LOMA 335 TEST PAPER 2025/2026 QUESTIONS AND
SOLUTIONS RANKED A+
✔✔Ad hoc decisions - ✔✔Infrequent decisions that can be made quickly at an individual
level because the risks involved are relatively small
✔✔Cross cutting decisions - ✔✔Familiar decisions that can have a broad organizational
impact. Ex. Creating a new version of an existing product
✔✔Heuristics - ✔✔General rules appropriate for certain situations
✔✔Cultural bias - ✔✔A consistent cognitive error resulting from the tendency to
interpret and report data in terms of the observer's own culture
✔✔Attention bias - ✔✔A consistent error in research outcomes that arises when people
perform better because they know they are being studied
✔✔Social acceptance bias - ✔✔A consistent cognitive bias error based on a tendency
for individuals to make socially acceptable statements even when they feel something
else
✔✔States of nature - ✔✔Potential influences on the outcome of a decision
✔✔Time series data - ✔✔Information about a variable over successive periods
✔✔Naïve Time Series Model - ✔✔A forecaster uses the data value for the most recent
period as the forecast value for the next future period
✔✔Arithmetic average model - ✔✔Model that uses arithmetic average of a series of
values (the mean) from previous periods as the forecast value for the next period
✔✔Simple moving average model - ✔✔Model closely related to the arithmetic average
model. It also requires finding the mean data value but only considers a specified
number, n, of the most recent data vlaues
✔✔Weighted moving average times series model - ✔✔Model that assigns relative
weights to the data values used in the forecast, but more recent data are assigned a
greater weight than older data
✔✔Causal model - ✔✔Model that uses historical data and other relevant variables as a
basis for describing unknown future data points
✔✔Correlation - ✔✔A measure of whether and how strongly two values are related
, ✔✔Point estimate - ✔✔An estimated result that is assigned a single balue
✔✔Range estimate - ✔✔A result that includes possible values within specified limits
✔✔Conditional payoff table - ✔✔A payoff table showing two or more states of nature
✔✔Payoff analysis - ✔✔A formal approach to decision making wherein each
combination of a decision alternative and a state of nature results in a potential payoff
✔✔Dominant decision alternative - ✔✔A decision that consistently produces the best
expected payoff for all states of nature
✔✔Best payoff - ✔✔Highest positive value in each state of nature column
✔✔Data acquisition - ✔✔The tasks involved in obtaining and storing info relevant to the
business question
✔✔Prescriptive analytics - ✔✔A type of proactive data analytics that uses data to
suggest decision alternatives and show the possible implications of each decision
✔✔Frequency distribution - ✔✔A set of data organized to show the number of times
each outcome occurs
✔✔Organizational innovation - ✔✔Consists of the introduction of a new or significantly
improved production process or method of delivery, including changes in techniques,
equipment or software
✔✔Global boundaries - ✔✔Boundaries outside the control of the innovation project
such as regulations or corporate strategy
✔✔Specific boundaries - ✔✔Boundaries that relate directly to the innovation project
such as the budget, time available or resources needed
✔✔Model s (small projects) - ✔✔Model suitable for unlimited projects intended to
improve processes within the existing organizational and management structure
✔✔Model r (repeatable projects) - ✔✔Model suitable for applying familiar tasks and
processes to achieve a repeatable and predictable outcome
✔✔Model c (custom projects) - ✔✔Model suitable for all projects that do not fit model s
or r. A customized approach is required and should be accomplished one unique
initiative at a time and with a dedicated innovation team
SOLUTIONS RANKED A+
✔✔Ad hoc decisions - ✔✔Infrequent decisions that can be made quickly at an individual
level because the risks involved are relatively small
✔✔Cross cutting decisions - ✔✔Familiar decisions that can have a broad organizational
impact. Ex. Creating a new version of an existing product
✔✔Heuristics - ✔✔General rules appropriate for certain situations
✔✔Cultural bias - ✔✔A consistent cognitive error resulting from the tendency to
interpret and report data in terms of the observer's own culture
✔✔Attention bias - ✔✔A consistent error in research outcomes that arises when people
perform better because they know they are being studied
✔✔Social acceptance bias - ✔✔A consistent cognitive bias error based on a tendency
for individuals to make socially acceptable statements even when they feel something
else
✔✔States of nature - ✔✔Potential influences on the outcome of a decision
✔✔Time series data - ✔✔Information about a variable over successive periods
✔✔Naïve Time Series Model - ✔✔A forecaster uses the data value for the most recent
period as the forecast value for the next future period
✔✔Arithmetic average model - ✔✔Model that uses arithmetic average of a series of
values (the mean) from previous periods as the forecast value for the next period
✔✔Simple moving average model - ✔✔Model closely related to the arithmetic average
model. It also requires finding the mean data value but only considers a specified
number, n, of the most recent data vlaues
✔✔Weighted moving average times series model - ✔✔Model that assigns relative
weights to the data values used in the forecast, but more recent data are assigned a
greater weight than older data
✔✔Causal model - ✔✔Model that uses historical data and other relevant variables as a
basis for describing unknown future data points
✔✔Correlation - ✔✔A measure of whether and how strongly two values are related
, ✔✔Point estimate - ✔✔An estimated result that is assigned a single balue
✔✔Range estimate - ✔✔A result that includes possible values within specified limits
✔✔Conditional payoff table - ✔✔A payoff table showing two or more states of nature
✔✔Payoff analysis - ✔✔A formal approach to decision making wherein each
combination of a decision alternative and a state of nature results in a potential payoff
✔✔Dominant decision alternative - ✔✔A decision that consistently produces the best
expected payoff for all states of nature
✔✔Best payoff - ✔✔Highest positive value in each state of nature column
✔✔Data acquisition - ✔✔The tasks involved in obtaining and storing info relevant to the
business question
✔✔Prescriptive analytics - ✔✔A type of proactive data analytics that uses data to
suggest decision alternatives and show the possible implications of each decision
✔✔Frequency distribution - ✔✔A set of data organized to show the number of times
each outcome occurs
✔✔Organizational innovation - ✔✔Consists of the introduction of a new or significantly
improved production process or method of delivery, including changes in techniques,
equipment or software
✔✔Global boundaries - ✔✔Boundaries outside the control of the innovation project
such as regulations or corporate strategy
✔✔Specific boundaries - ✔✔Boundaries that relate directly to the innovation project
such as the budget, time available or resources needed
✔✔Model s (small projects) - ✔✔Model suitable for unlimited projects intended to
improve processes within the existing organizational and management structure
✔✔Model r (repeatable projects) - ✔✔Model suitable for applying familiar tasks and
processes to achieve a repeatable and predictable outcome
✔✔Model c (custom projects) - ✔✔Model suitable for all projects that do not fit model s
or r. A customized approach is required and should be accomplished one unique
initiative at a time and with a dedicated innovation team
