C723 Quantitative Analysis For Business Practice Questions - Set 1 - Part 1

Test your knowledge of Quantitative Analysis For Business concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: Which of the following tools helps visualize important aspects of a problem by showing decisions, alternatives, actions, and outcomes in a tree-like structure?

a) Payoff Table

b) Fishbone Diagram

c) Decision Tree

d) Gantt Chart

Question 2: If a business wants to quantify both costs and benefits associated with different solutions to a problem, which method would be most appropriate?

a) Decision Tree

b) Payoff Table

c) Network Analysis

d) Linear Programming

Question 3: Which analysis method helps managers make strategic decisions by identifying patterns, trends, and relationships within data, whether large or small?

a) Qualitative Analysis

b) Quantitative Analysis

c) Fishbone Diagram

d) Network Analysis

Question 4: Which of the following data types is typically obtained through observation or testing, and is measurable?

a) Subjective Data

b) Objective Data

c) Qualitative Data

d) Indirect Data

Question 5: Which method in quantitative analysis is known for representing a business situation with a mathematical model to facilitate inferences about the data?

a) Cost-Benefit Analysis

b) Mathematical Modeling

c) Statistical Inference

d) Fishbone Diagram

Question 6: Which formula represents total revenue in terms of price and quantity sold?

a) R = x + Q

b) R = xQ

c) R = x - Q

d) R = Q/x

Question 7: In the quantitative analysis process, which step follows developing the mathematical model?

a) Define the problem

b) Implement the solution

c) Prepare and input data

d) Test the solution

Question 8: Which diagram is often used to analyze cause-and-effect relationships by plotting various possible causes for a problem?

a) Gantt Chart

b) Fishbone Diagram

c) Scatter Diagram

d) Network Diagram

Question 9: When analyzing the relationship between two variables by plotting them on a graph, which diagram is most commonly used?

a) Trend Diagram

b) Network Diagram

c) Fishbone Diagram

d) Scatter Diagram

Question 10: If a trend line in a scatter plot moves downward as one progresses from left to right, what does this indicate about the correlation between the two variables?

a) Positive Correlation

b) Negative Correlation

c) No Correlation

d) Random Correlation

Question 11: What is the primary purpose of forecasting in business?

To assess past performance

To make adjustments based on future expectations

To evaluate current decisions

To record historical data

Question 12: Which statistical tool is used to summarize, describe, and interpret data to find patterns?

Inferential Statistics

Descriptive Statistics

Decision Tree Analysis

Network Analysis

Question 13: Which of the following statements describes the goal of inferential statistics?

To categorize data

To make generalizations about a population

To establish a cause-and-effect relationship

To display data visually

Question 14: When collecting evidence in quantitative analysis, the researcher’s goal is to reject which type of hypothesis?

Alternative Hypothesis

Null Hypothesis

Independent Hypothesis

Dependent Hypothesis

Question 15: Which of the following is a critical factor in assessing risk?

Validity

Probability of occurrence

Desirability

Previous experience

Question 16: Which of these is a commonly used technique for visualizing all possible outcomes of two events in probability?

Scatter Plot

Venn Diagram

Histogram

Trend Line

Question 17: What term describes a pattern in data that tends to repeat every few years?

Seasonal Trend

Cyclical Trend

Random Trend

Stationary Time Series

Question 18: Which of the following is used to calculate a moving average?

Add the values of all data points

Sum a set number of data points and divide by the number

Subtract the mean from each data point

Average the maximum and minimum values

Question 19: Which chart should be used to display the relative frequency distribution of quantitative data?

Pie Chart

Histogram

Bar Chart

Scatter Plot

Question 20: If a company wants to visualize the percentage contribution of various categories to the whole, which chart would be most appropriate?

Bar Chart

Pie Chart

Histogram

Scatter Plot

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