Questions and Answers of Quantitative Analysis For Management

The values in a probabilistic modela. will always be known with complete certainty.b. can only be determined by developing a new mathematical model.c. will include those that involve an element of
A parameter isa. a measurable input quantity that is inherent in a problem.b. an algorithm.c. a type of computer program.d. a schematic model.
An analysis to determine how much a solution would change if there were changes in the model or the input data is calleda. sensitivity or postoptimality analysis.b. schematic or iconic analysis.c.
Descriptive analyticsa. involves the use of optimisation methods.b. is concerned with the study and consolidation of historical data.c. is mainly used to predict future trends.d. none of the above.
Which of the following categories of business analytics involves the use of optimization models?a. descriptiveb. predictivec. prescriptived. none of the above
How can quantitative analysis techniques inform and support decision making within organizations?
Outline the key features of each of the seven steps in the quantitative analysis approach.
What is the difference between models that are deterministic and those that are probabilistic?Provide examples of both.
Briefly describe and discuss your understanding of the phrase garbage in, garbage out.
Suggest some potential actions that a quantitative analyst could undertake to ensure that the implementation stage of a project is successful.
If the list of outcomes includes every possible outcome, then the events are said to bea. independent.b. collectively exhaustive.c. mutually exclusive.d. continuous.
New probabilities that have been found using Bayes’theorem are calleda. prior probabilities.b. posterior probabilities.c. Bayesian probabilities.d. joint probabilities.
A measure of central tendency isa. expected value.b. variance.c. standard deviation.d. all of the above.
To compute the variance, of a discrete random variable you need to know thea. variable’s possible values.b. expected value of the variable.c. probability of each possible value of the variable.d.
The square root of the variance is thea. expected value.b. standard deviation.c. area under the normal curve.d. all of the above.
Which of the following is an example of a continuous distribution?a. the binomial distribution.b. the exponential distribution.c. the Poisson distribution.d. the Z distribution.
The total area under the curve for any continuous distribution must equala. 1.b. 0.c. 0.5.d. none of the above.
Probabilities for all the possible values of a discrete random variablea. may be greater than 1.b. may be negative on some occasions.c. must sum to 1.d. are represented by area underneath the curve.
In a standard normal distribution, the mean is equal toa. 1.b. 0.c. the variance.d. the standard deviation.
The probability of an event occurring given that another event has taken place isa. priory probability.b. empirical probability.c. conditional probability.d. subjective probability.e. none of the
In the normal distribution, 99.7% of the population lies withina. 1 standard deviation of the mean.b. 2 standard deviations of the mean.c. 3 standard deviations of the mean.d. 4 standard deviations
If a normal distribution has a mean of 100 and a standard deviation of 15, 95.4% of the population falls within what range of values?a. 70–130b. 75–130c. 70–135d. 80–140e. 60–120
If two events are mutually exclusive, then the probability of the intersection of these two events will equala. 0.b. 0.5.c. 1.0.d. cannot be determined without more information.
If P1A2 = 0.4 and P1B2 = 0.5 and P1A and B2 = 0.2, then P1BA2 =a. 0.80.b. 0.50.c. 0.10.d. 0.40.e. none of the above.
If P1A2 = 0.4 and P1B2 = 0.5 and P1A and B2 = 0.2, then P1A or B2 =a. 0.7.b. 0.9.c. 1.1.d. 0.2.e. none of the above.
Describe the classical method to determine probability with example.
Describe the addition law for events that are mutually exclusive and events that are not.
Describe what it means for two events to be statistically dependent.
Bayes’ theorem is an extension of the original probability.Explain.
Why is normal distribution converted to a standard normal distribution?
WTVX, Channel 6, is located in Eugene, Oregon, home of the University of Oregon’s football team. The station was owned and operated by George Wilcox, a former Duck (University of Oregon football
In decision theory, payoffs or profits resulting from each possible combination of alternatives and outcomes are calleda. conditional values.b. alternatives.c. state of nature.d. none of the above.
In decision theory, probabilities are associated witha. payoffs.b. alternatives.c. states of nature.d. none of the above.
The decision-making environment is called uncertainty if the probabilities area. impossible.b. unknown.c. certain.d. all the above.
