Business Analytics Exam Materials - 1113 Verified Questions

Business Analytics

Exam Materials

Course Introduction

Business Analytics is a multidisciplinary course that explores the use of data, statistical analysis, and quantitative methods to inform and improve business decision-making. Students will learn how to collect, manage, and analyze data using various tools and techniques, including data visualization, predictive modeling, and optimization. The course emphasizes practical applications in areas such as marketing, finance, operations, and strategy, empowering students to extract meaningful insights from data and drive evidence-based decisions within organizations.

Recommended Textbook

Managerial Decision Modeling 6th International Edition by Cliff T. Ragsdale

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15 Chapters

1113 Verified Questions

1113 Flashcards

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Chapter 1: Introduction to Modeling and Decision Analysis

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Sample Questions

Q1) Consistently using a structured, model based process to make decisions

A)Should produce good outcomes more frequently.

B)Is less effective than making decisions in a haphazard manner.

C)Is evidence that luck plays an important role in decision making.

D)Always leads to well-deserved success in managerial decision making.

Answer: A

Q2) In a decision-making problem, anchoring effects occur when

A)decision makers are tied too closely to previous decisions.

B)organizations refuse to consider new alternatives.

C)a seemingly trivial factor serves as a starting point for estimations.

D)a person in a position of authority exerts his or her opinion very forcefully.

Answer: C

Q3) The ultimate goal of the problem identification step of the problem-solving process is

A)collecting lots of information.

B)helping the decision maker realize there is a problem.

C)identifying the root problem or problems causing the mess.

D)convincing the decision maker the mess is really a problem that can be solved.

Answer: C

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Page 3

Chapter 2: Introduction to Optimization and Linear Programming

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Sample Questions

Q1) A company makes two products, X₁ and X₂. They require at least 20 of each be produced. Which set of lower bound constraints reflect this requirement?

A)X₁ \(\ge\) 20, X₂ \(\ge\) 20

B)X₁ + X₂ \(\ge\) 20

C)X₁ + X₂ \(\ge\) 40

D)X₁ \(\ge\) 20, X₂ \(\ge\) 20, X₁ + X₂ \(\le\) 40

Answer: A

Q2) What are the three common elements of an optimization problem?

A)objectives, resources, goals.

B)decisions, constraints, an objective.

C)decision variables, profit levels, costs.

D)decisions, resource requirements, a profit function.

Answer: B

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Page 4

Chapter 3: Modeling and Solving Lp Problems in a Spreadsheet

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89 Flashcards

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Sample Questions

Q1) Refer to Exhibit 3.3. What formula should be entered in cell D11 in the accompanying Excel spreadsheet to compute the total liters of alcohol supplied?

A)=B4*B5+C4*C5

B)=SUMPRODUCT(B11:C11,$B$4:$C$4)

C)=SUM(B5:C5)

D)=SUM(E8:E10)

Answer: B

Q2) Refer to Exhibit 3.5. What formula should be entered in cell C6 in the accompanying Excel spreadsheet to compute ending inventory?

A)=C3-C4+C5

B)=C3+C4-C5

C)=C3-(C4-C5)

D)=C5-C4-C3

Answer: B

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Chapter 4: Sensitivity Analysis and the Simplex Method

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Sample Questions

Q1) Refer to Exhibit 4.2. Constraint cell F9 corresponds to the constraint, W₁ + W₂ + W₃ + W₄ = 1, and has a shadow price of 75. Armed with this information, what can Robert request of his instructor regarding this constraint?

Q2) Binding constraints have A)zero slack.

B)negative slack.

C)positive slack.

D)surplus resources.

Q3) The allowable decrease for a changing cell (decision variable) is

A)the amount by which the constraint coefficient can decrease without changing final optimal solution.

B)an indication of how many more units to produce to maximize profits.

C)the amount by which objective function coefficient can decrease without changing the final optimal solution.

D)an indication of how much to charge to get the optimal solution.

Q4) Refer to Exhibit 4.1. Of the three percentage of effort constraints, Shipped by Truck, Shipped by Rail, and Shipped by Air, which should be examined for potential cost reduction?

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Chapter 5: Network Modeling

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Sample Questions

Q1) The right hand side value for the ending node in a shortest path problem has a value of A)-1

B)0

C)1

D)2

Q2) What happens to the solution of a network flow model if side constraints are added that do not obey the balance of flow rules?

A)The model solution is not guaranteed to be integer.

B)The model solution will more accurately reflect reality.

C)The model solution will be integer but more accurate.

D)The model solution is not guaranteed to be feasible.

Q3) The arcs in a network indicate all of the following except?

