1. What is the correct decision in a decision making under risk problem where the costs of additional information is $10,000 and the corresponding financial value is $5,000?

a. Order another survey

b. Do not purchase the additional information

c. purchase the additional information

d. Switch to a subjective decision making process

2. What is typically the first step in conducting a multiple regression analysis?

a. Analyze the data

b. Collect data

c. Identify candidate variables

d. Prepare a report

3. Which one best describes the primary reason for using NPV analysis in comparing alternative projects?

a. Different cash flows

b. Same initial investments

c. Different initial investments and cash flows

d. Different cash flows but the same initial investments

4. How do the chances change of rejecting the null hypothesis regarding the slope as alpha becomes smaller?

a. Remains unchanged

b. Depends on the sample size

c. Decrease

d. Increase

5. Which one is another expression for R-squared?

a. Intercept

b. COD

c. Correlation coefficient

d. Slope

6. Which of the following metrics are used to assess the performance of the regression model?

a. Correlation coefficient

b. p-value

c. CoD

d. All of the others

7. Which one the following is a valid decision-making criterion when making a decision under risk?

a. Maximax

b. Minimax regret

c. Maximize expected value

d. Maximin

8. Which one best describes opportunity loss?

a. Difference between the actual payoff and the optimal payoff

b. Expected value of a good decision

c. Regret from not having made a decision

d. Expected value of a bad decision

9. Which weight is assigned to the most recent observation in a five period weighted moving average?

a. 1/2

b. 1/4

c. 1/5

d. 1/3

10. What is the next period forecast using the simple exponential model (F(t+1) = F(t) + a * (A(t) - F(t)) with A(t) = 100, F(t) = 110, and a = 0.5?

a. 120

b. 105

c. 115

d. 100

11. What is the estimated target value for the regression model: Yr = -100 + 10*X1 - 20*X2, when X1 = 20, X2=5

a. 200

b. None of the others

c. 0

d. 100

12. Which variable is plotted on the vertical axis in a scatter diagram?

a. Independent

b. Dummy

c. Target

d. Normal

13. What is the expected value given payoffs of 200, 300 and 500 with probabilities of 0.3, 0.5 and 0.2, respectively?

a. 300

b. 333

c. 310

d. 325

14. Which one of the following is an essential feature of a DSS?

a. Adaptive

b. User-friendly

c. All of the others

d. Web-centric

15. Which one of the following is a major driver of contemporary business?

a. All of the others

b. Quality

c. Cost

d. Time

16. Which one of the following is a multiple regression solution option?

a. Auto-stepwise

b. All of the others

c. Full

d. Self-stepwise

17. How many dummy variables are required for a qualitative variable featuring three educational levels?

a. 3

b. none of the others

c. 1

d. 2

18. How do the chances change of rejecting the null hypothesis regarding the slope as alpha becomes smaller?

a. Remains unchanged

b. Depends on the sample size

c. Decrease

d. Increase

19. Which two statistics are used to describe the normal curve?

a. Standard deviation and interval

b. None of the others

c. Mean and standard deviation

d. Interval and mode

20. How many different outcomes are associated with five states and five decision alternatives in a payoff table?

a. 5

b. 10

c. 35

d. 25

21. How will the value of Y change if X1 is increased by one unit while holding X2 constant in the equation Yr = 10 + 3 X1 - 5 X2?

a. Increase by 10

b. Decrease by 5

c. Increase by 3

d. Decrease by 3

22. What is the seasonal index for the 4th quarter if the seasonal indices for the 1st three quarters are 0.7, 0.8, 0.9?

a. Greater than one

b. Less than one

c. Equal to one

d. None of the others

23. Which analysis method focuses on assessing the impact of changes in model constants on the optimal decision?

a. Normality analysis

b. Scenario analysis

c. Linear analysis

d. Sensitivity analysis

24. Which one of the following is a basic simple regression assumption?

a. Non-Linear relationship between X and Y

b. Normal relationship between X and Y

c. Linear relationship between X and Y

d. Unusual relationship between X and Y

25. What does the trend component represent?

a. General direction of the time series

b. Seasonal direction of the time series

c. Normal direction of the time series

d. Cyclic direction of the time series

26. When should multiple regression analysis be used?

a. When the correlation coefficient is negative

b. Not enough data to carry out simple linear regression analysis

c. One or more of the assumptions of simple linear regression are not valid

d. The target variable depends on more than one independent variable.

27. What is the primary purpose of a simple linear regression model?

a. Predict dependent variable values using values from a single independent variable

b. Predict dependent variable values using values from multiple independent variables

c. Predict scores on an independent variable using values from a single dependent variable

d. Assess whether there is a significant difference between repeated measures