DSS220 D12 & D13 Business Analytics-Spring 2014 Midterm

DSS220 D12 & D13 Business Analytics-Spring 2014
Midterm
Exhibit 1.1 Is a summary table of drive times, measured in minutes, showing a random sample

of six people in each of the following four cities: Houston, Charlotte, Tucson, Akron. Means and
variance are supplied in the table. The grand mean for the summary table is 36.625. The
values in Exhibit 1.1 for each of the questions below are the same. It is only necessary to
compute the one way ANOVA once.
Exhibit 1.1 A researcher with Ministry of Transportation is commissioned to study the drive times to work
(one-way) for U.S. cities. The underlying hypothesis is that average commute times are different across
cities. To test the hypothesis, the researcher randomly selects six people from each of the four cities and
records their one-way commute times to work. Refer to the below data on one-way commute time (in
minutes) to work. Note that the grand mean is 36.625.

Refer to Exhibit 1.1. Question 1: The value of the test statistic is:
A. 0.06
B. 0.40
C. 2.51
D. 16.75

Exhibit 1.1 A researcher with Ministry of Transportation is commissioned to study the drive times to work
(one-way) for U.S. cities. The underlying hypothesis is that average commute times are different across
cities. To test the hypothesis, the researcher randomly selects six people from each of the four cities and
records their one-way commute times to work. Refer to the below data on one-way commute time (in
minutes) to work. Note that the grand mean is 36.625.

Refer to Exhibit 1.1. Question 2: At the 5% significance level, the critical value is:

A. 2.38
B. 3.10
C. 3.86
D. 4.94

DSS220 D12 & D13 Business Analytics-Spring 2014
Midterm
Exhibit 1.1 A researcher with Ministry of Transportation is commissioned to study the drive times to work
(one-way) for U.S. cities. The underlying hypothesis is that average commute times are different across
cities. To test the hypothesis, the researcher randomly selects six people from each of the four cities and
records their one-way commute times to work. Refer to the below data on one-way commute time (in
minutes) to work. Note that the grand mean is 36.625.

Refer to Exhibit 1.1. Question 3: The p-value for the test is:

A. Less than 0.01

B. Between 0.01 and 0.025
C. Between 0.025 and 0.05
D. Greater than 0.05

Exhibit 1.1 A researcher with Ministry of Transportation is commissioned to study the drive times to work
(one-way) for U.S. cities. The underlying hypothesis is that average commute times are different across
cities. To test the hypothesis, the researcher randomly selects six people from each of the four cities and
records their one-way commute times to work. Refer to the below data on one-way commute time (in
minutes) to work. Note that the grand mean is 36.625.

Refer to Exhibit 1.1. Question 4: The conclusion for the hypothesis test is:
A. Reject the null hypothesis, cannot conclude that not all mean commute times are equal
B. Do not reject the null hypothesis, cannot conclude that not all mean commute times are equal
C. Reject the null hypothesis, not all mean commute times are equal
D. Do not reject the null hypothesis, not all mean commute times are equal

Question 5: The purpose of data visualization is to:
A. Communicate information clearly through graphical means
B. Stimulate viewer engagement and attention
C. Allow people to easily identify patterns
D. All of the above

DSS220 D12 & D13 Business Analytics-Spring 2014
Midterm
Refer to Exhibit 1.2. Question 6: A hedge fund manager needs to achieve a 16% return on her
portfolio in order to make her clients happy AND to buy her new get-a-way place in Grand Cayman
(complete with catamaran, speed boat and parasail). She has collected the most recent 12 months of
returns data for her primary holdings shown in Exhibit 1.2. With equal allocation, the return for the
portfolio is 12.086%.

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Mean
Returns

JSDA
0.156
0.045
0.032
0.020
-0.178
0.136
0.179
0.230
0.047
0.383
0.009
0.502
0.130

Stock Returns
COKE
WFM
0.336
0.155
0.446
0.023
-0.049
0.021
-0.056
0.088
0.089
0.157
0.227
0.015
0.584
0.029
0.083
0.166
0.080
0.043
0.677
0.026
0.065
0.022
0.313
0.098
0.233

0.070

TBILL
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050
0.050

Refer to Exhibit 1.2. Question 6: What will be the percent allocation for Jones Soda (JSDA) for
portfolio to return 16%?
A. 0.09
B. 0.00
C. 0.12
D. 0.13

Refer to Exhibit 1.3. Question 7: General Mills announced the launch of reformulated “whole grain”
versions of its cereals at the same time it is closing its Black Foot plant. Grain elevators supplying the
grain are located in Duluth, MN, and St. Louis, MO, while manufacturing plants are located in Black Foot,
ID, Cedar Rapids, IA, and Albuquerque, NM. Capacities and costs are indicated in the table.
General Mills Supply Chain
Data

COSTS $/Ton
Duluth Elevator A
St. Louis Elevator S&X
SLACK SUPPLY
Demand

Black Foot
36.81
20.40
999

Cedar
Rapids
11.82
8.52
999

Albuquerqu
e
41.28
31.35
999

4860000

4050000

7290000

SLACK
DEMAND

Supply
999
999
999
0

Refer to Exhibit 1.3. Question 7: The current minimum transportation cost is $ 431,859,600.
When General Mills closes its Black Foot plant, the new minimum transportation cost will be:
A. 284,455,800
B. 147,403,800
C. 579,263,400
D. Cannot be determined given the information.

9720000
6480000
0
16200000
16200000