C723 QUANTITATIVE ANALYSIS FOR
BUSINESS 2025
SUMMARY AND VERIFIED CORRECT
ANSWERS
Comprehensive Summary Guide for WGU Objective Assessment
Updated for 2025 Exam Cycle
Curated by Business Analysis Experts
,Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2 Quantitative Analysis Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 Question 1: Defining Quantitative Analysis . . . . . . . . . . . . . . . . . 5
2.2 Question 2: When to Use Qualitative Analysis . . . . . . . . . . . . . . . 5
2.3 Question 3: Car Seat Design . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.4 Question 4: Weather Prediction . . . . . . . . . . . . . . . . . . . . . . . . 6
2.5 Question 5: Temperature Variable Type . . . . . . . . . . . . . . . . . . . 6
2.6 Question 6: Model Hesitation . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.7 Question 7: Expression Order . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.8 Question 8: Quantitative Decision . . . . . . . . . . . . . . . . . . . . . . . 6
2.9 Question 9: Qualitative Decision . . . . . . . . . . . . . . . . . . . . . . . 6
2.10 Question 10: Advertising Variable . . . . . . . . . . . . . . . . . . . . . . 7
2.11 Question 11: Quantitative Tool . . . . . . . . . . . . . . . . . . . . . . . . 7
2.12 Question 12: Data-Driven Choice . . . . . . . . . . . . . . . . . . . . . . . 7
2.13 Question 13: Qualitative Drawback . . . . . . . . . . . . . . . . . . . . . . 7
2.14 Question 14: Quantitative Benefit . . . . . . . . . . . . . . . . . . . . . . . 7
2.15 Question 15: Numerical Model Role . . . . . . . . . . . . . . . . . . . . . 7
2.16 Question 16: Production Speed Variable . . . . . . . . . . . . . . . . . . . 8
2.17 Question 17: Productivity Analysis . . . . . . . . . . . . . . . . . . . . . . 8
2.18 Question 18: Problem Clarity . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.19 Question 19: Expression Result . . . . . . . . . . . . . . . . . . . . . . . . 8
2.20 Question 20: Qualitative Preference . . . . . . . . . . . . . . . . . . . . . 8
2.21 Question 21: Quantitative Data . . . . . . . . . . . . . . . . . . . . . . . . 8
2.22 Question 22: Price Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.23 Question 23: Model Accuracy . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.24 Question 24: Forecasting Method . . . . . . . . . . . . . . . . . . . . . . . 9
2.25 Question 25: Qualitative Bias . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.26 Question 26: Numerical Reliability . . . . . . . . . . . . . . . . . . . . . . 9
2.27 Question 27: Service Speed Variable . . . . . . . . . . . . . . . . . . . . . 9
2.28 Question 28: Quantitative Problem . . . . . . . . . . . . . . . . . . . . . . 10
2.29 Question 29: Model Starting Point . . . . . . . . . . . . . . . . . . . . . . 10
2.30 Question 30: Operation Result . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.31 Question 31: Quantitative Suitability . . . . . . . . . . . . . . . . . . . . . 10
2.32 Question 32: Qualitative Suitability . . . . . . . . . . . . . . . . . . . . . . 10
2.33 Question 33: Data Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.34 Question 34: Sales Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.35 Question 35: Quantitative Precision . . . . . . . . . . . . . . . . . . . . . 11
3 Statistical Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1 Question 36: Probability Concept . . . . . . . . . . . . . . . . . . . . . . . 11
3.2 Question 37: Expected Outcome . . . . . . . . . . . . . . . . . . . . . . . . 11
3.3 Question 38: Regression Purpose . . . . . . . . . . . . . . . . . . . . . . . 11
3.4 Question 39: Combined Probability . . . . . . . . . . . . . . . . . . . . . . 12
3.5 Question 40: Dataset Mean . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.6 Question 41: Variance Role . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.7 Question 42: Standard Deviation Role . . . . . . . . . . . . . . . . . . . . 12
3.8 Question 43: Correlation Strength . . . . . . . . . . . . . . . . . . . . . . 12
1
,C723 Quantitative Analysis for Business Summary 2025 July 4, 2025
