Business Analytics
Exam Questions
Course Introduction
Business Analytics is a course designed to equip students with the knowledge and practical skills needed to analyze data and support decision-making within organizations. Through a combination of statistical methods, data visualization, and predictive modeling, students learn how to gather, interpret, and communicate business insights derived from data. The course covers key topics such as descriptive analytics, data mining, and the use of software tools like Excel, R, or Python. Emphasis is placed on real-world applications, enabling students to solve business problems, identify trends, and enhance strategic planning across various industries.
Recommended Textbook
Practical Management Science 5th Edition by Wayne L. Winston
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14 Chapters
421 Verified Questions
421 Flashcards
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Page 2
Chapter 1: Introduction to Modeling
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Sample Questions
Q1) Defining an organization's problem includes:
A)specifying the organization's objectives
B)collecting the organization's historical data
C)defining the model of the problem
D)sensitivity analysis
Answer: A
Q2) Which of the following is not necessarily a property of a good model?
A)The model represents the client's real problem accurately
B)The model is as simple as possible
C)The model is based on a well-known algorithm
D)The model is one the client can understand
Answer: C
Q3) The most frequent cause of a failed implementation of a model is:
A)the model is incorrect
B)the analyst fails to communicate how to use the model
C)the data for the model is unavailable
D)the model is too complex
Answer: B
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3
Chapter 2: Introduction to Spreadsheet Modeling
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Sample Questions
Q1) In Excel terminology, the unknown value used in Goal Seek is called the input cell.
A)True
B)False
Answer: False
Q2) Much of the power of spreadsheet models derives from their flexibility.
A)True
B)False Answer: True
Q3) Estimating the relationships between variables in a spreadsheet model can be done using:
A)data tables
B)Goal Seek
C)the VLOOKUP function
D)curve fitting
Answer: D
Q4) Refer to Exhibit 2-2. Use the above information to develop a simple cash flow proforma sheet, and then apply Excel's NPV function to calculate the project value assuming a 10% discount rate. What is your answer?
Answer: The project NPV is $5,468.24 (allowing for a fraction of a volleyball)
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Chapter 3: Introduction to Optimization Modeling
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Sample Questions
Q1) Linear programming models have three important properties. They are:
A)optimality, additivity and sensitivity
B)optimality, linearity and divisibility
C)divisibility, linearity and nonnegativity
D)proportionality, additivity and divisibility
Answer: D
Q2) Suppose the allowable increase and decrease for an objective coefficient of a decision variable that has a current value of $50 are $25 (increase) and $10 (decrease). If the coefficient were to change from $50 to $65, the optimal value of the objective function would not change.
A)True
B)False
Answer: False
Q3) In using Excel to solve linear programming problems, the changing cells represent the:
A)value of the objective function
B)constraints
C)decision variables
D)total cost of the model
Answer: C
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Chapter 4: Linear Programming Models
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Sample Questions
Q1) Which of the following statements is a type of constraint that is often required in blending problems?
A)Integer constraint
B)Binary constraint
C)Quality constraint
D)None of these options
Q2) One way to solve a dual-objective problem is to use one objective as the target cell and constrain the other.
A)True
B)False
Q3) In aggregate planning models, which of the following statements are correct?
A)The number of workers available influences the possible production levels
B)We allow the workforce level to be modified each month through the hiring and firing of workers
C)We eventually allow demand to be backlogged; that is, demand need not be met on time
D)All of these options
Q4) Refer to Exhibit 4-3. Determine the optimal processing plan for the meat market.
Q5) Refer to Exhibit 4-1. Use Solver to formulate and solve the hospital's problem.
Page 6
Q6) Refer to Exhibit 4-2. Determine the optimal staffing plan for the project.
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Chapter 5: Network Models
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Sample Questions
Q1) Refer to Exhibit 5-1. Formulate (write out algebraically) an LP transportation model to help Sinclair minimize its shipping costs.
Q2) Refer to Exhibit 5-1. Implement the LP model in Solver and obtain the optimal shipping plan. What is the optimized cost?
