Quantitative Business Analysis (QBA) Exam 3 Practice Test

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• In linear regression, what does the slope coefficient represent?
• Which statement is NOT a typical goal of data visualization practices described?
• In optimization, what does a degeneracy in LP imply?
• Which statement describes the Law of Similarity?
• In project scheduling, what is a critical path?
• Which statement about using BIC is correct?
• In logistic regression, the dependent variable is the what?
• Which statement best captures model selection for forecasting?
• What distinguishes an optimal solution from a basic feasible solution?
• In time series forecasting, what is the difference between trend and seasonality?
• What is the criterion regarding sample size when using BIC as a check?
• What is the standard error of the sample mean when sigma is unknown and n = 25, s = 5?
• To direct a viewer's eye to one element, which law would you apply?
• What does RMSE measure in forecast accuracy?
• In exponential smoothing, R-squared is used to indicate how much better or worse the forecast is than what baseline?
• Which statement correctly defines Specificity?
• If the p-value is less than the alpha level, what is the typical decision?
• What is the Expected Value of Perfect Information (EVPI)?
• Which practice helps ensure forecasts stay relevant over time?
• Which statement best describes the impact of forecast horizon on accuracy?
• Which statement best describes the practical importance of the Central Limit Theorem for estimation?
• In linear regression assumptions, what does independence of error terms mean?
• In the two-sample t-test with equal variances, what are the degrees of freedom used for the pooled variance?
• What is the primary purpose of a dashboard in forecasting?
• Which statement best describes the relationship among Law of Proximity, Law of Similarity, and Law of Continuity?
• How are individual coefficients in logistic regression typically evaluated for significance?
• Which pattern describes repeating patterns within a year?
• In a chi-square test for independence, what are the expected counts used for?
• Which two common forecast accuracy metrics are RMSE and MAPE?
• Which variation characterizes economic boom and recession cycles?
• How can external variables affect forecast accuracy?
• In statistics, why is n−1 used in the sample variance denominator?
• Reorder point R with constant lead time L and demand rate d is given by which formula?
• What is the term for the long-term direction of a time series, which can be upward, downward, or flat?
• Why might a Poisson distribution be appropriate for modeling inventory counts or demand events?
• Which law is specifically about creating a focal point in a visual display?
• Which of the following is an example of episodic variation, as listed?
• Which statement correctly describes R-squared and adjusted R-squared in regression?
• In time series decomposition, under an additive model, how is the seasonality component applied to the trend?
• Which statement reflects the accuracy principle in visualization?
• Which term describes random noise in time series data?
• Which alpha level is commonly used in hypothesis testing?
• What is the currency of decisions in decision trees under uncertainty?
• In a two-sample t-test with equal variances, what is the pooled standard error for the difference of means?
• Which scenario best suits the Mann-Whitney U test?
• What is Residual Variation?
• Which statement best defines alpha in hypothesis testing?
• Define the term service level in inventory management.
• Which statement best reflects the clarity principle in visualization?
• What is the purpose of bootstrapping in statistics?
• Which statement describes the decision rule for a hypothesis test using p-values?
• In decision analysis under uncertainty, what is EMV?
• What does the nonnegativity constraint mean in linear programming?
• What is the effect of overfitting on predictive performance on unseen data?
• Which variation tends to repeat on a yearly basis?
• Which principle helps separate the main subject from its background by focusing on the figure?
• What is the long-term direction of a time series called?
• What is the purpose of cross-validation in predictive modeling?
• In a z-test with known sigma, H0: mu = 50, Ha: mu ≠ 50, n = 64, x̄ = 52, sigma = 6. What is the z-statistic?
• Differentiate a prediction interval from a confidence interval: which statement is accurate?
• What is a p-value?
• A designer highlights a single icon by coloring it differently. This illustrates which law?
• What is the critical path in CPM/PERT?
• What is the Addition Rule for probabilities when events A and B are mutually exclusive?
• For a one-sample t-test with sample size n = 25, what are the degrees of freedom?
• What is the acceptable Lie Factor range for a visualization?
• On a ROC curve, the y-axis represents which metric?
• Which forecasting concept describes why forecasts for groups of items may be more reliable than for a single item?
• Independent vs mutually exclusive events: which statement is correct?
• In linear programming, what defines a basic feasible solution?
• In logistic regression, what is the link function used?
• If two events A and B are independent, what is P(A ∩ B)?
• Why is recalibration or retraining necessary for time series models?
• Which statement about non-linear trends is accurate?
• When evaluating a classifier, which statement about misclassification rate is true?