3.9 Question 44: Regression Prediction . . . . . . . . . . . . . . . . . . . . . . 12
3.10 Question 45: Expected Value Table . . . . . . . . . . . . . . . . . . . . . . 13
3.11 Question 46: Normal Curve . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.12 Question 47: Statistical Reliability . . . . . . . . . . . . . . . . . . . . . . 13
3.13 Question 48: Confidence Range . . . . . . . . . . . . . . . . . . . . . . . . 13
3.14 Question 49: Hypothesis Purpose . . . . . . . . . . . . . . . . . . . . . . . 13
3.15 Question 50: Median Value . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.16 Question 51: Mutually Exclusive Events . . . . . . . . . . . . . . . . . . . 14
3.17 Question 52: Regression Slope . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.18 Question 53: Sample Size Effect . . . . . . . . . . . . . . . . . . . . . . . . 14
3.19 Question 54: Outlier Impact . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.20 Question 55: Joint Probability . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.21 Question 56: Z-Score Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.22 Question 57: T-Test Application . . . . . . . . . . . . . . . . . . . . . . . . 15
3.23 Question 58: Chi-Square Application . . . . . . . . . . . . . . . . . . . . . 15
3.24 Question 59: Multiple Regression . . . . . . . . . . . . . . . . . . . . . . . 15
3.25 Question 60: Data Skewness . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.26 Question 61: Business Probability . . . . . . . . . . . . . . . . . . . . . . . 15
3.27 Question 62: Variance Computation . . . . . . . . . . . . . . . . . . . . . 15
3.28 Question 63: Correlation Bounds . . . . . . . . . . . . . . . . . . . . . . . 16
3.29 Question 64: Expected Value Role . . . . . . . . . . . . . . . . . . . . . . . 16
3.30 Question 65: Normal Distribution Use . . . . . . . . . . . . . . . . . . . . 16
3.31 Question 66: Test Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.32 Question 67: Confidence Level Meaning . . . . . . . . . . . . . . . . . . . 16
3.33 Question 68: Sampling Bias . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.34 Question 69: P-Value Meaning . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.35 Question 70: Regression Constraint . . . . . . . . . . . . . . . . . . . . . . 17
4 Linear Programming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.1 Question 71: Linear Programming Concept . . . . . . . . . . . . . . . . . 17
4.2 Question 72: Objective Function Role . . . . . . . . . . . . . . . . . . . . 17
4.3 Question 73: Constraint Purpose . . . . . . . . . . . . . . . . . . . . . . . 17
4.4 Question 74: Feasible Area . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.5 Question 75: Optimization Objective . . . . . . . . . . . . . . . . . . . . . 18
4.6 Question 76: Linear Programming Use . . . . . . . . . . . . . . . . . . . . 18
4.7 Question 77: Constraint Categories . . . . . . . . . . . . . . . . . . . . . . 18
4.8 Question 78: Optimal Point . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.9 Question 79: Graphical Solution . . . . . . . . . . . . . . . . . . . . . . . . 18
4.10 Question 80: Simplex Algorithm . . . . . . . . . . . . . . . . . . . . . . . . 19
4.11 Question 81: Binding Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.12 Question 82: Non-Binding Limit . . . . . . . . . . . . . . . . . . . . . . . . 19
4.13 Question 83: Shadow Value . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.14 Question 84: Business Optimization . . . . . . . . . . . . . . . . . . . . . 19
4.15 Question 85: Objective Form . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.16 Question 86: Constraint Example . . . . . . . . . . . . . . . . . . . . . . . 20
4.17 Question 87: Feasible Solution Set . . . . . . . . . . . . . . . . . . . . . . 20
4.18 Question 88: Corner Point Importance . . . . . . . . . . . . . . . . . . . . 20
4.19 Question 89: Linear Programming Limit . . . . . . . . . . . . . . . . . . 20
4.20 Question 90: Production Efficiency . . . . . . . . . . . . . . . . . . . . . . 20
4.21 Question 91: Constraint Breach . . . . . . . . . . . . . . . . . . . . . . . . 20
