PRACTICE EXAM FOR BUSINESS ANALYTICS
QUESTIONS & ANSWERS
Which one of the following is used in predictive analytics? - ANS-linear regression
. The Pearson product correlation coefficient will always take values - ANS-between -1 and +1.
Which of the following applies to a median? - ANS-it is the value in the middle when the data are
arranged in ascending order (smallest to largest value).
Which of the following is true (when performing sensitivity analysis on the break-even point model)? -
ANS-a decrease in selling price per unit will increase the break-even point, all other things held constant
it is a value that occurs most frequently in a data set - ANS-MODE
it is the simplest measure of variability in data - ANS-RANGE
it is a measure of location that is calculated by finding the nth root of the product of n values. - ANS-
GEO-MEAN
. What method is used to solve linear programming models with Excel's Solver? - ANS-Simplex
When using Excel's Goal Seek feature to find the break- even point the by Changing Cell box should
display? - ANS-address of a cell with production/sales volume (setting cell to 0 by changing # of units to
what you would sell)
In a linear trend forecast predictor variable (independent variable) is ... - ANS-time period T
You are deciding on the length of the moving average when developing a forecast of sales. MAD for a 3
period-moving average is calculated at 46.75 while MAD (Mean Absolute Deviation aka ERROR) for a 4
period moving average is 39.55. What would you recommend? *want error to be SMALL* - ANS-
Forecast sales using a 4-period moving average
In a transportation problem the number of units shipped from origin i to destination j is represented by -
ANS-xij.
Which of the following is not true regarding the linear programming formulation of a transportation
problem? (want to minimize overall objective function) - ANS-The number of constraints is (number of
origins) x (number of destinations). *instead of multiplying you want to ADD*
QUESTIONS & ANSWERS
Which one of the following is used in predictive analytics? - ANS-linear regression
. The Pearson product correlation coefficient will always take values - ANS-between -1 and +1.
Which of the following applies to a median? - ANS-it is the value in the middle when the data are
arranged in ascending order (smallest to largest value).
Which of the following is true (when performing sensitivity analysis on the break-even point model)? -
ANS-a decrease in selling price per unit will increase the break-even point, all other things held constant
it is a value that occurs most frequently in a data set - ANS-MODE
it is the simplest measure of variability in data - ANS-RANGE
it is a measure of location that is calculated by finding the nth root of the product of n values. - ANS-
GEO-MEAN
. What method is used to solve linear programming models with Excel's Solver? - ANS-Simplex
When using Excel's Goal Seek feature to find the break- even point the by Changing Cell box should
display? - ANS-address of a cell with production/sales volume (setting cell to 0 by changing # of units to
what you would sell)
In a linear trend forecast predictor variable (independent variable) is ... - ANS-time period T
You are deciding on the length of the moving average when developing a forecast of sales. MAD for a 3
period-moving average is calculated at 46.75 while MAD (Mean Absolute Deviation aka ERROR) for a 4
period moving average is 39.55. What would you recommend? *want error to be SMALL* - ANS-
Forecast sales using a 4-period moving average
In a transportation problem the number of units shipped from origin i to destination j is represented by -
ANS-xij.
Which of the following is not true regarding the linear programming formulation of a transportation
problem? (want to minimize overall objective function) - ANS-The number of constraints is (number of
origins) x (number of destinations). *instead of multiplying you want to ADD*