Which of the following is a decision-making criterion that is used in uncertainty?a. minimax regretb. criterion of realismc. optimistic (maximax)d. all of the above
The expected monetary value (EMV) isa. the weighted sum of possible payoffs for each alternative.b. an upper bound on what to pay for information.c. the cost of not picking the best solution.d.
In using the criterion of realism (Hurwicz criterion), the coefficient of realism (a)a. is the probability of a good state of nature.b. describes the degree of optimism of the decision maker.c.
The most that a person should pay for perfect information isa. the EVPI.b. the maximum EMV minus the minimum EMV.c. the maximum EOL.d. the maximum EMV.
The minimum EOL criterion will always result in the same decision asa. the maximax criterion.b. the minimax regret criterion.c. the maximum EMV criterion.d. the equally likely criterion.
A decision tree is preferable to a decision table whena. a number of sequential decisions are to be made.b. probabilities are available.c. the maximax criterion is used.d. the objective is to
Bayes’ theorem is used to revise probabilities. The new(revised) probabilities are calleda. prior probabilities.b. sample probabilities.c. survey probabilities.d. posterior probabilities.
On a decision tree, at each state-of-nature node,a. the alternative with the greatest EMV is selected.b. an EMV is calculated.c. all probabilities are added together.d. the branch with the highest
The EVSIa. is found by subtracting the EMV without sample information from the EMV with sample information.b. is always equal to the expected value of perfect information.c. equals the EMV with
The efficiency of sample informationa. is the EVSI/(maximum EMV without SI) expressed as a percentage.b. is the EVPI/EVSI expressed as a percentage.c. would be 100% if the sample information were
On a decision tree, once the tree has been drawn and the payoffs and probabilities have been placed on the tree, the analysis (computing EMVs and selecting the best alternative)a. working backward
In assessing utility values,a. the worst outcome is given a utility of -1.b. the best outcome is given a utility of 0.c. the worst outcome is given a utility of 0.d. the best outcome is given a value
A decision maker who gets less utility from a greater risk and avoids situations in which high losses might occur isa. indifferent to risk.b. a risk seeker.c. a risk avoider.d. a rational decision
What is decision theory? What are the types of decision-making environments?
Discuss the challenges of listing possible alternatives.
What is sensitivity analysis? Why should sensitivity analysis consider all possible consequences?
What are the strengths of using decision trees?
What is the problem of using survey results?
One of the assumptions in regression analysis is thata. the errors have a mean of 1.b. the errors have a mean of 0.c. the observations (Y) have a mean of 1.d. the observations (Y) have a mean of 0.
In a scatter diagram, the independent variable is plotted on thea. vertical axis.b. trend line.c. horizontal axis.d. origin of the axis.
When using regression, an error is also calleda. an intercept.b. a prediction.c. a coefficient.d. a residual.
Which of the following is X in regression analysis?a. control variableb. dummy variablec. independent variabled. both a and c
The best regression line is defined as the one with thea. minimum sum of the squared error.b. maximum sum of the squared error.c. average of the squared error.d. none of the above.
The percentage of the variation in the dependent variable that is explained by a regression equation is measured bya. the coefficient of correlation.b. the MSE.c. the coefficient of determination.d.
Correlation coefficient measures thea. degree or strength of the linear relationship.b. variability in Y that is explained by the regression equation.c. both a and b.d. none of the above.
When using dummy variables in a regression equation to model a qualitative or categorical variable, the number of dummy variables should equala. the number of categories.b. 1 more than the number of
A multiple regression model differs from a simple linear regression model because the multiple regression model has more than onea. independent variable.b. dependent variable.c. intercept.d. error.
The overall significance of a regression model is tested using an F test. The model is significant ifa. the F value is low.b. the significance level of the F value is low.c. the r2 value is low.d.
Hypothesis tests related to the individual coefficients are not valid whena. multicollinearity exist.b. collinearity exist.c. F test is still valid.d. a variable may appear as significant.
A good regression model should havea. a low r2 and a low significance level for the F test.b. a high r2 and a high significance level for the F test.c. a high r2 and a low significance level for the
What are the purposes of regression analysis? How does it help businesses?
How do we use qualitative variables in predicting the value variable Y?
