Question 1

When will a company use a predictive decision model?

Accepted Answer

A)  when it wishes to determine the best product pricing to maximize revenue 
B)  when it wishes to know how best to use advertising strategies to influence sales 
C)  when it wishes to know sales patterns to plan inventory levels 
D)  when it wishes to ensure that a specified level of customer service is achieved 
A)  when it wishes to determine the best product pricing to maximize revenue 
B)  when it wishes to know how best to use advertising strategies to influence sales 
C)  when it wishes to know sales patterns to plan inventory levels 
D)  when it wishes to ensure that a specified level of customer service is achieved

Question 2

Identify the uncontrollable variable from the following inputs of a decision model.

Accepted Answer

A)  investment returns 
B)  machine capacities 
C)  staffing levels 
D)  intercity distances 
A)  investment returns 
B)  machine capacities 
C)  staffing levels 
D)  intercity distances

Question 3

Which of the following is a disadvantage of ordinal data?

Accepted Answer

A)  They bear no relationship to one another. 
B)  They have no fixed units of measurement. 
C)  They have no natural zero. 
D)  They are not comparable with each other. 
A)  They bear no relationship to one another. 
B)  They have no fixed units of measurement. 
C)  They have no natural zero. 
D)  They are not comparable with each other.

Question 4

Which decision model incorporates the uncertainty element?

Accepted Answer

A)  predictive 
B)  normative 
C)  prescriptive 
D)  descriptive 
A)  predictive 
B)  normative 
C)  prescriptive 
D)  descriptive

Question 5

The product mix is determined by the:

Accepted Answer

A)  accounting staff. 
B)  middle managers. 
C)  finance managers. 
D)  top managers. 
A)  accounting staff. 
B)  middle managers. 
C)  finance managers. 
D)  top managers.

Question 6

The complexity of a problem increases when the problem belongs to an individual rather than a group.

Accepted Answer

A) True 
 B)False

Question 7

Following are the components of a data set containing purchase details of a shoe manufacturing company. Identify the ratio data.

Accepted Answer

A)  Item Number 
B)  Rank of suppliers 
C)  Item cost 
D)  Arrival Date 
A)  Item Number 
B)  Rank of suppliers 
C)  Item cost 
D)  Arrival Date

Question 8

A manager at Gampco Inc. wishes to know the company's revenue and profit in its previous quarter. Which of the following business analytics will help the manager?

Accepted Answer

A)  prescriptive analytics 
B)  normative analytics 
C)  descriptive analytics 
D)  predictive analytics 
A)  prescriptive analytics 
B)  normative analytics 
C)  descriptive analytics 
D)  predictive analytics

Question 9

Descriptive decision models:

Accepted Answer

A)  aim to predict what will happen in the future. 
B)  describe relationships but do not tell a manager what to do. 
C)  help analyze the risks associated with various decisions. 
D)  do not facilitate evaluation of different decisions. 
A)  aim to predict what will happen in the future. 
B)  describe relationships but do not tell a manager what to do. 
C)  help analyze the risks associated with various decisions. 
D)  do not facilitate evaluation of different decisions.

Question 10

Which of the following is the mathematical model for deriving total cost of only manufacturing?

Accepted Answer

A)  TC = VC + (C × Q) 
B)  TC = F + (C × Q) 
C)  TC = F + C 
D)  TC = F + (V × Q) 
A)  TC = VC + (C × Q) 
B)  TC = F + (C × Q) 
C)  TC = F + C 
D)  TC = F + (V × Q)

Question 11

In a database file, which is organized in a two-dimensional table, the rows represent records of related data elements.

Accepted Answer

A) True 
 B)False

Question 12

During which phase in problem solving is a formal model often developed?

Accepted Answer

A)  analyzing the problem 
B)  structuring the problem 
C)  defining the problem 
D)  implementing the solution 
A)  analyzing the problem 
B)  structuring the problem 
C)  defining the problem 
D)  implementing the solution

Question 13

In a database, information is stored and maintained in .

Accepted Answer

A)  fields 
B)  measurements 
C)  entities 
D)  attributes 
A)  fields 
B)  measurements 
C)  entities 
D)  attributes

Question 14

Data used in business analytics need to be reliable and valid. Explain.

Accepted Answer

Sample data do not always reflect realit

Question 15

Develop a prescriptive model that will help Goody Woods identify the price that maximizes the total revenue.

Accepted Answer

Having found out the model for demand as

Question 16

Profit is computed as the difference between total revenue from sales and total cost of production. Revenue depends on the market share captured by a company and the size of the target market. Various marketing decisions taken by managers are reflected upon the market share. The decisions also have an impact on marketing costs which in turn will affect the total cost of production. Construct an influence diagram that relates these variables.

Accepted Answer

The answer of Profit is computed as the difference between...

