Management Science Exam
Review
Course Introduction
Management Science is an interdisciplinary field that applies analytical methods and quantitative techniques to aid decision-making in organizations. The course covers topics such as linear programming, decision analysis, simulation, forecasting, inventory control, and project management. Students learn to model complex business problems, interpret data, and use specialized software to find optimal solutions. Emphasis is placed on practical applications and developing systematic approaches to solving real-world managerial challenges, preparing students to contribute effectively to organizational strategy and operations.
Recommended Textbook
Business Statistics for Contemporary Decision Making 2nd Canadian Edition by Ken Black
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Page 2
Chapter 1: Introduction to Statistics
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Sample Questions
Q1) Marc Fortier,Director of Human Resources,is exploring the causes of employee absenteeism at Lennoxville Bottling during the last operating year.Personnel records for 50 of the plant's 250 employees are selected for analysis.For this study,the group of 50 employees is a ___.
A)parameter
B)sample
C)population
D)statistic
E)frame
Answer: B
Q2) A market research analyst has asked consumers to rate the appearance of a new package on a scale of 1 to 5.A 1 means that the appearance is awful while a 5 means that it is excellent.The level of this data is usually considered ___.
A)interval level data
B)ordinal level data
C)nominal level data
D)ratio level data
E)relative level data
Answer: B
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Chapter 2: Charts and Graphs
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Sample Questions
Q1) One advantage of a stem and leaf plot over a frequency distribution is that the values of the original data are retained.
A)True
B)False
Answer: True
Q2) One rule that must always be followed in constructing frequency distributions is that the adjacent classes must overlap.
A)True
B)False
Answer: False
Q3) A graphical representation of a frequency distribution is called a pie chart. A)True
B)False Answer: False
Q4) A scatter plot is useful for examining the relationship between two numerical variables.
A)True
B)False Answer: True
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Chapter 3: Descriptive Statistics
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Sample Questions
Q1) Describe a data distribution statistically and graphically using skewness,kurtosis,and box-and-whisker plots.
Answer: Two measures of shape are skewness and kurtosis.Skewness is the lack of symmetry in a distribution.If a distribution is skewed,it is stretched in one direction or the other.The skewed part of a graph is its long,thin portion.One measure of skewness is the Pearsonian coefficient of skewness.Kurtosis is the degree of peakedness of a distribution.A tall,thin distribution is referred to as leptokurtic.A flat distribution is platykurtic,and a distribution with a more normal peakedness is said to be mesokurtic. A box and whisker plot is a graphical depiction of a distribution.The plot is constructed by using the median,the lower quartile,and the upper quartile.Box and whisker plots are rather sophisticated and can yield information about skewness and outliers.
Q2) Use computer packages to compute various measures of central tendency,variation,and shape on a set of data,as well as to describe the data distribution graphically.
Answer: Excel delivers a wide range of descriptive statistics.While Excel can generate individual statistics,it can also create several descriptive statistics at once,which makes it an especially useful tool for statisticians.
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Page 5
Chapter 4: Probability
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Sample Questions
Q1) If two events are mutually exclusive,then the two events are also independent.
A)True
B)False
Q2) Consider the following sample space,S,and several events defined on it.S = {Albert,Betty,Abel,Jack,Patty,Meagan},and the events are: F = {Betty,Patty,Meagan},H = {Abel,Meagan},and P = {Betty,Abel}.F \(\cup\) H is ___.
A){Meagan}
B){Betty,Abel,Patty,Meagan}
C)empty,since F and H are complements
D)empty,since F and H are independent
E)empty,since F and H are mutually exclusive
Q3) If the occurrence of one event precludes the occurrence of another event,then the two events are independent.
A)True
B)False
Q4) The list of all elementary events for an experiment is called the sample space.
A)True
B)False
Q5) Describe what probability is and when one would use it.
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Chapter 5: Discrete Distributions
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Sample Questions
Q1) On Saturdays,cars arrive at Sami Schmitt's Scrub and Shine Car Wash at the rate of 6 cars per fifteen minute interval.Using the Poisson distribution,the probability that five cars will arrive during the next five minute interval is ___.
