Quantitative Methods for Business Textbook Exam Questions
Course Introduction
Quantitative Methods for Business introduces students to the fundamental mathematical and statistical techniques used in business decision making. The course covers topics such as data analysis, probability distributions, hypothesis testing, forecasting, linear programming, and decision analysis. Emphasis is placed on the practical application of quantitative methods to real-world business problems, enabling students to collect, analyze, and interpret data for informed managerial decisions. Students will utilize software tools to support their analyses and develop critical thinking skills essential for effective problem solving in various business domains.
Recommended Textbook
Spreadsheet Modeling and Decision Analysis 7th Edition by Cliff Ragsdale
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Chapter 1: Introduction to Modeling and Decision Analysis
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Q1) Which of the following categories of modeling techniques includes optimization techniques?
A)Capitalistic models
B)Descriptive models
C)Predictive models
D)Prescriptive models
Answer: D
Q2) Variables are termed independent when they satisfy which of the following?
A)The function value depends upon their values.
B)The decision maker has no control over them.
C)The variables have no relationship to one another.
D)The variable is described as an output of the spreadsheet model.
Answer: A
Q3) Which of the following is true of "What if?" analysis?
A)A well-designed spreadsheet facilitates "What if?" analysis.
B)It is not very useful when working with non mathematical models.
C)"What if?" analysis is an efficient optimization technique.
D)"What if?" analysis is useful in creating a well-defined problem statement.
Answer: A
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Chapter 2: Introduction to Optimization and Linear Programming
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Sample Questions
Q1) If a problem has infinite number solutions,the objective function
A)is parallel to one of the binding constraints.
B)goes through exactly one corner point of the feasible region.
C)cannot identify a feasible region.
D)is infeasible.
Answer: A
Q2) What are the three common elements of an optimization problem?
A)objectives,resources,goals.
B)decisions,constraints,an objective.
C)decision variables,profit levels,costs.
D)decisions,resource requirements,a profit function.
Answer: B
Q3) For an infeasible problem,the feasible region:
A)is an empty set
B)has infinite number of feasible solutions
C)has only one optimal solution
D)is unbounded
Answer: A
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Chapter 3: Modeling and Solving Lp Problems in a Spreadsheet
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Sample Questions
Q1) Refer to Exhibit 3.3.Which cells should be changing cells in this problem?
A)B4:C4
B)E5
C)D8:D10
D)E8:E10
Answer: A
Q2) You have been given the following linear programming model.
MAX: <sup>8 X</sup><sub>1 </sub><sup>+ 5 X</sup><sub>2</sub>
Subject to: <sup>3 X</sup><sub>1 </sub><sup>+ 5 X</sup><sub>2 </sub><sup>= 54</sup>
11 X<sub>1 </sub>+ 10 X<sub>2 </sub> 144 X<sub>1 </sub>/ X<sub>2 </sub> 12 X<sub>1</sub>,X<sub>2 </sub> 0
This formulation:
A)can be solved without preprocessing using LP
B)cannot be solved using LP
C)requires that the third constraint be first converted to a linear form: X<sub>1 </sub>- 12 X<sub>2 </sub> 0
D)must be first converted to a minimization problem
Answer: C
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Chapter 4: Sensitivity Analysis and the Simplex Method
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Sample Questions
Q1) To convert constraints into = constraints the Simplex method adds what type of variable to the constraint?
A)slack
B)dummy
C)redundant
D)spreading
Q2) Refer to Exhibit 4.2.Based on the Analytic Solver Platform sensitivity report information,Robert has been approved by his instructor to increase the total weight allowed for the project and final exam to 0.50 plus the allowable increase.When Robert re-solves his model,what will his new final grade score be?
Q3) When the allowable increase or allowable decrease for the objective function coefficient of one or more variables is zero it indicates in the absence of degeneracy)that
A)the problem is infeasible.
B)alternate optimal solutions exist.
C)there is only one optimal solution.
D)no optimal solution can be found.
Q4) Refer to Exhibit 4.1.Are there alternate optimal solutions to this problem?
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Chapter 5: Network Modeling
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Sample Questions
Q1) The arcs in a network indicate all of the following except?
A)routes
B)paths
C)constraints
D)connections
Q2) The minimal spanning tree solution algorithm works by defining a subnetwork and
A)adding the least expensive arc which connects any node in the current subnetwork to any node not in the current subnetwork.
B)adding the most expensive arc which connects any node in the current subnetwork to any node not in the current subnetwork.
C)adding the least expensive arc which connects unconnected nodes in the current subnetwork.
D)adding the least expensive arc which connects the most recently added node in the current subnetwork to the closest node not in the current subnetwork.
