CENTRAL TENDENCY MODULE QUESTIONS
SOLUTIONS STRUCTURED SCRIPT
◉ A soft-drink manufacturer performs a control chart analysis and
the results indicate that the soft-drink bottles are consistently
under-filled by a large amount according to specifications. The
system was evaluated three months prior and was determined to be
stable and filling bottles within accepted limits. What is this
consistent under-filling an example of?
Answer: Special cause variation
◉ Which approach uses financial, customer, internal business
processes, and innovation/learning measures?
Answer: Balanced scorecard
◉ Which two items represent steps of results-based management?
Answer: Define resources and Study the long-term effects of the
output
◉ What is a description of data mining?
Answer: It discovers patterns or trends in large data sets.
,◉ Which common analytic measure is used to improve business
performance?
Answer: Simple composite index
◉ A national manufacturer is building an overseas factory to be
closer to one of its largest markets. Which analysis technique would
be appropriate when evaluating location options under risk in order
to strengthen the firm's competitiveness in the new market?
Answer: Developing a decision tree
◉ What is the most important analytic to determine the success or
failure of a particular year's flu vaccine?
Answer: Incidence accounting for all new cases
◉ The management for Hospital A conducted a survey of its
patients' opinions including gathering demographic data to
determine which programs should be pursued during the upcoming
fiscal year. Upon analyzing the response on the need for a cosmetic
surgery program for the hospital, it was found that there was an r
score of 0.75, and a p of 0.03 between a patient's income level and
support for the creation of a cosmetic surgery department. Which
statement provides an effective strategic decision based on an
analysis of the given information?
,Answer: There is a strong positive relationship for a cosmetic
surgery program as a function of income, and this program should
be developed in high income areas
◉ What does True Score Theory state about a test without
systematic error?
Answer: The observed score is the true score plus random error.
◉ The average test score of students taking an exam was 70% with a
standard deviation of 8.5%. Which tool should be used to compare a
student's score to the group average?
Answer: Z-score
◉ A doctoral student is surveying chief executive officers (CEOs) to
understand their relationships with their governing boards. The
student determines the years of business experience for each CEO as
well as their rating, on a 10-point scale, of satisfaction with the
governing board. Which statistical approach should be used to
display the data for analysis?
Answer: Scatter plot
◉ Which two decision considerations describe fact-based decision
making, according to the quality management principles?
Answer: Decisions reduce external bias and Decisions foster trust in
plans.
, ◉ Which two statements describe how the dedication of leadership
and a focus on process enhance quality?
Answer: It ensures a systems approach. And It makes results easier
to manage and achieve.
◉ "An organization is concerned about whether quality control
standards are being met and develops a strategy to test quality
control metrics. Which step does this represent in the Plan-Do
Check-Act cycle?
Answer: Plan
◉ Which phrase is a description of quality assurance?
Answer: Focuses on training
◉ A joint venture is established between two firms to use their core
competencies to increase their market share. How would a SIPOC
(suppliers, inputs, process, outputs, and customers) diagram benefit
the joint venture?
Answer: It provides a holistic view of the entire operation.
◉ In a statistical process control analysis, sample data are collected
from an assembly line and measured to see if they fall within a
tolerated measurement range. If an observation does fall within the