LOMA 335: The Insurance Company and
Operations Management (Module 3)
Questions and Answers
At level ____, a manager faces a range of possible outcomes and can't reliably limit the options
to a small set of scenarios because the outcome might lie anywhere in the range of
possibilities. Correct Ans-3
Level ____ indicates so many potential outcomes that it's nearly impossible to identify relevant
variables or construct viable scenarios. Correct Ans-4
A decision log can also reduce __________ bias - the tendency of decision makers to believe,
after a decision is implemented and a certain result occurs, that they knew during the decision-
making process that a certain decision would result in that outcome. Correct Ans-hindsight
Big ______ is a term used to describe large amounts of unprocessed information gathered from
various sources, in various formats, and at a rapid speed. Correct Ans-data
A decision ____________ is the collection of information, alternatives, values, and preferences
available to a decision maker at the time of a decision. Correct Ans-environment
,______________ analysis is the use of mathematical techniques for collecting, organizing,
describing, analyzing, and interpreting numerical data - called statistics - to support
decisions. Correct Ans-Statistical
Decision makers can use 2 types of statistical analysis to draw conclusions: _____________
statistics and ____________ statistics. Correct Ans-1) descriptive
2) inferential
A ____________ is a set of all items that share a specified characteristic. Correct Ans-
population
Statistics that summarize a population of data are ____________ statistics. Correct Ans-
descriptive
Measures of __________ tendency are representative values that describe the values in the
middle of a population.
,Note: They allow decision makers to reduce large amounts of raw data into single representative
values. Correct Ans-central
The 3 most common measures of central tendency are the: Correct Ans-mean, median, mode
The ________ refers to the numerical average of a series of values. Correct Ans-mean
Although the mean is easy to calculate, its accuracy as a measure of central tendency can be
limited if the population includes ___________ - extremely high or low values that aren't
representative of other values. Correct Ans-outliers
The ________ is the middle value in a set of values arranged in numerical order. Correct Ans-
median
The statistical measure that identifies the value that appears most often in a population is the
______. Correct Ans-mode
The mode can help identify ___________ values. Correct Ans-baseline
, 1) Measures of ____________ are representative values that describe the distribution of data
around specified central values.
2) The 3 most common are the: Correct Ans-1) dispersion
2) range, variance, standard deviation
The simplest measure of dispersion is the __________, which is the difference between the
highest and lowest values in a particular population. Correct Ans-range
The ____________ is the average squared distance between the population mean and each
individual item in the population. Correct Ans-variance
___________ variances indicate that the values in a population are further from the mean and
more dispersed.
__________ variances indicate that values in a population are closer to the mean and less
dispersed. Correct Ans-1) Larger
2) Smaller
Operations Management (Module 3)
Questions and Answers
At level ____, a manager faces a range of possible outcomes and can't reliably limit the options
to a small set of scenarios because the outcome might lie anywhere in the range of
possibilities. Correct Ans-3
Level ____ indicates so many potential outcomes that it's nearly impossible to identify relevant
variables or construct viable scenarios. Correct Ans-4
A decision log can also reduce __________ bias - the tendency of decision makers to believe,
after a decision is implemented and a certain result occurs, that they knew during the decision-
making process that a certain decision would result in that outcome. Correct Ans-hindsight
Big ______ is a term used to describe large amounts of unprocessed information gathered from
various sources, in various formats, and at a rapid speed. Correct Ans-data
A decision ____________ is the collection of information, alternatives, values, and preferences
available to a decision maker at the time of a decision. Correct Ans-environment
,______________ analysis is the use of mathematical techniques for collecting, organizing,
describing, analyzing, and interpreting numerical data - called statistics - to support
decisions. Correct Ans-Statistical
Decision makers can use 2 types of statistical analysis to draw conclusions: _____________
statistics and ____________ statistics. Correct Ans-1) descriptive
2) inferential
A ____________ is a set of all items that share a specified characteristic. Correct Ans-
population
Statistics that summarize a population of data are ____________ statistics. Correct Ans-
descriptive
Measures of __________ tendency are representative values that describe the values in the
middle of a population.
,Note: They allow decision makers to reduce large amounts of raw data into single representative
values. Correct Ans-central
The 3 most common measures of central tendency are the: Correct Ans-mean, median, mode
The ________ refers to the numerical average of a series of values. Correct Ans-mean
Although the mean is easy to calculate, its accuracy as a measure of central tendency can be
limited if the population includes ___________ - extremely high or low values that aren't
representative of other values. Correct Ans-outliers
The ________ is the middle value in a set of values arranged in numerical order. Correct Ans-
median
The statistical measure that identifies the value that appears most often in a population is the
______. Correct Ans-mode
The mode can help identify ___________ values. Correct Ans-baseline
, 1) Measures of ____________ are representative values that describe the distribution of data
around specified central values.
2) The 3 most common are the: Correct Ans-1) dispersion
2) range, variance, standard deviation
The simplest measure of dispersion is the __________, which is the difference between the
highest and lowest values in a particular population. Correct Ans-range
The ____________ is the average squared distance between the population mean and each
individual item in the population. Correct Ans-variance
___________ variances indicate that the values in a population are further from the mean and
more dispersed.
__________ variances indicate that values in a population are closer to the mean and less
dispersed. Correct Ans-1) Larger
2) Smaller
