Practice Test Geeks(COM) Certified Operations Manager Practice Test
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Data Analysis & Decision Making Flashcards

7 cards from real COM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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

    Answer: Expected value analysis

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

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

    Answer: The process is barely capable and produces defects outside specification limits

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

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

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

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

  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?

    Answer: Reject the project as it does not meet the payback threshold

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

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

    Answer: Visually categorize potential causes contributing to a specific problem

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

  6. Which data sampling method is most appropriate when an operations manager needs representative data from multiple production shifts?

    Answer: Stratified random sampling

    Stratified random sampling divides the population into subgroups (strata) such as shifts, then randomly samples from each, ensuring representation.

  7. A manager must choose between two supply chain strategies with different risk profiles. Which decision-making tool maps outcomes across multiple sequential choices?

    Answer: Decision tree

    A decision tree diagrams sequential choices and their probabilistic outcomes, allowing managers to calculate expected values along each branch.