Business Analytics: Practice Exam | Verified Exam Questions and
Answers | Latest Updated Study Material 2026
Question:
A real estate developer has data on several financial variables for each quarter from 1995 to
2001. The variables are housing starts (in thousands), the housing price index (a measure of
average housing selling prices), unemployment rate, average disposable income, and home
owner vacancy rates. A partial view of the data set containing the 80 observations is given
below.
In order to create a regression model to analyze the relationship between housing starts and the
other housing-related and macro-economic variables, which cell references should be entered?
a) Input Y Range: A1:B81 Input X Range: C1:F81
b) Input Y Range: B1:F81 Input X Range: A1:A81
c) Input Y Range: B1:F81 Input X Range: A1:A81
d) Input Y Range: B1:B81 Input X Range: C1:F81
Answer:
d) Input Y
Range: B1:B81 Input X Range: C1:F81
Question:
Suppose we want to assign dummy variables to the seasons (Winter, Spring, Summer, Fall). How
many dummy variables do we need?
a) 1
b) 2
c) 3
d) 4
Answer:
c) 3
Question:
A real estate developer has data on a number of U.S. National financial variables for each quarter
from 1995 to 2001. The variables are housing starts (in thousands), the housing price index (a
measure of average housing selling prices), unemployment rate, average disposable income, and
home owner vacancy rates. A partial view of the data is below.
,If the developer wanted to create a regression model to predict housing starts from all the other
financial variables, which of the following would be INDEPENDENT variables? (Select all that
apply.)
a) Year and Quarter
b) Housing Starts (thousands)
c) House Price Index
d) Unemployment Rate
e) Disposable Income
f) Home Owner Vacancy Rates
Answer:
c) House Price Index
Question:
d) Unemployment Rate
e) Disposable Income
f) Home Owner Vacancy Rates
A restaurant supply manager analyzes the relationship between a restaurant's location and the
number of meals consumed by comparing clients in two locations: Munich and Paris. The
manager's first regression model uses the number of meals consumed as the dependent variable
and a dummy variable for location (Munich or Paris) as an independent variable. This model has
an R-squared of 0.712, and the coefficient for location is statistically significant.
The manager runs a second model, adding another variable, the amount of wine consumed with
meal. In this model, the coefficient for location is no longer significant, the R-squared has
increased from 0.712 to 0.719, and the adjusted R-squared has decreased. Which of the following
is the most likely reason for this pattern of changes?
a) The owner made a mistake; it is impossible for a once significant variable to no longer be
significant.
b) The variables for location an
Answer:
b) The variables for location
and wine consumption are collinear.
Question:
How would you describe the shape of the distribution shown below?
Shape of the graph distribution.
, a) Uniform
b) Right-tailed
c) Left-tailed
d) Symmetric
Answer:
b) Right-tailed
Question:
How many houses cost more than $200 thousand and less than or equal to $800 thousand?
Houses costing more than $200 thousand and less than or equal to $800 thousand.
a) Approximately 11
b) Approximately 15
c) Approximately 22
d) Approximately 25
Answer:
c) Approximately 22
Question:
A manager examines the histogram below and, after conducting additional research, finds that
the observation in bin 3 is an input error and should have been entered as 13.
If the histogram is updated with the correct number, which of the following will occur?
a) The mean will decrease.
b) The mode will increase.
c) The median will increase.
d) The standard deviation will decrease.
Answer:
d) The standard
deviation will decrease.
Question:
Which of the following Excel formulas or tools would correctly calculate the average hourly hot
dog sales over a two-day period from the data shown below? SELECT ALL THAT APPLY.
Answers | Latest Updated Study Material 2026
Question:
A real estate developer has data on several financial variables for each quarter from 1995 to
2001. The variables are housing starts (in thousands), the housing price index (a measure of
average housing selling prices), unemployment rate, average disposable income, and home
owner vacancy rates. A partial view of the data set containing the 80 observations is given
below.
In order to create a regression model to analyze the relationship between housing starts and the
other housing-related and macro-economic variables, which cell references should be entered?
a) Input Y Range: A1:B81 Input X Range: C1:F81
b) Input Y Range: B1:F81 Input X Range: A1:A81
c) Input Y Range: B1:F81 Input X Range: A1:A81
d) Input Y Range: B1:B81 Input X Range: C1:F81
Answer:
d) Input Y
Range: B1:B81 Input X Range: C1:F81
Question:
Suppose we want to assign dummy variables to the seasons (Winter, Spring, Summer, Fall). How
many dummy variables do we need?
a) 1
b) 2
c) 3
d) 4
Answer:
c) 3
Question:
A real estate developer has data on a number of U.S. National financial variables for each quarter
from 1995 to 2001. The variables are housing starts (in thousands), the housing price index (a
measure of average housing selling prices), unemployment rate, average disposable income, and
home owner vacancy rates. A partial view of the data is below.
,If the developer wanted to create a regression model to predict housing starts from all the other
financial variables, which of the following would be INDEPENDENT variables? (Select all that
apply.)
a) Year and Quarter
b) Housing Starts (thousands)
c) House Price Index
d) Unemployment Rate
e) Disposable Income
f) Home Owner Vacancy Rates
Answer:
c) House Price Index
Question:
d) Unemployment Rate
e) Disposable Income
f) Home Owner Vacancy Rates
A restaurant supply manager analyzes the relationship between a restaurant's location and the
number of meals consumed by comparing clients in two locations: Munich and Paris. The
manager's first regression model uses the number of meals consumed as the dependent variable
and a dummy variable for location (Munich or Paris) as an independent variable. This model has
an R-squared of 0.712, and the coefficient for location is statistically significant.
The manager runs a second model, adding another variable, the amount of wine consumed with
meal. In this model, the coefficient for location is no longer significant, the R-squared has
increased from 0.712 to 0.719, and the adjusted R-squared has decreased. Which of the following
is the most likely reason for this pattern of changes?
a) The owner made a mistake; it is impossible for a once significant variable to no longer be
significant.
b) The variables for location an
Answer:
b) The variables for location
and wine consumption are collinear.
Question:
How would you describe the shape of the distribution shown below?
Shape of the graph distribution.
, a) Uniform
b) Right-tailed
c) Left-tailed
d) Symmetric
Answer:
b) Right-tailed
Question:
How many houses cost more than $200 thousand and less than or equal to $800 thousand?
Houses costing more than $200 thousand and less than or equal to $800 thousand.
a) Approximately 11
b) Approximately 15
c) Approximately 22
d) Approximately 25
Answer:
c) Approximately 22
Question:
A manager examines the histogram below and, after conducting additional research, finds that
the observation in bin 3 is an input error and should have been entered as 13.
If the histogram is updated with the correct number, which of the following will occur?
a) The mean will decrease.
b) The mode will increase.
c) The median will increase.
d) The standard deviation will decrease.
Answer:
d) The standard
deviation will decrease.
Question:
Which of the following Excel formulas or tools would correctly calculate the average hourly hot
dog sales over a two-day period from the data shown below? SELECT ALL THAT APPLY.