Page 2 of 31
, C723 Quantitative Analysis for Business Summary 2025 July 4, 2025
4.22 Question 92: Multi-Variable Solution . . . . . . . . . . . . . . . . . . . . . 21
4.23 Question 93: Resource Optimization . . . . . . . . . . . . . . . . . . . . . 21
4.24 Question 94: Objective Example . . . . . . . . . . . . . . . . . . . . . . . . 21
4.25 Question 95: Graphical Method Limit . . . . . . . . . . . . . . . . . . . . 21
4.26 Question 96: Slack Variable Role . . . . . . . . . . . . . . . . . . . . . . . 21
4.27 Question 97: Dual Problem Role . . . . . . . . . . . . . . . . . . . . . . . . 21
4.28 Question 98: Sensitivity Analysis Role . . . . . . . . . . . . . . . . . . . . 22
4.29 Question 99: Programming Tools . . . . . . . . . . . . . . . . . . . . . . . 22
4.30 Question 100: Optimal Value Example . . . . . . . . . . . . . . . . . . . . 22
5 Inventory Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.1 Question 101: Inventory Management Objective . . . . . . . . . . . . . 22
5.2 Question 102: EOQ Definition . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.3 Question 103: EOQ Formula . . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.4 Question 104: Holding Cost Definition . . . . . . . . . . . . . . . . . . . . 23
5.5 Question 105: Ordering Cost Definition . . . . . . . . . . . . . . . . . . . 23
5.6 Question 106: EOQ Example . . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.7 Question 107: Total Cost Components . . . . . . . . . . . . . . . . . . . . 23
5.8 Question 108: Reorder Trigger . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.9 Question 109: Safety Stock Role . . . . . . . . . . . . . . . . . . . . . . . . 24
5.10 Question 110: Inventory Model Purpose . . . . . . . . . . . . . . . . . . . 24
5.11 Question 111: Lead Time Definition . . . . . . . . . . . . . . . . . . . . . 24
5.12 Question 112: Stockout Cost Definition . . . . . . . . . . . . . . . . . . . . 24
5.13 Question 113: EOQ Assumption . . . . . . . . . . . . . . . . . . . . . . . . 24
5.14 Question 114: Inventory Turnover Definition . . . . . . . . . . . . . . . 24
5.15 Question 115: Carrying Cost Example . . . . . . . . . . . . . . . . . . . . 25
5.16 Question 116: Order Frequency Calculation . . . . . . . . . . . . . . . . 25
5.17 Question 117: EOQ Model Limit . . . . . . . . . . . . . . . . . . . . . . . . 25
5.18 Question 118: Just-In-Time Approach . . . . . . . . . . . . . . . . . . . . 25
5.19 Question 119: ABC Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 25
5.20 Question 120: Reorder Point Example . . . . . . . . . . . . . . . . . . . . 25
5.21 Question 121: Safety Stock Purpose . . . . . . . . . . . . . . . . . . . . . . 26
5.22 Question 122: Inventory Cost Types . . . . . . . . . . . . . . . . . . . . . 26
5.23 Question 123: EOQ Sensitivity . . . . . . . . . . . . . . . . . . . . . . . . . 26
5.24 Question 124: Inventory Benchmarking . . . . . . . . . . . . . . . . . . . 26
5.25 Question 125: Cycle Stock Definition . . . . . . . . . . . . . . . . . . . . . 26
5.26 Question 126: EOQ Cost Balance . . . . . . . . . . . . . . . . . . . . . . . . 26
5.27 Question 127: Lead Time Demand . . . . . . . . . . . . . . . . . . . . . . 27
5.28 Question 128: Inventory Model Example . . . . . . . . . . . . . . . . . . 27
5.29 Question 129: Stockout Prevention . . . . . . . . . . . . . . . . . . . . . . 27
5.30 Question 130: Turnover Calculation . . . . . . . . . . . . . . . . . . . . . 27
6 Decision Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
6.1 Question 131: Decision Tree Role . . . . . . . . . . . . . . . . . . . . . . . 27
6.2 Question 132: Expected Value Use . . . . . . . . . . . . . . . . . . . . . . 28
6.3 Question 133: Decision Tree Application . . . . . . . . . . . . . . . . . . 28
6.4 Question 134: Payoff Table Definition . . . . . . . . . . . . . . . . . . . . 28
6.5 Question 135: Expected Value Example . . . . . . . . . . . . . . . . . . . 28
6.6 Question 136: Decision Model Strength . . . . . . . . . . . . . . . . . . . 28
6.7 Question 137: Risk Assessment . . . . . . . . . . . . . . . . . . . . . . . . 28