Question 17

Nominal data:

Accepted Answer

A)  are ranked according to some relationship to one another. 
B)  have constant differences between observations. 
C)  are continuous and have a natural zero. 
D)  are sorted into categories according to specified characteristics. 
A)  are ranked according to some relationship to one another. 
B)  have constant differences between observations. 
C)  are continuous and have a natural zero. 
D)  are sorted into categories according to specified characteristics.

Question 18

Which of the following is true about problem solving?

Accepted Answer

A)  Recognizing problems involves stating goals and objectives. 
B)  Analyzing the problem involves characterizing the possible decisions. 
C)  Decision making involves translating the results of the model in the organization. 
D)  Structuring the problem involves identifying constraints. 
A)  Recognizing problems involves stating goals and objectives. 
B)  Analyzing the problem involves characterizing the possible decisions. 
C)  Decision making involves translating the results of the model in the organization. 
D)  Structuring the problem involves identifying constraints.

Question 19

Develop a linear model relating the demand for Goody Woods' units to the price.

Accepted Answer

Economic theory tells us that demand for

Question 20

Which of the following questions will prescriptive analytics help a company address?

Accepted Answer

A)  How many and what types of complaints did they resolve? 
B)  What is the best way of shipping goods from their factories to minimize costs? 
C)  What do they expect to pay for fuel over the next several months? 
D)  What will happen if demand falls by 10% or if supplier prices go up 5%? 
A)  How many and what types of complaints did they resolve? 
B)  What is the best way of shipping goods from their factories to minimize costs? 
C)  What do they expect to pay for fuel over the next several months? 
D)  What will happen if demand falls by 10% or if supplier prices go up 5%?

When will a company use a predictive decision model?

Identify the uncontrollable variable from the following inputs of a decision model.

Which of the following is a disadvantage of ordinal data?

Which decision model incorporates the uncertainty element?

The product mix is determined by the:

The complexity of a problem increases when the problem belongs to an individual rather than a group.

Following are the components of a data set containing purchase details of a shoe manufacturing company. Identify the ratio data.

A manager at Gampco Inc. wishes to know the company's revenue and profit in its previous quarter. Which of the following business analytics will help the manager?

Descriptive decision models:

Which of the following is the mathematical model for deriving total cost of only manufacturing?

In a database file, which is organized in a two-dimensional table, the rows represent records of related data elements.

During which phase in problem solving is a formal model often developed?

In a database, information is stored and maintained in .

Data used in business analytics need to be reliable and valid. Explain.

Develop a prescriptive model that will help Goody Woods identify the price that maximizes the total revenue.

Nominal data:

Which of the following is true about problem solving?

Develop a linear model relating the demand for Goody Woods' units to the price.

Which of the following questions will prescriptive analytics help a company address?

Analytics on Spreadsheets

Visualizing and Exploring Data

Descriptive Statistical Measures

Probability Distributions and Data Modeling

Sampling and Estimation

Statistical Inference

Trendlines and Regression Analysis

Forecasting Techniques

Introduction to Data Mining

Spreadsheet Modeling and Analysis

Monte Carlo Simulation and Risk Analysis

Linear Optimization

Applications of Linear Optimization

Integer Optimization

Decision Analysis

Filters

Exam 1: Business Analytics

When will a company use a predictive decision model?

Identify the uncontrollable variable from the following inputs of a decision model.

Which of the following is a disadvantage of ordinal data?

Which decision model incorporates the uncertainty element?

The product mix is determined by the:

The complexity of a problem increases when the problem belongs to an individual rather than a group.

Following are the components of a data set containing purchase details of a shoe manufacturing company. Identify the ratio data.

A manager at Gampco Inc. wishes to know the company's revenue and profit in its previous quarter. Which of the following business analytics will help the manager?

Descriptive decision models:

Which of the following is the mathematical model for deriving total cost of only manufacturing?

In a database file, which is organized in a two-dimensional table, the rows represent records of related data elements.

During which phase in problem solving is a formal model often developed?

In a database, information is stored and maintained in .

Data used in business analytics need to be reliable and valid. Explain.

Develop a prescriptive model that will help Goody Woods identify the price that maximizes the total revenue.

Nominal data:

Which of the following is true about problem solving?

Develop a linear model relating the demand for Goody Woods' units to the price.

Which of the following questions will prescriptive analytics help a company address?

Analytics on Spreadsheets

Visualizing and Exploring Data

Descriptive Statistical Measures

Probability Distributions and Data Modeling

Sampling and Estimation

Statistical Inference

Trendlines and Regression Analysis

Forecasting Techniques

Introduction to Data Mining

Spreadsheet Modeling and Analysis

Monte Carlo Simulation and Risk Analysis

Linear Optimization

Applications of Linear Optimization

Integer Optimization

Decision Analysis

Filters