Decision Science Question Bank - 3882 Verified Questions by Quizplus

Decision Science

Question Bank

Course Introduction

Decision Science is an interdisciplinary course that explores the systematic approaches and analytical methods used to make effective decisions in uncertain and complex environments. Integrating concepts from statistics, economics, psychology, and management, the course examines decision-making models, risk analysis, optimization, and behavioral factors that influence choices. Students gain practical skills in using quantitative tools, such as decision trees and simulations, as well as qualitative frameworks to evaluate alternatives and predict outcomes. Real-world case studies and exercises prepare students to tackle decision-making challenges in business, policy, healthcare, and other fields.

Recommended Textbook

Statistics for Management and Economics 11th Edition by Gerald Keller

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3882 Verified Questions

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Chapter 1: What Is Statistics

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Sample Questions

Q1) In a sample of 350 students selected from a large college of business,25% are found to be marketing majors.The 25% is a statistic.

A)True

B)False

Answer: True

Q2) A descriptive measure of a population is called a parameter.

A)True

B)False

Answer: True

Q3) The Commissioner of Health in the state of New York wanted to study malpractice litigation in Albany last year.She randomly selected 53,000 medical records from the population of 2.5 million patients in Albany last year.The proportion of malpractice claims filed from the 53,000 patients is an example of a(n)____________________. Answer: statistic

Q4) A statistic is typically a known quantity while a parameter is typically an unknown quantity.

A)True

B)False

Answer: True

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Chapter 2: Graphical Descriptive Techniques 1

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Sample Questions

Q1) Which of the following situations is best suited for a pie chart?

A)The number of dollars spent this year on each type of legal gambling.

B)The percentage of a charitable donation that goes to administrative costs vs.directly to the charity.

C)The number of students in your class who received an A,B,C,D,F on their exam.

D)All of these choices are true.

Answer: B

Q2) A relative frequency distribution lists the categories and their counts.

A)True

B)False

Answer: False

Q3) {All-Nighter Narrative} Of those who stayed up all night before the midterm,what percentage did well on the midterm?

Answer: 60/200 = 30%

Q4) Whether or not you are over the age of 21 is a nominal variable.

A)True

B)False

Answer: True

Q5) {Business School Graduates Narrative} How many graduates were surveyed?

Answer: 200; you get this by totaling the counts for each major.

Page 4

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Chapter 3: Graphical Descriptive Techniques 2

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Sample Questions

Q1) A histogram represents interval data.

A)True

B)False

Answer: True

Q2) The relative frequency of a class in a histogram is computed by

A)dividing the frequency of the class by the number of classes.

B)dividing the frequency of the class by the class width.

C)dividing the frequency of the class by the total of all frequencies.

D)None of these choices.

Answer: C

Q3) Time series data are often graphically depicted on a line chart,which is a plot of the variable of interest over time.

A)True

B)False

Answer: True

Q4) A(n)____________________ is a table that sorts data into class intervals (categories)and gives the number of observations in each interval (category).

Answer: frequency distribution

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Chapter 4: Numerical Descriptive Techniques

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Sample Questions

Q1) In a negatively skewed distribution,which of the following is the correct statement?

A)The distance from Q1 to Q2 is smaller than the distance from Q2 to Q3.

B)The distance from Q1 to Q2 is larger than the distance from Q2 to Q3.

C)The distance from Q1 to Q2 is half the distance from Q2 to Q3.

D)The distance from Q1 to Q3 is twice the distance from the Q1 to Q2.

Q2) {Ages of Volunteers Narrative} Compute the coefficient of variation and express the number in the appropriate unit.

Q3) Which of the following are measures of the linear relationship between two variables,but not the strength?

A)The covariance

B)The coefficient of correlation

C)The variance

D)Both a and b

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Chapter 5: Data Collection and Sampling

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Sample Questions

Q1) Which of the following describes selection bias?

A)A leading question is selected for inclusion in the survey.

B)Some members of the target population are excluded from possible selection for the sample.

C)A person selected for the sample has a biased opinion about the survey.