Page 3 of 31
BUSINESS 2025
SUMMARY AND VERIFIED CORRECT
ANSWERS
Comprehensive Summary Guide for WGU Objective Assessment
Updated for 2025 Exam Cycle
Curated by Business Analysis Experts
,Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2 Quantitative Analysis Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 Question 1: Defining Quantitative Analysis . . . . . . . . . . . . . . . . . 5
2.2 Question 2: When to Use Qualitative Analysis . . . . . . . . . . . . . . . 5
2.3 Question 3: Car Seat Design . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.4 Question 4: Weather Prediction . . . . . . . . . . . . . . . . . . . . . . . . 6
2.5 Question 5: Temperature Variable Type . . . . . . . . . . . . . . . . . . . 6
2.6 Question 6: Model Hesitation . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.7 Question 7: Expression Order . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.8 Question 8: Quantitative Decision . . . . . . . . . . . . . . . . . . . . . . . 6
2.9 Question 9: Qualitative Decision . . . . . . . . . . . . . . . . . . . . . . . 6
2.10 Question 10: Advertising Variable . . . . . . . . . . . . . . . . . . . . . . 7
2.11 Question 11: Quantitative Tool . . . . . . . . . . . . . . . . . . . . . . . . 7
2.12 Question 12: Data-Driven Choice . . . . . . . . . . . . . . . . . . . . . . . 7
2.13 Question 13: Qualitative Drawback . . . . . . . . . . . . . . . . . . . . . . 7
2.14 Question 14: Quantitative Benefit . . . . . . . . . . . . . . . . . . . . . . . 7
2.15 Question 15: Numerical Model Role . . . . . . . . . . . . . . . . . . . . . 7
2.16 Question 16: Production Speed Variable . . . . . . . . . . . . . . . . . . . 8
2.17 Question 17: Productivity Analysis . . . . . . . . . . . . . . . . . . . . . . 8
2.18 Question 18: Problem Clarity . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.19 Question 19: Expression Result . . . . . . . . . . . . . . . . . . . . . . . . 8
2.20 Question 20: Qualitative Preference . . . . . . . . . . . . . . . . . . . . . 8
2.21 Question 21: Quantitative Data . . . . . . . . . . . . . . . . . . . . . . . . 8
2.22 Question 22: Price Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.23 Question 23: Model Accuracy . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.24 Question 24: Forecasting Method . . . . . . . . . . . . . . . . . . . . . . . 9
2.25 Question 25: Qualitative Bias . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.26 Question 26: Numerical Reliability . . . . . . . . . . . . . . . . . . . . . . 9
2.27 Question 27: Service Speed Variable . . . . . . . . . . . . . . . . . . . . . 9
2.28 Question 28: Quantitative Problem . . . . . . . . . . . . . . . . . . . . . . 10
2.29 Question 29: Model Starting Point . . . . . . . . . . . . . . . . . . . . . . 10
2.30 Question 30: Operation Result . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.31 Question 31: Quantitative Suitability . . . . . . . . . . . . . . . . . . . . . 10
2.32 Question 32: Qualitative Suitability . . . . . . . . . . . . . . . . . . . . . . 10
2.33 Question 33: Data Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.34 Question 34: Sales Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.35 Question 35: Quantitative Precision . . . . . . . . . . . . . . . . . . . . . 11
3 Statistical Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.1 Question 36: Probability Concept . . . . . . . . . . . . . . . . . . . . . . . 11
3.2 Question 37: Expected Outcome . . . . . . . . . . . . . . . . . . . . . . . . 11
3.3 Question 38: Regression Purpose . . . . . . . . . . . . . . . . . . . . . . . 11
3.4 Question 39: Combined Probability . . . . . . . . . . . . . . . . . . . . . . 12
3.5 Question 40: Dataset Mean . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.6 Question 41: Variance Role . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.7 Question 42: Standard Deviation Role . . . . . . . . . . . . . . . . . . . . 12
3.8 Question 43: Correlation Strength . . . . . . . . . . . . . . . . . . . . . . 12
1
,C723 Quantitative Analysis for Business Summary 2025 July 4, 2025