A)routes

B)paths

C)constraints

D)connections

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Chapter 6: Integer Linear Programming

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Sample Questions

Q1) Which of the following is not a benefit of using binary variables?

A)With only 2 values, Solver can work faster.

B)Binary variables are useful in selection problems.

C)Binary variables can replace some IF() conditions.

D)Binary variables can enforce logical conditions.

Q2) A company will be able to obtain a quantity discount on component parts for its three products, X₁, X₂ and X₃ if it produces beyond certain limits. To get the X₁ discount it must produce more than 50 X₁'s. It must produce more than 60 X₂'s for the X₂ discount and 70 X₃'s for the X₃ discount. How many decision variables are required in the formulation of this problem?

A)3

B)6

C)9

D)12

Q3) A company has four projects, numbered 1 through 4. If any project is selected for implementation, each lower-numbered project must also be selected for implementation. Formulate the constraints to enforce these conditions.

Q4) Refer to Exhibit 6.2. What formula would go into cells B11:E11 and cells F8:F10?

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Chapter 7: Goal Programming and Multiple Objective

Optimization

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Sample Questions

Q1) Which of the following are true regarding weights assigned to deviational variables?

A)The weights assigned can be negative.

B)The weights assigned must sum to one.

C)The weight assigned to the deviation under a particular goal must be the same as the weight assigned to the deviation above that particular goal.

D)All of these are false.

Q2) Goal programming differs from linear programming or integer linear programming is that

A)goal programming provides for multiple objectives.

B)goal programming excludes hard constraints.

C)with goal programming we iterate until an acceptable solution is obtained.

D)goal programming requires fewer variables.

Q3) A company wants to purchase large and small delivery trucks. The company wants to purchase about 10 large and 15 small trucks. Each large truck costs $30,000 and has a 10 ton capacity. Each small truck costs $20,000 and has a 7 ton capacity. The company wants to have about 200 tons of capacity and spend about $600,000.

Formulate a goal programming model of this problem.

Q4) Refer to Exhibit 7.4. What formulas should go in cell E26 of the spreadsheet?

Page 9

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Chapter 8: Nonlinear Programming and Evolutionary Optimization

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Sample Questions

Q1) The Reduced Gradient is similar to which of these terms from linear programming?

A)Shadow Price

B)Allowable Decrease

C)Allowable Increase

D)Reduced Cost

Q2) Refer to Exhibit 8.1. What formula is used in cell D12 of the spreadsheet for this problem?

A)=SUMPRODUCT(B3:C3, B12:C12)

B)=SUMPRODUCT(B4:C4, B12:C12)

C)=SUMPRODUCT(B5:C5, B12:C12)

D)=SUMPRODUCT(B7:C7, B12:C12)

Q3) The GRG and Simplex algorithms are similar in that

A)each algorithm process continues until there is no further improvement in the objective function.

B)both algorithms take their starting solution from the spreadsheet.

C)both return the globally optimal solution.

D)both algorithms return a solution that satisfies at least one constraint at equality.

Q4) Refer to Exhibit 8.2. What formula would you place in cell B6 to calculate Total Lot Area?

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Chapter 9: Regression Analysis

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Sample Questions

Q1) Polynomial regression is used when

A)the independent variables are non-linear.

B)there is a non-linear relationship between the dependent and independent variables.

C)there is a non-linear relationship between the independent variables.

D)there is a curvilinear change in the dependent variables.

Q2) R² is also referred to as

A)coefficient of determination.

B)correlation coefficient.

C)total sum of squares.

D)regression sum of squares.

Q3) The regression line denotes the ____ between the dependent and independent variables.

A)unsystematic variation

B)systematic variation

C)random variation

D)average variation

Q4) Refer to Exhibit 9.2. Predict the mean pressure for a temperature of 120 degrees.

Q5) Refer to Exhibit 9.6. What is the MS for Residual?

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Chapter 10: Discriminant Analysis

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Sample Questions

Q1) Refer to Exhibit 10.2. What is the quantitative test score value of the group centroid for group 1?

A)697.71

B)647.86

C)587.67

D)650.43

Q2) Refer to Exhibit 10.1. Suppose that for a given observation, the difference between Mahalanobis distances between group 1 and 2 (G1-G2) is big and positive. This means that

A)The observation is likely to be classified correctly to group 2

B)The observation is likely to be classified correctly to group 1

C)The observation is likely to be classified incorrectly to group 2

D)The observation is likely to be classified incorrectly to group 1

Q3) Refer to Exhibit 10.6. Based on the 20 observations and the RSP output, what percentage of the observations are correctly classified?