D)All of these choices are true.

Q2) Briefly discuss three methods of conducting a survey of people.

Q3) A nonsampling error can be caused by the wording of a question.

A)True

B)False

Q4) ____________________ error results from the failure to collect data from all subjects in the sample.

Q5) {Smoking and Heart Attacks Narrative} What type of studies are plausible in this particular scenario,observational studies or experiments?

Q6) Which of the following situations lends itself to cluster samples?

A)When it is difficult to develop a complete list of the population members.

B)When the population members are widely dispersed.

C)When selecting and collecting data from a simple random sample is too costly.

D)All of these choices are true.

Page 7

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Chapter 6: Probability

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Sample Questions

Q1) ____________________ can find the probability that someone with a disease tests positive by using (among other things)the probability that someone who actually has the disease tests positive for it.

Q2) {Business Majors Narrative} What is the chance that they all major in accounting?

Q3) Prior probability is also called likelihood probability.

A)True

B)False

Q4) Which of the following statements is false regarding a scenario using Bayes' Law?

A)Prior probabilities are called likelihood probabilities.

B)Conditional probabilities are called posterior probabilities.

C)Posterior probabilities are calculated by using prior probabilities that have been modified based on new information.

D)None of these choices.

Q5) {Equity Loan Rates Narrative} What is the most common interest rate?

Q6) {Drunk Drivers Narrative} If multiple vehicles were involved,what proportion of accidents involved alcohol?

Q7) {Cysts Narrative} What is the probability that the patient will test negative?

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Chapter 7: Random Variables and Discrete Probability

Distributions

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Sample Questions

Q1) {911 Phone Calls Narrative} Find the probability of receiving two calls in a five-minute interval of time.

Q2) A binomial experiment consists of a(n)____________________ number of trials,n.

Q3) {Number of Birds Narrative} Compute the mean and variance of X.

Q4) {Golfing Store Narrative} Find the probability distribution of the random variable X + Y.

Q5) Given a Poisson random variable X,where the average number of successes occurring in a specified interval is 1.8,then P(X = 0)is:

A)1.8

B)1.3416

C)0.1653

D)6.05

Q6) The Poisson probability distribution is a continuous probability distribution. A)True B)False

Q7) {Retries Narrative} What is the variance for the number of retries?

Q9) {Number of Hamsters Narrative} Are X and Y independent? Explain. Page 9

Q8) In the Poisson distribution,the ____________________ is equal to the variance.

Q10) {Car Sales Narrative} Verify that E(X + Y)= E(X)+ E(Y).

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Chapter 8: Continuous Probability Distributions

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Sample Questions

Q1) {Counter Sales Narrative} Write the probability density function of the distribution of the time that will elapse before the next customer arrives.

Q2) The mean and the variance of an exponential distribution are equal to each other.

A)True

B)False

Q3) If the random variable X is exponentially distributed with parameter = 5,then the variance of X, 2 = V(X)= 0.04.

A)True

B)False

Q4) If X has an exponential distribution,then f(x)approaches ____________________ as x approaches infinity.

Q5) Let X be an exponential random variable with = 1.50.Find the following:

a.P(X 2)

b.P(X 4)

c.P(1 X 3)

d.P(X = 1)

Q6) {IT Graduates Salary Narrative} What is the cutoff for the bottom 5% of the salaries?

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Page 11

Chapter 9: Sampling Distributions

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Sample Questions

Q1) Random samples of size 49 are taken from an infinite population whose mean is 300 and standard deviation is 21.The mean and standard error of the sample mean,respectively,are:

A)300 and 21

B)300 and 3

C)300 and 0.43

D)None of these choices.

Q2) (Retirees Narrative} Find the mean and standard error of the sampling distribution of the sample mean.

Q3) A sample of size 200 is taken at random from an infinite population.Given that the population proportion is 0.60,the probability that the sample proportion is less than 0.58 is

A)0.281

B)0.719

C)0.580

D)0.762

Q4) {Average Annual Revenue Narrative} Could you have used a normal distribution to find an (approximate)probability for the average of 4 revenues if the population of revenues did not have a normal distribution?

