C723 QUANTITATIVE ANALYSIS FOR
BUSINESS FINAL SCRIPT 2026 STATISTICAL
METHODS QUESTIONS ANSWERS
COMPLETE A+
◉ 17 Patients' Testing vs. Length of Stay
16 . . .
14 ...
12 . .
10 . . . .
8...
6..
4..
2..
0 10 20 30 40 50 60
The scatter-plot above represents the number of tests administered
to a patient in a hospital versus the patient's length of stay in the
hospital.
,What relationship can you determine between the number of tests
given and the length of stay?
O Positive correlation
O No correlation
O Linear correlation
O Negative correlation
Answer: Positive correlation
cuz a positive correlation is a relationship between two variables
where if one variable increases, the other one also increases. A
positive correlation also exists if one decreases and the other also
decreases.
◉ 18 A firm that manufactures reusable heating and cooling system
filters needs a new supplier for two of the major filtering
components. Five potential suppliers have been assessed using
scores between 1 and 5, as shown in the following table (the higher
score indicates better expected performance):
Supplier ID, On-Time Delivery Cost, Cost, Capacity, Total Score
Supplier 1 5, 4, 3, 12
Supplier 2 4, 3, 3, 10
Supplier 3 5, 2, 5, 12
Supplier 4 3, 3, 5, 11
,Supplier 5 4, 4, 3, 11
Which decision model step does the table represent?
O Generating alternatives
O Choosing the best alternative
O Evaluating alternatives
O Listing alternatives
Answer: Evaluating alternatives
◉ 19 A textile company is a manufacturer of fireproof uniforms in
Mexico. The company is planning on opening operations in the
United States and Canada, which
requires a capacity expansion of 100%. The company has three
alternatives: build a large plant, build a small plant or subcontract.
There are two possible states of nature: a favorable market and a
moderate market. If the future market is favorable, the payoffs are
$13, $5, and $7 million for
building a large plant, building a small plant, and subcontracting,
respectively. Similarly, for a future moderate market, the payoffs are
$2, $8, and S3 million for
, building a large plant, building a small plant, and subcontracting,
respectively. The company has estimated the probability of a
favorable market as 0.40. The textile
company needs to make a decision about either building a plant or
subcontracting.
What is the relationship between uncertainty and the dec
Answer: Uncertainty is less relevant to the decision-making process
than risk.
Key Differences Between Risk and Uncertainty. The risk is defined as
the situation of winning or losing something worthy. Uncertainty is a
condition where there is no knowledge about the future events.
Speculation of uncertain events may lead to inaccurate decisions.
◉ 20 A successful Mexican seafood restaurant in Texas has a single
owner and a single location. The owner is debating the next step for
the business. The owner thinks
that opening only a couple of new locations in the area could help
maintain the customers' perception of a unique local restaurant,
which has been part of its success. On the other hand, franchising
the restaurant could drive rapid economic growth and therefore
develop an image as a regional restaurant. It is also possible that a
combination of new local locations and franchising could bring
better financial and public relations results. This option has the
highest associated cost, whereas opening only a couple of new
locations or franchising would cost less. In any case, the owner
believes the worst-case scenario is to have moderate
BUSINESS FINAL SCRIPT 2026 STATISTICAL
METHODS QUESTIONS ANSWERS
COMPLETE A+
◉ 17 Patients' Testing vs. Length of Stay
16 . . .
14 ...
12 . .
10 . . . .
8...
6..
4..
2..
0 10 20 30 40 50 60
The scatter-plot above represents the number of tests administered
to a patient in a hospital versus the patient's length of stay in the
hospital.
,What relationship can you determine between the number of tests
given and the length of stay?
O Positive correlation
O No correlation
O Linear correlation
O Negative correlation
Answer: Positive correlation
cuz a positive correlation is a relationship between two variables
where if one variable increases, the other one also increases. A
positive correlation also exists if one decreases and the other also
decreases.
◉ 18 A firm that manufactures reusable heating and cooling system
filters needs a new supplier for two of the major filtering
components. Five potential suppliers have been assessed using
scores between 1 and 5, as shown in the following table (the higher
score indicates better expected performance):
Supplier ID, On-Time Delivery Cost, Cost, Capacity, Total Score
Supplier 1 5, 4, 3, 12
Supplier 2 4, 3, 3, 10
Supplier 3 5, 2, 5, 12
Supplier 4 3, 3, 5, 11
,Supplier 5 4, 4, 3, 11
Which decision model step does the table represent?
O Generating alternatives
O Choosing the best alternative
O Evaluating alternatives
O Listing alternatives
Answer: Evaluating alternatives
◉ 19 A textile company is a manufacturer of fireproof uniforms in
Mexico. The company is planning on opening operations in the
United States and Canada, which
requires a capacity expansion of 100%. The company has three
alternatives: build a large plant, build a small plant or subcontract.
There are two possible states of nature: a favorable market and a
moderate market. If the future market is favorable, the payoffs are
$13, $5, and $7 million for
building a large plant, building a small plant, and subcontracting,
respectively. Similarly, for a future moderate market, the payoffs are
$2, $8, and S3 million for
, building a large plant, building a small plant, and subcontracting,
respectively. The company has estimated the probability of a
favorable market as 0.40. The textile
company needs to make a decision about either building a plant or
subcontracting.
What is the relationship between uncertainty and the dec
Answer: Uncertainty is less relevant to the decision-making process
than risk.
Key Differences Between Risk and Uncertainty. The risk is defined as
the situation of winning or losing something worthy. Uncertainty is a
condition where there is no knowledge about the future events.
Speculation of uncertain events may lead to inaccurate decisions.
◉ 20 A successful Mexican seafood restaurant in Texas has a single
owner and a single location. The owner is debating the next step for
the business. The owner thinks
that opening only a couple of new locations in the area could help
maintain the customers' perception of a unique local restaurant,
which has been part of its success. On the other hand, franchising
the restaurant could drive rapid economic growth and therefore
develop an image as a regional restaurant. It is also possible that a
combination of new local locations and franchising could bring
better financial and public relations results. This option has the
highest associated cost, whereas opening only a couple of new
locations or franchising would cost less. In any case, the owner
believes the worst-case scenario is to have moderate
