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Business Analytics Test 1 quiz with right answers.
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Business Analytics Test 1 quiz with rightanswers.
In the initial project meeting with a client, which is the MOST important information to obtain?
Timeline and implementation plan
Analytical model to use
Business issue and project goal
Available budget ANS - C Business issue and project goal
A company is considering designing a new automobile. Their options are a design based on current
gasoline engine technology or a government proposed "Green" technology. You are a government
official whose job is to encourage automakers to adopt the "Green" technology. You cannot provide
funding for development or production costs, but you can provide a subsidy for every car sold. The
development costs and the wholesale price, in USD ($), of the cars are shown in the following table:
How large a subsidy per vehicle sold will be required, assuming there will be enough demand to
motivate the switch?
Greater than $5,000
Less than $5,000
Cannot be determined
Equal to $5,000 ANS - A Greater than $5,000
You have simulated the net present value (NPV) of a decision. It ranges between -$10 million and +$10
million. To BEST present the likelihood of possible outcomes, you should:
Present a single NPV estimate to avoid confusion.
Present a histogram to show the distribution of various NPV estimates.
Trim all outliers to present the most balanced diagram.
, Relax constraints associated with extreme points in the simulation. ANS - B Present a histogram to
show the distribution of various NPV estimates.
Two investors who have the same information about the stock market buy an equal number of shares of
a stock. Which of the following statements MUST be true?
The risks for the two investors are statistically independent.
Both investors are subject to the same risks.
Both investors are subject to the same uncertainty.
If the investors are optimistic, they should have borrowed, rather than bought the shares. ANS - C Both
investors are subject to the same uncertainty.
Which of the following statements is true of modeling a multi-server checkout line?
A queuing model can be used to estimate service rates.
A queuing model can be used to estimate average arrivals.
Variability in arrival and service times will tend to play a critical role in congestion.
Poisson distributions are not relevant. ANS - C Variability in arrival and service times will tend to play a
critical role in congestion.
The monthly profit made by a clothing manufacturer is proportional to the monthly demand, up to a
maximum demand of 1,000 units, which corresponds to the plant producing at full capacity. (Any excess
demand over 1,000 units will be satisfied by some other manufacturer, and hence yield no additional
profit.) The monthly demand is uncertain, but the average demand is reliably estimated at 1,000 units.
At this level of demand the monthly profit is $3,000,000. Which of the following statements must be
true of the expected monthly profit, P?
P can have any positive value.
P is possibly greater than $3,000,000.
P is equal to $3,000,000.
P is less than $3,000,000. ANS - D P is less than $3,000,000.
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