3.9 Question 44: Regression Prediction . . . . . . . . . . . . . . . . . . . . . . 12
3.10 Question 45: Expected Value Table . . . . . . . . . . . . . . . . . . . . . . 13
3.11 Question 46: Normal Curve . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.12 Question 47: Statistical Reliability . . . . . . . . . . . . . . . . . . . . . . 13
3.13 Question 48: Confidence Range . . . . . . . . . . . . . . . . . . . . . . . . 13
3.14 Question 49: Hypothesis Purpose . . . . . . . . . . . . . . . . . . . . . . . 13
3.15 Question 50: Median Value . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.16 Question 51: Mutually Exclusive Events . . . . . . . . . . . . . . . . . . . 14
3.17 Question 52: Regression Slope . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.18 Question 53: Sample Size Effect . . . . . . . . . . . . . . . . . . . . . . . . 14
3.19 Question 54: Outlier Impact . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.20 Question 55: Joint Probability . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.21 Question 56: Z-Score Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.22 Question 57: T-Test Application . . . . . . . . . . . . . . . . . . . . . . . . 15
3.23 Question 58: Chi-Square Application . . . . . . . . . . . . . . . . . . . . . 15
3.24 Question 59: Multiple Regression . . . . . . . . . . . . . . . . . . . . . . . 15
3.25 Question 60: Data Skewness . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.26 Question 61: Business Probability . . . . . . . . . . . . . . . . . . . . . . . 15
3.27 Question 62: Variance Computation . . . . . . . . . . . . . . . . . . . . . 15
3.28 Question 63: Correlation Bounds . . . . . . . . . . . . . . . . . . . . . . . 16
3.29 Question 64: Expected Value Role . . . . . . . . . . . . . . . . . . . . . . . 16
3.30 Question 65: Normal Distribution Use . . . . . . . . . . . . . . . . . . . . 16
3.31 Question 66: Test Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.32 Question 67: Confidence Level Meaning . . . . . . . . . . . . . . . . . . . 16
3.33 Question 68: Sampling Bias . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.34 Question 69: P-Value Meaning . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.35 Question 70: Regression Constraint . . . . . . . . . . . . . . . . . . . . . . 17
4 Linear Programming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.1 Question 71: Linear Programming Concept . . . . . . . . . . . . . . . . . 17
4.2 Question 72: Objective Function Role . . . . . . . . . . . . . . . . . . . . 17
4.3 Question 73: Constraint Purpose . . . . . . . . . . . . . . . . . . . . . . . 17
4.4 Question 74: Feasible Area . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.5 Question 75: Optimization Objective . . . . . . . . . . . . . . . . . . . . . 18
4.6 Question 76: Linear Programming Use . . . . . . . . . . . . . . . . . . . . 18
4.7 Question 77: Constraint Categories . . . . . . . . . . . . . . . . . . . . . . 18
4.8 Question 78: Optimal Point . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.9 Question 79: Graphical Solution . . . . . . . . . . . . . . . . . . . . . . . . 18
4.10 Question 80: Simplex Algorithm . . . . . . . . . . . . . . . . . . . . . . . . 19
4.11 Question 81: Binding Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.12 Question 82: Non-Binding Limit . . . . . . . . . . . . . . . . . . . . . . . . 19
4.13 Question 83: Shadow Value . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.14 Question 84: Business Optimization . . . . . . . . . . . . . . . . . . . . . 19
4.15 Question 85: Objective Form . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4.16 Question 86: Constraint Example . . . . . . . . . . . . . . . . . . . . . . . 20
4.17 Question 87: Feasible Solution Set . . . . . . . . . . . . . . . . . . . . . . 20
4.18 Question 88: Corner Point Importance . . . . . . . . . . . . . . . . . . . . 20
4.19 Question 89: Linear Programming Limit . . . . . . . . . . . . . . . . . . 20
4.20 Question 90: Production Efficiency . . . . . . . . . . . . . . . . . . . . . . 20
4.21 Question 91: Constraint Breach . . . . . . . . . . . . . . . . . . . . . . . . 20