• What does the shadow price measure in sensitivity analysis of a linear program?
• In linear programming, a corner point (feasible solution at a vertex) corresponds to a basic feasible solution with how many constraints active?
• If a 95% confidence level is used, what is α?
• Which practice is recommended to improve understanding of forecast results?
• Gestalt principle about word recognition which statement is true?
• Which are the basic components of a linear programming problem?
• Which statement about the coefficient of variation is correct?
• What is the purpose of a confidence interval for the difference of means?
• What is the purpose of small multiples in data visualization?
• Which rule suggests the mind completes gaps to form a whole object?
• What is a common observation about forecasts at the aggregate level versus individual items?
• What are the typical consequences of severe multicollinearity in a regression model?
• What is a holdout sample and why is it used in forecasting?
• Explain the standard reorder point (ROP) formula under constant demand with lead time.
• Which term best describes the long-term direction of a time series ignoring seasonal and cyclical fluctuations?
• Which plot is used to assess the normality of residuals in regression?
• What term refers to random or unpredictable noise in a time series?
• For a 95% confidence interval of the mean with unknown sigma using a t-distribution, n = 25, s = 4, x̄ = 100. What is the margin of error?
• Which statement describes inherent uncertainty in forecasting?
• Which law would explain recognizing a familiar symbol despite missing segments?
• What is sensitivity or what-if analysis?
• Which metric expresses forecast error as a percentage of actual values?
• In a transportation problem, which constraints must be satisfied?
• What is Monte Carlo simulation used for in quantitative business analysis?
• Which statement best describes the purpose of information criteria such as AIC and BIC in regression modeling?
• If the demand rate is d and lead time is L, with R = dL, what happens to R if L doubles (holding d constant)?
• What does the shadow price in an LP indicate?
• Which law states that the mind fills in missing parts to perceive a complete object?
• Which two model selection criteria are commonly used for regressions?
• How should data visualization be described?
• If events A and B are independent with P(A)=0.4 and P(B)=0.5, what is P(A or B)?
• Which statement best describes the coefficient of variation?
• Why can't least squares be used when the dependent variable is nominal or ordinal?
• What is a transportation problem in operations research?
• In statistics, which interval accounts for uncertainty in a single future observation rather than a population parameter?
• Which data issue can significantly skew forecasts?
• Which is an example of episodic variation?
• What does the F-statistic in a one-way ANOVA test?
• How do you convert a z-score to a probability?
• In logistic regression, what does rejecting the null hypothesis for a predictor's coefficient indicate?
• Which law describes emphasis on images in the foreground relative to the background?
• Which assumption is made in a two-sample t-test with equal variances?
• On an ROC curve, what does the x-axis represent?
• Which statement best characterizes R-squared in regression?
• Which formula correctly defines the sample variance?
• Name two regression diagnostic plots commonly used to assess linearity and homoscedasticity.
• Time series data are collected at what intervals?
• How should non-linear trends be modeled?
• What is the measure that represents the average of the absolute errors in a forecast?
• When should you use a z-test versus a t-test for a mean comparison?
• In time-series forecasting, what is the difference between moving average and exponential smoothing forecasts?
• In ANOVA, which term represents the variability due to differences between group means?
• Which method is listed for positive/negative secular trend with seasonality?
• Which formula correctly represents the reorder point when safety stock is included?
• Which statement reflects the efficiency principle in visualization?
• R² in exponential smoothing is used to compare forecast performance against what baseline?
• What does the Lie Factor measure?
• When would you use a nonparametric test? For example, which scenario best fits its use?
• Which statement best defines misclassification rate in a predictive model?
• Seasonal Exponential Smoothing is listed as a method for which data pattern?
• What is the Economic Order Quantity (EOQ) model and its basic formula?
• In a simple linear regression, an R-squared value of 0.85 indicates that
• Which formula provides a confidence interval for the population mean when σ is known?
• The concept where the silhouette of an object is distinguished from its surroundings describes which law?
• Which category includes both Multiple Regression and Seasonal Exponential Smoothing?
• Which category includes Winters method?
• Which of the following lists the standard linear regression assumptions?
• In a chi-square test for independence with an r by c contingency table, the degrees of freedom are what expression?
• Which statement correctly contrasts AIC and BIC in model selection?
• What is the interpretation of the residual standard error in regression?
• How do you compute the expected monetary value (EMV) of an alternative?
• What does R-squared tell you in regression output?
• In the Economic Order Quantity (EOQ) model, which expression defines the optimal order quantity Q*?
• What does the 68-95-99.7 rule describe for a normal distribution?
