1 1. A trend chart was produced by RSPE software and is shown below. Profit was defined as the output variable. In reference to the chart below, which of the following statements is true? A total of 7 different simulations were run in preparing this report. The shaded areas represent information about the frequency distribution of profit outcomes. The middle band of shaded area represents 75% of the observed outcomes. A total of 10% of the simulated profit values are outside of the combined shaded area. All of the above. 0.5 points Question 2 1. In building an RSPE simulation model, it is important to: associate at least one statistic cell with each output variable set an appropriate number of simulation trials create a baseline spreadsheet as an Excel file Identify one or more decision variable cells All of the above 0.5 points Question 3 1. When working with parameter cells in RSPE software, which of the following statements is true? A parameter analysis causes only one simulation to run. A trend chart can be used to display the results of changes in a parameter cell. A fit options dialog box is useful in conducting a parameter analysis. No more than three variables can be simultaneously varied in a parameter analysis. All of the above. 0.5 points Question 4 1. A trend chart was produced by RSPE software and is shown below. Profit was defined as the output variable. In reference to the chart below, which of the following statements is true? The greatest downside risk is associated with an order quantity of 70. An order quantity of 45 is the lowest risk option to select. The best choice is an order quantity of 70 because the range of possible outcomes is the greatest. The highest expected value result is when an order quantity of 65 is selected. All of the above. 0.5 points Question 5 1. Which of the following probability distributions would most likely be used to describe the time between customer arrivals? Binomial distribution Poisson distribution Exponential distribution Uniform distribution Normal distribution 0.5 points Question 6 1. Which of the following statements is true with regard to uncertain variables in RSPE software? Each uncertain variable must be associated with a probability distribution The value of the uncertain variable may change with each simulation trial Uncertain variables are input variables A Monte Carlo simulation must have at least one uncertain variable All of the above 0.5 points Question 7 1. When applying simulation to a business problem, which of the following would commonly be an uncertain variable cell? The total profit. The holding cost per unit. The demand. All of the above. None of the above. 0.5 points Question 8 1. When choosing a probability distribution in an RSPE simulation, it is important to: check the similarity between the input data and the output data use a trend chart to assess the validity of the distribution test continuous distributions if the sample data is not discrete run at least 1,000 simulation trials carefully define the output cells 0.5 points Question 9 1. Computer simulation is likely to be most useful: For problems with minimal complexity For non-probabilistic problems For problems involving random variables Regardless of the problem's complexity For problems well suited to classical analytical models 0.5 points Question 10 1. Which of the following statements is true? The binomial distribution describes the number of times an event occurs in a fixed number of trials. The normal distribution is a good choice when all values within a range are equally likely. The triangular distribution has no upper bound. The exponential distribution is not useful for describing the time between random events. The normal distribution has a fixed upper and lower bound. 0.5 points Question 11 1. In order to generate more accurate results when using simulation: use a continuous distribution instead of a discrete distribution. increase the number of replications. increase the number of factors considered. All of the above. None of the above. 0.5 points Question 12 1. A simulation was run with 1,000 trials and the resulting frequency chart and statistics table is shown below. In reference to the table below, which of the following statements is true? The most frequently observed profit is $46.45. There is a 5% probability that profit will be less than $20. There is a 5% probability that profit will be greater than $60. There is a 35% probability that profit will be $60. All of the above