C723 Quantitative Analysis For Business Practice Questions - Set 3 - Part 1

Correct Answer: c) Beta Distribution

The beta distribution method incorporates three different time estimates to provide a more accurate prediction of task duration under varying conditions.

Correct Answer: b) Customer feedback from surveys

Qualitative data includes non-numeric information like opinions and perceptions, often collected through customer feedback and interviews.

Correct Answer: c) Subjective Probability

Subjective probability is based on an individual’s experience or intuition, rather than statistical or empirical data.

Correct Answer: c) Decision under Risk

Decisions under risk involve known probabilities for each outcome, enabling calculated choices based on expected results.

Correct Answer: c) Gantt Chart

Gantt charts show project tasks, their durations, and dependencies, providing a visual overview of the project timeline.

Correct Answer: b) Scatter Diagram

Scatter diagrams plot pairs of variables, allowing the manager to observe any positive or negative correlations between them.

Correct Answer: b) Financial gains against associated costs

Cost-benefit analysis compares the monetary costs of a decision to its financial benefits, aiding in the assessment of economic feasibility.

Correct Answer: b) The average outcome weighted by probabilities

Expected value is calculated by multiplying each possible outcome by its probability, resulting in a probability-weighted average.

Correct Answer: b) States of nature

In a payoff table, states of nature—potential external conditions affecting outcomes—are listed across from the alternatives.

Correct Answer: b) Forecasting

Forecasting uses historical data to project future trends, allowing businesses to plan for anticipated changes and demand.

Correct Answer: a) Mediating Variable

A mediating variable provides insight into how an independent variable influences a dependent variable, explaining the link between them.

Correct Answer: b) By using weights for each criterion

In multiple-criteria decision-making, weights are assigned to each criterion to prioritize important factors and evaluate alternatives objectively.

Correct Answer: c) Conditional Probability

Conditional probability calculates the likelihood of an event given that another event has already occurred, denoted as P(B|A).

Correct Answer: c) The frequency distribution of quantitative data

Histograms are used to display how often each range of values occurs within a quantitative dataset, providing a visual frequency distribution.

Correct Answer: c) Preferred Alternative

A preferred alternative is one that performs well against the criteria set by decision-makers, reflecting its favorability in evaluation.

Correct Answer: c) Quantitative Data

Quantitative data is numeric and can be used for statistical analysis, often representing variables like sales figures or performance metrics.

Correct Answer: c) Maximin Criterion

The maximin criterion is a conservative decision-making approach, choosing the alternative with the best worst-case outcome to minimize risk.

Correct Answer: b) Empirical Probability

Empirical probability is derived from observed data, such as using past inventory trends to set reorder points based on demand history.

Correct Answer: c) Critical Path Method (CPM)

CPM identifies the longest sequence of tasks, showing which tasks are essential to complete the project on schedule.