Business Analytics 2nd Edition by James R -Test Bank

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Business Analytics 2nd Edition by James R -Test Bank

 

 

Business Analytics (Evans)

Chapter 1 Introduction to Business Analytics

 

  • Descriptive analytics:
    1. can predict risk and find relationships in data not readily apparent with traditional
    2. helps companies classify their customers into segments to develop specific marketing campaigns.
    3. helps detect hidden patterns in large quantities of data to group data into sets to predict behavior.
    4. can use mathematical techniques with optimization to make decisions that take into account the uncertainty in the

Answer: B Diff: 1

Blooms: Remember

Topic: Scope of Business Analytics

LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics. LO2: Compare and contrast tools for presenting and organizing data

 

  • A manager at Gampco Inc. wishes to know the company’s revenue and profit in its previous quarter. Which of the following business analytics will help the manager?
    1. prescriptive analytics
    2. normative analytics
    3. descriptive analytics
    4. predictive analytics Answer: C

Diff: 1

Blooms:  Apply AACSB: Analytic Skills

Topic: Scope of Business Analytics

LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics. LO2: Describe the major tools and criteria for decision making.

 

  • Predictive analytics:
    1. summarizes data into meaningful charts and reports that can be standardized or
    2. identifies the best alternatives to minimize or maximize an
    3. uses data to determine a course of action to be executed in a given
    4. detects patterns in historical data and extrapolates them forward in time. Answer: D

Diff: 2

Blooms: Remember

Topic: Scope of Business Analytics

LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics. LO2: Compare and contrast tools for presenting and organizing data

 

  • A trader who wants to predict short-term movements in stock prices is likely to use                
    1. predictive
    2. descriptive
    3. normative
    4. prescriptive Answer: A Diff: 1

Blooms:  Apply AACSB: Analytic Skills

Topic: Scope of Business Analytics

LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics. LO2: Describe the major tools and criteria for decision making.

 

  • Which of the following questions will prescriptive analytics help a company address?
    1. How many and what types of complaints did they resolve?
    2. What is the best way of shipping goods from their factories to minimize costs?
    3. What do they expect to pay for fuel over the next several months?
    4. What will happen if demand falls by 10% or if supplier prices go up 5%? Answer: B

Diff: 2

Blooms: Understand AACSB: Analytic Skills

Topic: Scope of Business Analytics

LO1: Explain and provide examples of descriptive, predictive, and prescriptive analytics. LO2: Describe the major tools and criteria for decision making.

 

  • What is a database?
    1. a structured collection of related files and data
    2. simply a collection of data
    3. a data file holding a single file
    4. flat files used to store data Answer: A

Diff: 1

Blooms: Remember

Topic: Data for Business Analytics

LO1: Explain the difference between a data set and a database.

LO2: Explain how data are acquired and distinguish among different types of data and levels of measurement

 

  • In a database, information is stored and maintained in .
    1. fields
    2. measurements
    3. entities
    4. attributes Answer: C Diff: 1

Blooms: Remember

Topic: Data for Business Analytics

LO1: Explain the difference between a data set and a database.

LO2: Explain how data are acquired and distinguish among different types of data and levels of measurement

 

  • Which of the following is an example of a measure of continuous metrics?
    1. four errors revealed in an invoice
    2. a delivery delayed by seven days
    3. weight and volume of a sheet of steel
    4. three incomplete orders on a day Answer: C

Diff: 2

Blooms: Understand

Topic: Data for Business Analytics

LO1: Explain the difference between a discrete metric and continuous metric, and provide examples of each.

LO2: Explain how data are acquired and distinguish among different types of data and levels of measurement

 

  • Nominal data:
    1. are ranked according to some relationship to one
    2. have constant differences between observations.
    3. are continuous and have a natural zero.
    4. are sorted into categories according to specified characteristics. Answer: D

Diff: 1

Blooms: Remember

Topic: Data for Business Analytics

LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and provide examples of each.

LO2: Explain how data are acquired and distinguish among different types of data and levels of measurement

 

  • Which of the following is a disadvantage of ordinal data?
    1. They bear no relationship to one
    2. They have no fixed units of
    3. They have no natural
    4. They are not comparable with each other. Answer: B

Diff: 2

Blooms: Understand

Topic: Data for Business Analytics

LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and provide examples of each.

