C723 QUANTITATIVE ANALYSIS FOR
BUSINESS EXAM 2025/2026 QUESTIONS
AND ANSWERS 100% PASS
Decision models - ANS are used to identify a business problem and develop alternative
solutions.
Payoff tables - ANS will quantify the costs and benefits of each solution alternative.
Decision trees - ANS will be used to identify the alternatives and probabilities of occurrence.
Network analysis - ANS refers to the network of activities required to complete a business
project.
Quantitative analysis - ANS provides methods to analyze large or small amounts of data to
look for patterns, trends, and relationships.
Mathematical analysis - ANS can help managers make strategic decisions and find
statistically supported solutions to business questions. These are functional areas over a period
of time.
Data may be categorized as either - ANS subjective or objective.
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,Subjective data - ANS obtained through surveys and interviews, are considered non-
measurable,
data typically include personal perceptions, such as likes, dislikes, attitudes, and opinions.
Objective data are - ANS measurable and typically arise from observation or testing in
business areas like sales, operations, manufacturing, and logistics.
Data must be valid: that is, the data must accurately represent the true business relationship at
hand. Further, the data must be reliable: if we sought to characterize a particular business
relationship by gathering data several different times (different samples), the data would
reflect the relationship the same way with every sample.
Examples of quantitative analysis - ANS cost-benefit analysis, inventory analysis, logistical
analysis, and forecasting revenue.
quantitative analysis approach - ANS defines a problem and then develops a mathematical
model to represent the particular business situation. The model allows managers to make
inferences regarding the data.
Total Revenue - ANS p=$xq $X is the revenue earned per item sold, Q is the quantity of items
sold.
Company XYZ can use this equation to forecast its revenue if X remains constant
Steps in Quantitative Analysis - ANS 1. Define problem.
2. Develop mathematical model.
3. Prepare and input data.
4. Find best solution.
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, 5. Test solution.
6. Analyze results.
7. Implement solution.
Cause and effect use - ANS independent and dependent variables. A dependent variable is
the variable that is being measured, or affected. The independent variable is free to change in a
given model.
The dependent variable is affected by the changes in the causing independent variable.
Although only one dependent variable is considered, many independent variables can have an
effect.
fishbone diagram is sometimes - ANS used to determine the cause of a problem.
moderating relationship - ANS the relationship between the dependent and independent
variables depends on the level of the moderating variable.
mediating variable - ANS explains the relationship between the dependent and independent
variables.
Scatter diagrams - ANS are used to graph pairs of numbers to determine the relationship.
trend line - ANS The line that shows the general direction of the relationship of points over
time
If the trend line moves downward as we progress from left to right - ANS there is a negative
correlation between the two variables.
what does it mean if one variable increases as the other variable also increases? - ANS That
there is a positive correlation between the variables
pg. 3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
BUSINESS EXAM 2025/2026 QUESTIONS
AND ANSWERS 100% PASS
Decision models - ANS are used to identify a business problem and develop alternative
solutions.
Payoff tables - ANS will quantify the costs and benefits of each solution alternative.
Decision trees - ANS will be used to identify the alternatives and probabilities of occurrence.
Network analysis - ANS refers to the network of activities required to complete a business
project.
Quantitative analysis - ANS provides methods to analyze large or small amounts of data to
look for patterns, trends, and relationships.
Mathematical analysis - ANS can help managers make strategic decisions and find
statistically supported solutions to business questions. These are functional areas over a period
of time.
Data may be categorized as either - ANS subjective or objective.
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Subjective data - ANS obtained through surveys and interviews, are considered non-
measurable,
data typically include personal perceptions, such as likes, dislikes, attitudes, and opinions.
Objective data are - ANS measurable and typically arise from observation or testing in
business areas like sales, operations, manufacturing, and logistics.
Data must be valid: that is, the data must accurately represent the true business relationship at
hand. Further, the data must be reliable: if we sought to characterize a particular business
relationship by gathering data several different times (different samples), the data would
reflect the relationship the same way with every sample.
Examples of quantitative analysis - ANS cost-benefit analysis, inventory analysis, logistical
analysis, and forecasting revenue.
quantitative analysis approach - ANS defines a problem and then develops a mathematical
model to represent the particular business situation. The model allows managers to make
inferences regarding the data.
Total Revenue - ANS p=$xq $X is the revenue earned per item sold, Q is the quantity of items
sold.
Company XYZ can use this equation to forecast its revenue if X remains constant
Steps in Quantitative Analysis - ANS 1. Define problem.
2. Develop mathematical model.
3. Prepare and input data.
4. Find best solution.
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, 5. Test solution.
6. Analyze results.
7. Implement solution.
Cause and effect use - ANS independent and dependent variables. A dependent variable is
the variable that is being measured, or affected. The independent variable is free to change in a
given model.
The dependent variable is affected by the changes in the causing independent variable.
Although only one dependent variable is considered, many independent variables can have an
effect.
fishbone diagram is sometimes - ANS used to determine the cause of a problem.
moderating relationship - ANS the relationship between the dependent and independent
variables depends on the level of the moderating variable.
mediating variable - ANS explains the relationship between the dependent and independent
variables.
Scatter diagrams - ANS are used to graph pairs of numbers to determine the relationship.
trend line - ANS The line that shows the general direction of the relationship of points over
time
If the trend line moves downward as we progress from left to right - ANS there is a negative
correlation between the two variables.
what does it mean if one variable increases as the other variable also increases? - ANS That
there is a positive correlation between the variables
pg. 3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
