Question 1

Successful implementation of a solution developed via quantitative analysis requires that the analyst

Accepted Answer

In order for a solution developed via quantitative analysis to be successful, it is important for the analyst to work with the users and take their feelings into account. Users may have practical or emotional reasons why they prefer certain solutions over others, and it is important for the analyst to understand and address these concerns in order to implement a solution effectively. Simply telling users what to do (choice A) or training them in theoretical underpinnings (choices B and D) may not be sufficient for successful implementation.

Question 2

Mickey built his lemonade stand out of $250 worth of plywood and paint.He sells a glass of lemonade for $3 and uses $1.25 of lemons, sugar and water to make his product.How many glasses of lemonade does he need to sell to break even?

Accepted Answer

The answer of Mickey built his lemonade stand out of...

Question 3

Shirley's time sitting at her desk was interrupted when two managers burst into her office with a particularly vicious problem - customer service ratings had been falling over the last quarter.The human resources manager explained that rewarding high performing workers with bonuses would improve customer service.The operations manager countered, noting that there was no way to identify high performing workers because different customer problems required radically different approaches by the workers.What roadblock is Shirley confronted with while trying to identify the true problem?

Accepted Answer

Shirley is confronted with conflicting viewpoints from the human resources and operations managers, which is making it difficult for her to identify the true problem and solution.

Question 4

The analyst waited anxiously at his computer and finally the answer appeared - he would need 57 chickens to fund his retirement plan.Still, he had some nagging doubts about some assumptions he had made and he wondered how much faith he should put into the answer of 57.In order to test how reliable the figure 57 is, the analyst should conduct

Accepted Answer

Sensitivity analysis would allow the analyst to test the reliability of the figure 57 by examining how changes to various assumptions affect the result. This will give a better understanding of the range of likely outcomes, and whether the figure of 57 is a robust estimate. Simulation could also be helpful, but it would involve more extensive calculations and may not be necessary for this scenario. Shock tests and focus groups are unrelated to this type of analysis.

Question 5

Shirley's time sitting at her desk was interrupted when the human resources manager burst into her office with a particularly vexing problem - customer service ratings had been falling over the last quarter.The human resources manager explained that they were behind on training programs for their workers.Shirley assembled a task force consisting of the brightest minds in the organization and gave them a charge - to look at the previous quarter's issues and to develop training courses over the next 48 months to solve those issues.What roadblock is Shirley confronted with while trying to identify the true problem?

Accepted Answer

The answer of Shirley's time sitting at her desk was...

Question 6

What are the three categories of business analytics?

Accepted Answer

The answer of What are the three categories of business...

Question 7

If the quantitative analyst is not an integral element of the department facing the problem

Accepted Answer

When the quantitative analyst is not an integral element of the department facing the problem, sometimes the modeling activity becomes an end to itself, leading to the creation of models that are not relevant to the department's actual problem-solving needs. This can be demotivating for the analyst and can eventually lead to lower morale for the department as irrelevant solutions are presented.

Question 8

Most data generated in a firm come from

Accepted Answer

Accounting reports are one of the most common sources of data generated in a firm. They provide important financial information such as revenue, expenses, profits, and losses that allow firms to make informed decisions. While customer feedback is also valuable, it may not generate as much data as accounting reports. Information technology and the worldwide web can generate data as well, but they are not specific to a firm and may not be relevant to its operations.

Question 9

KJ built his taco truck out of $75,000,000 worth of titanium and duct tape.He uses $2.25 of ground beef, $0.75 of cheese, and $0.25 of lettuce in each taco.If he sells tacos at $10 each, what is his break-even quantity?

Accepted Answer

The cost to make one taco is $2.25 (beef) + $0.75 (cheese) + $0.25 (lettuce) = $3.25. Selling each taco at $10 means a profit of $10 - $3.25 = $6.75 per taco. To cover the $75,000,000 investment, the break-even quantity is $75,000,000 / $6.75 = 11,111,111 tacos.

Question 10

Identify the steps of the quantitative analysis approach.

Accepted Answer

The answer of Identify the steps of the quantitative analysis...

Question 11

Mickey built his lemonade stand out of $75,000 worth of plywood and paint.He sells a glass of lemonade for $30 and uses $1.25 of lemons, sugar and water to make his product.How many glasses of lemonade does he need to sell to break even?

Accepted Answer

Mickey needs to sell 2544 glasses of lemonade to break even.To break even, Mickey needs to earn $75,000 from selling lemonade. He sells each glass of lemonade for $30, and it costs him $1.25 to make each glass. So, he needs to sell 75,000 / (30 - 1.25) = 2544 glasses of lemonade to break even.