A)0.1008
B)0.0361
C)0.1339
D)0.1606
E)0.3610
Q2) The number of defects per 1,000 feet of extruded plastic pipe is best modelled with the ___.
A)Poisson distribution
B)Pascal distribution
C)binomial distribution
D)hypergeometric distribution
E)exponential distribution
Q3) The number of automobiles sold by a dealership in a day is an example of a discrete random variable.
A)True
B)False
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Chapter 6: Continuous Distributions
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Sample Questions
Q1) If x is uniformly distributed over the interval 8 to 12,inclusively (8 \(\le\) x \(\le\)12),then P(x \(\ge\) 10)is ___.
A)0.750
B)0.000
C)0.333
D)0.500
E)0.900
Q2) If x,the time (in minutes)to complete an oil change job at a certain auto service station,is uniformly distributed over the interval 20 to 30,inclusively (20 \(\le\) x \(\le\)30),then the mean of this distribution is ___.
A)50
B)25
C)10
D)15
E)5
Q3) Since a normal distribution curve extends from minus infinity to plus infinity,the area under the curve is infinity.
A)True
B)False
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Chapter 7: Sampling and Sampling Distributions
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Sample Questions
Q1) On Saturdays,cars arrive at David Zebda's Scrub and Shine Car Wash at the rate of 80 cars per hour during the ten-hour shift.David wants a sample of 40 Saturday customers to answer the long version of his quality service questionnaire.He randomly selects 9 as a starting point and instructs the crew to select the 9th customer and each customer at intervals of 20 (9,29,49,etc. ).His sample is a ___.
A)convenience sample
B)simple random sample
C)unsystematic sample
D)stratified sample
E)systematic sample
Q2) The two major categories of sampling methods are proportionate and disproportionate sampling.
A)True
B)False
Q3) With cluster sampling,there is homogeneity within a subgroup or stratum.
A)True
B)False
Q4) Describe the distribution of a sample's proportion using the z formula for sample proportions.
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Chapter 8: Statistical Inference: Estimation for Single Populations
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Sample Questions
Q1) James Desreumaux,VP of Human Resources of Maritime Boat Manufacturing (MBM),is reviewing the employee training programs of MBM factories.His staff randomly selected personnel files for 10 workers in Nova Scotia,and determined that their mean training time was 25 hours and that the standard deviation was 5 hours.Assume that training times are normally distributed.The 95% confidence interval for the population variance of training times is ___.
A)11.83 to 83.32
B)2.37 to 16.67
C)2.66 to 13.51
D)13.30 to 67.67
E)15.40 to 68.28
Q2) A researcher wants to estimate the proportion of the population which possesses a given characteristic.A random sample of size 800 is taken resulting in 360 items which possess the characteristic.The point estimate for this population proportion is ___.
A)0.55
B)0.45
C)0.35
D)0.65
E)0.70
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Chapter 9: Statistical Inference: Hypothesis Testing for
Single Populations
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Sample Questions
Q1) Ophelia O'Brien,VP of Consumer Credit of Credit First Banks (CFB),monitors the default rate on personal loans at the CFB member banks.One of her standards is "no more than 5% of personal loans should be in default." On each Friday,the default rate is calculated for a sample of 500 personal loans.Last Friday's sample contained 30 defaulted loans.Using \(\alpha\) = 0.10,the appropriate decision is ___.
A)reduce the sample size
B)increase the sample size
C)reject the null hypothesis
D)do not reject the null hypothesis
E)do nothing
Q2) Consider the following null and alternative hypotheses: H<sub>o</sub>: p \(\le\) 0.16
H<sub>a</sub>: p > 0.16
These hypotheses ___.
