IVY SOFTWARE BUSINESS MATH AND STATISTICS EXAM
(ACTUAL 2025/2026) 200 QUESTIONS AND 100% VERIFIED
CORRECT DETAILED ANSWERS (GRADED A+)
A local artist has three civic buildings, one of which she wants
to paint. If she paints any of these buildings, she can sell the
painting to the organization that occupies the building, sell the
paining to a private collector or donate it to a small museum.
The order for the decision tree would follow which way?
A) decision node, event node
B) event node, decision node, event node
C) event node, event node,
D) None of the above - ---Answer--D) None of the above
It would actually be decision node (which building to paint),
decision node (what to do with the painting)
True/False: the Expected Monetary Value (EMV) is a number
based on averaging - ---Answer--True
Marcie wants to invest her money in the stock of one of two
companies: Writeoff, a maker of erasers, or Outatwon Books, a
publisher of travel guides. She has a 0.7 probability of making
$10,000 and a 0.3 probability of losing $25,000 with Writeoff
stock, and a 0.45 probability of making $3000 and a 0.55
probability of losing $500 with Outatown Books stock. If she
does nothing, she will neither gain nor lose money. Should she
invest in Writeoff stock, Outatown stock or do nothing? - ---
Answer--Invest in Outatown stock
,Referring to Illustration 9 in Chapter 5, it shows the decision
tree for three projects in which the AOK company can invest
(they can only invest in one and must invest). In which one of
the three projects should AOK invest, based on EMV?
A) Project A
B) Project B
C) Project C
D) None of the above, they are all equal. - ---Answer--C)
Project C
True/False: the EMV of an alternative with 0.5 probability of
making $500 is definitely $250. - ---Answer--False
You cannot calculate the EMV with just this information. You
need to know all possible returns, not just one.All possible
outcomes should equal one, but you only have 0.5 of the
information required.
Which of the following nodes could be combined into one?
A) If Jay decides to go to lunch, he has to decide where to go
B) After Jay decides to go out to lunch, he has to make sure he
doesnt have a meeting and, if he doesnt, he has to decide
where to go out to lunch
C) Jay finds out whether he has a meeting, then he will decide
D) None of the above - ---Answer--A) If Jay decides to go to
lunch, he has to decide where to go
,A has two decision modes, but B has a decision mode and an
event mode, and C has an event node and a decision mode. So
only A has two of the same and can be combined.
Tim has not been doing well in finance class. His professor
tells him to write up a case analysis for her in order to pass
the class. He can still pass the class without the write-up, just
like he still can fail with it, since the final exam is coming up.
Which of these decisions would have a vertical line at the end
of the decision node:
A) Do nothing (dont write the case analysis)
B) Pass the final exam
C) Write the case analysis
D) None of the above - ---Answer--D) None of the above
True/False: A decision node is shown as a square. - ---
Answer--True
True/False: Branches are connected by squares only. - ---
Answer--False
A market research survey is available for $10,000. Using a
decision tree analysis, it is found that the expected monetary
value with the survey is $65,000. The expected monetary value
with no survey is $62,000. What is the expected value of the
information from this sample?
a. $3,000
b. $10,000
, c. $13,000
d. -$7,000
e. none of the above - ---Answer--
Expected Monetary Value (EMV) utilizes
Select one:
a. binomial distribution
b. median values
c. averages
d. none of the above - ---Answer--c. averages
True/False: A decision tree is a graphic representation of a
problem. - ---Answer--True
True/False: The decision maker determines which branch to
follow from an event node. - ---Answer--False
True/False: Branches may be connected by circles and
squares. - ---Answer--True
The Miramar Company is going to introduce one of three new
products: a wrench, a hammer, or a nut remover. The market
conditions (favorable, stable, or unfavorable) will determine
the profit or loss the company realizes. A market research
firm will do a survey to predict future market conditions. The
results will indicate either positive or negative market
conditions. There is a 0.60 probability of a positive report given
(ACTUAL 2025/2026) 200 QUESTIONS AND 100% VERIFIED
CORRECT DETAILED ANSWERS (GRADED A+)
A local artist has three civic buildings, one of which she wants
to paint. If she paints any of these buildings, she can sell the
painting to the organization that occupies the building, sell the
paining to a private collector or donate it to a small museum.
