MBA 601 LATEST 2026 TEST PAPER QUESTIONS AND
ANSWERS GRADED A+
✔✔Correlation coefficient - ✔✔A standardized measure of linear association between
two variables that ranges from minus one to plus one
✔✔Positive linear relationship - ✔✔A situation where larger values of one variable are
associated with larger values of another variable
✔✔Negative linear relationship - ✔✔A situation where larger values of one variable are
associated with smaller values of another variable
✔✔Probability - ✔✔A numerical measure between zero and one that describes the
likelihood an event will occur
✔✔Experiment - ✔✔Any process that generates well defined outcomes
✔✔Random experiment - ✔✔An experiment where the exact outcome is uncertain even
when repeated in the same way
✔✔Sample space - ✔✔The set of all possible experimental outcomes
✔✔Sample point - ✔✔A single outcome in the sample space
✔✔Event - ✔✔A collection of one or more sample points
✔✔Counting rule for multiple step experiments - ✔✔A rule stating that if an experiment
has k steps and each step has a certain number of possible results then total outcomes
equal the product of those numbers
✔✔Combination - ✔✔The number of ways to choose objects from a set when order
does not matter
✔✔Permutation - ✔✔The number of ways to arrange or order selected objects from a
set
✔✔Classical method - ✔✔Assigning probabilities when all experimental outcomes are
assumed equally likely
✔✔Relative frequency method - ✔✔Assigning probabilities based on proportions
observed in past data or experiments
, ✔✔Subjective method - ✔✔Assigning probabilities based on judgment experience and
available information
✔✔Complement of an event - ✔✔The event consisting of all sample points that are not
in the original event
✔✔Union of events - ✔✔The event that at least one of two events occurs
✔✔Intersection of events - ✔✔The event that both of two events occur together
✔✔Mutually exclusive events - ✔✔Events that have no sample points in common so
they cannot occur at the same time
✔✔Conditional probability - ✔✔The probability of one event given that another event
has occurred
✔✔Joint probability - ✔✔The probability that two events occur together
✔✔Addition rule for probability - ✔✔A rule that gives the probability of the union of two
events in terms of their individual probabilities and their intersection
✔✔Multiplication rule for probability - ✔✔A rule that gives the probability of the
intersection of two events in terms of a conditional probability and a marginal probability
✔✔Independent events - ✔✔Two events where the occurrence of one does not change
the probability of the other
✔✔Prior probability - ✔✔An initial probability assessment for an event before new
information is considered
✔✔Posterior probability - ✔✔An updated probability for an event after incorporating new
information
✔✔Bayes theorem - ✔✔A method for revising prior probabilities into posterior
probabilities using conditional probabilities
✔✔ Statistics - ✔✔The art and science of collecting analyzing presenting and
interpreting data
✔✔Data - ✔✔The facts and figures collected analyzed and summarized for presentation
and interpretation
✔✔Data set - ✔✔All the data collected in a particular study
ANSWERS GRADED A+
✔✔Correlation coefficient - ✔✔A standardized measure of linear association between
two variables that ranges from minus one to plus one
✔✔Positive linear relationship - ✔✔A situation where larger values of one variable are
associated with larger values of another variable
✔✔Negative linear relationship - ✔✔A situation where larger values of one variable are
associated with smaller values of another variable
✔✔Probability - ✔✔A numerical measure between zero and one that describes the
likelihood an event will occur
✔✔Experiment - ✔✔Any process that generates well defined outcomes
✔✔Random experiment - ✔✔An experiment where the exact outcome is uncertain even
when repeated in the same way
✔✔Sample space - ✔✔The set of all possible experimental outcomes
✔✔Sample point - ✔✔A single outcome in the sample space
✔✔Event - ✔✔A collection of one or more sample points
✔✔Counting rule for multiple step experiments - ✔✔A rule stating that if an experiment
has k steps and each step has a certain number of possible results then total outcomes
equal the product of those numbers
✔✔Combination - ✔✔The number of ways to choose objects from a set when order
does not matter
✔✔Permutation - ✔✔The number of ways to arrange or order selected objects from a
set
✔✔Classical method - ✔✔Assigning probabilities when all experimental outcomes are
assumed equally likely
✔✔Relative frequency method - ✔✔Assigning probabilities based on proportions
observed in past data or experiments
, ✔✔Subjective method - ✔✔Assigning probabilities based on judgment experience and
available information
✔✔Complement of an event - ✔✔The event consisting of all sample points that are not
in the original event
✔✔Union of events - ✔✔The event that at least one of two events occurs
✔✔Intersection of events - ✔✔The event that both of two events occur together
✔✔Mutually exclusive events - ✔✔Events that have no sample points in common so
they cannot occur at the same time
✔✔Conditional probability - ✔✔The probability of one event given that another event
has occurred
✔✔Joint probability - ✔✔The probability that two events occur together
✔✔Addition rule for probability - ✔✔A rule that gives the probability of the union of two
events in terms of their individual probabilities and their intersection
✔✔Multiplication rule for probability - ✔✔A rule that gives the probability of the
intersection of two events in terms of a conditional probability and a marginal probability
✔✔Independent events - ✔✔Two events where the occurrence of one does not change
the probability of the other
✔✔Prior probability - ✔✔An initial probability assessment for an event before new
information is considered
✔✔Posterior probability - ✔✔An updated probability for an event after incorporating new
information
✔✔Bayes theorem - ✔✔A method for revising prior probabilities into posterior
probabilities using conditional probabilities
✔✔ Statistics - ✔✔The art and science of collecting analyzing presenting and
interpreting data
✔✔Data - ✔✔The facts and figures collected analyzed and summarized for presentation
and interpretation
✔✔Data set - ✔✔All the data collected in a particular study