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Chapter 10: Introduction to Estimation

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Sample Questions

Q1) {Time Spent Playing Computer Games Narrative} Determine the 95% confidence interval estimate of the population mean if the population standard deviation is changed to 2.

Q2) The sample variance s2 is an unbiased estimator of the population variance 2 when the denominator of s2 is n.

A)True

B)False

Q3) A confidence interval is a probability statement about the ____________________ mean.

Q4) A(n)____________________ estimator of a population parameter is an estimator whose expected value is equal to that parameter.

Q5) When constructing confidence interval for a parameter,we generally set the confidence level 1 close to 1 (usually between 0.90 and 0.99)because it is the probability that the interval includes the actual value of the population parameter.

A)True

B)False

Q6) If the bound on the error of estimation decreases,the sample size

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Chapter 11: Introduction to Hypothesis Testing

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Sample Questions

Q1) If we do not reject the null hypothesis,we conclude that there ____________________(is/is not)enough statistical evidence to infer that the alternative hypothesis is true.

Q2) The owner of a local nightclub has recently surveyed a random sample of n = 300 customers of the club.She would now like to determine whether or not the mean age of her customers is over 35.If so,she plans to alter the entertainment to appeal to an older crowd.If not,no entertainment changes will be made.Suppose she found that the sample mean was 35.5 years and the population standard deviation was 5 years.What is the p-value associated with the test statistic?

A)0.9582

B)1.7300

C)0.0418

D)0.0836

Q3) If a researcher rejects a true null hypothesis,she has made a(n)____________________ error.

Q4) A one-tail test for the population mean produces a test-statistic z = 0.75.The p-value associated with the test is 0.7734.

A)True

B)False

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Chapter 12: Inference About a Population

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Sample Questions

Q1) The t-distribution allows the calculation of confidence intervals for means for small samples when the population variance is not known,regardless of the shape of the distribution in the population.

A)True

B)False

Q2) Estimating or testing for p is used in situations when the data are ____________________.

Q3) In forming a 95% confidence interval for a population mean from a sample size of 20,the number of degrees of freedom from the t-distribution equals 20.

A)True

B)False

Q4) {Healthy Foods Narrative} Estimate with 95% confidence the proportion p of Spanish adults who classify themselves as concerned about eating healthy.

Q5) If the sampled population is nonnormal,the t-test of the population mean is still valid,provided that the condition is not extreme.

A)True

B)False

Q6) {Applicants' Grades Narrative} Compute the sample variance.

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Chapter 13: Inference About Comparing Two Populations

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Sample Questions

Q1) If some natural relationship exists between each pair of observations that provides a logical reason to compare the first observation of sample 1 with the first observation of sample 2,the second observation of sample 1 with the second observation of sample 2,and so on,the samples are referred to as:

A)matched pairs.

B)independent samples.

C)nonrandom samples.

D)None of these choices.

Q2) {Speed Limits Violation Narrative} Do these data provide enough evidence to support the highway patrol's claim at the 5% significance level?

Q3) {Additives Narrative} Assume population variances are equal.Calculate the pooled variance and the value of the test statistic.

Q4) A required condition for using the normal approximation to the binomial in testing the difference between two population proportions is that n1p1 30 and n2p2 30.

A)True

B)False

Q5) {Senatorial Election Narrative} What is the p-value of the test?

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Chapter 14: Analysis of Variance

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Sample Questions

Q1) In one-way analysis of variance,within-treatments variation is measured by:

A)sum of squares for error.

B)sum of squares for treatments.

C)total sum of squares.

D)standard deviation.

Q2) How does conducting multiple t-tests compare to conducting a single F-test?

A)Multiple t-tests increases the chance of a Type I error.

B)Multiple t-tests decreases the chance of a Type I error.

C)Multiple t-tests does not affect the chance of a Type I error.

D)This comparison cannot be made without knowing the number of populations.

Q3) In a one-way ANOVA,error variability is computed as the sum of the squared errors,SSE,for all values of the response variable.This variability is the:

A)the total variation.

