B4 - Operations Management: Planning Techniques Flashcards
What is R-squared?
The coefficient of determination. It is a number between -1 and +1.
The proportion of the dependent variable explained by the independent variable.
Estimates the dependent variables based on changes in the independent variable.
What is the Standard Error?
A measure of Std Dev.
What is t-statistic?
Used in hypothesis testing and computation of confidence levels.
What is p-value?
Statistical measure that shows the likelihood that data could have occurred by chance.
What is regression analysis?
A method that can be used to separate costs into fixed and variable components.
What is a Monte Carlo analysis?
It is used to generate individual values for a random variable.
What is Dynamic Programming?
It is used to make a series of interrelated decisions.
What is trend analysis?
Used to project costs in the future.
What does a negative coefficient of correlation indicate?
Inverse relationship.
What does a positive coefficient of correlation indicate?
A strong relationship.
What does a zero coefficient of correlation indicate?
No relationship.
What is the intercept value?
The point at which at which a variable intercepts Y axis.
What is the difference between Multiple Regression and Simple Regression?
Multiple regression has more than one independent variable.
What is a Learning Curve analysis?
Used to determine increases in efficiency for production as experience is gained.
What is expected value analysis?
LT of repeated trials.
Sum of Probability * Payoffs
