Q1.

A simple index is obtained by dividing the current value of a time series by the value of a time series
in the _____________ time period and by
multiplying this ratio by 100.
Select one:
a. shortest
b. current
c. base
d. final

Q2. In hypothesis testing, to conduct comparison of mean μ1 of random sample (from population 1) is
more often than mean μ2 of random sample (from population 2) whether, both come from two different
population or same population, alternate hypothesis can be framed as;
Select one:
a. m1≤m2
b. m1>m2
c. m1≥m2
d. m1<m2

Q3. The important characteristics of random numbers is

Select one:
a. random numbers should be replicable
b. the routine must be fast
c. the routine should have sufficiently long cycle
d. All of the alternatives are correct.

Q4. In hypothesis testing, to conduct comparison of mean μ1 of random sample (from population 1) is
more often than mean μ2 of random sample (from population 2) whether, both come from two different
population or same population. Suppose standard deviation σ1 and σ2 are known, α= .01, then what
could be the critical z value;
Select one:
a. 2.33
b. -2.58
c. -1.96
d. 1.28

Q5. A weighted aggregate price index where the weight for each item is its base-period quantity is known
as the
Select one:
a. Laspeyres
b. weight index
c. Quantity index
d. Paasche

Q6. In hypothesis testing, to conduct comparison of mean μ1 of random sample (from population 1) is
more often than mean μ2 of random sample (from population 2) whether, both come from two different
population or same population, null hypothesis can be framed as;
Select one:
a. m1>m2
b. m1≥m2
c. m1<m2
d. m1≤m2

Q7. Number of steps required in Monte Carlo simulation

Select one:
a. 4
b. 5
c. 6
d. 3

Q8. In the following example, null and alternative hypotheses are written as.
Ho: sample mean ≤ 150
Ha: sample mean > 150
Select a statement which holds true.
Select one:
A. Null and alternative hypotheses are rightly set to conduct testing.
B. Null and alternative hypotheses are not mutually exclusive.
C. Null and alternative hypotheses not set for population parameter.
D. Null and alternative hypotheses not collectively exhaustive.

Q9. Select statement which holds true for a statistical hypothesis;

Select one:
a. Statistical hypothesis is a generalized statement about population parameter.
b. Statistical hypothesis is any random statement made by researcher.
c. Statistical hypothesis is a generalized statement about sample statistics.
d. Statistical hypothesis is a statement about sample.

Q10. In the following example, null and alternative hypotheses are written as.
Ho: μ = 10
Ha: μ ≠ 10
Select a statement which holds true.
Select one:
A. Test is two tail test.
B. Test is left tail test
C. Test is one tail test
D. Test is no tail test

Q11. The uncontrollable inputs in simulation are

Select one:
a. variable lead time
b. both daily demand and variable lead time
c. none of these
d. daily demand

Q12. In hypothesis testing, comparison of means of two random samples is conducted whether, both
come from two different population or
same. Suppose standard deviation σ1 and σ2 are known, α = .01, then what could be the critical z value;
Select one:
a. -1.28 and 1.28
b. -2.33 and 2.33
c. -2.58 and 2.58
d. -1.96 and 1.96

Q13. The controllable inputs in simulation are

Select one:
a. order quantity
b. none of these
c. both order quantity and reorder points
d. reorder points
Q14. Since a(n) ____________ index employs the base-period quantities in all succeeding periods, it
allows for ready comparisons for identical quantities of goods purchased between the base period and all
succeeding periods
Select one:
a. simple
b. Laspeyres
c. Paasche
d. aggregate

Q15. Consumer Price Index is

Select one:
a. an index that is designed to measure changes in production levels over time.
b. an index that is designed to measure changes in quantities over time.
c. a weighted aggregate price index where the weight for each item is its last-period quantity.
d. a weighted aggregate price index where the weight for each item is its current-period quantity.

Q16. In hypothesis testing we need to define first;

Select one:
a. Null and alternate hypothesis
b. Sample size
c. Type of error
d. Level of significance

Q17. A major drawback of the aggregate price index is that

Select one:
a. it does not take into account the fact that some items in the market basket are purchased more
frequently than others.
b. it is computed by using the values from a single time series or based on a single product
c. it is difficult to compute
d. percentage comparisons cannot be made to the base year.

Q18. In the following example, null and alternative hypotheses are written as.
Ho: μ≤ 11
Ha: μ > 10
Select a statement which holds true.
Select one:
A. Null and alternative hypotheses are rightly set to conduct testing.
B. Null and alternative hypotheses are not mutually exclusive.
C. Null and alternative hypotheses not set for population parameter.
D. Null and alternative hypotheses not collectively exhaustive

Q19. In hypothesis testing, comparison of means of two random samples is conducted whether, both
come from two different population or
same. Suppose standard deviation σ1 and σ2 are known, α= .05, then what could be the critical z value;
Select one:
a. -1.96 and 1.96
b. -1.28 and 1.28
c. -2.58 and 2.58
d. -2.33 and 2.33

Q20. In hypothesis testing, what is the assumption about null hypothesis?

