Business Decision Making
Textbook Exam Questions
Course Introduction
Business Decision Making explores the systematic process of identifying and solving complex business problems using quantitative and qualitative tools. The course covers frameworks for analyzing options, assessing risks, and applying logic and data-driven insights to make informed decisions in various organizational contexts. Students will develop skills in critical thinking, interpretation of data, and communication to effectively recommend and implement strategic choices in dynamic business environments. The course integrates real-world case studies and decision-making software to enhance practical skills and prepare students for leadership roles requiring sound judgment and problem-solving abilities.
Recommended Textbook
Business Statistics A First Course 6th Edition by
David M. Levine Timothy C. Krehbiel
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14 Chapters
2486 Verified Questions
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Chapter 1: Introduction
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Sample Questions
Q1) The oranges grown on corporate farms in an agricultural state were damaged by some unknown fungi a few years ago. Suppose the manager of a large farm wanted to study the impact of the fungi on the orange crops on a daily basis over a six-week period. On each day a random sample of orange trees was selected from within a random sample of acres. The daily average number of damaged oranges per tree and the proportion of trees having damaged oranges were calculated. In this study, drawing conclusions on any one day about the true population characteristics based on information obtained from the sample is called ________.
Answer: inferential statistics/methods
Q2) The Dean of Students conducted a survey on campus. The major area of study is an example of a ________ variable.
Answer: categorical
Q3) The Human Resources Director of a large corporation wishes to develop an employee benefits package and decides to select 500 employees from a list of all (N = 40,000)workers in order to study their preferences for the various components of a potential package. The 500 employees who will participate in this study constitute the
Answer: sample
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Chapter 2: Organizing and Visualizing Data
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Sample Questions
Q1) Referring to Table 2-12, ________ percent of the 200 were against the plan. Answer: 30
Q2) Referring to Table 2-14, construct a table of total percentages.
Answer: 11ea3200_1d5b_de58_bd9a_45f821ac322c_TB2694_00
Q3) Referring to Table 2-12, ________ percent of the 200 were males who were not against the plan.
Answer: 24
Q4) Referring to Table 2-7, the civil suit with the longest wait between when the suit was filed and when it was adjudicated had a wait of ________ months. Answer: 68
Q5) Referring to Table 2-5, what is the cumulative relative frequency for the percentage of calls that lasted under 20 minutes?
A) 0.10
B) 0.59
C) 0.76
D) 0.84
Answer: D
Q6) Referring to Table 2-12, ________ percent of the 200 were males. Answer: 48
Page 4
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Chapter 3: Numerical Descriptive Measures
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Sample Questions
Q1) Referring to Table 3-4, the first quartile of the customs data is ________.
Answer: 21
Q2) Which of the following is sensitive to extreme values?
A) the median
B) the interquartile range
C) the arithmetic mean
D) the 1 quartile
Answer: C
Q3) Which of the following is NOT sensitive to extreme values?
A) the range
B) the standard deviation
C) the interquartile range
D) the coefficient of variation
Answer: C
Q4) In right-skewed distributions, which of the following is the correct statement?
A) The distance from Q to Q is greater than the distance from Q to Q .
B) The distance from Q to Q is less than the distance from Q to Q .
C) The arithmetic mean is less than the median.
D) The mode is greater than the arithmetic mean.
Answer: B
5
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Chapter 4: Basic Probability
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Sample Questions
Q1) Referring to Table 4-2, what is the probability that a randomly selected student did well on the midterm and also went bar hopping the weekend before the midterm?
A) 30/200 or 15%
B) (80+30)/200 or 55%
C) (30+70)/200 or 50%
D) (80+30+70)/200 or 90%
Q2) The probability that house sales will increase in the next 6 months is estimated to be 0.25. The probability that the interest rates on housing loans will go up in the same period is estimated to be 0.74. The probability that house sales or interest rates will go up during the next 6 months is estimated to be 0.89. The events "increase in house sales" and "no increase in house sales in the next 6 months" are
A) independent.
B) mutually exclusive.
C) collectively exhaustive.
D) B and C
Q3) Referring to Table 4-8, what is the probability that a randomly selected student is a junior or senior who lives in a dormitory?
Q4) Referring to Table 4-7, the probability that you win any money is ________.
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Chapter 5: Discrete Probability Distributions
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Sample Questions
Q1) Referring to Table 5-9, what is the probability that more than two security transactions will be conducted in one month?
