Business Statistics Exam Practice Tests
Course Introduction
Business Statistics introduces students to the fundamental concepts and methods of collecting, analyzing, interpreting, and presenting data relevant to business decision-making. The course covers topics such as descriptive statistics, probability distributions, sampling techniques, statistical inference, hypothesis testing, correlation, and regression analysis. Emphasis is placed on applying statistical tools to real-world business problems, enabling students to make informed decisions and gain insights from data. Practical exercises using statistical software may also be included to enhance analytical skills and understanding of the material.
Recommended Textbook
Essentials of Business Analytics 1st Edition by Jeffrey D. Camm
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12 Chapters
688 Verified Questions
688 Flashcards
Source URL: https://quizplus.com/study-set/1130
Page 2
Chapter 1: Introduction
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/22189
Sample Questions
Q1) Franchises across several major sports dynamically adjust ticket prices throughout the season to reflect the relative attractiveness and potential demand for each game by using:
A) data mining.
B) predictive analytics.
C) simulation.
D) prescriptive analytics.
Answer: D
Q2) Picks and Axes Inc. is an Internet-based retail seller of hiking boots and mountaineering gear. The company decides to open retail stores across the major areas of the city to help complement its Internet-based strategy. This activity would be categorized as a(n)
A) tactical decision.
B) operational decision.
C) strategic decision.
D) financial decision.
Answer: C
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Page 3
Chapter 2: Descriptive Statistics
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Compute the mode for the following data:
12 16 19 10 12 11 21 12 21 10
A) 21
B) 11
C) 12
D) 10
Answer: C
Q2) If covariance between two variables is near 0, then it implies that
A) there exists a positive relationship between the variables.
B) the variables are not linearly related.
C) the variables are negatively related.
D) the variables are strongly relateD)
Answer: B
Q3) The simplest measure of variability is the A) variance.
B) standard deviation.
C) coefficient of variation.
D) range.
Answer: D
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Page 4
Chapter 3: Data Visualization
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61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/22191
Sample Questions
Q1) A data visualization tool that updates in real time and gives multiple outputs is called
A) a data table.
B) a metrics table.
C) the GIS.
D) a data dashboarD)
Answer: D
Q2) In designing an effective table,
A) avoid the use of unnecessary ink in tables.
B) increase the number of horizontal and vertical lines in the table.
C) avoid the use of necessary ink in tables.
D) do not focus on the alignment of the text and numbers in the table.
Answer: A
Q3) A _____ is used for examining data with more than two variables and it includes a different vertical axis for each variable.
A) scatter plot.
B) PivotChart.
C) column chart.
D) parallel coordinates plot.
Answer: D
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Page 5
Chapter 4: Linear Regression
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) A _____ is used to visualize sample data graphically and to draw preliminary conclusions about the possible relationship between the variables.
A) contingency table
B) scatter chart
C) Gantt chart
D) pie chart
Q2) What would be the mean square due to regression (MSR) in this case?
A) 15.48
B) 10
C) 5.9
D) 3.87
Q3) A normally distributed error term with mean of zero would:
A) have values that are symmetric about the variance.
B) allow more accurate modelling.
C) yield biased regression estimates.
D) be a hyperbolic curve.
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Chapter 5: Time Series Analysis and Forecasting
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58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/22193
Sample Questions
Q1) A time series with a seasonal pattern can be modeled by treating the season as a
A) predictor variable
B) dependent variable
C) dummy variable
D) categorical variable
Q2) Trends result from:
A) rapidly-arising short-term factors.
B) rapidly-arising long-term factors.
C) slowly-varying short-term factors.
D) slowly-varying long-term factors.
Q3) Forecast error:
A) takes a positive value when the forecast is too high.
B) cannot be negative.
C) cannot take a value of zero.
D) is associated with measuring forecast accuracy.
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Chapter 6: Data Mining
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60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/22194
Sample Questions
Q1) k-means clustering is the process of:
A) agglomerating observations into a series of nested groups based on a measure of similarity.
B) organizing observations into one of a number of groups based on a measure of similarity.
C) reducing the number of variables to consider in a data-mining approach.
D) estimating the value of a continuous outcome variable.
Q2) The lift ratio of an association rule with a confidence value of 0.43 and in which the consequent occurs in 6 out of 10 cases is:
A) 1.40
B) 0.54
C) 1.00
D) 0.72
Q3) _____methods do not attempt to predict an output value but are rather used to detect patterns and relationships in the data.
A) Supervised learning
B) Machine learning
C) Artificial intelligence
D) Unsupervised learning
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Page 8
Chapter 7: Spreadsheet Models
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) The impact of two inputs on the output of interest is given by a _____.
