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| Section | Objectives |
|---|---|
| Probability and Statistical Inference | - Probability concepts and distributions - Sampling methods and sampling error |
| Data Fundamentals and Business Analytics | - Data types and data collection methods - Descriptive statistics (mean, median, variance, standard deviation) |
| Decision Making Models | - Decision trees and expected value analysis - Risk and uncertainty in decision-making |
| Hypothesis Testing | - Null and alternative hypotheses - t-tests, chi-square tests, and significance testing |
| Regression and Correlation Analysis | - Linear regression modeling - Interpreting correlation and causation |
1. An organization develops a new strategic plan and seeks ways to improve process performance by reducing variation to only 3.4 defects per million process outputs.
Which tool can the organization use to meet this goal?
A) Just-in-time
B) Six Sigma
C) Linear programming
D) Statistical process control
2. Which two types of graphs illustrate and analyze measurements or trends over time?
Choose 2 answers.
A) Pareto chart
B) Control chart
C) Check sheet
D) Run chart
3. How does a balanced scorecard (BSC) differ from a key performance indicator (KPI)?
A) A KPI aligns with just one aspect of an organization's success, whereas a BSC allows managers to view performance in several areas.
B) A BSC and a KPI are identical except that a BSC is a measurement of metrics over time, and a KPI is a snapshot of success at one point in time.
C) A BSC and a KPI are identical except that a BSC is used in business settings, and a KPI is used exclusively by governmental agencies.
D) A BSC aligns with just one aspect of an organization's success, whereas a KPI allows managers to simultaneously view performance in several areas.
4. A researcher wants to estimate the average wholesale price of a gallon of gas in the United States. Several gas station owners along the East Coast are asked what price they pay wholesale for a gallon of gas. The researcher then averages these values for the sample mean price of a gallon of gas. Which problem would be discovered if this researcher's work were evaluated?
A) There is conscious bias in the data.
B) The sample data are not representative of the population.
C) There is faulty calibration in the data collection.
D) There is response bias in the data.
5. What is the purpose of the quality management principle of dedication to fact-based decision-making?
A) Eliminate anything that does not add value.
B) Increase loyalty from customers and suppliers.
C) Increase the effectiveness from quality practices.
D) Reduce bias driven by increased trust in plans.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B,D | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |
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