B)within-treatments variation.

C)between-treatments variation.

D)None of these choices.

Q4) When the F-test is used for ANOVA,the rejection region is always in the right tail.

A)True

B)False

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Chapter 15: Chi-Squared Tests

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Sample Questions

Q1) To determine whether a single coin is fair,the coin was tossed 200 times.The observed frequencies with which each of the two sides of the coin turned up are recorded as 112 heads and 88 tails.Is the coin fair? Use a=.05

Q2) {Sales Volumes Narrative} Compute the expected frequencies for x = 0,1,2,3,4,and 5 by using the binomial probability function or the binomial tables.Combine categories if necessary to satisfy the rule of five.

Q3) A test for whether one proportion is higher than the other can be performed using the chi-squared distribution.

A)True

B)False

Q4) To determine whether data were drawn from a multinomial distribution with certain proportions,you use a:

A)chi-squared goodness-of-fit test.

B)chi-squared test of a contingency table.

C)chi-squared test for normality.

D)None of these choices.

Q5) If we square the value of z (the test statistic in the test of a proportion)we produce the ____________________ statistic.

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Chapter 16: Simple Linear Regression and Correlation

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Sample Questions

Q1) {Rock Concert Revenues Narrative} Conduct a test of the population slope to determine at the 5% significance level whether a positive linear relationship exists between payment to the two highest-paid performers and gross revenue.

Q2) In a simple linear regression model b0 is the ____________________ of the straight line.

Q3) {Trivia Games & Education Narrative} Interpret the value of the slope of the regression line.

Q4) {Sales and Experience Narrative} Conduct a test of the population coefficient of correlation to determine at the 5% significance level whether more experience is related to higher sales,as the manager speculates.

Q5) {Comedy Shows Revenues Narrative} Use the predicted and actual values of y to calculate the residuals.

Q6) The confidence interval estimate of the expected value of y will be wider than the prediction interval for the same given value of x and confidence level.This is because there is more error in estimating a mean value as opposed to predicting an individual value.

A)True

B)False

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Chapter 17: Multiple Regression

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Sample Questions

Q1) {Real Estate Builder Narrative} One individual in the sample had an annual income of $100,000,a family size of 10,and an education of 16 years.This individual owned a home with an area of 7,000 square feet.What is the residual (in hundreds of square feet)for this data point?

Q2) A multiple regression model involves 10 independent variables and 30 observations.If we want to test at the 5% significance level whether one of the coefficients is = 0 (vs. 0)the critical value will be:

A)2.228

B)2.093

C)1.729

D)1.697

Q3) In multiple regression analysis,the ratio MSR/MSE yields the:

A)t-test statistic for testing each individual regression coefficient.

B)F-test statistic for testing the validity of the regression equation.

C)coefficient of determination.

D)adjusted coefficient of determination.

Q4) Consider the following statistics of a multiple regression model: n = 25,k = 5,b1 = 6.31,and s = 2.98.Can we conclude at the 1% significance level that x1 and y are linearly related?

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Chapter 18: Model Building

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Sample Questions

Q1) {Senior Medical Students Narrative} Do these results allow us to conclude at the 1% significance level that on average biology majors outperform those whose majors are not medical or biology?

Q2) {Computer Training Narrative} Determine if there is sufficient evidence at the 5% significance level to infer that the quadratic relationship between y,x,and x2 in the previous question is significant.

Q3) The last category represented by I1 = I2 = .....Im 1 = 0 is called the omitted category.

A)True

B)False

Q4) The model y = 0 + 1x + 2x2 +.........+ pxp + is referred to as a polynomial model with:

A)one predictor variable.

B)p predictor variables.

C)(p + 1)predictor variables.

D)x predictor variables.

Q5) An indicator variable is a nominal variable that can assume _______________ possible values.

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Chapter 19: Nonparametric Statistics

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Sample Questions

Q1) {Keyboard Speed Narrative} Perform the sign test to determine if these data provide enough evidence at the 5% significance level to infer that the brands differ with respect to keyboard speed.

