Management > EXAM > Summer MGT 6203 FINAL EXAM QUESTIONS 2022Theory - (All)

Summer MGT 6203 FINAL EXAM QUESTIONS 2022Theory -

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Q1. We have developed a regression model: Rent = b0+ b1* House_WithPool where House_WithPool is a dummy variable set to 1 if a house has a Pool and is set to 0 otherwise. The Regression summary output is Estimate S.E. t Value Pr>|t| Intercept 1542.149 2.954 12.58*** <.001 House_WithPool 253.666 3.123 11.42*** <.001 What is the average rent of a house with Pool given the summary output? a. 1542.149 b. 1795.815 c. 1288.483 d. 253.666 Answer: B Q2. Why do we use Log-Transformations when we perform transformation of variables? A. To achieve a more linear relationship B. To make a distribution more normal C. To make the variance more constant D. All the above Solution: D) A, B and C are the objectives of performing Log Transformations Q3. What is the relation between Correlation and Covariance Q4. Which of the following statement is correct regarding the “size effect”? A) Size effect means smaller firms have higher returns than larger firms on average B) Stocks with high market capitalization generate returns greater than stocks with low market capitalization C) Stocks with low book to market ratio tend to outperform high book to market ratio stocks D) Firms that invest more will have a higher stock price Solution A: (Week 8 Lesson 1) Q5. Which of the following is not Fama-French factor? A. Value B. Size C. Momentum D. Market Answer: C) Fama-French factors include market, size, value factors and others. This study source was downloaded by 100000823742721 from CourseHero.com on 09-04-2022 02:53:08 GMT -05:00 https://www.coursehero.com/file/62181413/SAMPLE-FINAL-EXAM-QA2020-1docx/ Q6 Let us consider that in a small town, there are 100 households that possess a TV. Out of the 70 households that use the TV, 40 are viewing a particular channel. The rating of the channel is a. 70% b. 40% c. 60% d. 50% Answer: (B) Rating = (Households viewing the channel)/(Total TV Households) Q7. Which of the following is not a characteristic of display advertising? A. Works better with retargeting B. Can be contextual C. High click-through rates D. Comes in many sizes Answer: C Q8. A restaurant is considering opening a drive-through window for customer service. Management estimates that customers will arrive at the rate of 25 per hour during the morning office hours and at the rate of 10 per hour during the rest of the day. Assume Poisson arrival and exponential service times. During the morning office hours, the management would like to ensure with a 90% confidence (or service level) that no more than 4 cars will be in the system at any time. At what rate per hour would the service person need to operate at in order to meet a 90% service level? (Please select the closest answer) A. 37.23 B. 39.62 C. 35.41 D. 40.28 Answer: B

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