C723 QUANTITATIVE ANALYSIS FOR
BUSINESS- FINAL EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
Hypothesis - ANS is an assumption about a population parameter such as a mean or a
proportion
null hypothesis (H0) - ANS -represents the status quo
-states a belief that the population parameter is ≤, =, or ≥ a specific value
-believed to be true unless there is overwhelming evidence to the contrary
alternative hypothesis (H1) - ANS -represents the opposite of the null hypothesis
-believed to be true if the null hypothesis is found to be false
-always states that the population parameter is >, ≠, or < a specific value
two-tail hypothesis test - ANS is used whenever the alternative hypothesis is expressed as ≠
one-tail hypothesis test - ANS is used when the alternative hypothesis is stated as < or >
Type I error - ANS -occurs when the null hypothesis is rejected when it is true
-when it occurs the producer is looking for a problem in its process that does not exist
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Type II error - ANS -occurs when we fail to reject the null hypothesis when it is not true
-when it occurs the customer is getting a product from a process that is not performing
properly
Correlation analysis - ANS -is used to measure both the strength and direction of a linear
relationship between two variables
-A relationship is linear if the scatter plot of the independent and dependent variables has a
straight-line pattern
correlation coefficient, r - ANS -indicates both the strength and direction of the linear
relationship between the independent and dependent variables
population correlation coefficient (ρ) - ANS refers to the correlation between all values of
two variables of interest in a population
confidence interval for the mean - ANS is an interval estimate around a sample mean that
provides us with a range within which the true population mean is expected to lie
confidence level - ANS is defined as the probability that the interval estimate will include the
population parameter of interest
Student's t-distribution - ANS is used in place of the normal probability distribution when the
sample standard deviation, s, is used in place of the population standard deviation, σ
probability sample - ANS is a sample in which each member of the population has a known,
nonzero, chance of being selected for the sample
simple random sample - ANS is a sample in which every member of the population has an
equal chance of being chosen
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
BUSINESS- FINAL EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
Hypothesis - ANS is an assumption about a population parameter such as a mean or a
proportion
null hypothesis (H0) - ANS -represents the status quo
-states a belief that the population parameter is ≤, =, or ≥ a specific value
-believed to be true unless there is overwhelming evidence to the contrary
alternative hypothesis (H1) - ANS -represents the opposite of the null hypothesis
-believed to be true if the null hypothesis is found to be false
-always states that the population parameter is >, ≠, or < a specific value
two-tail hypothesis test - ANS is used whenever the alternative hypothesis is expressed as ≠
one-tail hypothesis test - ANS is used when the alternative hypothesis is stated as < or >
Type I error - ANS -occurs when the null hypothesis is rejected when it is true
-when it occurs the producer is looking for a problem in its process that does not exist
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Type II error - ANS -occurs when we fail to reject the null hypothesis when it is not true
-when it occurs the customer is getting a product from a process that is not performing
properly
Correlation analysis - ANS -is used to measure both the strength and direction of a linear
relationship between two variables
-A relationship is linear if the scatter plot of the independent and dependent variables has a
straight-line pattern
correlation coefficient, r - ANS -indicates both the strength and direction of the linear
relationship between the independent and dependent variables
population correlation coefficient (ρ) - ANS refers to the correlation between all values of
two variables of interest in a population
confidence interval for the mean - ANS is an interval estimate around a sample mean that
provides us with a range within which the true population mean is expected to lie
confidence level - ANS is defined as the probability that the interval estimate will include the
population parameter of interest
Student's t-distribution - ANS is used in place of the normal probability distribution when the
sample standard deviation, s, is used in place of the population standard deviation, σ
probability sample - ANS is a sample in which each member of the population has a known,
nonzero, chance of being selected for the sample
simple random sample - ANS is a sample in which every member of the population has an
equal chance of being chosen
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
