Decision Science Review Questions
Course Introduction
Decision Science is an interdisciplinary field that focuses on the development and application of quantitative and qualitative methods to aid decision-making in complex and uncertain environments. The course explores fundamental concepts such as decision theory, risk analysis, optimization, and statistical modeling, while integrating behavioral insights to understand how individuals and organizations make choices. Students will engage with real-world case studies, applying analytical tools and frameworks to evaluate alternatives, assess outcomes, and enhance decision quality across various domains including business, healthcare, public policy, and engineering. Through practical assignments and collaborative projects, students will build the critical thinking and problem-solving skills necessary to support effective and ethical decision-making in dynamic organizational contexts.
Recommended Textbook
Business Statistics For Contemporary Decision Making 9th Edition by Ken Black
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Page 2
Chapter 1: Introduction to Statistics
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Sample Questions
Q1) Numbers which are used to rank-order the performance of workers represent data measured at the interval level.
A)True
B)False
Answer: False
Q2) A question in a survey of microcomputer users asked: "Which operating system do you use most often: a.Apple OS 7,b.MS DOS,c.MS Windows 95,d.UNIX." The measurement level for this question is _________________.
A) nominal level
B) ordinal level
C) interval level
D) ratio level
E) relative level
Answer: A
Q3) The highest level of data measurement is the ratio level.
A)True
B)False
Answer: True
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Chapter 2: Charts and Graphs
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Sample Questions
Q1) A Pareto chart and a pie chart are both types of qualitative graphs.
A)True
B)False
Answer: True
Q2) Your company is doing market research to assess the feasibility of a new product.The market research team gathers pricing information of the 60 existing products in the market that would compete with your company's product.The most expensive brand is priced at $22.95,and the least expensive one at $20.59.If the relative frequency of the first class is 0.05 and the cumulative frequency for the second class is 10,then the relative frequency for the second class is
A) 0.05
B) 0.11
C) 0.12
D) 0.17
E) 1.67
Answer: C
Q3) A histogram can be described as a type of vertical bar chart.
A)True
B)False
Answer: True
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Chapter 3: Descriptive Statistics
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Sample Questions
Q1) The median for ungrouped raw data is more complicated to compute then the median for grouped data.
A)True
B)False
Answer: False
Q2) A commuter travels many miles to work each morning. She has timed this trip 5 times during the last month. The time (in minutes)required to make this trip was 38,33,36,47,and 41. What is the standard deviation for this sample data?
A) 28.5
B) 11
C) 22.8
D) 5.34
E) 4.77
Answer: D
Q3) An outlier of a data set is determined from the lower and upper quartile
A)True
B)False
Answer: True
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5
Chapter 4: Probability
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Sample Questions
Q1) It is known that 20% of all students in some large university are overweight,20% exercise regularly and 2% are overweight and exercise regularly.What is the probability that a randomly selected student is either overweight or exercises regularly or both?
A) 0.40
B) 0.38
C) 0.20
D) 0.42
E) 0.10
Q2) The probability of A \(\cup\) B where A is receiving a state grant and B is receiving a federal grant is the probability of receiving no more than one of the two grants.
A)True
B)False
Q3) Given that two events,A and B,are independent,if the marginal probability of A is 0.6,the conditional probability of A given B will be 0.4. A)True
B)False
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Chapter 5: Discrete Distributions
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Sample Questions
Q1) The variance of a discrete distribution increases if we add a positive constant to each one of its value.
A)True
B)False
Q2) Which of the following conditions is not a condition for the hypergeometric distribution?
A) the probability of success is the same on each trial
B) sampling is done without replacement
C) there are only two possible outcomes
D) trials are dependent
E) n < 5%N
Q3) The probability of selecting 3 female employees and 7 male employees to win a promotional trip a company with 10 female and 50 male employees would best be modeled with the _______.
A) binomial distribution
B) hypergeometric distribution
C) Poisson distribution
D) hyperbinomial distribution
E) exponential distribution
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Page 7
Chapter 6: Continuous Distributions
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Sample Questions
Q1) Sure Stone Tire Company has established that the useful life of a particular brand of its automobile tires is normally distributed with a mean of 40,000 miles and a standard deviation of 5000 miles.What is the probability that a randomly selected tire of this brand has a life of at least 50,000 miles?
A) 0.0228
B) 0.9772
C) 0.5000
D) 0.4772
E) 1.0000
Q2) Suppose the total time to fill a routine prescription at a local pharmacy is 35 minutes based on the time the physician places the order to the time it is dispensed.Assume the standard deviation is 11 minutes.A z score was calculated for a number,and the z score is 3.4. What is x?
