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C723 - Unit 2 Questions and Answers
___________ involves finding the best solution when faced with an
uncertainty Ans: Decision analysis
_____________________ is a specific quantitative analysis technique
that utilizes mathematical calculations to determine the average of
all potential alternatives being considered to solve a problem.
Ans: Expected monetary value analysis
A banker wants to decide whether to approve a loan for a new
customer.
Does this statement use Expected Monetary Analysis or not Ans:
Does Not Use Expected Monetary Analysis
A lawyer is deciding on the monthly retainer fee for a new client.
Ans: Does Not Use Expected Monetary Analysis
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A retired teacher is considering three alternative investments for
her retirement fund. Ans: Uses Expected Monetary Analysis
A real estate agent is considering investing in either a commercial
strip mall or several single-family homes. Ans: Uses Expected
Monetary Analysis
A medical research group wants to determine the effectiveness of
a new medicine. Ans: Does Not Use Expected Monetary Analysis
A marketing manager wants to determine the effectiveness of a
new ad campaign. Ans: Does Not Use Expected Monetary Analysis
__________ is determined by multiplying the daily demand for an
inventory item by the lead time, the number of days between
making an order and receiving the order. Ans: Reorder point
_________ is additional inventory held to prevent a business from
running out of stock. Ans: Safety stock
ROP = ((daily demand * lead time) + safety stock) Ans: reorder
point formula
____________ is a method or process used to make decisions about
events where the actual outcomes have not yet occurred. Ans:
Forecasting
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A _____________ is a common tool used to help break down and
manage a project's deliverables and their supporting tasks. Ans:
work breakdown structure (WBS)
_________ can be done before the cost estimates are complete.The
estimates can only be done after all tasks and subtasks are
identified. Ans: Project scheduling
Special project management software is helpful and can speed up
the task, but it is not essential to ___________. Ans: perform
project scheduling.
For ________ each subtask may include more than one type of
resource. Each subtask may involve multiple types of labor, such
as plumbers and electricians. However, their costs are likely to be
different. Ans: project scheduling
The qualitative approach is best used when a business is faced
with ___________. Ans: uncertainty
Which of the following are some primary influencing factors
involving subjective reasoning on a topic?
a. The latest data from the FBI
© 2025 All rights reserved
C723 - Unit 2 Questions and Answers
___________ involves finding the best solution when faced with an
uncertainty Ans: Decision analysis
_____________________ is a specific quantitative analysis technique
that utilizes mathematical calculations to determine the average of
all potential alternatives being considered to solve a problem.
Ans: Expected monetary value analysis
A banker wants to decide whether to approve a loan for a new
customer.
Does this statement use Expected Monetary Analysis or not Ans:
Does Not Use Expected Monetary Analysis
A lawyer is deciding on the monthly retainer fee for a new client.
Ans: Does Not Use Expected Monetary Analysis
© 2025 All rights reserved
, 2 | Page
A retired teacher is considering three alternative investments for
her retirement fund. Ans: Uses Expected Monetary Analysis
A real estate agent is considering investing in either a commercial
strip mall or several single-family homes. Ans: Uses Expected
Monetary Analysis
A medical research group wants to determine the effectiveness of
a new medicine. Ans: Does Not Use Expected Monetary Analysis
A marketing manager wants to determine the effectiveness of a
new ad campaign. Ans: Does Not Use Expected Monetary Analysis
__________ is determined by multiplying the daily demand for an
inventory item by the lead time, the number of days between
making an order and receiving the order. Ans: Reorder point
_________ is additional inventory held to prevent a business from
running out of stock. Ans: Safety stock
ROP = ((daily demand * lead time) + safety stock) Ans: reorder
point formula
____________ is a method or process used to make decisions about
events where the actual outcomes have not yet occurred. Ans:
Forecasting
© 2025 All rights reserved
, 3 | Page
A _____________ is a common tool used to help break down and
manage a project's deliverables and their supporting tasks. Ans:
work breakdown structure (WBS)
_________ can be done before the cost estimates are complete.The
estimates can only be done after all tasks and subtasks are
identified. Ans: Project scheduling
Special project management software is helpful and can speed up
the task, but it is not essential to ___________. Ans: perform
project scheduling.
For ________ each subtask may include more than one type of
resource. Each subtask may involve multiple types of labor, such
as plumbers and electricians. However, their costs are likely to be
different. Ans: project scheduling
The qualitative approach is best used when a business is faced
with ___________. Ans: uncertainty
Which of the following are some primary influencing factors
involving subjective reasoning on a topic?
a. The latest data from the FBI
© 2025 All rights reserved