Page 2 of 31
, C723 Quantitative Analysis for Business Summary 2025 July 4, 2025
4.22 Question 92: Multi-Variable Solution . . . . . . . . . . . . . . . . . . . . . 21
4.23 Question 93: Resource Optimization . . . . . . . . . . . . . . . . . . . . . 21
4.24 Question 94: Objective Example . . . . . . . . . . . . . . . . . . . . . . . . 21
4.25 Question 95: Graphical Method Limit . . . . . . . . . . . . . . . . . . . . 21
4.26 Question 96: Slack Variable Role . . . . . . . . . . . . . . . . . . . . . . . 21
4.27 Question 97: Dual Problem Role . . . . . . . . . . . . . . . . . . . . . . . . 21
4.28 Question 98: Sensitivity Analysis Role . . . . . . . . . . . . . . . . . . . . 22
4.29 Question 99: Programming Tools . . . . . . . . . . . . . . . . . . . . . . . 22
4.30 Question 100: Optimal Value Example . . . . . . . . . . . . . . . . . . . . 22
5 Inventory Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.1 Question 101: Inventory Management Objective . . . . . . . . . . . . . 22
5.2 Question 102: EOQ Definition . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.3 Question 103: EOQ Formula . . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.4 Question 104: Holding Cost Definition . . . . . . . . . . . . . . . . . . . . 23
5.5 Question 105: Ordering Cost Definition . . . . . . . . . . . . . . . . . . . 23
5.6 Question 106: EOQ Example . . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.7 Question 107: Total Cost Components . . . . . . . . . . . . . . . . . . . . 23
5.8 Question 108: Reorder Trigger . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.9 Question 109: Safety Stock Role . . . . . . . . . . . . . . . . . . . . . . . . 24
5.10 Question 110: Inventory Model Purpose . . . . . . . . . . . . . . . . . . . 24
5.11 Question 111: Lead Time Definition . . . . . . . . . . . . . . . . . . . . . 24
5.12 Question 112: Stockout Cost Definition . . . . . . . . . . . . . . . . . . . . 24
5.13 Question 113: EOQ Assumption . . . . . . . . . . . . . . . . . . . . . . . . 24
5.14 Question 114: Inventory Turnover Definition . . . . . . . . . . . . . . . 24
5.15 Question 115: Carrying Cost Example . . . . . . . . . . . . . . . . . . . . 25
5.16 Question 116: Order Frequency Calculation . . . . . . . . . . . . . . . . 25
5.17 Question 117: EOQ Model Limit . . . . . . . . . . . . . . . . . . . . . . . . 25
5.18 Question 118: Just-In-Time Approach . . . . . . . . . . . . . . . . . . . . 25
5.19 Question 119: ABC Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 25
5.20 Question 120: Reorder Point Example . . . . . . . . . . . . . . . . . . . . 25
5.21 Question 121: Safety Stock Purpose . . . . . . . . . . . . . . . . . . . . . . 26
5.22 Question 122: Inventory Cost Types . . . . . . . . . . . . . . . . . . . . . 26
5.23 Question 123: EOQ Sensitivity . . . . . . . . . . . . . . . . . . . . . . . . . 26
5.24 Question 124: Inventory Benchmarking . . . . . . . . . . . . . . . . . . . 26
5.25 Question 125: Cycle Stock Definition . . . . . . . . . . . . . . . . . . . . . 26
5.26 Question 126: EOQ Cost Balance . . . . . . . . . . . . . . . . . . . . . . . . 26
5.27 Question 127: Lead Time Demand . . . . . . . . . . . . . . . . . . . . . . 27
5.28 Question 128: Inventory Model Example . . . . . . . . . . . . . . . . . . 27
5.29 Question 129: Stockout Prevention . . . . . . . . . . . . . . . . . . . . . . 27
5.30 Question 130: Turnover Calculation . . . . . . . . . . . . . . . . . . . . . 27
6 Decision Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
6.1 Question 131: Decision Tree Role . . . . . . . . . . . . . . . . . . . . . . . 27
6.2 Question 132: Expected Value Use . . . . . . . . . . . . . . . . . . . . . . 28
6.3 Question 133: Decision Tree Application . . . . . . . . . . . . . . . . . . 28
6.4 Question 134: Payoff Table Definition . . . . . . . . . . . . . . . . . . . . 28
6.5 Question 135: Expected Value Example . . . . . . . . . . . . . . . . . . . 28
6.6 Question 136: Decision Model Strength . . . . . . . . . . . . . . . . . . . 28
6.7 Question 137: Risk Assessment . . . . . . . . . . . . . . . . . . . . . . . . 28
Page 3 of 31