Question 12

As a general rule, complex problems require

Accepted Answer

Complex problems typically involve many interrelated factors, and require models that can capture the complexity of the situation. Simple models may not be able to account for all of the important variables, and assumptions may need to be made that oversimplify the problem. Mathematical models can be helpful in representing complex systems, but they are not always necessary or sufficient. Accounting data may be useful in some situations, but it is unlikely to be the sole solution for a complex problem.

Question 13

KJ built his taco truck out of $75,000,000 worth of titanium and duct tape.He uses $5.25 of ground beef, $2.25 of cheese, and $1.50 of lettuce in each taco.If he sells tacos at $10 each, what is his break-even quantity?

Accepted Answer

The answer of KJ built his taco truck out of...

Question 14

Mickey built his lemonade stand out of $75,000 worth of plywood and paint.He uses $2.25 of lemons, sugar and water to make his product.What does the selling price of the lemonade need to be to break even at 40 glasses?

Accepted Answer

To break even, the revenue generated must cover the cost of the materials used to build the lemonade stand and the cost of producing the 40 glasses of lemonade.

The cost of the materials used to build the lemonade stand is given as $75,000.

The cost of producing 40 glasses of lemonade is given as $2.25 per glass, which amounts to a total cost of:

$2.25 x 40 = $90

Therefore, the total cost that needs to be covered is:

$75,000 + $90 = $75,090

To break even, revenues from 40 glasses should give:

Revenues = Costs

40 x selling price per glass = $75,090

Selling price per glass = $75,090/40 = $1,877.25

Hence, the best choice is B

Question 15

The analyst waited anxiously at his computer and finally the answer appeared - he would need 57 chickens to fund his retirement plan.Still, he had some nagging doubts about some assumptions he had made and he wondered how much faith he should put into the answer of 57.In order to test how reliable the figure 57 is, the analyst varied a number of parameters in the model and ran multiple tests for each set of input data.Each time, the model suggested he acquire 57 chickens - sometimes one more or one less, but never more than one chicken either side of 57.We could describe the solution as

Accepted Answer

The fact that the solution remains consistent and falls within a narrow range even when input parameters are varied suggests that it is robust, meaning it is not overly sensitive to changes in the model inputs.

Question 16

KJ built his taco truck out of $75,000,000 worth of titanium and duct tape.He uses $10.25 of organic bok choy, $6.75 of Wisconsin cheddar cheese, and $25.25 of foie gras in each taco.If he sells tacos at $475 each, what is his break-even quantity?

Accepted Answer

173,310To find the break-even quantity, first calculate the cost of ingredients per taco: $10.25 (bok choy) + $6.75 (cheese) + $25.25 (foie gras) = $42.25. The selling price per taco is $475. The profit per taco is $475 - $42.25 = $432.75. The initial investment is $75,000,000. To find the break-even quantity, divide the initial investment by the profit per taco: $75,000,000 / $432.75 ≈ 173,310 tacos.

Question 17

The authors cite resistance to quantitative analysis as a major reason for lack of adoption.According to a Swedish study, what percentage of projects proposed by top management was actually implemented?

Accepted Answer

According to a Swedish study cited, 98% of projects proposed by top management were actually implemented, highlighting the significant influence of top management's support in the adoption and implementation of projects.

Question 18

Shirley's time sitting at her desk was interrupted when the human resources manager burst into her office with a particularly pernicious problem - customer service ratings had been falling over the last quarter.The human resources manager explained that salaries were too low.Shirley reasoned that if salaries were too low, she could simply institute an across the board 50% increase for all employees."That was easy," Shirley thought to herself as she returned to her office to begin shopping for a new car.What roadblock is Shirley confronted with while trying to identify the true problem?

Accepted Answer

Shirley's assumption that low salaries were the root cause of falling customer service ratings may not be accurate. It's important to take into consideration other factors that may impact customer service ratings such as training, company policies, or employee morale. Shirley needs to further analyze the problem before jumping to a solution.

Question 19

Shirley's time sitting at her desk was interrupted when the human resources manager burst into her office with a particularly nasty problem - customer service ratings had been falling over the last quarter.The human resources manager explained that rewarding high performing workers with bonuses would improve customer service.Shirley agreed and implemented a bonus scale that initially seemed effective, however the increased payout for bonuses meant there was less money available for offsite storage used by the IT division.Sadly, their system backup tapes would have to be held at the same location as their main system.What roadblock is Shirley confronted with while trying to identify the true problem?

Accepted Answer

Shirley is confronted with the impact on another department, specifically the IT division, as the implementation of the bonus scale has led to less money being available for their offsite storage needs.

Question 20

The authors cite resistance to quantitative analysis as a major reason for lack of adoption.According to a Swedish study, what percentage of projects proposed by quantitative analysts was actually implemented?

Accepted Answer

The answer of The authors cite resistance to quantitative analysis...

Quiz 1: Introduction to Quantitative Analysis