COM Data Analysis & Decision Making 3

Question 1

Which framework helps operations managers evaluate decisions under uncertainty by assigning probabilities to outcomes?

Accepted Answer

Expected value analysis

Answer

Expected value analysis multiplies each outcome's value by its probability and sums the results to identify the best decision under uncertainty.

Question 2

A Six Sigma team calculates a process capability index (Cpk) of 0.85. What does this indicate?

Accepted Answer

The process is barely capable and produces defects outside specification limits

Answer

A Cpk below 1.0 indicates the process is not capable of consistently meeting specification limits, resulting in out-of-spec output.

Question 3

In regression analysis used for operations forecasting, what does the R-squared value measure?

Accepted Answer

The proportion of variance in the dependent variable explained by the model

Answer

R-squared indicates how well the independent variables explain variation in the dependent variable, ranging from 0 (no fit) to 1 (perfect fit).

Question 4

A cost-benefit analysis for a new warehouse automation system shows a payback period of 4.2 years. Management's threshold is 3 years. What is the correct decision?

Accepted Answer

Reject the project as it does not meet the payback threshold

Answer

If the calculated payback period exceeds the organization's maximum acceptable threshold, the project does not meet the financial decision criteria.

Question 5

What is the primary purpose of a fishbone (Ishikawa) diagram in operations data analysis?

Accepted Answer

Visually categorize potential causes contributing to a specific problem

Answer

A fishbone diagram organizes potential causes of a problem into categories (people, process, equipment, etc.) to support structured root cause analysis.

(COM) Certified Operations Manager Practice Test

(COM) Certified Operations Manager Practice Test

COM Data Analysis & Decision Making 3