A) 37.4
B) 72.4
C) 0.00
D) 68.0
E) 2.0.8
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8
Chapter 7: Sampling and Sampling Distributions
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Sample Questions
Q1) Suppose 40% of all college students have a computer at home and a sample of 64 is taken. What is the probability that more than 30 of those in the sample have a computer at home?
A) 0.3686
B) 0.1314
C) 0.8686
D) 0.6314
E) 0.1343
Q2) A carload of steel rods has arrived at Cybermatic Construction Company. The car contains 50,000 rods. Claude Ong,manager of Quality Assurance,directs his crew measure the lengths of 100 randomly selected rods. If the population of rods has a mean length of 120 inches and a standard deviation of 0.05 inch,the probability that Claude's sample has a mean greater than 120.0125 inches is _____________.
A) 0.0124
B) 0.0062
C) 0.4938
D) 0.9752
E) 1.0000
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Chapter 8: Statistical Inference: Estimation for Single Populations
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Sample Questions
Q1) A random sample of 225 items from a population results in 60% possessing a given characteristic.Using this information,the researcher constructs a 99% confidence interval to estimate the population proportion.The resulting confidence interval is _______.
A) 0.54 to 0.66
B) 0.59 to 0.61
C) 0.57 to 0.63
D) 0.52 to 0.68
E) 0.68 to 0.76
Q2) A researcher wants to estimate the proportion of manufacturing companies that use the "six sigma" method.For this purpose,she takes a random sample of 50 manufacturing companies and finds out that 28 of them employ this method.The point estimate for the proportion of the population that uses this method is ______.
A) 0.88
B) 0.56
C) 0.44
D) 0.28
E) 0.22
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Chapter 9: Statistical Inference: Hypothesis Testing for
Single Populations
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Sample Questions
Q1) In a two-tailed hypothesis about a population mean with a sample size of 100,\(\alpha\) is known,and = 0.05,the rejection region would be _______.
A) z > 1.64
B) z > 1.96
C) z < -1.96 and z > 1.96
D) z < -1.64 and z > 1.64
E) z < -2.33 and z > 2.33
Q2) Elwin Osbourne,CIO at GFS,Inc.,suspects that at least 25% of e-mail messages sent by GFS employees are not business related. A random sample of 300 e-mail messages was selected to test this hypothesis at the 0.01 level of significance. Fifty-four of the messages were not business related. The null hypothesis is ____.
A) \(\beta\) = 30
B) n = 300
C) p < 0.25
D) p 0.25
E) p = 0.25
Q3) When a true null hypothesis is rejected,the researcher has made a Type I error.
A)True
B)False
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Chapter 10: Statistical Inferences About Two Populations
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Sample Questions
Q1) In conducting a matched-pairs hypothesis test,the null and alternative hypotheses always represent one-tailed tests.
A)True
B)False
Q2) A researcher wants to conduct a before/after study on 11 subjects to determine if a new cholesterol medication results in higher HDL cholesterol readings. The null hypothesis is that the average difference is zero while the alternative hypothesis is that the average difference is not zero. Scores are obtained on the subjects both before and after taking the medication.After subtracting the after scores from the before scores,the average difference is computed to be ?2.40 with a sample standard deviation of 1.21.A 0.05 level of significance is selected. Assume that the differences are normally distributed in the population. The table t value for this test is _______.
A) 1.812
B) 2.228
C) 2.086
D) 2.262
E) 3.2467
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Page 12
Chapter 11: A Nalysis of Variance and Design of Experiments
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Sample Questions
Q1) BigShots,Inc.is a specialty e-tailer that operates 87 catalog Web sites on the Internet. Kevin Conn,Sales Director,feels that the style (color scheme,graphics,fonts,etc.)of a Web site may affect its sales. He chooses three levels of design style (neon,old world and sophisticated)and randomly assigns six catalog Web sites to each design style. In Kevin's experiment "sales at a Web site" is _______.
A) a blocking variable
B) a concomitant variable
C) a treatment variable
D) the dependent variable
E) the independent variable
Q2) Suppose a researcher sets up a design in which there are five different treatments and a total of 32 measurements in the study.For alpha = .01,the critical table F value is
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13
Chapter 12: Simple Regression Analysis and Correlation
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Sample Questions
Q1) In the regression equation,y = 49.56 + 0.97x,the slope is _______.
A) 0.97
B) 49.56
C) 1.00
D) 0.00
E) -0.97
Q2) Suppose that in a regression analysis,SST = 140,SSR = 35,and SS<sub>xy</sub> = 23.32.Then the corresponding coefficient of correlation r = ______.
A) 0.25
B) 0.50
C) either 0.25 or 0.25, but there is not enough information to determine its sign
D) either 0.50 or 0.50, but there is not enough information to determine its sign
E) 0.50
Q3) Regression output from Minitab software directly displays the regression equation.
