C723 - Unit 2 Exam Questions and
Answers 100% Pass
___________ involves finding the best solution when faced with an uncertainty -
ANSWER-Decision analysis
_____________________ is a specific quantitative analysis technique that utilizes
mathematical calculations to determine the average of all potential alternatives
being considered to solve a problem. - ANSWER-Expected monetary value
analysis
A banker wants to decide whether to approve a loan for a new customer.
Does this statement use Expected Monetary Analysis or not - ANSWER-Does
Not Use Expected Monetary Analysis
A lawyer is deciding on the monthly retainer fee for a new client. - ANSWER-
Does Not Use Expected Monetary Analysis
A retired teacher is considering three alternative investments for her retirement
fund. - ANSWER-Uses Expected Monetary Analysis
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, A real estate agent is considering investing in either a commercial strip mall or
several single-family homes. - ANSWER-Uses Expected Monetary Analysis
A medical research group wants to determine the effectiveness of a new medicine.
- ANSWER-Does Not Use Expected Monetary Analysis
A marketing manager wants to determine the effectiveness of a new ad campaign. -
ANSWER-Does Not Use Expected Monetary Analysis
__________ is determined by multiplying the daily demand for an inventory item
by the lead time, the number of days between making an order and receiving the
order. - ANSWER-Reorder point
_________ is additional inventory held to prevent a business from running out of
stock. - ANSWER-Safety stock
ROP = ((daily demand * lead time) + safety stock) - ANSWER-reorder point
formula
____________ is a method or process used to make decisions about events where
the actual outcomes have not yet occurred. - ANSWER-Forecasting
A _____________ is a common tool used to help break down and manage a
project's deliverables and their supporting tasks. - ANSWER-work breakdown
structure (WBS)
COPYRIGHT 2025 ALL RIGHTS RESERVED, TRUSTED AND VERIFIED 2
Answers 100% Pass
___________ involves finding the best solution when faced with an uncertainty -
ANSWER-Decision analysis
_____________________ is a specific quantitative analysis technique that utilizes
mathematical calculations to determine the average of all potential alternatives
being considered to solve a problem. - ANSWER-Expected monetary value
analysis
A banker wants to decide whether to approve a loan for a new customer.
Does this statement use Expected Monetary Analysis or not - ANSWER-Does
Not Use Expected Monetary Analysis
A lawyer is deciding on the monthly retainer fee for a new client. - ANSWER-
Does Not Use Expected Monetary Analysis
A retired teacher is considering three alternative investments for her retirement
fund. - ANSWER-Uses Expected Monetary Analysis
COPYRIGHT 2025 ALL RIGHTS RESERVED, TRUSTED AND VERIFIED 1
, A real estate agent is considering investing in either a commercial strip mall or
several single-family homes. - ANSWER-Uses Expected Monetary Analysis
A medical research group wants to determine the effectiveness of a new medicine.
- ANSWER-Does Not Use Expected Monetary Analysis
A marketing manager wants to determine the effectiveness of a new ad campaign. -
ANSWER-Does Not Use Expected Monetary Analysis
__________ is determined by multiplying the daily demand for an inventory item
by the lead time, the number of days between making an order and receiving the
order. - ANSWER-Reorder point
_________ is additional inventory held to prevent a business from running out of
stock. - ANSWER-Safety stock
ROP = ((daily demand * lead time) + safety stock) - ANSWER-reorder point
formula
____________ is a method or process used to make decisions about events where
the actual outcomes have not yet occurred. - ANSWER-Forecasting
A _____________ is a common tool used to help break down and manage a
project's deliverables and their supporting tasks. - ANSWER-work breakdown
structure (WBS)
COPYRIGHT 2025 ALL RIGHTS RESERVED, TRUSTED AND VERIFIED 2