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Chapter 6: Integer Linear Programming
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Sample Questions
Q1) If a company produces Product 1,then it must produce at least 150 units of Product 1.Which of the following constraints enforces this condition?
A)X<sub>1 </sub> 150Y<sub>1</sub>
B)X<sub>1 </sub> 150Y<sub>1 </sub> 0
C)X<sub>1</sub>Y<sub>1 </sub> 150
D)X<sub>1 </sub> 150 + Y<sub>1</sub>
Q2) What are binary integer variables?
A)Variables with any two values,a and b.
B)Variables with values 0 and 1.
C)Variables whose sum of digits is 2
D)Variables with values between 0 and 1.
Q3) The feasible region for the pure ILP problem
A)is a subset of the feasible region for the LP problem
B)is a superset of the feasible region for the LP problem
C)is a solid area
D)is a continuous area
Q4) Refer to Exhibit 6.2.What formula would go into cell E14?
Q5) Refer to Exhibit 6.1.What formula should go in cell D15 of the above Excel spreadsheet?
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Q6) Refer to Exhibit 6.2.What formula would go into cells B11:E11 and cells F8:F10?
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Chapter 7: Goal Programming and Multiple Objective
Optimization
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Q1) Refer to Exhibit 7.1.Which cells are the variable cells in this model?
A)$B$6:$C$6,$B$7:$E$8
B)$B$6:$C$6
C)$B$9:$E$9
D)$B$6:$E$8
Q2) Refer to Exhibit 7.3.What formula goes in cell E11?
A)=D11*C11?B11)/C11
B)=C11?B11)/C11
C)=D11*C11
D)=D11*C11?B11)
Q3) A manager wants to ensure that he does not exceed his budget by more than $1000 in a goal programming problem.If the budget constraint is the third constraint in the goal programming problem which of the following formulas will best ensure that the manager's objective is met?
A)\(\text { MIN } d_{3}^{+}\)
B)\(\mathrm{d}_{3}^{-} \geq 1000\)
C)\(\mathrm{d}_{3}{ }^{+}=1000\)
D)\(\mathrm{d}_{3}{ }^{+} \leq 1000\)
Q4) Refer to Exhibit 7.4.What formulas should go in cell E26 of the spreadsheet?
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Chapter 8: Nonlinear Programming and Evolutionary Optimization
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Sample Questions
Q1) How much are additional units of Labor worth based on the following sensitivity report?
Changing Cells
Final Reduced
Cell Name Value Gradient
$B$4 <sup>Number to make: X</sup><sub>1</sub><sub> </sub>9.42 0
$C$4 <sup>Number to make: X</sup><sub>2</sub><sub> </sub>1.71 0 Constraints
Final Lagrange
Cell Name Value Multiplier
A)0
B)1.21
C)2.57
D)9.42
$D$8 Wood 42 0
$D$9 Labor 132 1.21
$D$10 Plywood 24 2.57
Q2) Refer to Exhibit 8.2.What formula would you place into cell B5 to calculate Total Floor Area?
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Chapter 9: Regression Analysis
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Sample Questions
Q1) Which of the following forecasting methodologies is considered a causal forecasting technique?
A)Linear regression
B)Market research
C)Historical analogy
D)Moving average
Q2) Refer to Exhibit 9.3.Predict the mean number of calories consumed by a 19 year old man.
Q3) The term in the regression model represents
A)the slope of the regression model.
B)a random error term.
C)a correction for mistakes in measuring X.
D)a correction for the fact that we are taking a sample.
Q4) Regression analysis is a modeling technique
A)that assumes all data is normally distributed.
B)for analyzing the relationship between dependent and independent variables.
C)for examining linear trend data only.
D)for capturing uncertainty in predicted values of Y.
Q5) Refer to Exhibit 9.1.Provide a rough 95% confidence interval on the number of labor hours for a batch of 5 parts.
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Chapter 10: Data Mining
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Sample Questions
Q1) Suppose the Fisher classification scores for an observation have been converted to the following probabilities: i)0.6 for Group 1 and ii)0.4 for Group 2.The observation will be classified to
A)Group 1
B)Group 2
C)Group 1 or Group 2 with equal probabilities
D)neither Group 1 nor Group 2
Q2) In using neural networks,an analyst must decide and _
A)how many hidden layers to use and how many nodes to use in each of the hidden layers
B)how accurate the prediction should be and how many iterations to use
C)how many nodes to use and how much time to allow for simulation
D)how many iterations to use and what is the limit on the budget constraint
Q3) A provides a visual summary of the improvements that a data mining project provides on a binary classification problem compared to a random guess
A)lift chart
B)Pareto chart
C)Gantt chart
D)histogram
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Chapter 11: Time Series Forecasting
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Sample Questions
Q1) Refer to Exhibit 11.4.What formula should be entered in cell F7 to compute the seasonal factor using the additive seasonal effects model?