A)True
B)False
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14
Chapter 13: Multiple Regression Analysis
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Sample Questions
Q1) Multiple t-tests are used to determine whether the independent variables in the regression model are significant.
A)True
B)False
Q2) In the multiple regression model y = \(\beta\)<sub> 0</sub> + \(\beta\)<sub> 1</sub>x<sub>1</sub> + \(\beta\)<sub> 2</sub>x<sub>2</sub> + \(\beta\)<sub> 3</sub>x<sub>3</sub> + \(\varepsilon\),the \(\beta\) coefficients of the x variables are called partial regression coefficients.
A)True
B)False
Q3) In a multiple regression analysis with N observations and k independent variables,the degrees of freedom for the residual error is given by (N - k - 1).
A)True
B)False
Q4) The value of adjusted R<sup>2</sup> always goes up when a nontrivial explanatory variable is added to a regression model.
A)True
B)False
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Page 15
Chapter 14: Building Multiple Regression Models
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Sample Questions
Q1) Hope Hernandez is the new regional Vice President for a large gasoline station chain.She wants a regression model to predict sales in the convenience stores. Her data set includes two qualitative variables: the gasoline station location (inner city,freeway,and suburbs),and curb appeal of the convenience store (low,medium,and high).The number of dummy variables needed for Hope's regression model is ______.
A) 2
B) 4
C) 6
D) 8
E) 9
Q2) A researcher wants to address multicollinearity using the guideline that a variance inflation factor (VIF)greater than 9 will indicate a severe multicollinearity problem.This means that the highest coefficient of determination allowed will be ______.
A) 0.900
B) 0.912
C) 0.928
D) 0.935
E) 0.939
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Chapter 15: Time-Series Forecasting and Index Numbers
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Sample Questions
Q1) A weighted aggregate price index where the weight for each item is computed by using the quantities of the year of interest is known as the A)Paasche Index
B)Simple Index
C)Laspeyres Index
D)Consumer Price index
E)Producer Price index
Q2) In an autoregressive forecasting model,the independent variable(s)is (are)______.
A) time-lagged values of the dependent variable
B) first-order differences of the dependent variable
C) second-order, or higher, differences of the dependent variable
D) first-order quotients of the dependent variable
E) time-lagged values of the independent variable
Q3) Linear regression models cannot be used to analyze quadratic trends in time-series data.
A)True
B)False
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Chapter 16: Analysis of Categorical Data
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Sample Questions
Q1) The null hypothesis in a chi-square goodness-of-fit test is that the observed distribution is the same as the expected distribution.
A)True
B)False
Q2) A goodness of fit test is to be performed to see if consumers prefer any of three package designs (A,B,and C)more than the other two. A sample of 60 consumers is used. What is the expected frequency for category A?
A) 1/3
B) 20
C) 60
D) 10
E) 30
Q3) A chi-square goodness-of-fit test to determine if the observed frequencies in ten categories are Poisson distributed has nine degrees of freedom.
A)True
B)False
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Chapter 17: Nonparametric Statistics
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Sample Questions
Q1) In the one-sample runs test for randomness of the observations in a large sample the sampling distribution of R,the number of runs,is approximately binomial.
A)True
B)False
Q2) The nonparametric counterpart of the t test to compare the means of two independent populations is the Mann-Whitney U test.
A)True
B)False
Q3) The nonparametric alternative to the one-way analysis of variance is the _______.
A) chi-square goodness of fit test
B) Kruskal-Wallis test
C) Mann-Whitney U test
D) Wilcoxon test
E) Friedman test
Q4) The nonparametric alternative to analysis of variance for a randomized block design is the Friedman test.
A)True
B)False
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Chapter 18: Statistical Quality Control
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Sample Questions
Q1) The most appropriate graphical tool to identify the root causes of an error in a production process is a ______.
A) check list
B) Pareto chart
C) fishbone diagram
D) point-and-figure chart
E) control chart
Q2) For a p chart,the standard deviation of the proportions is 0.079057.The number of items in each sample is 30.Then p is ______.
A) There is not enough information to determine p
B) 0.25
C) 0.33
D) 0.45
E) 0.48
Q3) Two general types of control charts are (1)control charts for manufactured items and (2)control charts for services.
A)True
B)False
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Chapter 19: Decision Analysis
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Sample Questions
Q1) In a decision-making scenario,if it is not known which of the states of nature will occur and further if the probabilities of occurrence of the states are also unknown the scenario is called decision-making under double risk.
A)True
B)False
Q2) In a decision-making under uncertainty scenario,the best decision alternative based on the strategy of minmax regret will always have zero regret.
A)True
B)False
Q3) In a decision analysis problem,variables (such as investing in common stocks or corporate bonds)which are under the decision maker's control are called _________.
A) payoffs
B) decision alternatives
C) states of nature
D) revised probabilities
E) prior probabilities
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