QM Unit 1-2 Part 1 (Multiple Choice)

1. Which of the following best defines Quantitative Analysis?

a. A technique relying strictly on subjective interviews and focus group discussions.

b. A scientific approach to managerial decision-making using mathematical and statistical modeling.

c. An analytical tool used exclusively for coding non-numerical document transcripts.

d. A qualitative method designed to determine customer sentiment through manual coding.

b. A scientific approach to managerial decision-making using mathematical and statistical modeling.

2. In the decision-making process, quantitative methods primarily assist managers by doing which of the following?

a. Guaranteeing that no operational risks will ever occur.

b. Replacing human managers with automated artificial intelligence systems.

c. Providing measurable data and alternative ways to assess complex business problems.

d. Eliminating the need for financial budgeting and inventory planning.

c. Providing measurable data and alternative ways to assess complex business problems.

3. Which statistical tool is typically used to evaluate the impact of one variable on another, such as how advertising spending affects overall business profit?

a. NVIVO coding

b. Likert Scale Indexing

c. Regression Analysis

d. Focus Group Discussion (FGD

c. Regression Analysis

4. Which phase of implementing quantitative analysis involves representing the real-world business problem as mathematical equations or formulas?

a. Definition of the problem

b. Model Construction

c. Model Solution

d. Implementation

b. Model Construction

5. What is the primary purpose of the non-negativity constraint in Linear Programming models (X₁, X₂ ≥ 0)?

a. To ensure that costs always exceed revenue.

b. To ensure that decision variables cannot take on negative physical quantities.

c. To guarantee that the objective function value equals zero.

d. To eliminate all upper bounds on resource consumption.

b. To ensure that decision variables cannot take on negative physical quantities.

6. A linear programming model assumes that all parameters and coefficients are completely known with certainty. Which basic requirement of LP does this describe?

a. Divisibility

b. Linearity

c. Deterministic

d. Stochastic

c. Deterministic

7. Which of the following is considered a major limitation of Linear Programming?

a. It cannot optimize limited resources effectively.

b. It assumes non-linear relationships between variables can easily be accommodated.

c. It may produce non-integer solutions which could be non-viable or meaningless for discrete items.

d. It does not allow managers to perform sensitivity analysis.

c. It may produce non-integer solutions which could be non-viable or meaningless for discrete items.

8. In Linear Programming, an objective function designed to minimize usually deals with which type of variable?

a. Net Profit

b. Total Revenue

c. Production Cost or Time

d. Rate of Return

c. Production Cost or Time

9. Which application of quantitative analysis helps businesses determine optimum reorder points, required raw materials, and shipping/storage cost reductions?

a. Marketing Strategy

b. Purchase and Inventory Management

c. Human Resource Coding

d. Qualitative FGD Analysis

b. Purchase and Inventory Management

10. What phase ensures that the constructed mathematical model provides a reliable prediction of the system's actual performance before implementation?

a. Model Solution

b. Model Formulation

c. Model Validity

d. Problem Definition

c. Model Validity

11. Which qualitative analysis software is commonly used for analyzing word-based transcripts and manual coding processes?

a. SPSS

b. R

c. NVIVO

d. Excel

c. NVIVO

12. The Likert Scale (e.g., 5, 4, 3, 2, 1) is typically associated with which instrument during data collection?

a. Observation Guide

b. Survey Questionnaire

c. Interview Guide Questions

d. Document Analysis Matrix

b. Survey Questionnaire

13. Which technique is used to verify quantitative data reliability by checking data against other independent sources?

a. Model Construction

b. Triangulation of Data

c. Parameter Estimation

d. Regression Modeling

b. Triangulation of Data

14. Strategic frameworks such as SWOT Analysis and PESTLE are used in quantitative decision-making to facilitate:

a. Parameter estimation

b. Selecting an appropriate strategy

c. Minimizing data reliability

d. Document coding

b. Selecting an appropriate strategy

15. What metric is commonly evaluated in product planning and scheduling to ensure effective proposals satisfy customer needs while maximizing company profit?

a. Return on Investment (ROI)

b. Standard Deviation (sd)

c. Likert Scale Index

d. Analysis of Words

a. Return on Investment (ROI)

16. In quantitative analysis implementation, which phase focuses on developing a clear, concise statement outlining the scope, objectives, and constraints under investigation?

a. Implementation

b. Definition of the Problem

c. Model Solution

d. Model Validity

b. Definition of the Problem

17. Developing a solution for a mathematical model involves manipulating the model using which type of procedures?

a. Qualitative or subjective procedures

b. Analytical or numerical procedures

c. Interviewing or observation procedures

d. Manual coding or thematic procedures

b. Analytical or numerical procedures

18. Which basic requirement of Linear Programming specifies that all objective function terms and constraint relationships must be direct linear equations?

a. Divisibility

b. Linearity

c. Deterministic

d. Non-negativity

b. Linearity

19. In marketing strategy applications, quantitative methods enable companies to set budget requirements and allocate purchases based on data obtained from:

a. Focus group discussions

b. Marketing campaigns

c. Document analysis

d. Manual coding

b. Marketing campaigns

20. Which limitation highlights that real-world business scenarios often have multiple conflicting goals, whereas standard LP models focus on a single objective?

a. Continuous variable assumption

b. Single objective limitation

c. Linear relationship rule

d. Parameter certainty

b. Single objective limitation