A)=$J$3*D4+1-$J$3)*E3+F3)
B)=$J$4*D7-E7)+1-$J$4)*F3
C)=$J$4*E7-E6)+1-$J$4)*E6
D)=$J$3*G3+1-$J$3)*D3+G3)
Q2) Refer to Exhibit 11.12.What formula should be entered in cell I3 to compute the Seasonal Value for year 1 Quarter 1?
A)=388.88+10.052*C3+4.248*D3+79.917*E3+296.008*F3+84.924*G3
B)=10.052*C3+4.248*D3-79.917*E3-296.008*F3-84.924*G3
C)=388.88+10.052*C3+4.248*D3-79.917*E3-296.008*F3-84.924*G3
D)=I3+10.052*C3+4.248*D3-79.917*E3-296.008*F3-84.924*G3
Q3) Refer to Exhibit 11.7.What formula should be entered in cell F4 to compute the trend when using Holt's method?
A)=$J$3*D4+1-$J$3)*E3+F3)
B)=$J$4*E4-E3)+1-$J$4)*F3
C)=$J$4*E4-E3)+1-$J$4)*G3
D)=$J$4*G3+1-$J$4)*D3+G3)
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Chapter 12: Introduction to Simulation Using Analytic Solver
Platform
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Sample Questions
Q1) How should one determine which RNGs to employ in a spreadsheet simulation model?
A)Use the Analytic Solver Platform gallery and pick a distribution.
B)Generate thousands of samples and compare the resulting histogram to ensure the distribution is correct.
C)Solve the deterministic model repeatedly and use Analytic Solver Platform distribution fitting tools.
D)The distributions selected should represent the underlying pool of values expected to occur.
Q2) Which Analytic Solver Platform function will generate random numbers between 3 and 7 from a continuous uniform distribution?
A)=PsiConUniform3,7)
B)=PsiUniDist3,7)
C)=PsiUniform3,7)
D)=PsiTruncate3,7)
Q3) What method is used to generate observations from a distribution?
A)random number generator
B)sample generator
C)problem generator
D)steady state generator
Page 14
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Chapter 13: Queuing Theory
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Sample Questions
Q1) Refer to Exhibit 13.1.How many customers will be in the store on average at any one time?
A)0.375
B)0.50
C)2.25
D)3.00
Q2) The M in M/G/1 stands for
A)Markovian inter-arrival times.
B)Mendelian inter-arrival times.
C)Mean inter-arrival times.
D)Mathematical inter-arrival times.
Q3) A jockey refers to
A)a customer who refuses to join the queue.
B)a customer who refuses service by a specific server.
C)a customer who joins the queue but leaves before service is complete.
D)a customer who switches between queues in the system.
Q4) Customers arrive at a store randomly,following a Poisson distribution at an average rate of 20 per hour.What is the probability of exactly 0,1 2,and 3 arrivals in a 15 minute period?
Q5) Refer to Exhibit 13.6.What is the Kendall notation for this system?
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Chapter 14: Decision Analysis
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Sample Questions
Q1) Refer to Exhibit 14.3.What decision should be made according to the expected monetary value decision rule?
A)A
B)B
C)C
D)Bank
Q2) Refer to Exhibit 14.1.What formula should go in cell D5 to implement the maximax decision rule?
A)=MAXMAXB5:C5))
B)=MINB5:C5)
C)=AVERAGEB5:C5)
D)=MAXB5:C5)
Q3) Refer to Exhibit 14.1.What decision should be made according to the maximin decision rule?
A)A
B)B
C)C D)Bank
Q4) Refer to Exhibit 14.12.What is the expected value of Alternative 2 for this decision maker?
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Chapter 15: Project Management Online
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Sample Questions
Q1) Critical activities are distinguished by the presence of A)slack.
B)idle resources.
C)wasted time.
D)zero slack.
Q2) One of PERT's bold assumptions is that
A)individual activity times are independent of each other.
B)individual activity times are dependent of each other.
C)individual activity times are constant.
D)individual activity times can be added together.
Q3) Which of the following definitions correctly defines the acronym,PERT?
A)Program Evaluation and Review Technique.
B)Process Evaluation and Review Technique.
C)Program Evaluation and Reduction Technique.
D)Program Explanation and Reduction Technique.
Q4) Shortening the activity completion time is called
A)expediting
B)speeding
C)accelerating
D)crashing
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