A)indicate a one-tailed test with a rejection area in the right tail
B)indicate a one-tailed test with a rejection area in the left tail
C)indicate a two-tailed test
D)are established incorrectly
E)are not mutually exclusive
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Chapter 10: Statistical Inferences About Two Populations
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Q1) Collinsville Construction Company purchases steel rods for its projects.Based on previous tests,Claude Carter,Quality Assurance Manager,has recommended purchasing rods from Redding Rods,Inc.(population 1),rather than Stockton Steel (population 2),since Redding's rods had less variability in length.Recently,Stockton revised it rod shearing operation,and Claude has sampled the outputs from Redding's and Stockton's rod manufacturing processes.The results for Redding were s<sub>1</sub><sup>2</sup> = 0.10 with n<sub>1</sub> = 8,and,for Stockton,the results were s<sub>2</sub><sup>2</sup> = 0.05 with n<sub>2</sub> = 10.Assume that rod lengths are normally distributed in the population If \(\alpha\)= 0.05,the appropriate decision is
A)reject the null hypothesis \(\sigma\)<sub>1</sub><sup>2</sup>= \(\sigma\)<sub>2</sub><sup>2</sup>
B)reject the null hypothesis \(\sigma\)<sub>1</sub><sup>2</sup> < \(\sigma\)<sub>2</sub><sup>2</sup>
C)do not reject the null hypothesis \(\sigma\)<sub>1</sub><sup>2</sup>= \(\sigma\)<sub>2</sub><sup>2</sup>
D)do not reject the null hypothesis \(\sigma\)<sub>1</sub><sup>2</sup> < \(\sigma\)<sub>2</sub><sup>2</sup>
E)do nothing
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Page 12
Chapter 11: Analysis of Variance and Design of Experiments
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Sample Questions
Q1) In experimental design,classification variables are independent variables. A)True
B)False
Q2) Test a randomized block design that includes a blocking variable to control for confounding variables.
Q3) Determining the table value for the F distribution is different from finding values in the t distribution tables because the F table requires two values for degrees of freedom.
A)True
B)False
Q4) In an experimental design,treatment variables are response variables.
A)True
B)False
Q5) Describe an experimental design and its elements,including independent variables-both treatment and classification-and dependent variables.
Q6) In analysis of variance tests a t distribution forms the basis for making the decisions. A)True
B)False
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Page 13
Chapter 12: Simple Regression Analysis and Correlation
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Sample Questions
Q1) A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a function of batch size (the number of boards produced in one lot or batch).The dependent variable is ___.
A)batch size
B)unit variable cost
C)fixed cost
D)total cost
E)total variable cost
Q2) The slope of the regression line,y = 21 5x,is 21.
A)True
B)False
Q3) The assumption of constant error variance in regression analysis is called ___.
A)heteroscedasticity
B)homoscedasticity
C)residuals
D)linearity
E)non-normality
Q4) Calculate the slope and y intercept of the least squares equation of a regression line and from those,determine the equation of the regression line.
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Chapter 13: Multiple Regression Analysis
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Sample Questions
Q1) Calculate the residual,standard error of the estimate,coefficient of multiple determination,and adjusted coefficient of multiple determination of a regression model.
Q2) A human resources analyst is developing a regression model to predict electricity production plant manager compensation as a function of production capacity of the plant,number of employees at the plant,and plant technology (coal,oil,and nuclear).The "plant technology" variable in this model is ___.
A)a response variable
B)a dependent variable
C)a quantitative variable
D)an independent variable
E)a constant
Q3) In the 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> + \(\varepsilon\),y is the independent variable.
A)True
B)False
Q4) Use a computer to find and interpret multiple regression outputs.
Q5) Understand the limitations and pitfalls of multiple regression analysis.
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Chapter 14: Building Multiple Regression Models
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Sample Questions
Q1) If a data set contains k independent variables,the "all possible regression" search procedure will determine 2<sup>k</sup> - 1 different models.
A)True
B)False
Q2) A logarithmic transformation may be applied to both positive and negative numbers.
A)True
B)False
Q3) Recognize when multicollinearity is present,understanding general techniques for preventing and controlling it.
Q4) Large correlations between two or more independent variables in a multiple regression model could result in the problem of ___.