Select one:
a. Null hypothesis is true
b. Null hypothesis cannot be rejected.
c. Null hypothesis is always true
d. Null hypothesis is false

Q21. The price relative is a price index that is determined by

Select one:
a. (price in period t/base period price)(100)
b. (price in period t + base period price)(100)
c. (base period price/price in period t)(100)
d. (price in period t)(100)

Q22. Static simulation is generally referred as

Select one:
a. Monte carlo
b. continuous
c. stochastic
d. deterministic

Q23. In the following example, null and alternative hypotheses are written as.
Ho: μ≤ 10
Ha: μ > 10
Select a statement which holds true.
Select one:
A. Test is two tail test.
B. Test is left tail test
C. Test is one tail test
D. Test is no tail test

Q24. Simulation is used when

Select one:
a. project is very complicated
b. All of the alternatives are correct.
c. project is risky
d. there is huge cost involved

Q25. Monte Carlo simulation can be applied to which models

Select one:
a. service times
b. number of employees absent
c. All of the alternatives are correct.
d. times between failures

Q26. In hypothesis testing, to conduct comparison of means of two random samples whether, both come
from two different population or same,
null hypothesis can be framed as;
Select one:
a. m1≤m2
b. m1≥m2
c. m1=m2
d. m1≠m2

Q27. In hypothesis testing, to conduct comparison of means of two random samples whether, both come
from two different population or same,
alternate hypothesis can be framed as;
Select one:
a. m1≥m2
b. m1=m2
c. m1≠m2
d. m1≤m2

Q28. In hypothesis testing, comparison of means of two random samples is conducted whether, both
come from two different population or
same. Suppose standard deviation σ1 and σ2 are known, α= .10, then what could be the critical z value;
Select one:
a. -2.58 and 2.58
b. -1.96 and 1.96
c. -1.28 and 1.28
d. -2.33 and 2.33

Q29. A monthly price index that uses the price changes in consumer goods and services for measuring the
changes in consumer prices over time
is known as the
Select one:
a. Paasche Index
b. Laspeyres Index
c. Consumer Price Index
d. Producer Price Index

Q30. A price index for a given item which is computed by dividing a current unit price by a base-period
unit price and multiplying the result by 100
is known as the
Select one:
a. Price relative
b. Consumer price index
c. Paasche index
d. Producer price index

Q31. Suppose that the sample regression line of the first-order model is. If we examine the relationship
between y and x1 for four different values of x2, we observe that the:
a. cannot answer this question without more information.
b. effect of x1 and y remains the same no matter what the value of x2.
c. effect of x1 on y remains the same no matter what the value of x1.
d. only difference in the four equations produced is the coefficient of x2.

Q32. Suppose we wish to test H0: µ = 45 vs. H1: µ > 45. What will result if we conclude that the mean is
greater
than 45 when the actual mean is 50?
a. We have made a Type I error.
b. We have made the correct decision
c. We have made both a Type I error and a Type II error.
d. We have made a Type II error.

Or

Q32. Suppose we wish to test H0: m = 45 vs. H1: m > 45. What will result if we conclude that the mean is
greater
than 45 when the actual mean is 50?
a. We have made a Type I error.
b. We have made the correct decision
c. We have made both a Type I error and a Type II error.
d. We have made a Type II error.

Q33. A robust estimator is one that is:

Select one:
a.unbiased and symmetrical about zero.
b.consistent and is also mound-shaped.
c.efficient and less spread out.
d.not sensitive to moderate nonnormality.

Q34. Which of the following is not an advantage of multiple regression as compared with analysis of
variance?
Select one:
a. Multiple regression handles problems with more than two independent variables easier than analysis
of variance.
b. All of these choices are true are advantages of multiple regression as compared with analysis of
variance
c. Multiple regression handles nominal variables better than analysis of variance.
d. Multiple regression can be used to estimate the relationship between the dependent variable and
independent variables.

Q35. The hypothesis of most interest to the researcher is:

Select one:
a. the null hypothesis.
b. both hypotheses are of equal interest.
c. the alternative hypothesis.
d. Neither hypothesis is of interest.

Q36. Index for base period is always taken as:

Select one:
a. 1
b. 200
c. 10
d. 100

Q37. In testing the difference between the means of two normal populations using two independent
samples when the population variances are unequal, the sampling distribution of the resulting statistics
is:
Select one:
a. approximately normal.
b. approximately student-t.
c. normal.
d. student-t.

Q38. If we reject the null Hypothesis when it is false, then we have committed:
Select one:
a. both a Type I error and a Type II error.
b. a Type I error.
c. Neither a Type I error nor a Type II error.
d. a Type II error.

Q39. A value for probabilistic input from a discrete probability distribution

Select one:
a. must be non-negative.
b. is given by matching the probabilistic input with an interval of random numbers.
c. is the value given by the RAND() function.
d. is between 0 and 1.

