C723 Quantitative Analysis For Business Practice Questions - Set 2 - 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: A retail company is analyzing the historical buying patterns of its customers to predict future sales. Which quantitative analysis technique would be most suitable for this task?

a) Qualitative Analysis

b) Forecasting

c) Inventory Analysis

d) Network Diagram

Question 2: Which tool is typically used to identify and manage project tasks, their dependencies, and expected durations?

a) Scatter Diagram

b) Fishbone Diagram

c) Network Diagram

d) Histogram

Question 3: When calculating the economic order quantity (EOQ), which cost is NOT typically considered?

a) Ordering Cost

b) Carrying Cost

c) Shortage Cost

d) Labor Cost

Question 4: In decision analysis, what is the term for a scenario outside the decision-maker's control that impacts potential outcomes?

a) Decision Point

b) Payoff Table

c) State of Nature

d) Objective Probability

Question 5: Which data categorization includes information gathered through surveys and interviews, focusing on perceptions and opinions?

a) Objective Data

b) Quantitative Data

c) Subjective Data

d) Experimental Data

Question 6: Which criterion in decision-making aims to select the alternative with the maximum possible gain?

a) Minimax Criterion

b) Maximin Criterion

c) Maximax Criterion

d) Expected Value Criterion

Question 7: In the decision-making process, which step involves listing the choices available to address a problem?

a) Establish Decision Criteria

b) Evaluate the Alternatives

c) Generate Alternatives

d) Implement the Decision

Question 8: Which approach to probability involves estimating likelihood based on historical occurrence rates?

a) Subjective Probability

b) Theoretical Probability

c) Relative Frequency Approach

d) Conditional Probability

Question 9: What statistical concept represents the probability of an event occurring given that another event has already occurred?

a) Joint Probability

b) Conditional Probability

c) Marginal Probability

d) Relative Frequency

Question 10: Which of the following decision-making methods is used when the decision-maker knows the exact probability of each possible outcome?

a) Decision under Uncertainty

b) Decision under Certainty

c) Decision under Risk

d) Decision without Risk

Question 11: In which scenario would qualitative analysis be preferred over quantitative analysis?

a) Measuring monthly sales

b) Estimating customer satisfaction

c) Calculating profit margins

d) Determining optimal inventory levels

Question 12: When the probabilities of gaining or losing are completely unknown, the decision is said to be made under which condition?

a) Certainty

b) Risk

c) Uncertainty

d) Control

Question 13: What does the term "slack time" refer to in project management?

a) Time added for task delays

b) Buffer time between tasks

c) Extra time for non-critical tasks

d) Duration of critical path activities

Question 14: Which type of trend fluctuates around a constant mean, showing little relationship with time?

a) Stationary Time Series

b) Seasonal Trend

c) Cyclical Trend

d) Random Trend

Question 15: Which statistical technique is used to determine if there is a positive or negative relationship between two variables?

a) Histogram

b) Trend Line

c) Scatter Diagram

d) Bar Chart

Question 16: Which of the following is an example of a moderating variable in a research study?

a) Dependent Variable

b) Independent Variable

c) Variable that changes the effect of the independent on the dependent

d) Control Variable

Question 17: When graphing frequency distributions, which type of chart is most appropriate for qualitative data?

a) Scatter Plot

b) Histogram

c) Bar Graph

d) Line Chart

Question 18: In project management, what is a Gantt chart primarily used for?

a) Determining critical path

b) Visualizing task dependencies and duration

c) Analyzing root causes of issues

d) Optimizing inventory levels

Question 19: In which situation would a decision tree be most beneficial?

a) Selecting one choice from many with a single decision criterion

b) Making sequential decisions with multiple potential outcomes

c) Visualizing sales performance over time

d) Tracking daily inventory levels

Question 20: When calculating reorder point (ROP), which of the following factors is NOT directly considered?

a) Daily demand

b) Lead time

c) Production capacity

d) Safety stock

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