MBA5008
Quantitative Analysis & Decision Making
Comprehensive Final Test (Qns & Ans)
2025
1. Which of the following methods is used for forecasting future
data points by considering past trends?
- A) Linear regression
- B) Monte Carlo simulation
- C) Decision trees
- D) SWOT analysis
- ANS: A) Linear regression
- Rationale: Linear regression is used for forecasting future
data points by fitting a linear equation to observed data.
©/2025
,2. What is the primary purpose of a sensitivity analysis in
decision-making?
- A) To identify the optimal decision
- B) To assess the impact of changes in input variables on the
outcome
- C) To reduce operational costs
- D) To evaluate the effectiveness of marketing strategies
- ANS: B) To assess the impact of changes in input variables
on the outcome
- Rationale: Sensitivity analysis evaluates how changes in
input variables affect the outcome, providing insight into the
robustness of a decision.
Fill-in-the-Blank Questions
3. The __________ method is a quantitative technique used to
evaluate multiple alternatives based on their performance across
various criteria.
- ANS: Analytic Hierarchy Process (AHP)
- Rationale: The Analytic Hierarchy Process (AHP) is used to
evaluate and prioritize multiple alternatives based on various
criteria.
©/2025
, 4. __________ is a statistical technique that estimates the
probability of different outcomes by running multiple simulations
based on random variables.
- ANS: Monte Carlo simulation
- Rationale: Monte Carlo simulation uses random variables to
estimate the probability of different outcomes by running
numerous simulations.
True/False Questions
5. True or False: The Expected Value of Perfect Information
(EVPI) represents the maximum amount a decision-maker should
be willing to pay for perfect information.
- ANS: True
- Rationale: EVPI represents the maximum value a decision-
maker should be willing to pay to obtain perfect information
about uncertain variables.
6. True or False: The critical path method (CPM) is used to
identify the shortest path in a project network.
- ANS: False
- Rationale: The critical path method (CPM) is used to
identify the longest path in a project network, which determines
the minimum project duration.
©/2025
Quantitative Analysis & Decision Making
Comprehensive Final Test (Qns & Ans)
2025
1. Which of the following methods is used for forecasting future
data points by considering past trends?
- A) Linear regression
- B) Monte Carlo simulation
- C) Decision trees
- D) SWOT analysis
- ANS: A) Linear regression
- Rationale: Linear regression is used for forecasting future
data points by fitting a linear equation to observed data.
©/2025
,2. What is the primary purpose of a sensitivity analysis in
decision-making?
- A) To identify the optimal decision
- B) To assess the impact of changes in input variables on the
outcome
- C) To reduce operational costs
- D) To evaluate the effectiveness of marketing strategies
- ANS: B) To assess the impact of changes in input variables
on the outcome
- Rationale: Sensitivity analysis evaluates how changes in
input variables affect the outcome, providing insight into the
robustness of a decision.
Fill-in-the-Blank Questions
3. The __________ method is a quantitative technique used to
evaluate multiple alternatives based on their performance across
various criteria.
- ANS: Analytic Hierarchy Process (AHP)
- Rationale: The Analytic Hierarchy Process (AHP) is used to
evaluate and prioritize multiple alternatives based on various
criteria.
©/2025
, 4. __________ is a statistical technique that estimates the
probability of different outcomes by running multiple simulations
based on random variables.
- ANS: Monte Carlo simulation
- Rationale: Monte Carlo simulation uses random variables to
estimate the probability of different outcomes by running
numerous simulations.
True/False Questions
5. True or False: The Expected Value of Perfect Information
(EVPI) represents the maximum amount a decision-maker should
be willing to pay for perfect information.
- ANS: True
- Rationale: EVPI represents the maximum value a decision-
maker should be willing to pay to obtain perfect information
about uncertain variables.
6. True or False: The critical path method (CPM) is used to
identify the shortest path in a project network.
- ANS: False
- Rationale: The critical path method (CPM) is used to
identify the longest path in a project network, which determines
the minimum project duration.
©/2025