A)80.00%

B)88.89%

C)75.25%

D)95.14%

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Chapter 11: Time Series Forecasting

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Sample Questions

Q1) Refer to Exhibit 11.1. What Excel function will compute the mean squared error in cell C18 of the spreadsheet?

A)=SUMXMY2(B7:B14,C7:C14)

B)=SUMXMY2(B3:B14,C3:C14)/COUNT(C3:C14)

C)=SUMXMY2(B7:B14,C7:C14)/COUNT(C7:C14)

D)=SUMPRODUCT(B7:B14,C7:C14)/COUNT(C7:C14)

Q2) The determination of the MSE-minimizing value of the w_i is a non-linear optimization problem because

A)because absolute values are used.

B)the w_i are fractional.

C)the w_i sum to 1.

D)MSE is a non-linear objective function.

Q3) Refer to Exhibit 11.8. What formula should be entered in cell H7 to compute the Predicted Sales value for year 2 Quarter 1?

A)=SUM(E6:F6)*G3

B)=SUM(E6:F6)+G3

C)=SUM(E6:F6)

D)=SUM(E6:G3)

Q4) Refer to Exhibit 11.17. What is the forecast for time period 13?

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Chapter 12: Introduction to Simulation Using Risk Solver

Platform

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65 Flashcards

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Sample Questions

Q1) Worst case analysis is a(n) ____ view of the problem.

A)pessimistic

B)optimistic

C)risky

D)certain

Q2) Which Risk Solver Platform (RSP) function will generate random numbers between 3 and 7 from a continuous uniform distribution?

A)=PsiConUniform(3, 7)

B)=PsiUniDist(3, 7)

C)=PsiUniform(3, 7)

D)=PsiTruncate(3, 7)

Q3) Which of the following do not help determine the magnitude of risk in a decision-making problem?

A)The level of uncertainty in outcome.

B)The magnitude of potential loss.

C)The level of management interest in the problem.

D)The level of uncertainty in input variables.

Q4) What function should be used for generating random numbers between 1 and 12 from a continuous uniform distribution?

Page 14

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Chapter 13: Queuing Theory

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Sample Questions

Q1) Refer to Exhibit 13.6. What is the Kendall notation for this system?

Q2) Refer to Exhibit 13.6. Based on this report what is the average number of students waiting to be helped?

Q3) The M/D/1 model results can be derived from which of the following systems?

A)M/M/1 with \(\lambda\) = 0

B)M/G/1 with \(\mu\) = 0

C)M/G/1 with \(\sigma\) = 0

D)M/M/2 with finite queue length.

Q4) Refer to Exhibit 13.4. Based on this report how long does a customer wait before the checker begins serving them?

Q5) Customers arrive at a store randomly, following a Poisson distribution at an average rate of 90 per hour. How many customers arrive per minute, on average?

Q6) What is the mean arrival rate based on the following 8 arrival rate observations? Number of arrivals per hour: 6, 5, 3, 4, 7, 6, 4, 5

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Chapter 14: Decision Analysis

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Sample Questions

Q1) Refer to Exhibit 14.4. What is the expected value of perfect information for the investor?

A)13.5

B)20

C)45.5 D)59

Q2) Refer to Exhibit 14.1. What decision should be made according to the maximax decision rule?

A)A

B)B

C)C

D)Bank

Q3) Refer to Exhibit 14.14. Why does the strategy table, examining the risk associated with P(G|A) and P(G|B) never show "Sell A" or "Trade B for D" as selected options?

Q4) Refer to Exhibit 14.13. What formula should go in cell G11 and copied to cells G12:G13 of the Price worksheet to compute the Consistency Measure?

Q5) Refer to Exhibit 14.9. What formula should go in cell D5 and get copied to D6:D8 to implement the maximax decision rule?

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Chapter 15: Project Management Online

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Sample Questions

Q1) Non-critical activities are distinguished by the presence of A)positive slack.

B)idle resources.

C)wasted time.

D)zero slack.

Q2) Refer to Exhibit 15.4. Manually determine the earliest and latest start and finish times for each activity and the amount of slack for each activity. What is the critical path for the project and how long should it take to complete it?

Q3) Refer to Exhibit 15.2. Which of the following activities is not on the critical path for the network?

A)Activity A

B)Activity C

C)Activity D

D)Activity G

Q4) Refer to Exhibit 15.3. Draw the CPM network for this problem. Use AON notation.

Q5) Refer to Exhibit 15.4. Draw the CPM network for this problem. Use AON notation.

Q6) Refer to Exhibit 15.3. Identify each path through the network and its expected length.

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Page 17