LO2: Explain how data are acquired and distinguish among different types of data and levels of measurement

 

  • Which of the following allow meaningful comparison of ranges, averages and other statistics?
    1. interval data
    2. categorical data
    3. ratio data
    4. ordinal data Answer: A Diff: 1

Blooms: Remember

Topic: Data for Business Analytics

LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and provide examples of each.

LO2: Explain how data are acquired and distinguish among different types of data and levels of measurement

 

  • Following are the components of a data set containing purchase details of a shoe manufacturing company. Identify the ratio
    1. Item Number
    2. Rank of suppliers
    3. Item cost
    4. Arrival Date Answer: C Diff: 2

Blooms: Apply

Topic: Data for Business Analytics

LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and provide examples of each.

LO2: Explain how data are acquired and distinguish among different types of data and levels of measurement

 

  • When data are classified by the type of measurement scale, which is the strongest form of measurement?
    1. nominal
    2. interval
    3. ordinal
    4. ratio Answer: D Diff: 1

Blooms: Remember

Topic: Data for Business Analytics

LO1: Describe the four groups of data classification, categorical, ordinal, interval, and ratio, and provide examples of each.

LO2: Explain how data are acquired and distinguish among different types of data and levels of measurement

 

  • The demand for coffee beans over a period of three months has been represented in the form of an L-shaped curve. Which form of model was used here?
    1. mathematical model
    2. visual model
    3. kinesthetic (tactile) model
    4. verbal model Answer: B Diff: 1

Blooms:  Apply AACSB: Analytic Skills Topic: Decision Models

LO1: Explain the concept of a model and various ways a model can be characterized. LO2: Compare and contrast tools for presenting and organizing data

 

  • Decision variables:
    1. cannot be directly controlled by the decision
    2. are assumed to be
    3. are always uncertain.
    4. can be selected at the discretion of the decision maker. Answer: D

Diff: 2

Blooms: Understand Topic: Decision Models

LO1: Define and list the elements of a decision model.

LO2: Describe the major tools and criteria for decision making.

 

  • Identify the uncontrollable variable from the following inputs of a decision
    1. investment returns
    2. machine capacities
    3. staffing levels
    4. intercity distances Answer: A

Diff: 1

Blooms: Apply

Topic: Decision Models

LO1: Define and list the elements of a decision model.

LO2: Describe the major tools and criteria for decision making.

 

  • Which of the following inputs of a decision model is an example of data?
    1. estimated consumer demand
    2. inflation rates
    3. costs
    4. investment allocations Answer: C

Diff: 1

Blooms: Remember

Topic: Data for Business Analytics

LO1: Define and list the elements of a decision model.

LO2: Describe the major tools and criteria for decision making.

 

  • Descriptive decision models:
    1. aim to predict what will happen in the
    2. describe relationships but do not tell a manager what to
    3. help analyze the risks associated with various
    4. do not facilitate evaluation of different decisions. Answer: B

Diff: 2

Blooms: Understand Topic: Decision Models

LO1: Explain the concept of a model and various ways a model can be characterized. LO2: Describe the major tools and criteria for decision making.

 

  • The total cost of reaching consumers (C) depends upon the number of consumers (N), advertising costs (A), and transportation costs (T). The linear cost prediction model is represented as:

C = c – nN + aA + tT

where c, n, a, and t are constants and c estimates the total cost when the remaining variables are zero. Which of the following interpretations is true about this model?

  1. Change in variables N, A, and T will cause n, a, and t to
  2. As n decreases, c will
  3. When variables N, A, and T are zero, C = c – n + a + t.
  4. Change in variables N, A, and T will not reflect any changes in c. Answer: D

Diff: 3

Blooms: Apply

Topic: Decision Models

LO1:  Use influence diagrams to build simple mathematical models. LO2: Compare and contrast methods of summarizing and describing data

 

  • Which of the following is the mathematical model for deriving total cost of only manufacturing?
    1. TC = VC + (C × Q)
    2. TC = F + (C × Q)
    3. TC = F + C
    4. TC = F + (V × Q)

Answer: D Diff: 2

Blooms:  Apply AACSB: Analytic Skills Topic: Decision Models

LO1: Use influence diagrams to build simple mathematical models. LO2: Describe the major tools and criteria for decision making.

