DISTRIBUTION AND VARIABILITY
ASSESSMENT PAPER ANSWERS VERIFIED
SUMMARY SHEET
◉ Which key performance indicator can a hotel chain use to
measure its ability to meet client tastes and preferences?
Answer: Surveying customer satisfaction upon checkout
◉ How do balanced scorecards differ from KPI dashboards?
Answer: KPI dashboards provide visual representations, such as
charts and graphs, of KPIs.
◉ What is a significant disadvantage of KPIs?
Answer: They require significant ongoing maintenance.
◉ What is a disadvantage of a balanced scorecard?
Answer: It requires significant time and effort to establish a
meaningful scorecard.
◉ In what two ways are KPI dashboards useful in performance
assessment?
,Answer: They are visual representations of key areas of focus and
They show trends that represent organizational results over time.
◉ A professional services firm is undergoing a business process
improvement exercise to improve productivity, staff morale, and
client satisfaction. Which technique might the firm use to evaluate
the strength of customer service relations?
Answer: Net promoter score
◉ A professional services firm wants to track and monitor important
financial performance measures of the company (e.g., year-over-year
change in revenues and profits). Which performance approach
would best meet the company's objective?
Answer: Results-based management
◉ Linear Programming
Answer: is a mathematical technique used to find a MAXIMUM OR
MINIMUM of linear equations containing several variables.
◉ When there are two or more plans or options to consider
Answer: allows a decision maker to identify the crossover point,
which represents the point at which we are indifferent between the
plan
,◉ is a common hypothesis test*. Like the one-sample t-test*, or the
two-sample t test, __________is commonly used in statistics to draw
inferences about a population, by testing sample data.
Answer: A chi-squared test* (also written as "Χ2" or "chi-square")
◉ Analysis of Variance (ANOVA*)
Answer: is a technique used to determine if there is a significant
difference among three or more means.
◉ The alternative hypothesis*
Answer: states that not all of the population means are equal. We
accept the alternative hypothesis if at least one of the population
means is considered significantly different.
◉ An F-value is the test statistic* that is utilized in ANOVA.
Answer: As we've seen with other test statistics, our test statistic
value and the critical value* determine whether we "reject the null
hypothesis" or "fail to reject the null hypothesis." As always, if our
test statistic value exceeds the critical value, we reject the null
hypothesis
◉ Forecasting and Regression analysis
Answer: Used for: analyzing cost behavior and forecasting future
sales
, ◉ Regression Analysis
Answer: Quantifies the relationship between a DEPENDENT variable
nad one or more INDEPENDENT variables.
◉ Time series analysis
Answer: Used for: evaluating patterns in data to make decisions
about staffing levels, inventory, etc.
◉ Cluster analysis
Answer: Used for:understanding the makeup of an industry's
different areas
◉ Decision analysis
Answer: Used for: making decisions, whether personal or
professional
◉ Regression Analysis- Dependent Variable
Answer: The dependent variable* is the variable whose value
depends on the other variables in the equation; typically the cost or
activity to be predicted (in the previous example, the dependent
variable was home sale price).
◉ Regression Analysis - Independent Variable