First Test

Question 0

Objective approach

Answer 0

What the probability of tossing a coin. You have an understanding of what the answer will be

Question 1

Probability

Answer 1

Numerical statement about the chance that an vent will occur

Question 2

Subjective approach

Answer 2

You don’t have a good idea of the answer. You get an opinion (a poll)

Question 3

Mutually exclusive

Answer 3

Only one of the events can occur in a single trial

Question 4

Collectively exhaustive

Answer 4

The list of outcomes includes every possible outcome

Question 5

What is marginal probability

Answer 5

The probability of an event occurring. Also called a simple probability

Question 6

Conditional probability is the

Answer 6

Probability of an event occurring given that another event had taken place

Question 7

What is joint probability

Answer 7

the probability of events occurring together ( one after another)

Question 8

Baye’s theorem

Answer 8

a formula that is used to revise probabilities based on new information

Question 9

randome variable **

Answer 9

Variable that given as specific number or value

Question 10

A normal curve

Answer 10

Is continuos

Question 11

What is baye’s theory

Answer 11

A formula that is used to revise probabilities based in new information

Question 12

A discrete random variable

Answer 12

a randome variable that can only assume a limited set of values

Question 13

What Is variance

Answer 13

A measure of dispurshion

Question 14

what is standard divination

Answer 14

square route of the variance

Question 15

Marginal probability is the

Answer 15

Probability of an event occurring

Question 16

the jury if executive opinion

Answer 16

a panel data from top executives

Question 17

explain time series

Answer 17

historical data, predict the trend into the future

Question 18

other names for dummy variables

Answer 18

indicator variable or a binary variable

Question 19

the coefficient of correlation ranges from..

Answer 19

the correlation coefficient ranges from -1 to +1

Question 20

define dummy variable

Answer 20

a variable used to represent a qualitative factor or condition. Dummy variables have values of 0 or 1.

Question 21

define regression analysis

Answer 21

a forecasting procedure that uses the least square approach on one or more independent variables to develop a forecasting model.

Question 22

a simple average is calculated by

Answer 22

add and / by total

Question 23

weighted average is calculated by

Answer 23

you / by the sum of the wights, (like when calculating your grades)

Question 25

explain moving average of data

Answer 25

it smooths out variations when forecasting demands are fairly steady. You average the last 3#'s

Question 26

explain the components of forecasting

Answer 26

trend, cycle, seasonal, random

Question 27

define residual

Answer 27

another term for error

Question 28

what is the dependent variable

Answer 28

the Y variable in a regression model, whats being predicted.

Question 29

define mean squared error

Answer 29

an estimate of the error variance

Question 30

what is a multiple regression model

Answer 30

a regression model that has more than one independent variables

Question 31

define P-Value

Answer 31

a probability value that is used when testing a hypothesis.

Question 32

when is the P-Value hypothesis rejected?

Answer 32

when the PValue is low.

Question 33

define classical or logical approach

Answer 33

an objective way of assessing probabilities based on logic

Question 34

define marginal probability

Answer 34

te simple probability of an event occurring

Question 35

define mutually exclusive events

Answer 35

a situation in which only one event can occur on any given trial or experiment

Question 36

define normal distribution

Answer 36

a continuous bell shaped distribution that is a function of two parameters, that mean and standard divination of the distribution

Question 37

define probability distribution

Answer 37

the set of all possible values of a random variable and their associated probabilities

Question 38

define relative frequency approach

Answer 38

an objective way of determining probabilities based on observing frequencies over a number of trials

Question 39

define standard deviation

Answer 39

the square root of a variance

Question 40

define subjective approach

Answer 40

a method of determining probability values based on experience or judgment

Question 41

define variance

Answer 41

a measure of dispersion or spread of the probability distribution

Question 42

define decision making under risk

Answer 42

a decision making environment in which several outcomes may occur as a result of a decision. The probability of the outcomes are known

Question 43

define decision making under uncertainty

Answer 43

a decision making environment in which several outcomes may occur, The probability of the outcomes are not known

Question 44

define expected monetary value

Answer 44

the average value of a decision if it can be repeated many times.

Question 45

what does MAD stand for

Answer 45

mean absolute deviation

Question 46

define MAD

Answer 46

a technique for determining the accuracy of a forecasting model by taking the average of the absolute deviations

Question 47

discrete probability distribution

Answer 47

a probability distribution with a discrete random variable