Question 1

In capacity planning, a manufacturing company's historical data shows cyclic demand patterns with peaks every December. What is the most appropriate method to forecast future capacity needs? (difficulty: medium)

Options :

A : Simple moving average of the last 3 months

B : Exponential smoothing with seasonality factors

C : Linear regression without seasonal adjustments

D : Last year-s December data only

Answer: B

Question 2

If demand for a product is unit elastic and price increases by 15%, what happens to total revenue? (difficulty: hard)

Options :

A : Total revenue increases by 15%

B : Total revenue decreases by 15%

C : Total revenue remains the same

D : Cannot be determined without more information

Answer: C

Question 3

When analyzing a box plot in GMAT data interpretation, if the lower quartile is 20, median is 25, and upper quartile is 40, what does this tell us about the data's distribution? (difficulty: hard)

Options :

A : The data is normally distributed

B : The data is positively skewed

C : The data is negatively skewed

D : The data is bimodal

Answer: B

Question 4

A retail company improved its inventory turnover from 4 to 6 times per year while maintaining the same sales level. What does this indicate about inventory management efficiency? (difficulty: medium)

Options :

A : The company needs more warehouse space

B : The company-s sales have increased

C : The company is holding less average inventory

D : The company-s carrying costs have increased

Answer: C

Question 5

A competitive analysis graph shows that when the intensity of rivalry in an industry increased by 25%, the average industry profitability decreased by only 5%. What does this suggest about the industry's structural characteristics? (difficulty: hard)

Options :

A : The industry has strong differentiation factors that protect margins

B : The industry is highly fragmented

C : The industry has low fixed costs

D : The industry has weak entry barriers

Answer: A