In this blog you will find the correct answer of the Coursera quiz Business Analytics for Decision Making Coursera Week 2 Quiz mixsaver always try to bring the best blogs and best coupon codes

Week 2 Quiz

1.
Question 1
Which of the following best defines Monte Carlo simulation?

1 point

It’s a tool for building statistical models that characterize relationships among a dependent variable and one or more independent variables.
It’s a collection of techniques that seeks to group or segment a collection of objects into subsets.
It’s the process of selecting values of decision variables that minimizes or maximizes some quantity of interest.
It’s the process of generating random values for uncertain inputs in a model and computing the output variables of interest.

2.
Question 2
If chance or uncertainty is present in a system then there is an element of ______ in the decision-making problem.

1 point

danger
security
risk
difficulty

3.
Question 3
Which of the following are weaknesses of manual what-if analysis? (select all that apply)

1 point

biased sample values of performance measures
hard to do many what-if scenarios
does not provide distribution information

4.
Question 4
Which of the following is a parameter of the Poisson distribution?

1 point

maximum value
mean
minimum value
most likely value

5.
Question 5
In the Analytic Solver Platform, “Psi” functions are used to add uncertainty to a spreadsheet model.

1 point

true
false

6.
Question 6
Why would a manager be interested in analyzing risk?

1 point

to determine a most likely outcome
to determine a range of outcomes
to determine a distribution of outcomes
to determine a confidence interval on most likely outcomes

7.
Question 7
The PsiOutput function of the Analytic Solver Platform is used to collect simulation data to create an empirical distribution of an output variable.

1 point

true
false

8.
Question 8
Historical data is used in simulation to:

1 point

perform a worst-case analysis
optimize the outcomes
estimate a probability distribution function for critical inputs to the model
simplify the model

9.
Question 9
Distribution fitting is the process of gathering historical data.

1 point

true
false

10.
Question 10
Adding a correlation matrix to a simulation model is necessary when:

1 point

the uncertain input variables in the model are independent
the model is deterministic (i.e., it does not have any uncertain inputs)
two or more of the uncertain input variables in the model are not independent
an output variable is related to an uncertain input variable

11.
Question 11
Which of the following statements is false:

1 point

correlation is a measure of the strength of the relationship between two variables
correlation values are always positive
the correlation between two variables can be positive or negative
the correlation between two independent variables is zero

12.
Question 12
The Analytic Solver Platform ________ allows you to determine the influence that each uncertain input variable has on an output variable based on the correlation between the input and the output variable.

1 point

trend chart
overlay chart
box-whisker chart
sensitivity chart

13.
Question 13
The Analytic Solver Platform ________ allows you to superimpose the frequency distributions of selected output variables in order to compare them.

1 point

trend chart
overlay chart
box-whisker chart
sensitivity chart

14.
Question 14
The Flaw of Averages typically results when a single number, the average value, is used in a spreadsheet model to represent an uncertain future quantity.

1 point

true
false

15.
Question 15
The average value for an output cell in a deterministic spreadsheet model that uses average values for uncertain input cells is always the same as the average value for the same output cell obtained with a Monte Carlo simulation.

1 point

true
false

Week 2 Application Assignment – Monte Carlo Simulation

1.
Question 1
A technology company has $2 million to invest in new research and development projects. The following table summarizes the initial cost, probability of success, and revenue potential for each of the projects under consideration.

Management has built the Monte Carlo simulation model in the Excel file Project Selection and would like to use it to compare various portfolio alternatives. The probability of making at least $1 million in total profit is the criterion that management wants to use. Based on this criterion, which of the eight project portfolios should the company fund?

Portfolio Selection.xlsx
(Hint: Enter 1 in the “Select?” column to indicate that a project is included in the portfolio. Turn on the Simulation Bulb in the Solver Action group of the Analytic Solver Platform. Run the simulation by clicking on the green “play” button in the Solver Options panel. Double-click on cell K14 to display the Frequency Chart of total profit and set the right marker to 1000.)

1 point

Projects 1, 2, 3, 6, 7, and 8

Projects 1, 2, 3, 4, and 7

Projects 2, 4, 5, 6, and 8

Projects 1, 3, 4, 5, 6, and 8

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