The order for the decision tree would follow which way?
A) decision node, event node
B) event node, decision node, event node
C) event node, event node,
D) None of the above - ---Answer--D) None of the above
It would actually be decision node (which building to paint),
decision node (what to do with the painting)
True/False: the Expected Monetary Value (EMV) is a number
based on averaging - ---Answer--True
Marcie wants to invest her money in the stock of one of two
companies: Writeoff, a maker of erasers, or Outatwon Books, a
publisher of travel guides. She has a 0.7 probability of making
$10,000 and a 0.3 probability of losing $25,000 with Writeoff
stock, and a 0.45 probability of making $3000 and a 0.55
probability of losing $500 with Outatown Books stock. If she
does nothing, she will neither gain nor lose money. Should she
invest in Writeoff stock, Outatown stock or do nothing? - ---
Answer--Invest in Outatown stock
,Referring to Illustration 9 in Chapter 5, it shows the decision
tree for three projects in which the AOK company can invest
(they can only invest in one and must invest). In which one of
the three projects should AOK invest, based on EMV?
A) Project A
B) Project B
C) Project C
D) None of the above, they are all equal. - ---Answer--C)
Project C
True/False: the EMV of an alternative with 0.5 probability of
making $500 is definitely $250. - ---Answer--False
You cannot calculate the EMV with just this information. You
need to know all possible returns, not just one.All possible
outcomes should equal one, but you only have 0.5 of the
information required.
Which of the following nodes could be combined into one?
A) If Jay decides to go to lunch, he has to decide where to go
B) After Jay decides to go out to lunch, he has to make sure he
doesnt have a meeting and, if he doesnt, he has to decide
where to go out to lunch
C) Jay finds out whether he has a meeting, then he will decide
D) None of the above - ---Answer--A) If Jay decides to go to
lunch, he has to decide where to go
,A has two decision modes, but B has a decision mode and an
event mode, and C has an event node and a decision mode. So
only A has two of the same and can be combined.
Tim has not been doing well in finance class. His professor
tells him to write up a case analysis for her in order to pass
the class. He can still pass the class without the write-up, just
like he still can fail with it, since the final exam is coming up.
Which of these decisions would have a vertical line at the end
of the decision node:
A) Do nothing (dont write the case analysis)
B) Pass the final exam
C) Write the case analysis
D) None of the above - ---Answer--D) None of the above
True/False: A decision node is shown as a square. - ---
Answer--True
True/False: Branches are connected by squares only. - ---
Answer--False
A market research survey is available for $10,000. Using a
decision tree analysis, it is found that the expected monetary
value with the survey is $65,000. The expected monetary value
with no survey is $62,000. What is the expected value of the
information from this sample?
a. $3,000
b. $10,000
, c. $13,000
d. -$7,000
e. none of the above - ---Answer--
Expected Monetary Value (EMV) utilizes
Select one:
a. binomial distribution
b. median values
c. averages
d. none of the above - ---Answer--c. averages
True/False: A decision tree is a graphic representation of a
problem. - ---Answer--True
True/False: The decision maker determines which branch to
follow from an event node. - ---Answer--False
True/False: Branches may be connected by circles and
squares. - ---Answer--True
The Miramar Company is going to introduce one of three new
products: a wrench, a hammer, or a nut remover. The market
conditions (favorable, stable, or unfavorable) will determine
the profit or loss the company realizes. A market research
firm will do a survey to predict future market conditions. The
results will indicate either positive or negative market
conditions. There is a 0.60 probability of a positive report given
