- (Topic 1)
P(A) = .42, P(B) = .58 P(A&B) = .10. Are A and B mutually exclusive (or disjoint)?

1. A. yes
2. B. no

Correct Answer: B

- (Topic 1)
Customer segmentation refers to:

1. A. dividing a particular customer into parts that are more easily understood
2. B. grouping customers by one or more criteria
3. C. maintaining secure customer listings to minimize communication among them
4. D. eliminating or “cutting off” customers with poor credit history

Correct Answer: B

- (Topic 1)
The primary metric for a project is reduced cost for process A . Baseline data might include:

1. A. current maintenance costs
2. B. current selling price for the products or services output by process A
3. C. current suggestions from stakeholders of process A
4. D. all the above
5. E. none of the above

Correct Answer: A

- (Topic 1)
A _____ from a sample is used to estimate a population ______. The two words that best fill these blanks are:

1. A. item, value
2. B. value, statistic
3. C. statistic, parameter
4. D. parameter, value
5. E. parameter, statistic

Correct Answer: C

- (Topic 1)
Perform a risk analysis to determine the expected profit or (loss) from a project which has four possible disjoint outcomes: Outcome A shows a profit of $340,000 and has a probability of 0.25 Outcome B shows a profit of $120,000 and has a probability of 0.40 Outcome C shows a loss of $40,000 and has a probability of 0.10 Outcome D shows a profit of $100,000 and has a probability of 0.25

1. A. $130,000
2. B. $520,000
3. C. $154,000
4. D. ($168,000)
5. E. none of the above

Correct Answer: C