ISOM Exam UPDATED QUESTIONS
AND CORRECT ANSWERS
As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the
more precise is the result. - CORRECT ANSWER Correct! True
The imported question text for this question was too long. - CORRECT
ANSWER approximately 25% approximately 18% Correct Answer approximately 11%
approximately 32%
Answer the following question(s) using the Risk Solver Platform (5000 trials per simulation; use the
Latin Hypercube sampling method). Consider the spreadsheet for a Newsvendor Model. Which of the
following cells is defined as the uncertain function cell? - CORRECT ANSWER B17
Why is the ROUND function used in Excel? - CORRECT ANSWER to ensure that the values
generated are whole numbers
Answer the following question(s) using the Risk Solver Platform (5000 trials per simulation; use the
Latin Hypercube sampling method).Consider the spreadsheet for a Newsvendor Model.
What is the value of standard deviation? - CORRECT ANSWER $10.99
Use the information below to answer the following question(s).Consider the following spreadsheet for
an outsourcing decision model. 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
expected loss determined from the simulation results? - CORRECT ANSWER $(47)
Use the information below to answer the following question(s).Consider the following spreadsheet for
an outsourcing decision model.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? - CORRECT ANSWER $22,485
,Answer the following question(s) using the Risk Solver Platform (5000 trials per simulation; use the
Latin Hypercube sampling method).Consider the spreadsheet for a Newsvendor Model. What is the
value of mean profit? - CORRECT ANSWER $255.90
Use the information below to answer the following question(s).Below is a spreadsheet for a hotel
overbooking model. Assume that each reservation has a constant probability p = 0.04 of being
cancelled. Answer the question(s) using the Risk Solver Platform. With respect to B12, what is the
range for values given in the Parameters section in the Discrete dialog? - CORRECT
ANSWER $D$2:$D$13
A normal distribution has a limited range and can be skewed in either direction. - CORRECT
ANSWER False
Use the information below to answer the following question(s).Below is a spreadsheet for a hotel
overbooking model. Assume that each reservation has a constant probability p = 0.04 of being
cancelled. Answer the question(s) using the Risk Solver Platform. With respect to B12, what is the
range of weights given in the Parameters section in the Discrete dialog? - CORRECT
ANSWER $E$2:$E$13
The imported question text for this question was too long. - CORRECT ANSWER 0.043
Correct Answer 0.888
-0.341
-0.026
The imported question text for this question was too long. - CORRECT ANSWER 0.864
Correct Answer -0.726
0.343
-0.467
Uniform or triangular distributions are used in the absence of data. - CORRECT
ANSWER True
Use the information below to answer the following question(s).Consider the following spreadsheet for
an outsourcing decision model. 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 cost
difference lower cutoff in thousands of dollars if the likelihood is 60%? - CORRECT
ANSWER approximately 13.56
Use the information below to answer the following question(s).Below is a spreadsheet for a hotel
overbooking model. Assume that each reservation has a constant probability p = 0.04 of being
cancelled. Answer the question(s) using the Risk Solver Platform. Which of the following cells is
defined as an output cell? - CORRECT ANSWER B17
The imported question text for this question was too long. - CORRECT ANSWER Year 1
Year 2
Year 4
Correct Answer Year 5
Use the information below to answer the following question(s).Consider the following spreadsheet for
an outsourcing decision model. 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 standard deviation obtained from the simulation results? - CORRECT ANSWER $9,175
The imported question text for this question was too long. - CORRECT ANSWER Year 1
Year 3
Year 4
Correct Answer Year 5
Use the information below to answer the following question(s). Below is a spreadsheet for Trance
Electronics.
Question information.docx Download Question information.docx
What cumulative profit in the fifth year is likely to be realized with a probability of 0.50? -
CORRECT ANSWER $101,970,955
AND CORRECT ANSWERS
As Monte Carlo simulation is essentially statistical sampling, the larger the number of trials used, the
more precise is the result. - CORRECT ANSWER Correct! True
The imported question text for this question was too long. - CORRECT
ANSWER approximately 25% approximately 18% Correct Answer approximately 11%
approximately 32%
Answer the following question(s) using the Risk Solver Platform (5000 trials per simulation; use the
Latin Hypercube sampling method). Consider the spreadsheet for a Newsvendor Model. Which of the
following cells is defined as the uncertain function cell? - CORRECT ANSWER B17
Why is the ROUND function used in Excel? - CORRECT ANSWER to ensure that the values
generated are whole numbers
Answer the following question(s) using the Risk Solver Platform (5000 trials per simulation; use the
Latin Hypercube sampling method).Consider the spreadsheet for a Newsvendor Model.
What is the value of standard deviation? - CORRECT ANSWER $10.99
Use the information below to answer the following question(s).Consider the following spreadsheet for
an outsourcing decision model. 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
expected loss determined from the simulation results? - CORRECT ANSWER $(47)
Use the information below to answer the following question(s).Consider the following spreadsheet for
an outsourcing decision model.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? - CORRECT ANSWER $22,485
,Answer the following question(s) using the Risk Solver Platform (5000 trials per simulation; use the
Latin Hypercube sampling method).Consider the spreadsheet for a Newsvendor Model. What is the
value of mean profit? - CORRECT ANSWER $255.90
Use the information below to answer the following question(s).Below is a spreadsheet for a hotel
overbooking model. Assume that each reservation has a constant probability p = 0.04 of being
cancelled. Answer the question(s) using the Risk Solver Platform. With respect to B12, what is the
range for values given in the Parameters section in the Discrete dialog? - CORRECT
ANSWER $D$2:$D$13
A normal distribution has a limited range and can be skewed in either direction. - CORRECT
ANSWER False
Use the information below to answer the following question(s).Below is a spreadsheet for a hotel
overbooking model. Assume that each reservation has a constant probability p = 0.04 of being
cancelled. Answer the question(s) using the Risk Solver Platform. With respect to B12, what is the
range of weights given in the Parameters section in the Discrete dialog? - CORRECT
ANSWER $E$2:$E$13
The imported question text for this question was too long. - CORRECT ANSWER 0.043
Correct Answer 0.888
-0.341
-0.026
The imported question text for this question was too long. - CORRECT ANSWER 0.864
Correct Answer -0.726
0.343
-0.467
Uniform or triangular distributions are used in the absence of data. - CORRECT
ANSWER True
Use the information below to answer the following question(s).Consider the following spreadsheet for
an outsourcing decision model. 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 cost
difference lower cutoff in thousands of dollars if the likelihood is 60%? - CORRECT
ANSWER approximately 13.56
Use the information below to answer the following question(s).Below is a spreadsheet for a hotel
overbooking model. Assume that each reservation has a constant probability p = 0.04 of being
cancelled. Answer the question(s) using the Risk Solver Platform. Which of the following cells is
defined as an output cell? - CORRECT ANSWER B17
The imported question text for this question was too long. - CORRECT ANSWER Year 1
Year 2
Year 4
Correct Answer Year 5
Use the information below to answer the following question(s).Consider the following spreadsheet for
an outsourcing decision model. 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 standard deviation obtained from the simulation results? - CORRECT ANSWER $9,175
The imported question text for this question was too long. - CORRECT ANSWER Year 1
Year 3
Year 4
Correct Answer Year 5
Use the information below to answer the following question(s). Below is a spreadsheet for Trance
Electronics.
Question information.docx Download Question information.docx
What cumulative profit in the fifth year is likely to be realized with a probability of 0.50? -
CORRECT ANSWER $101,970,955