Q2) Some statistical software perform the Mann-Whitney test.However,this test and the sign test are equivalent tests.

A)True

B)False

Q3) To apply the Wilcoxon rank sum test to determine whether the location of population 1 is different from the location of population 2,the samples must be independent.

A)True

B)False

Q4) If the test statistic Fr for the Friedman test is ____________________,we do not reject H0.

Q5) {Song Ratings Narrative} What statement can be made about the p-value for this test?

Q6) {Advertisement Narrative} What is the most accurate statement that can be made about the p-value of this test?

Q7) {Advertisement Narrative} Conduct the test at the 5% significance level.

Page 22

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Chapter 20: Time-Series Analytics and Forecasting

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Sample Questions

Q1) {Biodiesel Sales Narrative} Compute the five-month moving average.

Q2) Which of the following statements about moving averages is not true?

A)It can be used to smooth a series

B)It gives equal weight to all values in the computation

C)It is simpler than the method of exponential smoothing

D)It gives greater weight to more recent data

Q3) The most commonly used measures of forecast accuracy are the:

A)mean absolute deviation and the sum of squares for forecast errors

B)sum of squares for forecast error and seasonal indexes

C)seasonal indexes and the percentage of trend

D)all of these choices are correct

Q4) Which of the four time series components is more likely to exhibit the relative steady growth of the population of Las Vegas from 1964 to 2004?

A)Long-term trend

B)Cyclical variation

C)Seasonal variation

D)Random variation

Q5) {Liquor Sales Narrative} Exponential smoothing with a weight or smoothing constant of 0.2 will be used to forecast liquor sales.The forecast for 2019 is

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Chapter 21: Statistical Process Control

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Sample Questions

Q1) Statistical process control allows us to detect ____________________ variation only.

Q2) To construct a p chart,draw samples of size n,and for each sample calculate the sample ____________________ of defective units.

Q3) If the upper and lower specification limits of a process are .852 and .828,respectively,and the process standard deviation is .002,then the process capability index Cp is

A).024

B)2.000

C) 2.000

D)12.000

Q4) In statistical process control,a Type II error occurs if we conclude that the process is in control when it actually isn't.

A)True

B)False

Q5) ____________________ is the term used when the standard deviation of a process distribution increases.

Q6) A level shift is a change in the ____________________ of the process distribution.

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Chapter 22: Decision Analysis

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Q1) {Gross Profits Narrative} If the probability of s1 is 0.5,then the expected monetary value (EMV)for a2 is ____________________.

Q2) The rollback technique starts at the beginning (left side)of the decision tree.

A)True

B)False

Q3) {Food Market Narrative} Calculate the expected opportunity loss for each act with present information.What decision should be made using the EOL criterion?

Q4) {Power Company Narrative} What is the expected value of perfect information?

Q5) {Maintenance Company Narrative} Use the posterior probabilities for I3 in the previous question to recalculate the expected monetary value of each act,then determine the optimal act and the EMV*.

Q6) {Gross Profits Narrative} If the probability of s1 is 0.5,then the expected monetary value (EMV)for a1 is ____________________.

Q7) {Maintenance Company Narrative} Use your answers to the previous questions to calculate the expected monetary value with additional information.

Q8) {Gas Company Narrative} Convert the payoff table to an opportunity loss table.

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Chapter 23: Conclusion

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Sample Questions

Q1) One prevailing idea amongst statisticians is the idea of "Garbage in / garbage out." Explain the meaning of this phrase and give an example of it.

Q2) The sampling distributions that are used for nominal data are the standard normal distribution and the:

A)Chi-squared distribution.

B)Binomial distribution.

C)F-distribution.

D)Interval distribution.

Q3) Which type of data involves ratings?

A)Interval data

B)Ordinal data

C)Nominal data

D)None of these

Q4) Which of the following is an example of interval data?

A)The weight of a newborn baby.

B)The gender of a baby.

C)Whether or not a baby weighs more than 10 pounds.

D)Your order of preference of three baby names.

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