Quantitative Analysis
Final Assignment Take-Home Exam – Example Solutions
QUANTITATIVE ANALYSIS AND BUSINESS DECISION MAKING
Question 1 – 5 Points
Leila took a standardized test and was told that her score was in the 89th percentile. Explain clearly and in only one sentence what this means. Notes:
Percentiles are a way of describing the position of a particular score within a set of scores As per the question, I was looking for one simple sentence to explain the meaning of the statement
Ideal Answer: If Leila’s score was in the 89 percentile this means that Leila scored higher than 89% of participants in the test. th Question 2 – 10 Points
A gas station near the Emirates Road is revaluating its gasoline-fuel reorder point. The gasoline fuel level in its main tank triggers an automatic replenishment order. The daily demand faced by the station for gasoline is normally distributed with an average of 8,000 liters and standard deviation of 2,500 liters. After the automatic order is placed, the gasoline-fuel is received at the gas station in exactly 3 days. In other words, it takes three days lead time for the gasoline to be replenished after the order has been made. At what volume should the re-order point be set to ensure that the station’s chance of being out of stock during the replenishment period is limited to a probability of 5%? Notes:
Those people who did not score full points on this question usually made it more complicated than it is. This question is very similar to many exercises we did together in class. The only complication is the three days of lead time
– which was added to make the question more realistic for an actual business situation. Ideal Answer: µ = 8000; S = 2,500; Alpha = 0.05
The average consumption is 8000l, with a standard deviation of 2,500l. In order to identify the range of daily usage that has a 95% probability of occurring, we need to look at the range +/- two standard deviations = 3,000l to 13,000l
In order to ensure
QUANTITATIVE ANALYSIS AND BUSINESS DECISION MAKING
Question 1 – 5 Points
Leila took a standardized test and was told that her score was in the 89th percentile. Explain clearly and in only one sentence what this means. Notes:
Percentiles are a way of describing the position of a particular score within a set of scores As per the question, I was looking for one simple sentence to explain the meaning of the statement
Ideal Answer: If Leila’s score was in the 89 percentile this means that Leila scored higher than 89% of participants in the test. th Question 2 – 10 Points
A gas station near the Emirates Road is revaluating its gasoline-fuel reorder point. The gasoline fuel level in its main tank triggers an automatic replenishment order. The daily demand faced by the station for gasoline is normally distributed with an average of 8,000 liters and standard deviation of 2,500 liters. After the automatic order is placed, the gasoline-fuel is received at the gas station in exactly 3 days. In other words, it takes three days lead time for the gasoline to be replenished after the order has been made. At what volume should the re-order point be set to ensure that the station’s chance of being out of stock during the replenishment period is limited to a probability of 5%? Notes:
Those people who did not score full points on this question usually made it more complicated than it is. This question is very similar to many exercises we did together in class. The only complication is the three days of lead time
– which was added to make the question more realistic for an actual business situation. Ideal Answer: µ = 8000; S = 2,500; Alpha = 0.05
The average consumption is 8000l, with a standard deviation of 2,500l. In order to identify the range of daily usage that has a 95% probability of occurring, we need to look at the range +/- two standard deviations = 3,000l to 13,000l
In order to ensure