Mba 551 Business Analytics Midterm Exam, Questions And Answers (100%) Updated 2025/26.

MBA 551 BUSINESS ANALYTICS MIDTERM 5/31/25 Question 1 (5 points) EKA manufacturing company produces part #2206 for the aerospace industry. The unit production cost of part #2206 is $3. The fixed monthly cost of operating the production facility is $3000. Next month's demand for part #2206 is 200 units. How much should the company charge for each unit of part #2206 to break even? Question 1 options: $12 $15 $20 Question 2 (5 points) probability is an estimate based on personal belief, experience, or knowledge of a situation. Question 2 options: Binomial Joint Marginal Question 3 (5 points) The result of an effective decision making process should be monitored in order to: Question 3 options: change the scientific method. reveal the break-even point. keep fixed and variable costs distinct. Question 4 (5 points) $18 Subjective reveal errors in the management judgment, expertise, and opinion to make forecasts. Question 4 options: Regression Time series Quantitative methods Question 5 (5 points) A probability is the probability that an event will occur given that another event has already occurred. Question 5 options: binomial objective subjective Question 6 (5 points) Decision support systems and sensitivity analysis are useful management science tools for answering the question: Question 6 options: who else? by when? how much? Question 7 (5 points) A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow. Alternative Brisk Slow Qualitative methods conditional what if?Buy 90 -10 Rent 70 40 Lease 60 55 The equal likelihood criterion strategy is: Question 7 options: rent. brisk. buy. Question 8 (5 points) Which variable is not a component of break-even analysis? Question 8 options: Selling price Variable costs Fixed costs Question 9 (5 points) The maximax criterion results in the: Question 9 options: minimum of the maximum payoffs. minimum of the minimum payoffs. maximum of the maximum payoffs. lease. Number of employeesmaximum of the minimum payoffs. Question 10 (5 points) Which steps of the management science process can either be a recommended decision or information that helps a manager make a decision? Question 10 options: Model implementation Problem definition Problem formulation Question 11 (5 points) At the break-even point: Question 11 options: costs are minimized. revenue is maximized. profit is maximized. Question 12 (5 points) A technique that assumes certainty in its solution is referred to as: Question 12 options: parametric. stochastic. probabilistic. Question 13 (5 points) Model solution total revenue equals total cost. a measure of the dispersion of random variable values about the expected value or mean. Question 13 options: Population mean Sample mean Expected value Question 14 (5 points) A is a gradual, long-term, up-or-down movement of demand. Question 14 options: prediction seasonal pattern cycle Question 15 (5 points) If the price increases, but fixed and variable costs do not change, the break-even point: Question 15 options: remains the same. may increase or decrease, depending on sales. increases. Question 16 (5 points) In decision making, the choice of an appropriate criterion is dependent on: Question 16 options: the risk personality of the decision maker decreases. Standard deviation trendnone of the above. the magnitude of the payoffs. the number of nodes in the decision tree. Question 17 (5 points) EKA manufacturing company produces part #2206 for the aerospace industry. Each unit of part #2206 is sold for $15. The unit production cost of part #2206 is $3. The fixed monthly cost of operating the production facility is $3000. How many units of part #2206 have to be sold in a month to break even? Question 17 options: 166.67 200 500 Question 18 (5 points) The events in an experiment are if only one can occur at a time. Question 18 options: non-mutually exclusive independent mutually inclusive Question 19 (5 points) A small entrepreneurial company is trying to decide between developing two different products that they believe they can sell to two potential companies, one large and one small. If they develop Product A, they have a 50% chance of selling it to the large company with annual purchases of about 20,000 units. If the large company won't purchase it, then they think they have an 80% chance of placing it with a smaller company, with sales of 15,000 units. On the other hand if they develop Product B, they feel they have a 40% chance of selling it to the large company, resulting in annual sales of about 17,000 units. If the large company doesn't buy it, 250 mutually exclusivethey have a 50% chance of selling it to the small company with sales of 20,000 units. What is the probability that Product B will being purchased by the smaller company? Question 19 options: 0.6 0.2 0.5 Question 20 (5 points) The purpose of break-even analysis is to determine the number of units of a product to sell that will: Question 20 options: result in a loss. appeal to the consumer. result in a profit. 0.3 result in zero profit.