Question

1. Which of the following is not one of the steps in managerial decision making? a) Predicting the consequences of a decision. b) Exploring the alternatives to the decision. c) Defining the problem and the objectives of the decision. d) Negotiating a consensus to implement the decision. e) Performing sensitivity analysis. 2. If a firm's profit is given by a = -150 + 360Q - 36Q2, then its optimal output is: a) 12 units. b) 5 units. c) 2 units. d) 20 units. e) 36 units. 3. Calculate the sum of squared errors of the observations from the Table below. The following table shows the predicted and the actual sales of a firm in the quarters of a year. Quarter Predicted Sales Actual Sales in dollars) (in dollars) 20 19 22 20 24 21 28 26 2 3 4 a) 20 b) 34 c) 18 d) 22 e) 15 4. The standard error of the regression: a) measures the explanatory power of the regression equation and lies between 0 and 1. b) measures the explained variation in the dependent variable. c) measures the unexplained variation in the dependent variable. d) is equal to the sum of squared errors minus the total sum of squares. e) is equal to the slope of the regression equation. 5. Which of the following is true in the long-run?

Answer 1

6 • ch measures the unexplained variation in dependent variable. formula can be seen from above answer It gives the ac accuracy of the approximate prediction error descan equation, by taking difference between actual and predicted value. Scanned by TapScanner of the rea