A)multicollinearity
B)autocorrelation
C)partial correlation
D)rank correlation
E)non-normality
Q5) Explain when to use logistic regression,and interpret its results.
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Page 16
Chapter 15: Time-Series Forecasting and Index Numbers
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Sample Questions
Q1) Mean error (ME)and mean absolute deviation (MAD)will have the same numerical value if all errors are positive.
A)True
B)False
Q2) A stationary time-series data has only trend but no cyclical or seasonal effects.
A)True
B)False
Q3) When the error terms of a regression forecasting model are correlated the problem of multicollinearity occurs.
A)True
B)False
Q4) Test for autocorrelation using the Durbin-Watson test,overcoming it by adding independent variables and transforming variables and taking advantage of it with autoregression.
Q5) Account for seasonal effects of time-series data by using decomposition and Winters' three-parameter exponential smoothing method.
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Chapter 16: Analysis of Categorical Data
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Sample Questions
Q1) A chi?square goodness-of-fit test is being used to test the goodness-of-fit of a normal distribution (the mean and the standard deviation of which must be estimated)for a data with "k" categories.This test has (k-3)degrees of freedom.
A)True
B)False
Q2) When using the chi-square goodness-of-fit test,we must make sure that none of the expected frequencies is less than 30.
A)True
B)False
Q3) The executives of CareFree Insurance,Inc.feel that "a minority of our employees perceive an authoritarian management style at CareFree." A random sample of 200 CareFree employees is selected to test this hypothesis.Eighty employees rate the management as authoritarian.Using \(\alpha\) = 0.05,the appropriate decision is ___.
A)do not reject the null hypothesis p > 0.50
B)reject the null hypothesis p = 0.50
C)reject the null hypothesis \(\mu\) > 80
D)do not reject the null hypothesis \(\mu\) \(\le\) 80
E)do nothing
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Chapter 17: Nonparametric Statistics
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Sample Questions
Q1) In a Friedman test with 6 treatment levels and 7 blocks,the df = ___.
A)6
B)5
C)42
D)41
E)7
Q2) Correlation coefficients may be computed for parametric and nonparametric data.If the data are nonparametric,which of the following should be used?
A)Pearson correlation coefficient
B)Spearman correlation coefficient
C)Gaussian correlation coefficient
D)De Moivre correlation coefficient
E)Gossett correlation coefficient
Q3) Use both the small-sample and large-sample cases of the Wilcoxon matched-pairs signed rank test to compare the differences in two related samples.
Q4) Use both the small-sample and large-sample runs tests to determine whether the order of observations in a sample is random.
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Chapter 18: Statistical Quality Control
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Sample Questions
Q1) Nels Neugent,Purchasing Manager at Pacific Medical Center,is designing a p chart to monitor the proportion of defective purchase orders issued at Pacific.He has the proportions defective for 22 samples of purchase orders.Each sample contained 150 purchase orders,and the average proportion defective is 0.08.The lower control limit for Nels's p chart is ___.
A)0.0447
B)0.0283
C)0.0135
D)0.0000
E)0.5090
Q2) Measure variation among manufactured items using various control charts,including x charts,R charts,p charts,and c charts.
Q3) One definition that captures the spirit of most quality efforts in the business world is that quality results when a product delivers what is stipulated for it in its specifications. A)True
B)False
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Chapter 19: Decision Analysis
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Sample Questions
Q1) A risk-taker decision maker will bail out of a risky scenario only if the compensation to bail out is more than the expected monetary payoff from the risky scenario.
A)True
B)False
Q2) The concept of utility can be helpful to apply decision analysis techniques to situations which do not lend themselves to expected monetary value analysis.
A)True
B)False
Q3) In a decision-making scenario,if the decision maker knows which state of nature will occur,the scenario is called decision-making under certainty.
A)True
B)False
Q4) In decision-making under uncertainty,an optimistic approach is the ___.
A)maximin criterion
B)maximax criterion
C)Hurwicz criterion
D)minimax regret strategy
E)maximin regret strategy
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