS AND ANSWER
(CERTIFIED ANALYTICS)
Which of the following analytical techniques is the MOST appropriate one to solve
this problem?
a)Optimization
b)Multiple regression
c)Data mining
d)Forecasting - Answer-a
10. You have simulated the net present value (NPV) of a decision. It ranges between
-$10 million and +$10 million. To BEST present the likelihood of possible outcomes,
you should:
a)present a single NPV estimate to avoid confusion.
b)present a histogram to show likelihood of various NPV ranges.
c)trim all outliers to present the most balanced diagram.
d)relax constraints associated with extreme points in the simulation. - Answer-b
A company ships products from a single dock at their warehouse. The time to load
shipments depends on the experience of the crew, products being shipped and
weather. The company is considering building another dock in order to meet unmet
demand. Which is the MOST appropriate modeling approach to determine if the
revenue from the additional products sold will cover the cost of the second dock
within two years of it becoming operational?
a)Optimization because it is a transportation problem.
b)Optimization because the company's objective to maximize profit and capacity at
the dock is a limited resource.
c)Forecasting because you can determine the throughput at the dock, calculate the
net revenue and compare this with the cost of the new dock.
d)Discrete event simulation because there are a sequence of discrete random
events through time. - Answer-d
In the kickoff meeting with a client for a new project, which of the following is the
MOST important information to discuss?
a)Timeline and implementation plan
b)Analytical model to use
c)Business issue and project goal
d)Available budget - Answer-c
7. Which of the following statements is true of modeling a multi-server checkout line?
a)A queuing model can be used to estimate service rates.
b)A queuing model can be used to estimate average arrivals.
c)Variability in arrival and service times will tend to play a critical role in congestion.
d)Poisson distributions are not relevant. - Answer-c
, A company is considering designing a new automobile. Their options are a design
based on current gasoline engine technology or a government proposed "Green"
technology. You are a government official whose job is to encourage automakers to
adopt the "Green" technology. You cannot provide funding for development costs,
but you can provide a subsidy for every car sold. The development costs and the
wholesale price, in thousands of dollars, of the cars are shown in the table below:
-----------------------------------------------------
Gasoline Technology(numbers in $ thousands) || "Green" Technology(numbers in $
thousands)
--------------------------------------------------
Wholesale Price/vehicle || 25 ||40
Variable Cost/vehicle || 15 || 35
Fixed Cost || 100,000 || 200,000
-------------------------------------------------------
How large a subsidy per vehicle sold will be required, assuming there will be enough
demand - Answer-a
A furniture maker would like to determine the most profitable mix of items to produce.
There are well-known budgetary constraints. Each piece of furniture is made of a
predetermined amount of material with known costs, and demand is known.
Two investors who have the same information about the stock market buy an equal
number of shares of a stock. Which of the following statements must be true?
a)The risks for the two investors are statistically independent.
b)Both investors have the same risk profile.
c)Both investors are subject to the same uncertainty.
d)If the investors are optimistic, they should have borrowed, rather than bought the
shares. - Answer-c
A project seeks to build a predictive data-mining model of customer profitability
based upon a series of independent variables including customer transaction history,
demographics, and externally purchased credit-scoring information. There are
currently 100,000 unique customers available for use in building the predictive
model. Which of the following strategies would reflect the BEST allocation of these
100,000 customer data points?
a)Use 70,000 randomly selected data points when building the model, and hold the
remaining 30,000 as a test dataset.
b)Use all 100,000 data points when building the model.
c)Build four separate models and randomly partition the data into 4 separate
datasets of 25,000 data points each.
d)Use 1,000 randomly selected data points when building the model. - Answer-a
(CERTIFIED ANALYTICS)
Which of the following analytical techniques is the MOST appropriate one to solve
this problem?
a)Optimization
b)Multiple regression
c)Data mining
d)Forecasting - Answer-a
10. You have simulated the net present value (NPV) of a decision. It ranges between
-$10 million and +$10 million. To BEST present the likelihood of possible outcomes,
you should:
a)present a single NPV estimate to avoid confusion.
b)present a histogram to show likelihood of various NPV ranges.
c)trim all outliers to present the most balanced diagram.
d)relax constraints associated with extreme points in the simulation. - Answer-b
A company ships products from a single dock at their warehouse. The time to load
shipments depends on the experience of the crew, products being shipped and
weather. The company is considering building another dock in order to meet unmet
demand. Which is the MOST appropriate modeling approach to determine if the
revenue from the additional products sold will cover the cost of the second dock
within two years of it becoming operational?
a)Optimization because it is a transportation problem.
b)Optimization because the company's objective to maximize profit and capacity at
the dock is a limited resource.
c)Forecasting because you can determine the throughput at the dock, calculate the
net revenue and compare this with the cost of the new dock.
d)Discrete event simulation because there are a sequence of discrete random
events through time. - Answer-d
In the kickoff meeting with a client for a new project, which of the following is the
MOST important information to discuss?
a)Timeline and implementation plan
b)Analytical model to use
c)Business issue and project goal
d)Available budget - Answer-c
7. Which of the following statements is true of modeling a multi-server checkout line?
a)A queuing model can be used to estimate service rates.
b)A queuing model can be used to estimate average arrivals.
c)Variability in arrival and service times will tend to play a critical role in congestion.
d)Poisson distributions are not relevant. - Answer-c
, A company is considering designing a new automobile. Their options are a design
based on current gasoline engine technology or a government proposed "Green"
technology. You are a government official whose job is to encourage automakers to
adopt the "Green" technology. You cannot provide funding for development costs,
but you can provide a subsidy for every car sold. The development costs and the
wholesale price, in thousands of dollars, of the cars are shown in the table below:
-----------------------------------------------------
Gasoline Technology(numbers in $ thousands) || "Green" Technology(numbers in $
thousands)
--------------------------------------------------
Wholesale Price/vehicle || 25 ||40
Variable Cost/vehicle || 15 || 35
Fixed Cost || 100,000 || 200,000
-------------------------------------------------------
How large a subsidy per vehicle sold will be required, assuming there will be enough
demand - Answer-a
A furniture maker would like to determine the most profitable mix of items to produce.
There are well-known budgetary constraints. Each piece of furniture is made of a
predetermined amount of material with known costs, and demand is known.
Two investors who have the same information about the stock market buy an equal
number of shares of a stock. Which of the following statements must be true?
a)The risks for the two investors are statistically independent.
b)Both investors have the same risk profile.
c)Both investors are subject to the same uncertainty.
d)If the investors are optimistic, they should have borrowed, rather than bought the
shares. - Answer-c
A project seeks to build a predictive data-mining model of customer profitability
based upon a series of independent variables including customer transaction history,
demographics, and externally purchased credit-scoring information. There are
currently 100,000 unique customers available for use in building the predictive
model. Which of the following strategies would reflect the BEST allocation of these
100,000 customer data points?
a)Use 70,000 randomly selected data points when building the model, and hold the
remaining 30,000 as a test dataset.
b)Use all 100,000 data points when building the model.
c)Build four separate models and randomly partition the data into 4 separate
datasets of 25,000 data points each.
d)Use 1,000 randomly selected data points when building the model. - Answer-a
