C723 - UNIT 2 EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
___________ involves finding the best solution when faced with an uncertainty -
ANS 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. - ANS 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 - ANS Does Not Use Expected
Monetary Analysis
A lawyer is deciding on the monthly retainer fee for a new client. - ANS Does Not Use
Expected Monetary Analysis
A retired teacher is considering three alternative investments for her retirement fund. -
ANS Uses Expected Monetary Analysis
A real estate agent is considering investing in either a commercial strip mall or several single-
family homes. - ANS Uses Expected Monetary Analysis
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, A medical research group wants to determine the effectiveness of a new medicine. -
ANS Does Not Use Expected Monetary Analysis
A marketing manager wants to determine the effectiveness of a new ad campaign. -
ANS 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. - ANS Reorder
point
_________ is additional inventory held to prevent a business from running out of stock. -
ANS Safety stock
ROP = ((daily demand * lead time) + safety stock) - ANS reorder point formula
____________ is a method or process used to make decisions about events where the actual
outcomes have not yet occurred. - ANS Forecasting
A _____________ is a common tool used to help break down and manage a project's
deliverables and their supporting tasks. - ANS work breakdown structure (WBS)
_________ can be done before the cost estimates are complete.The estimates can only be
done after all tasks and subtasks are identified. - ANS Project scheduling
Special project management software is helpful and can speed up the task, but it is not
essential to ___________. - ANS perform project scheduling.
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS AND ANSWERS 100% PASS
___________ involves finding the best solution when faced with an uncertainty -
ANS 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. - ANS 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 - ANS Does Not Use Expected
Monetary Analysis
A lawyer is deciding on the monthly retainer fee for a new client. - ANS Does Not Use
Expected Monetary Analysis
A retired teacher is considering three alternative investments for her retirement fund. -
ANS Uses Expected Monetary Analysis
A real estate agent is considering investing in either a commercial strip mall or several single-
family homes. - ANS Uses Expected Monetary Analysis
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, A medical research group wants to determine the effectiveness of a new medicine. -
ANS Does Not Use Expected Monetary Analysis
A marketing manager wants to determine the effectiveness of a new ad campaign. -
ANS 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. - ANS Reorder
point
_________ is additional inventory held to prevent a business from running out of stock. -
ANS Safety stock
ROP = ((daily demand * lead time) + safety stock) - ANS reorder point formula
____________ is a method or process used to make decisions about events where the actual
outcomes have not yet occurred. - ANS Forecasting
A _____________ is a common tool used to help break down and manage a project's
deliverables and their supporting tasks. - ANS work breakdown structure (WBS)
_________ can be done before the cost estimates are complete.The estimates can only be
done after all tasks and subtasks are identified. - ANS Project scheduling
Special project management software is helpful and can speed up the task, but it is not
essential to ___________. - ANS perform project scheduling.
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
