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NEW QUESTION 20
Company A is a large passenger airline. As part of their annual internal budget process they do a sensitivity analysis of their revenue forecast over their existing routes and schedules. The analysis evaluates the impact of a three percent decline in passenger revenue compared to a three percent increase. Which of the following expenses would show the largest change in the analysis?

  • A. Income tax expense
  • B. Aircraft maintenance expense
  • C. Depreciation and amortization expense
  • D. Salary expenses for flight crew

Answer: A

 

NEW QUESTION 21
An athletic shoe company is trying to establish a stronger brand identity with consumers. Its objective is to first understand, broadly, how consumers value its brand compared to its
competitors and then determine how much consumers value specific features of its competitors’ products. Which of the following approaches would be MOST effective in gathering this information?

  • A. Hold an auction to sell various models of the company’s shoes.
  • B. Gradually lower prices to determine demand.
  • C. Conduct a focus group and then a survey.
  • D. Conduct a survey and then run a conjoint analysis.

Answer: D

 

NEW QUESTION 22
A manager at an internet retailer wants to determine whether a recent change in the company’s supply chain strategy has affected the amount of time it takes for an order to reach a customer. The historical average amount of time from placing the order to final delivery is 5.2 days. A random sample of 60 orders taken after the implementation of the new strategy indicates an average delivery time of 4.5 days with a standard deviation of 1.4 days. The manager wishes to perform a hypothesis test at a 95% confidence level. Which option represents the correct calculation for the range of likely sample means? Please note that the function for confidence intervals in Excel is =CONFIDENCE.NORM(alpha, standard_dev, size).

  • A. =4.5 +- CONFIDENCE.NORM(0.05,1.4,60)
  • B. =5.2 +- CONFIDENCE.NORM(0.025,1.4,60)
  • C. =4.5 +- CONFIDENCE.NORM(0.025,1.4,60)
  • D. =5.2 +- CONFIDENCE.NORM(0.05,1.4,60)

Answer: D

 

NEW QUESTION 23
A shop owner wants to determine the effect of a new marketing strategy on the number of customers visiting the shop. What information should the shop owner consider when deciding whether to conduct a one-sided or two-sided hypothesis testing?

  • A. The objective of the hypothesis test
  • B. Analysis of the actual samples collected
  • C. The calculated one-sided and two-sided p-values
  • D. The significance level

Answer: A

 

NEW QUESTION 24
……

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