 

  • Which of the following is the mathematical model for deriving total cost of only outsourcing?
    1. TC = Q x C
    2. TC = F + (C x Q)
    3. TC = (V + C) x Q
    4. TC = (VC + F) x Q

Answer: A Diff: 2

Blooms:  Apply AACSB: Analytic Skills Topic: Decision Models

LO1: Use influence diagrams to build simple mathematical models. LO2: Describe the major tools and criteria for decision making.

 

  • Which of the following is the mathematical model for deriving the break-even volume?
    1. Q = (C – VC) + F
    2. Q = F / (C -V)
    3. Q = (V + C) / F
    4. Q = F / (VC – C)

Answer: B Diff: 2

Blooms:  Apply AACSB: Analytic Skills Topic: Decision Models

LO1: Use influence diagrams to build simple mathematical models. LO2: Describe the major tools and criteria for decision making.

 

  • When will a company use a predictive decision model?
    1. when it wishes to determine the best product pricing to maximize revenue
    2. when it wishes to know how best to use advertising strategies to influence sales
    3. when it wishes to know sales patterns to plan inventory levels
    4. when it wishes to ensure that a specified level of customer service is achieved Answer: C

Diff: 2

Blooms: Understand AACSB: Analytic Skills Topic: Decision Models

LO1: Use predictive models to compute model outputs.

LO2: Describe the major tools and criteria for decision making.

 

  • If D is demand, P is the unit price, and c and d are constants (where d > 0 is the price elasticity), which of the following is a nonlinear demand prediction model?
    1. D = d + (c × P)
    2. D = (d × P)c
    3. D = cd × P
    4. D = cP-d Answer: D Diff: 2

Blooms:  Apply AACSB: Analytic Skills Topic: Decision Models

LO1: Use predictive models to compute model outputs.

LO2: Describe the major tools and criteria for decision making.

 

  • Which decision model incorporates the uncertainty element?
    1. predictive
    2. normative
    3. prescriptive
    4. descriptive Answer: A Diff: 1

Blooms: Remember Topic: Decision Models

LO1: Use predictive models to compute model outputs.

LO2: Describe the major tools and criteria for decision making. Use the chart below to answer the following two questions:

 

 

 

                   
                   
                   
                   
                   
                   
                   
                   

 

(Image available in PDF file So please purchase for download full PDF test bank)

 

 

 

  • What is the slope of the sales function D = a – bP?
    1. 4
    2. 9
    3. 12
    4. 17 Answer: C Diff: 3

Blooms: Apply

Topic: Decision Models

LO1: Use influence diagrams to build simple mathematical models. LO2: Describe the major tools and criteria for decision making.

 

  • How many gallons will be sold if the price is increased to $4.75? A) 26
  1. B) 843
  2. C) 798.72
  3. D) 818

 

Answer: B Diff: 3

Blooms:  Apply AACSB: Analytic Skills Topic: Decision Models

LO1: Use predictive models to compute model outputs.

LO2: Describe the major tools and criteria for decision making.

 

  • Prescriptive decision models help:
    1. make predictions of how demand is influenced by
    2. make trade-offs between greater rewards and risks of potential
    3. decision makers identify the best solution to decision
    4. describe relationships and influence of various elements in the model. Answer: C

Diff: 1

Blooms: Remember Topic: Decision Models

LO1: Define the terms optimization, objective function, and optimal solution. LO2: Describe the major tools and criteria for decision making.

 

  • The manager at Soul Walk Inc., a shoe manufacturing company, wants to set a new price (P) for a shoe model to maximize total profit. The demand (D) as a function of price is represented as:

D = 1,500 – 2.5P

The total cost (C) as a function of demand is represented as:

C = 3,200 + 3.5D

Which of the following is a model for total profit as a function of price? A) (1,508.75× price) – (2.5 × price2) – 8,450

  1. B) (3.5 × price2) + 3,200 – (1925.50 × price)
  2. C) (1,250 × price) + (5 × price2) – 8,320
  3. D) [4521 + (4.5 × price)] × price – 9684.25

Answer: A Diff: 3

Blooms: Apply

Topic: Decision Models

LO1: Define the terms optimization, objective function, and optimal solution. LO2: Describe the major tools and criteria for decision making.

 

  • Which decision model incorporates the process of optimization?
    1. predictive
    2. prescriptive
    3. descriptive
    4. normative Answer: B Diff: 1

Blooms: Remember Topic: Decision Models

LO1: Define the terms optimization, objective function, and optimal solution. LO2: Describe the major tools and criteria for decision making.