ECON 483 Quantitative Method
Consider the regression model Y= 389.10 14.6x. If the r 2 value is 0.657,
what is the correlation coefficient?
Solution
(-0.657)1/2 = -0.811
The demand during the lead time is normally distributed with a mean of 40
and a stand

ECON 483 Quantitative Method
Alternatives
Alternative 1
Alternative 2
Alternative 3
Low
80
90
50
States of Nature
Demand
Medium
120
90
70
High
140
90
150
The probability of a low demand is 0.4, while the probability of a medium
and high demand is each 0.3

ECON 483 Quantitative Method
Daily Demand for newspaper for the ast 10 days has been follows 12, 13, 16,
15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales
for the next day using a 2 day moving average.
Solution
13 + 15 =
2
2
E

ECON 483 Quantitative Method
A person is using the normal distribution to determine the safety stock for a
product. The z value of 2.33 would be associated with what service level?
Solution
z = 2.33
Service level = 99% (Normal distribution table)
Suppose

Quantitative Analysis for Management, 11e (Render)
Chapter 3 Decision Analysis
1) Expected monetary value (EMV) is the average or expected monetary outcome of a
decision if it can be repeated a large number of times.
Answer: TRUE
Diff: 2
Topic: DECISION M

Exam
Name_
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) In regression, an independent variable is sometimes called a response variable.
1)
2) One purpose of regression is to understand the relationship between varia

) Models that do not involve risk or chance are
A) probabilistic models.
B) postoptimality models.
C) deterministic models.
D) MIS models.
E) None of the above
Answer: C
Diff: 2
Topic: HOW TO DEVELOP A QUANTITATIVE ANALYSIS MODEL
36) If input data are acc