What assumptions are necessary about the errors to determine the usefulness of a regression model?
How to build a linear model from a nonlinear relationship?
Explain how a statistical significant relationship may not be practical for a management decision.
In January 2012, Northern Airlines merged with Southeast Airlines to create the fourth largest U.S. carrier. The new North–South Airline inherited both an aging fleet of Boeing 727-300 aircraft and
Which ones are forecasting techniques?a. regression analysisb. Delphic. time-series modelsd. all of the above
One of the following methods is a causal forecasting model. Which one?a. exponential smoothingb. regression analysisc. Delphi modeld. sales force composite
Who are the typical participants in a Delphi forecasting process?a. decision makersb. staff personnelc. respondentsd. all of the above
Trend projection is an example ofa. Delphi process.b. time series.c. causal methods.d. regression analysis.
Least squares is a technique useda. in regression analysis.b. to determine the accuracy of a forecasting model.c. to determine an exponential smoothing model.d. none of the above.
Which of the following may be negative?a. MADb. biasc. MAPEd. MSE
When comparing several forecasting models to determine which one best fits a particular set of data, the model that should be selected is the onea. with the highest MSE.b. with the MAD closest to
In exponential smoothing, if you wish to give a significant weight to the most recent observations, then the smoothing constant should bea. close to 0.b. close to 1.c. close to 0.5.d. less than the
A trend equation is a regression equation in whicha. there are multiple independent variables.b. the intercept and the slope are the same.c. the dependent variable is time.d. the independent variable
Sales for a company are typically higher in the summer months than in the winter months. This variation would be called aa. trend.b. seasonal factor.c. random factor.d. cyclical factor.
An exponential smoothing forecast with a smoothing constant of 1 would result in the same forecast asa. a trend line forecast.b. an exponential smoothing forecast with a smoothing constant of 0.c. a
If the seasonal index for January is 0.80, thena. January sales tend to be 80% higher than an average month.b. January sales tend to be 20% higher than an average month.c. January sales tend to be
If both trend and seasonal components are present in a time-series, then the seasonal indicesa. should be computed based on an overall average.b. should be computed based on CMAs.c. will all be
Which of the following is used to alert the user of a forecasting model that a significant error occurred in one of the periods?a. a seasonal indexb. a smoothing constantc. a tracking signald. a
If the multiplicative decomposition model is used to forecast daily sales for a retail store, how many seasons will there be?a. 4b. 7c. 12d. 365
What are the two general forms of time-series models in statistics?
Is Delphi a quantitative forecasting method?
What variations does the random component consist of in a time series?
What are moving averages used for? Provide an example.
What are the main problems with using moving averages in forecasting?
Southwestern University (SWU), a large state college in Stephenville, Texas, 30 miles southwest of the Dallas/Fort Worth metroplex, enrolls close to 20,000 students. In a typical town–gown
For years The Glass Slipper restaurant has operated in a resort community near a popular ski area of New Mexico. The restaurant is busiest during the first 3 months of the year,when the ski slopes
Which of the following phases is part of an inventory system?a. planningb. forecastingc. controld. feedback and revisionse. all of the above
What is not an inventory use?a. decoupling functionb. storing resourcesc. irregular supply and demandd. production monitoringe. avoiding stockouts and shortages
How are items like raw materials stored in inventories?a. by themselvesb. in work-in-processc. in the finished productd. all of the above
Some of the costs are minimised by the use of inventory.Which one is not affected by it?a. cost of purchasing itemsb. cost of advertisementc. cost of carrying or holding inventoryd. cost of stockouts
If the EOQ assumptions are met and a company orders more than the economic order quantity, thena. total annual holding cost will be greater than the total annual ordering cost.b. total annual holding
The reorder point isa. the quantity that is reordered each time an order is placed.b. the amount of inventory that would be needed to meet demand during the lead time.c. equal to the average
If the EOQ assumptions are met, thena. annual stockout cost will be zero.b. total annual holding cost will equal total annual ordering cost.c. average inventory will be one-half the order quantity.d.
Which variables are a part of the maximum inventorylevel expression?a. number of pieces per orderb. setup costc. holding or carrying cost per unit per yeard. all of the above

Showing 100 - 200 of 304