QUANTITATIVE ANALYSIS FOR BUSINESS
2026 EXAMPREP PRACTICE SET SOLUTION
QUESTIONS WITH FULL ANSWERS
◉ Mode. Answer: The number that occurs most often in a set of
numbers.
◉ Linear Equation. Answer: Type of equation when the slope
between any two points is constant.
◉ Random Trend. Answer: Unpredictable trend in the data.
◉ Seasonal Trend. Answer: Upward or downward movement in data
that repeats at regular intervals.
◉ Correlation. Answer: Used to compare two variables to determine
the strength of the linear relationship between them.
◉ Uncertainty. Answer: A non-quantifiable value because the future
events are not predictable.
, ◉ Decision Point. Answer: A point where one of several alternatives
can be selected.
◉ State of Nature Node. Answer: A possible outcome on a decision
tree that would be out of the decision maker's control.
◉ Risk. Answer: Known possibility measured by its probability of
occurrence.
◉ Expected Monetary Value. Answer: Method used for decision
making when the risks involved in a decision situation have several
states of nature and the likelihood, or probability, of each state is
known.
◉ Payoff Table. Answer: Similar to a decision tree except that it uses
a table instead of a graphical representation of the data.
◉ Identify the Problem. Answer: Step 1 of the decision-making
model.
◉ Establish Decision Criteria. Answer: Step 2 of the decision-making
model.
2026 EXAMPREP PRACTICE SET SOLUTION
QUESTIONS WITH FULL ANSWERS
◉ Mode. Answer: The number that occurs most often in a set of
numbers.
◉ Linear Equation. Answer: Type of equation when the slope
between any two points is constant.
◉ Random Trend. Answer: Unpredictable trend in the data.
◉ Seasonal Trend. Answer: Upward or downward movement in data
that repeats at regular intervals.
◉ Correlation. Answer: Used to compare two variables to determine
the strength of the linear relationship between them.
◉ Uncertainty. Answer: A non-quantifiable value because the future
events are not predictable.
, ◉ Decision Point. Answer: A point where one of several alternatives
can be selected.
◉ State of Nature Node. Answer: A possible outcome on a decision
tree that would be out of the decision maker's control.
◉ Risk. Answer: Known possibility measured by its probability of
occurrence.
◉ Expected Monetary Value. Answer: Method used for decision
making when the risks involved in a decision situation have several
states of nature and the likelihood, or probability, of each state is
known.
◉ Payoff Table. Answer: Similar to a decision tree except that it uses
a table instead of a graphical representation of the data.
◉ Identify the Problem. Answer: Step 1 of the decision-making
model.
◉ Establish Decision Criteria. Answer: Step 2 of the decision-making
model.
