QUANTITATIVE ANALYSIS FOR BUSINESS C723
QUESTIONS AND CORRECT SOLUTIONS
Decision models - Correct answer~ are used to identify a business problem and
develop alternative solutions.
Payoff tables - Correct answer~ will quantify the costs and benefits of each
solution alternative.
Decision trees - Correct answer~ will be used to identify the alternatives and
probabilities of occurrence.
Network analysis - Correct answer~ refers to the network of activities required
to complete a business project.
Quantitative analysis - Correct answer~ provides methods to analyze large or
small amounts of data to look for patterns, trends, and relationships.
Mathematical analysis - Correct answer~ can help managers make strategic
decisions and find statistically supported solutions to business questions. These
are functional areas over a period of time.
Data may be categorized as either - Correct answer~ subjective or objective.
Subjective data - Correct answer~ obtained through surveys and interviews, are
considered non-measurable,
,data typically include personal perceptions, such as likes, dislikes, attitudes, and
opinions.
Objective data are - Correct answer~ measurable and typically arise from
observation or testing in business areas like sales, operations, manufacturing, and
logistics.
Data must be valid: that is, the data must accurately represent the true
business relationship at hand. Further, the data must be reliable: if we sought
to characterize a particular business relationship by gathering data several
different times (different samples), the data would reflect the relationship the
same way with every sample.
Examples of quantitative analysis - Correct answer~ cost-benefit analysis,
inventory analysis, logistical analysis, and forecasting revenue.
quantitative analysis approach - Correct answer~ defines a problem and then
develops a mathematical model to represent the particular business situation.
The model allows managers to make inferences regarding the data.
Total Revenue - Correct answer~ p=$xq $X is the revenue earned per item
sold, Q is the quantity of items sold.
Company XYZ can use this equation to forecast its revenue if X remains
constant
Steps in Quantitative Analysis - Correct answer~ 1. Define problem.
2. Develop mathematical model.
3. Prepare and input data.
4. Find best solution.
5. Test solution.
6. Analyze results.
, 7. Implement solution.
Cause and effect use - Correct answer~ independent and dependent variables. A
dependent variable is the variable that is being measured, or affected. The
independent variable is free to change in a given model.
The dependent variable is affected by the changes in the causing independent
variable. Although only one dependent variable is considered, many independent
variables can have an effect.
fishbone diagram is sometimes - Correct answer~ used to determine the cause
of a problem.
moderating relationship - Correct answer~ the relationship between the
dependent and independent variables depends on the level of the moderating
variable.
mediating variable - Correct answer~ explains the relationship between the
dependent and independent variables.
Scatter diagrams - Correct answer~ are used to graph pairs of numbers to
determine the relationship.
trend line - Correct answer~ The line that shows the general direction of the
relationship of points over time
If the trend line moves downward as we progress from left to right - Correct
answer~ there is a negative correlation between the two variables.
what does it mean if one variable increases as the other variable also
increases? - Correct answer~ That there is a positive correlation between the
variables
QUESTIONS AND CORRECT SOLUTIONS
Decision models - Correct answer~ are used to identify a business problem and
develop alternative solutions.
Payoff tables - Correct answer~ will quantify the costs and benefits of each
solution alternative.
Decision trees - Correct answer~ will be used to identify the alternatives and
probabilities of occurrence.
Network analysis - Correct answer~ refers to the network of activities required
to complete a business project.
Quantitative analysis - Correct answer~ provides methods to analyze large or
small amounts of data to look for patterns, trends, and relationships.
Mathematical analysis - Correct answer~ can help managers make strategic
decisions and find statistically supported solutions to business questions. These
are functional areas over a period of time.
Data may be categorized as either - Correct answer~ subjective or objective.
Subjective data - Correct answer~ obtained through surveys and interviews, are
considered non-measurable,
,data typically include personal perceptions, such as likes, dislikes, attitudes, and
opinions.
Objective data are - Correct answer~ measurable and typically arise from
observation or testing in business areas like sales, operations, manufacturing, and
logistics.
Data must be valid: that is, the data must accurately represent the true
business relationship at hand. Further, the data must be reliable: if we sought
to characterize a particular business relationship by gathering data several
different times (different samples), the data would reflect the relationship the
same way with every sample.
Examples of quantitative analysis - Correct answer~ cost-benefit analysis,
inventory analysis, logistical analysis, and forecasting revenue.
quantitative analysis approach - Correct answer~ defines a problem and then
develops a mathematical model to represent the particular business situation.
The model allows managers to make inferences regarding the data.
Total Revenue - Correct answer~ p=$xq $X is the revenue earned per item
sold, Q is the quantity of items sold.
Company XYZ can use this equation to forecast its revenue if X remains
constant
Steps in Quantitative Analysis - Correct answer~ 1. Define problem.
2. Develop mathematical model.
3. Prepare and input data.
4. Find best solution.
5. Test solution.
6. Analyze results.
, 7. Implement solution.
Cause and effect use - Correct answer~ independent and dependent variables. A
dependent variable is the variable that is being measured, or affected. The
independent variable is free to change in a given model.
The dependent variable is affected by the changes in the causing independent
variable. Although only one dependent variable is considered, many independent
variables can have an effect.
fishbone diagram is sometimes - Correct answer~ used to determine the cause
of a problem.
moderating relationship - Correct answer~ the relationship between the
dependent and independent variables depends on the level of the moderating
variable.
mediating variable - Correct answer~ explains the relationship between the
dependent and independent variables.
Scatter diagrams - Correct answer~ are used to graph pairs of numbers to
determine the relationship.
trend line - Correct answer~ The line that shows the general direction of the
relationship of points over time
If the trend line moves downward as we progress from left to right - Correct
answer~ there is a negative correlation between the two variables.
what does it mean if one variable increases as the other variable also
increases? - Correct answer~ That there is a positive correlation between the
variables