Q2) Referring to Table 5-8, what is the probability that in the next 1,000 customers, the hotel chain will have at least two mishandled bags?
Q3) If remains constant in a binomial distribution, an increase in n will not change the mean.
A)True
B)False
Q4) Referring to Table 5-6, what is the variance of the gain in value for the house in neighborhood A?
Q5) The number of 911 calls in Butte, Montana, has a Poisson distribution with a mean of 10.0 calls a day. The standard deviation of the number of 911 calls in a day is ________.
Q6) Referring to Table 5-4, the standard deviation of the number of accidents is
Q7) Suppose that past history shows that 60% of college students prefer Brand C cola. A sample of 5 students is to be selected. The probability that 2 or fewer prefer Brand C is
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Chapter 6: The Normal Distribution
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Sample Questions
Q1) A normal probability plot may be used to assess the assumption of normality for a particular set of data.
A)True
B)False
Q2) Referring to Table 6-4, find the probability that the annual return of a random year will be less than 11.5%.
Q3) Referring to Table 6-2, the probability is 0.9 that John's income as a waiter is less than how much in a given month?
Q4) Referring to Table 6-4, find the probability that the annual return of a random year will be more than 7.5%.
Q5) Suppose Z has a standard normal distribution with a mean of 0 and standard deviation of 1. So 27% of the possible Z values are smaller than ________.
Q6) Referring to Table 6-2, for a given month, what is the probability that John's commission from the jewelry store is between $9,000 and $11,000?
Q7) Referring to Table 6-2, for a given month, what is the probability that John's income as a waiter is more than $900?
Q8) Referring to Table 6-4, 75% of the annual returns will be lower than what value?
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Chapter 7: Sampling and Sampling Distributions
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Sample Questions
Q1) Suppose = 80 and = 20 for a population. In a sample where n = 100 is randomly taken, 95% of all possible sample means will fall above 76.71.
A)True
B)False
Q2) Measurement error can become an ethical issue when a survey sponsor chooses leading questions that guide the responses in a particular direction.
A)True
B)False
Q3) In inferential statistics, the standard error of the sample mean assesses the uncertainty or error of estimation.
A)True
B)False
Q4) The only way one can eliminate sampling error is to take the whole population as the sample.
A)True
B)False
Q5) Referring to Table 7-5, 90% of the samples will have less than what percentage of customers who will make a purchase after visiting the web site?
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Chapter 8: Confidence Interval Estimation
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Sample Questions
Q1) Referring to Table 8-10, a 90% confidence interval calculated from the same data would be narrower than a 99% confidence interval.
A)True
B)False
Q2) Referring to Table 8-1, they should sample ________ employees if they want to estimate the mean score of the employees within 5 points with 90% confidence.
Q3) A confidence interval was used to estimate the proportion of statistics students who are females. A random sample of 72 statistics students generated the following 90% confidence interval: (0.438, 0.642). Based on the interval above, is the population proportion of females equal to 0.60?
A) No, and we are 90% sure of it.
B) No. The proportion is 54.17%.
C) Maybe. 0.60 is a believable value of the population proportion based on the information above.
D) Yes, and we are 90% sure of it.
Q4) Referring to Table 8-11, the critical value for a 95% confidence interval estimate of the population proportion of managers who have caught salespeople cheating on an expense report is ________.
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Chapter 9: Fundamentals of Hypothesis Testing:
One-Sample Tests
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Sample Questions
Q1) Referring to Table 9-3, the null hypothesis will be rejected at 1% level of significance. A)True
B)False
Q2) Referring to Table 9-8, state the alternative hypothesis for this study.
Q3) Referring to Table 9-8, the lowest level of significance at which the null hypothesis can be rejected is ________.
Q4) Referring to Table 9-7, the null hypothesis would be rejected. A)True
B)False
Q5) "What conclusions and interpretations can you reach from the results of the hypothesis test?" is not an important question to ask when performing a hypothesis test. A)True
B)False
Q6) Referring to Table 9-9, the null hypothesis would be rejected. A)True
B)False
Q7) Referring to Table 9-8, state the null hypothesis for this study.
Q8) Referring to Table 9.3, the value of the test statistic is ________.
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Chapter 10: Two-Sample Tests and One-Way ANOVA
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Sample Questions
Q1) Referring to Table 10-15, what is the value of the test statistic for testing whether there is evidence of a difference in the variances?