• Which distribution is used to construct a confidence interval for the mean when sigma is unknown and the sample size is small?
• In the EOQ model, the symbol D represents which of the following?
• What is the difference between Type I and Type II errors in hypothesis testing?
• This principle explains why we perceive a broken circle as a full circle.
• Which option best describes what the Variance Inflation Factor (VIF) measures?
• How does data visualization differ from a raw data table in terms of purpose?
• What is EVPI?
• Which statement correctly identifies EVPI?
• What is the purpose of the autocorrelation function (ACF) in time series?
• How does increasing the service level affect safety stock?
• In the Newsvendor model, what do the parameters p, c, and s represent?
• For the dataset {2, 4, 6, 8, 10, 12}, which value is approximately the coefficient of variation (CV)?
• What is the chi-square goodness-of-fit test used for?
• Two-tailed p-value for a z-test.
• What is the primary use of moving averages in investing?
• Bootstrap resampling is used to estimate which of the following?
• A fair six-sided die is rolled twice. What is P(at least one even number)?
• What best defines overfitting in regression models?
• Which method is used for positive/negative secular trend with seasonality?
• Bayes' theorem in words.
• Which statement describes the purpose of the Durbin-Watson statistic in regression analysis?
• Which statement is true about model selection for forecasting?
• Which law addresses how the viewer perceives the relationship between a figure and its background?
• Which principle explains how to draw attention to a single observation by changing color or fill?
• Which method is listed for horizontal secular trend with seasonality?
• Which statement summarizes the Central Limit Theorem?
• Explain the difference between parametric and nonparametric tests.
• Which rule uses color or shading changes to emphasize a single element?
• In the pooled variance formula for a two-sample t-test, the numerator combines which terms?
• Which statement best distinguishes correlation from causation?
• Which statement about using AICc is correct?
• In simple linear regression Y = α + βX + ε, what does β represent?
• Which statement best describes a p-value in hypothesis testing?
• What does the ROC curve plot?
• How is a seasonality index typically used in time series decomposition?
• What is the power of a test?
• Outline the basic steps of hypothesis testing.
• What is the objective when comparing models using MAPE, MSE, and MAE?
• What is the chi-square test for independence used for?
• How does Adjusted R^2 differ from R^2 in model evaluation?
• Sensitivity is defined as
• Which metric penalizes larger errors more heavily?
• In linear programming, what is the feasible region?
• In multiple regression, what does the slope coefficient represent for a predictor's effect on the response?
• What does the diagonal 45-degree line in an ROC curve indicate?
• Adding an irrelevant predictor to a regression model will most likely cause adjusted R-squared to:
• For a 95% confidence interval of the mean with known sigma, observed x̄ = 52, sigma = 6, n = 64. What is the margin of error?
• In Bayes' theorem, which statement about the posterior probability is true?
• Which principle would you use to ensure the main subject appears to stand out from its surroundings?
• Which nonparametric test compares two independent samples not assuming normality?
• Which statement about the ROC Curve best reflects model performance?
• When parts of a shape are incomplete but still recognized as a whole, which law is at work?
• Which formula provides a confidence interval for the population mean when σ is unknown?
• What does the term chartjunk refer to in data visualization?
• What is a basic control chart used in quality control and what does it monitor?
• In the Newsvendor model, how is the optimal stock level determined?
• How do EMV and the maximax criterion differ in decision making under uncertainty?
• In decision analysis under uncertainty, which objective is EMV used to maximize?
• In linear programming, what best describes a corner point?
• In linear programming, what does degeneracy imply about the set of optimal solutions?
• Which statement correctly describes the Law of Proximity?
• MAPE expresses forecast errors as what?
• What is bootstrap in statistics?
• How does a t-distribution differ from the standard normal distribution?
• What does visual exploration contribute to forecasting analysis?
• What fundamental assumption do many forecasting techniques rely on?
• Which term describes fluctuations that cannot be predicted but can be identified, such as sudden events?
• In CPM/PERT, zero slack on a task implies what?
• Which expression correctly represents the standard error of the proportion p̂ in a sample of size n?
• What is the difference between forecasting accuracy and bias?
• According to the Law of Continuity, which statement is true?
• A two-tailed t-test uses t = 2.10 with df = 18. Compare to alpha = 0.05. Do you reject H0?
• A sample proportion p̂ = 0.6 with n = 200 yields a 95% confidence interval approximating which interval?
• How does forecast horizon typically affect accuracy?
• What is the core idea behind the data-ink ratio?
• Which statement correctly contrasts homoscedasticity and heteroscedasticity?