National University

Quantitative Technique for Managers

SAMPLE QUIZ #01

MCQ’s
Here are 20 multiple-choice questions (MCQs) on Quantitative Techniques for
Managers along with their answers:

1. What is the main purpose of quantitative techniques in management?

a. To increase employee satisfaction
b. To improve decision-making
c. To reduce costs
d. To enhance communication
Answer: b. To improve decision-making

2. Which of the following is not a quantitative data analysis technique?

a. Regression analysis
b. SWOT analysis
c. Probability theory
d. Time series analysis
Answer: b. SWOT analysis

3. What is the standard deviation used for in statistics?

a. To measure central tendency
b. To measure variability or dispersion
c. To calculate the mean
d. To find the mode
Answer: b. To measure variability or dispersion

4. Which of the following is a measure of central tendency?

 a. Range
b. Variance
c. Median
d. Coefficient of variation
Answer: c. Median

5. In linear programming, what is the objective function?

a. The constraints
b. The solution space
c. The decision variables
d. The equation to be maximized or minimized
Answer: d. The equation to be maximized or minimized

6. Which type of data is categorical and non-numeric in nature?

a. Ordinal data
b. Interval data
c. Ratio data
d. Nominal data
Answer: d. Nominal data

7. What is the primary purpose of a Pareto chart in quality management?

a. To display cumulative frequency distribution
b. To identify the most significant factors contributing to a problem
c. To show a scatterplot of data
d. To represent a normal distribution
Answer: b. To identify the most significant factors contributing to a
problem

8. Which statistical test is used to determine if there is a significant difference

between two or more groups?
a. Chi-squared test
 b. T-test
c. ANOVA (Analysis of Variance)
d. Correlation test
Answer: c. ANOVA (Analysis of Variance)

9. What is the formula for calculating the break-even point in units?

a. Fixed Costs / (Selling Price - Variable Cost per Unit)
b. (Selling Price - Variable Cost per Unit) / Fixed Costs
c. Fixed Costs x Selling Price / Variable Cost per Unit
d. Variable Cost per Unit / Fixed Costs
Answer: a. Fixed Costs / (Selling Price - Variable Cost per Unit)

10. Which of the following is not a time series forecasting method?

a. Moving average
b. Exponential smoothing
c. Linear regression
d. Seasonal decomposition
Answer: c. Linear regression

11. What is the main purpose of decision tree analysis in quantitative

techniques?
a. To find the optimal path in a maze
b. To visualize decision-making processes
c. To analyze time series data
d. To calculate the mean and standard deviation
Answer: b. To visualize decision-making processes
12. Which of the following is a measure of relative risk in statistics?
a. Odds ratio
b. Standard deviation
c. Coefficient of determination
d. Z-score
Answer: a. Odds ratio

13. What does the acronym "ROI" stand for in financial management?
a. Return on Investment
b. Rate of Inflation
c. Risk of Insolvency
d. Revenue of Interest
Answer: a. Return on Investment

14. Which of the following is a measure of liquidity for a company?

a. Debt-to-Equity Ratio
b. Price-to-Earnings Ratio
c. Current Ratio
d. Return on Assets
Answer: c. Current Ratio

15. In a decision-making context, what does the term "sensitivity analysis"

refer to?
a. Analyzing the emotional state of decision-makers
b. Evaluating the impact of changes in input variables on the output
c. Identifying the stakeholders involved in a decision
d. Assessing the ethical implications of a decision
Answer: b. Evaluating the impact of changes in input variables on
the output
16. What is the formula for calculating the Net Present Value (NPV) of a series
of cash flows?
a. NPV = Initial Investment / Discount Rate
b. NPV = ∑(Cash Flows) / (1 + Discount Rate)^t
c. NPV = Final Value - Initial Investment
d. NPV = Cash Flows × Discount Rate
Answer: b. NPV = ∑(Cash Flows) / (1 + Discount Rate)^t

17. In linear programming, what is a constraint?

a. A limitation on the decision variables
b. An objective function to be maximized
c. A scenario analysis
d. A fixed cost
Answer: a. A limitation on the decision variables

18. What is the primary purpose of a control chart in quality management?

a. To display cumulative frequency distribution
b. To identify the most significant factors contributing to a problem
c. To monitor a process and detect variations
d. To represent a normal distribution
Answer: c. To monitor a process and detect variations

19. Which statistical test is used to analyze the relationship between two
categorical variables?
a. Chi-squared test
b. T-test
c. ANOVA (Analysis of Variance)
d. Pearson correlation
Answer: a. Chi-squared test

20. What is the primary purpose of a Gantt chart in project management?

 a. To display cumulative frequency distribution
b. To identify the most significant factors contributing to a problem
c. To monitor project progress and schedule tasks
d. To represent a normal distribution
Answer: c. To monitor project progress and schedule tasks

These questions cover a range of topics within quantitative techniques for

managers.