C723 Quantitative Analysis For Business (PA)
Questions with Verified Correct Answers
1 A car stereo company is planning to introduce a new product into the market. It faces
stiff competition from two other organizations with similar products. The company's
marketing manager has asked the production manager to perform a break-even
analysis using three different price points. The marketing manager will use the results
to set a price for the new product.
Which type of method is a break-even analysis?
O Expert judgment
O Quantitative
O Qualitative
O Payback table
Quantitative
cuz break-even analysis using price points involves numbers
Quantitative or Quantity=Number
2 Over the last three months, a small rural hospital has seen a sudden increase in the
number of patients coming to the emergency room for non-emergency treatment. The
hospital administrator wants to know why there is a sudden increase in demand and is
considering three options to find out. Classify each method available to the
administrator as qualitative or quantitative.
Answer options may be used more than once or not at all. Select your answers from the
pull-down list.
Including an open-ended question on the intake form asking patients, "Please explain
,why you selected this ER for
treatment." Intake forms can be sorted into non-emergency and emergency categories;
the "non-emergency"
responses can be analyzed to determine reasons the hospital was selected
Qualitative
Pulling the hospital's records for the last 10 years and sorting by medical codes to check
for similar patterns in past
years. A regression model can be built using non-emergency treatments as the
dependent variable, and various independent variables can be tested, such as population
change and unemployment levels.
Qualitative
Group brainstorming with the nurses and doctors in the hospital to see what ideas
people have for why so many
people are suddenly coming to the ER for non-emergency treatment.
Quantitative
Qualitative
cuz a why you selected question is an opinion.
Qualitative or Quality=Opinion
Qualitative
,cuz the question can't be counted like 1+2+3+4+5=15.
Qualitative or Quality=Opinion
Quantitative cuz how many ideas are counted for ER visits.
Quantitative or Quantity=Number
3 A local music store that hosts live music has been a very popular hangout for years.
However, the owner is concerned that the increasing popularity of new methods of
music delivery will soon make the business obsolete. The owner is considering building
a
small recording studio in the basement of the store. The nearest professional studio is 50
miles away, so a new studio may appeal to local musicians and increase foot traffic. The
owner has all the costs of building the studio and has also estimated how much revenue
might increase due to the new studio (from studio rental fees, increased food and drink
sales if more people come to the live music shows, etc.). The owner will use this
information to determine the net present value for the studio.
Which method of analysis should this owner use to make a determination?
O Decision tree
O Expert judgment
O Quantitative
O Qualitative
Quantitative
cuz counting number cost of building, food, drink, etc. Quantitative or Quantity=Number.
, 4 How should quantitative analysis improve subsequent decision making for a firm that
wants to determine whether its revenue has
been increasing or decreasing for the past 10 years?
O It will help the company see why it has been making a profit
O It will let the company determine the average revenue it made.
O It will help the company see which customers bought its items.
O It will help the company see the competitors' average revenue.
It will let the company determine the average revenue it made.
cuz revenue is the question to answer
5 An employee working for the Highway Safety Department in Albany, New York has
the job to predict the automobile accidents in
Albany for the next year. The employee currently has monthly data on the following
variables for the city of Albany: the number of
automobiles registered, the sales of alcoholic beverages, and the rainfall in inches.
How can this employee realistically predict the accidents in Albany for next year?
O Use the ratio of accidents versus each of the other variables and then average the
three values
O Use a multiple regression equation using accident as the dependent variable and
others as independent variables
O Use a multiple regression equation using automobiles registered as the dependent
variable and others as independent
Questions with Verified Correct Answers
1 A car stereo company is planning to introduce a new product into the market. It faces
stiff competition from two other organizations with similar products. The company's
marketing manager has asked the production manager to perform a break-even
analysis using three different price points. The marketing manager will use the results
to set a price for the new product.
Which type of method is a break-even analysis?
O Expert judgment
O Quantitative
O Qualitative
O Payback table
Quantitative
cuz break-even analysis using price points involves numbers
Quantitative or Quantity=Number
2 Over the last three months, a small rural hospital has seen a sudden increase in the
number of patients coming to the emergency room for non-emergency treatment. The
hospital administrator wants to know why there is a sudden increase in demand and is
considering three options to find out. Classify each method available to the
administrator as qualitative or quantitative.
Answer options may be used more than once or not at all. Select your answers from the
pull-down list.
Including an open-ended question on the intake form asking patients, "Please explain
,why you selected this ER for
treatment." Intake forms can be sorted into non-emergency and emergency categories;
the "non-emergency"
responses can be analyzed to determine reasons the hospital was selected
Qualitative
Pulling the hospital's records for the last 10 years and sorting by medical codes to check
for similar patterns in past
years. A regression model can be built using non-emergency treatments as the
dependent variable, and various independent variables can be tested, such as population
change and unemployment levels.
Qualitative
Group brainstorming with the nurses and doctors in the hospital to see what ideas
people have for why so many
people are suddenly coming to the ER for non-emergency treatment.
Quantitative
Qualitative
cuz a why you selected question is an opinion.
Qualitative or Quality=Opinion
Qualitative
,cuz the question can't be counted like 1+2+3+4+5=15.
Qualitative or Quality=Opinion
Quantitative cuz how many ideas are counted for ER visits.
Quantitative or Quantity=Number
3 A local music store that hosts live music has been a very popular hangout for years.
However, the owner is concerned that the increasing popularity of new methods of
music delivery will soon make the business obsolete. The owner is considering building
a
small recording studio in the basement of the store. The nearest professional studio is 50
miles away, so a new studio may appeal to local musicians and increase foot traffic. The
owner has all the costs of building the studio and has also estimated how much revenue
might increase due to the new studio (from studio rental fees, increased food and drink
sales if more people come to the live music shows, etc.). The owner will use this
information to determine the net present value for the studio.
Which method of analysis should this owner use to make a determination?
O Decision tree
O Expert judgment
O Quantitative
O Qualitative
Quantitative
cuz counting number cost of building, food, drink, etc. Quantitative or Quantity=Number.
, 4 How should quantitative analysis improve subsequent decision making for a firm that
wants to determine whether its revenue has
been increasing or decreasing for the past 10 years?
O It will help the company see why it has been making a profit
O It will let the company determine the average revenue it made.
O It will help the company see which customers bought its items.
O It will help the company see the competitors' average revenue.
It will let the company determine the average revenue it made.
cuz revenue is the question to answer
5 An employee working for the Highway Safety Department in Albany, New York has
the job to predict the automobile accidents in
Albany for the next year. The employee currently has monthly data on the following
variables for the city of Albany: the number of
automobiles registered, the sales of alcoholic beverages, and the rainfall in inches.
How can this employee realistically predict the accidents in Albany for next year?
O Use the ratio of accidents versus each of the other variables and then average the
three values
O Use a multiple regression equation using accident as the dependent variable and
others as independent variables
O Use a multiple regression equation using automobiles registered as the dependent
variable and others as independent