A) Goal Seek
B) Watch Window
C) multiple-way data table
D) two-way data table
Q2) Which of the following approaches is a good way to proceed with the influence diagram building for a problem?
A) The influence diagram for the entire problem is build first and then separate portions are clustered to form separate models.
B) The influence diagram for all the model parts at the same level are built in parallel to reduce the likelihood of error.
C) The influence diagram is reverse engineered -the diagram is developed in the opposite direction starting with the model output.
D) The influence diagram for a portion of the problem is build first and then expanded until the total problem is conceptually modeleD)
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9
Chapter 8: Linear Optimization Models
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) A scenario in which the optimal objective function contour line coincides with one of the binding constraint lines on the boundary of the feasible region leads to _____ solutions.
A) infeasible
B) alternative optimal
C) binding
D) unique optimal
Q2) A mathematical function in which each variable appears in a separate term and is raised to the first power is known as a _____.
A) power function
B) linear function
C) what-if function
D) nonlinear function
Q3) _____ is the process of translating a verbal statement of a problem into a mathematical statement.
A) Problem-solving approach
B) Data preparation
C) Data structuring
D) Problem formulation
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Page 10
Chapter 9: Integer Linear Optimization Models
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60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/22197
Sample Questions
Q1) Which of the following is true of rounding the solution to an integer?
A) It always produces the most optimal integer solution.
B) It never produces a feasible solution.
C) It does not affect the objective function.
D) It may or may not be feasible.
Q2) A manufacturer makes two types of rubber, Butadiene and Polyisoprene. The plant has two machines, Machine-1 and Machine-2, and both of them are used to make the rubber strips. Machine-1 is available 180 hours per month and Machine-2 is available 200 hours per month. Manufacturing one strip of Butadiene requires 2.75 hours on Machine-1 and 3 hours on Machine-2. For processing one strip of Polyisoprene, it takes 3.5 hours on Machine-1 and 4 hours on Machine-2. Formulate an all-integer model that will determine how many units of each type of the rubber should be used to maximize the manufacturer's contribution to profit if he gets a profit of $20 on Butadiene and $26 on Polyisoprene?
Q3) Binary variables are identified with the _____designation in the Solver Parameters dialog box.
A) bin
B) 0 and 1
C) int
D) dif
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Chapter 10: Nonlinear Optimization Models
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60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/22198
Sample Questions
Q1) In the Bass forecasting model, the _____ measures the likelihood of adoption, assuming no influence from someone who has already purchased (adopted) the product.
A) coefficient of correlation
B) coefficient of imitation
C) coefficient of independence
D) coefficient of innovation
Q2) Roger is willing to promote and sell two types of smart watches, X and Y, at his outlet. The demand for these two watches are as follows:
D<sub>X </sub>= -0.45P<sub>X</sub> + 0.34P<sub>Y</sub> + 242
D<sub>Y </sub>= 0.2P<sub>X</sub> - 0.58P<sub>Y </sub>+ 282 where, D<sub>X</sub> is the demand for watch X, P<sub>X</sub> is the selling price of watch X, D<sub>Y</sub> is the demand for watch Y, and P<sub>Y</sub> is the selling price of watch Y.
Rogers wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models, and find the revenue maximizing prices.
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Page 12
Chapter 11: Monte Carlo Simulation
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59 Verified Questions
59 Flashcards
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Sample Questions
Q1) A description of the range and relative likelihood of possible values of an uncertain variable is known as a _____.
A) risk analysis
B) probability distribution
C) base-case scenario
D) simulation optimization
Q2) The outcome of a simulation experiment is a(n)
A) objective function.
B) probability distribution for one or more output measures.
C) single number.
D) what-if scenario.
Q3) Which of the following is true of simulation optimization using Analytic Solver Platform (ASP)?
A) It is computationally simple and cheap.
B) It can be executed in a very short time.
C) It is an iterative process.
D) It guarantees an optimal solution.
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Chapter 12: Decision Analysis
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60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/22200
Sample Questions
Q1) The _____ approach evaluates each decision alternative in terms of the best payoff that can occur.
A) conservative
B) optimistic
C) maximin regret
D) expected value
Q2) A measure of the outcome of a decision such as profit, cost, or time is known as a _____.
A) branch
B) payoff
C) regret
D) forecasting index
Q3) The parameter R in an exponential utility function represents
A) the decision maker's risk tolerance.
B) the utility function's error tolerance.
C) the posterior probability.
D) the likely profit/loss from the investment.
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Page 14