Q40. The level of significance can be:

Select one:
a. None of these choices.
b. any number greater than 1.96 or less than -1.96
c. any number greater than zero.
d. any number between -1.0 and 1.0

Q41. Which of the following probabilities is equal to the significance level a?

Select one:
a. Probability of making a Type I error.
b. Probability of making a Type II error.
c. Probability of rejectingH0when you are supposed to.
d. Probability of not rejectingH0when you shouldn't

Q42. A Type I error is committed if we make:

Select one:
a. a correct decision when the null hypothesis is true.
b. an incorrect decision when the null hypothesis is false.
c. an incorrect decision when the null hypothesis is true.
d. a correct decision when the null hypothesis is false.

Q43. In testing the difference between two population means for which the population variances are
unknown and not assumed to be equal, two independent samples are drawn from the populations, which
of the following test is appropriate?
a. None of these choices
b. unequal variances t-test
c. z-test
d. pooled-variances t-test

Q44. A Type II error is defined as:

Select one:
a. not rejecting a true null hypothesis
b. rejecting a false null hypothesis
c. rejecting a true null hypothesis
d. not rejecting a false null hypothesis

Q45. Values for the probabilistic inputs to a simulation

Select one:
a. are selected by the decision maker.
b. are controlled by the decision maker.
c. are randomly generated based on historical information.
d. are calculated by fixed mathematical formulas.

Q46. A Quality that is difficult to measure with certainty is called a

Select one:
a. project determinant
b. risk analysis
c. profit/loss process
d. probabilistic input
Q47. The expected value of the difference of two sample means equals the difference of the
corresponding population means when:
a. the sample are independent.
b. the populations are approximately normal and the sample sizes are large.
c. the populations are normally distributed.
d. All of these choices are true.

Q48. What prices are measured using the consumer price index?
Select one:
a. Goods only
b. Services only
c. Both Goods and Services.
d. None of the above.

Q49. A spouse suspects that the average amount of money spent on Christmas gifts for immediate family
members is above $1,200. The correct set of hypotheses is:
Select one:
a. H0:m &I≠1200 vs. H1:m=1200
b. H0:m = 1200 vs. H1:m &g≠1200
c. H0: m&g ≠ 1200 vs. H1:m=1200
d. H0:m =1200 vs. H1:m &I≠1200

Q50. In testing the difference between the means of two normally distributed populations, the number
of degrees of freedom associated with the unequal variances t-test statistic usually results in a non-
integer number. It is recommended that you:
Select one:
a. Change the sample sizes until the number of degrees of freedom becomes an integer.
b. assume that the population variances are equal and then us df=n1+n2-2.
c. round to the nearest integer.
d. none of these choices.

Q51. The t-test for the difference between the means of two independent populations assumes that the
respective:
Select one:
a. means are equal.
b. sample sizes are equal.
c. populations are normal.
d. All of these choices are true.

Q52. A completely randomized design

Select one:
a. has one factor and one block
b. has only one factor with several treatment groups
c. can have more than one factor, each with several treatment groups.
d. has one factor and one block and multiple values

Q53. In testing a hypothesis using the chi square test, the theoretical frequencies are based on the
Select one:
a. normal distribution
b. null hypothesis
c. None of the above
d. alternative hypothesis
Q54. If we are testing for the difference between the means of two independent populations with equal
variances, samples of n1=15 and n2=15 are taken, then the number of degrees of freedom is equal to
Select one:
a. 28
b. 13
c. 14
d. 29

Q55. In testing for the differences between the means of two independent populations where the
variances in each population are unknown but assumed equal the degrees of freedom is:
Select one:
a. n1+n2-1
b. n1+n2
c. n1+n2-2
d. None of these choices

Q56. Which of the following conclusions is not an appropriate conclusion from a hypothesis test?
Select one:
a. Accept H0. Sufficient evidence to support Ho.
b. All of these choices are true.
c. Reject H0. Sufficient evidence to support H1.
d. Fail to reject H0. Insufficient evidence to support H1.

Q57. For statistical inference about the mean of a single population when the population standard
deviation is unknown, the degrees for freedom for the t-distribution equal n-1 because we lose one
degree of freedom by using the:
Select one:
a. sample proportion as an estimate of the population proportion.
b. sample size as an estimate of the population size.
c. sample mean as an estimate of the population mean.
d. sample standard deviation as an estimate of the population standard deviation

Q58. According to____________, “Index numbers are devices for measuring differences in the magnitude
of a group of related variables.”
Select one:
a. Both (a) ad (b)
b. Croxton and Cowden
c. None of the above
d. Spiegel

Q59. The probability of a Type I error is denoted by:

Select one:
a. 1-b
b. a
c. b
d. 1-a

Q60. The probability of a Type II error is denoted by:

Select one:
a. 1-a
b. a
c. b
d. 1-b