Q2) Referring to Table 10-11, construct a 90% confidence interval estimate of the difference in proportion between accounting majors and economic majors who have a job offer on graduation day.
Q3) Referring to Table 10-16, the among-group (between-group)mean squares is
A) 8.525
B) 70.8
C) 212.4
D) 637.2
Q4) A statistics professor wanted to test whether the grades on a statistics test were the same for upper and lower classmen. The professor took a random sample of size 10 from each, conducted a test, and found out that the variances were equal. For this situation, the professor should use a t test with independent samples.
A)True
B)False
Q5) Referring to Table 10-4, the pooled (i.e., combined)variance is ________.
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Chapter 11: Chi-Square Tests
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Sample Questions
Q1) The chi-square test of independence requires that the expected frequency in each cell to be at least 5.
A)True
B)False
Q2) Referring to Table 11-5, the critical value of the test is ________.
Q3) Referring to Table 11-2, the same decision would be made with this test if the level of significance had been 0.10 rather than 0.05.
A)True
B)False
Q4) Referring to Table 11-7, the expected cell frequency for the Paris/No cell is ________.
Q5) Referring to Table 11-5, the test will involve ________ degrees of freedom.
Q6) Referring to Table 11-7, the value of the test statistic is ________.
Q7) Referring to Table 11-13, the value of the test statistic is ________.
A) 8.532
B) 15.483
C) 18.889
D) 69.744
Q8) Referring to Table 11-11, the value of the test statistic is ________.
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Chapter 12: Simple Linear Regression
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Q1) Referring to Table 12-4, the managers of the brokerage firm wanted to test the hypothesis that the population slope was equal to 0. At a level of significance of 0.01, the null hypothesis should be ________ (rejected or not rejected).
Q2) Referring to Table 12-5, the prediction for a quarter in which X = 120 is Y =
Q3) Referring to Table 12-12, the value of the measured t test statistic to test whether the amount of time depends linearly on the number of loan applications recorded is
A) 0.8924
B) 3.2559
C) 15.2388
D) 232.2200
Q4) Referring to Table 12-11, the null hypothesis for testing whether there is a linear relationship between revenue and the number of downloads is "There is no linear relationship between revenue and the number of downloads".
A)True
B)False
Q5) Referring to Table 12-3, set up a scatter plot.
Q6) Referring to Table 12-4, the regression sum of squares (SSR)is ________.
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Chapter 13: Introduction to Multiple Regression
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Sample Questions
Q1) Referring to Table 13-16, what is the p-value of the test statistic to determine whether HP makes a significant contribution to the regression model in the presence of the other independent variables at a 5% level of significance?
Q2) Referring to Table 13-2, an employee who took 12 economics courses scores 10 on the performance rating. What is her estimated expected wage rate? A) 10.90
12.20
24.87
25.70
Q3) Referring to Table 13-17 Model 1, what is the value of the test statistic when testing whether age has any effect on the number of weeks a worker is unemployed due to a layoff, while holding constant the effect of all the other independent variables?
Q4) Referring to Table 13-17 Model 1, what is the standard error of estimate?
Q5) Referring to Table 13-10, the standard error of the estimate is _________.
Q6) Referring to Table 13-16, the error appears to be right-skewed.
A)True
B)False
Q7) Referring to Table 13-8, the net regression coefficient of X is ________.
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Chapter 14: Statistical Applications in Quality Management
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Sample Questions
Q1) Referring to Table 14-5, the best estimate of the mean proportion of disks with bad sectors is ________.
Q2) The Shewhart-Deming cycle plays an important role in which of the following Deming's 14 points for management?
A) Adopt the new philosophy.
B) Break down barriers between staff areas.
C) Create constancy of purpose for improvement of product and services.
D) Eliminate slogans, exhortation, and targets for the workforce.
Q3) Referring to Table 14-5, a p control chart is to be made for these data. The estimate of the standard error of the proportion of disks with bad sectors is ________.
Q4) Referring to Table 14-4, what is the value of d factor?
Q5) Referring to Table 14-5, the process seems to be in control.
A)True B)False
Q6) Referring to Table 14-6, a p control chart is to be constructed for these data. The center line for the chart should be located at ________.
Q7) Referring to Table 14-7, construct an R chart for the number of blemishes.
Q8) ________ causes of variation are correctable without modifying the system.
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