Q3) Transshipment points are locations where goods neither originate nor end up, but goods are allowed to enter such points to be shipped out to their eventual destinations.
A)True
B)False
Q4) A particularly useful Excel function in the formulation of transportation problems is the:
A)IF function
B)SUMIF function
C)SUMPRODUCT function
D)NPV function
Q5) The flow balance constraint for each transshipment node in a network flow model has the form Flow in = Flow out.
A)True B)False
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Chapter 6: Optimization Models With Integer Variables
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Sample Questions
Q1) Fixed costs imply that the divisibility assumption of linear models no longer holds.
A)True
B)False
Q2) Refer to Exhibit 6-1. Which items should she take with her to her new home? What is the value of these items?
Q3) Problems with a fixed cost that is incurred only if an activity is undertaken at a positive level are inherently nonlinear.
A)True
B)False
Q4) Optimization software, including Solver, typically has more difficulty solving an integer programming problem, relative to a linear programming problem.
A)True
B)False
Q5) In a set-covering model, each member of a given set (set 1) must be "covered" by all members of another set (set 2).
A)True
B)False
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Chapter 7: Nonlinear Optimization Models
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Sample Questions
Q1) A function is concave if:
A)its slope is always nondecreasing
B)a line drawn connecting two points on the curve never lies below the curve
C)its slope is always nonincreasing
D)it is always positive
Q2) A function is convex if a line drawn connecting two points on the curve never lies below the curve.
A)True
B)False
Q3) Solver is guaranteed to find the global minimum (if it exists) if the objective function is concave and the constraints are linear.
A)True
B)False
Q4) Relative to linear optimization models, nonlinear optimization models are typically more difficult to solve.
A)True
B)False
Q5) Refer to Exhibit 7-1. How many units of each product should the company produce? What prices should it charge, to maximize profit?
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Chapter 8: Evolutionary Solver: An Alternative Optimization
Procedure
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Sample Questions
Q1) Refer to Exhibit 8-3. Use a discriminant analysis to develop a classification model. What is the best percentage correctly classified obtained with your model?
Q2) Refer to Exhibit 8-4. Suppose Steve's company decides to locate a second salesperson in the region. Steve will now cover only Denver, Albuquerque, El Paso, Phoenix and Salt Lake City. The second salesperson will cover Los Angeles, San Diego, San Francisco, Portland, Seattle and Las Vegas. Formulate and solve shortest-path models for both salespersons. Is the total mileage for both salespersons more or less than in the case where Steve is the only salesperson?
Q3) If the classification matrix from a discriminant analysis shows a high percentage of correct classification, then we can be confident that the classification will work well for other populations.
A)True
B)False
Q4) Mutations are useful for getting a genetic algorithm "unstuck".
A)True
B)False
Q5) Refer to Exhibit 8-1. How should the train be loaded to minimize shortage and penalty costs?
Page 10
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Chapter 9: Decision Making Under Uncertainty
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Sample Questions
Q1) Refer to Exhibit 9-1. Construct a decision tree to help the farmer make his decision. What should he do? Explain your answer.
Q2) Probabilities on the branches of a chance node may be ____ events that have occurred earlier in the decision tree.
A)marginal due to B)conditional on C)averaged with D)increased by
Q3) The certainty equivalent is the certain dollar amount a risk-averse decision maker would accept in order to avoid a gamble altogether.
A)True
B)False
Q4) Refer to Exhibit 9-2. What should the credit union do? What is their expected profit?
Q5) Which of the following statements is true concerning decision tree conventions?
A)Time proceeds from right to left.
B)The trees are composed of circles, triangles and ovals.
C)The nodes represent points in time.
D)Probabilities of outcomes are shown to the right of the end nodes.
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Chapter 10: Introduction to Simulation Modeling
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Sample Questions
Q1) One of the primary advantages of simulation models that they enable managers to answer what-if questions about changes in systems without actually changing the systems themselves.
A)True
B)False
Q2) Refer to Exhibit 10-1. Company management currently has no idea what the distribution of the construction cost is. All they can state is that "we think it will be somewhere between $5,000,000 and $8,000,000."
Q3) Which of the following is not one of the important distinctions of probability distributions?
A)Discrete versus continuous
B)Symmetric versus skewed
C)Bounded versus unbounded
D)Positive versus negative
Q4) Correlation between two random input variables may change the mean of an output, but it will not affect the variability and shape of an output distribution.
A)True
B)False
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12
Chapter 11: Simulation Models
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Sample Questions
Q1) The main issue in marketing and sales models is:
A)the amount invested in marketing
B)the timing of marketing
C)the profit from sales
D)the timing of sales
Q2) [Part 2] Refer to Exhibit 11-1. Suppose that the forecasted price levels shown in the pro forma cash flow sheet are not deterministic, but rather are expected to fluctuate due to market forces. The prices are expected to be normally distributed in each year, with the following means and standard deviations:Using the appropriate @RISK functions in the pro forma, what is the expected NPV? Would you recommend investing in this project? Explain.
\[\begin{array} { c c c c c c }
\text { Year } & 1 & 2 & 3 & 4 & 5 \\
\text { Mean } & \$ 27.40 & \$ 26.60 & \$ 25.50 & \$ 24.80 & \$ 23.50 \\
\text { Std. Dev. } & \$ 5.50 & \$ 5.30 & \$ 5.00 & \$ 4.50 & \$ 4.10
\end{array}\]
Q3) [Part 4] Refer to Exhibit 11-1. What does the distribution of the project NPV look like?
Q4) [Part 3] Refer to Exhibit 11-1. What is the standard deviation of the NPV? What does it indicate?
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Chapter 12: Inventory and Supply Chain Models
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Sample Questions
Q1) In a probabilistic inventory model, there is no guarantee that the planned safety stock will exist.
A)True
B)False
Q2) Refer to Exhibit 12-1. Suppose there is a storage cost of $10 per unit. Make the appropriate change to your Solver model or EOQ formula, and find the optimal order quantity in that case.
Q3) The basic economic order quantity (EOQ) model can be formulated as a linear model in Solver.
A)True
B)False
Q4) The annual ordering cost in the economic order quantity (EOQ) model is:
A)D/Q
B)KD/Q
C)icQ/2
D)(s+ic)Q/2
Q5) The only real cost benefit from synchronizing orders for several products is reduced setup costs.
A)True
B)False
14
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Chapter 13: Queuing Models
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Sample Questions
Q1) The mean and standard deviation of an exponential distribution are both equal to the parameter .
A)True
B)False
Q2) The server utilization U in an M/M/s system is always the same as the traffic intensity.
A)True
B)False
Q3) As the traffic intensity approaches 1:
A)there is no waiting
B)waiting lines stabilize
C)waiting lines grow extremely rapidly
D)at least one server will be idle
Q4) Refer to Exhibit 13-2. How many of the servers are busy on average?
Q5) Refer to Exhibit 13-4. Use the M/M/s template to find the expected number of busy servers, and the expected fraction of time each server is busy
Q6) [Part 2] Refer to Exhibit 13-1. Assuming an exponential distribution with the parameter you obtained in Part 1, what is the probability that a customer interarrival time will be less than 2 minutes?
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Chapter 14: Regression and Forecasting Models
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Sample Questions
Q1) The term autocorrelation refers to:
A)the analyzed data refers to itself
B)the sample is related too closely to the population
C)the data are in a loop (values repeat themselves)
D)time series variables are usually related to their own past values
Q2) In reference to the equation , the value 0.10 is the expected change in Y per unit change in X.
\[\hat { Y } = - 0.70 + 0.10 X\]
A)True
B)False
Q3) In multiple regression, the coefficients reflect the expected change in:
A)Y when the associated X value increases by one unit
B)X when the associated Y value increases by one unit
C)Y when the associated X value decreases by one unit
D)X when the associated Y value decreases by one unit
Q4) Refer to Exhibit 14-3. Obtain a simple exponential smoothing forecast again, this time optimizing the smoothing constant. Does it make much of an improvement?
Q5) Refer to Exhibit 14-2. Use the information above to estimate the linear regression model.
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