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Sample Quantitative Questions Chapter 1. Ted Mitchell. # 1 Calculate the Output. From a single point of observed input and conversion rate Each week your coffee shop has 20 servers working and sales are happening at a rate of 60 cups per server.
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Sample Quantitative QuestionsChapter 1 Ted Mitchell
# 1 Calculate the Output • From a single point of observed input and conversion rate • Each week your coffee shop has 20 servers working and sales are happening at a rate of 60 cups per server. • What is the sales volume of cups sold each week? • Quantity sold = (conversion rate, r) x Input • Quantity sold = (60 cups per server) x 20 servers • Quantity sold = 1,200 cups each week
# 2 Calculate the Conversion rate • From a single point observed input and output • You used 25 radio spots for advertising last week and you sold 1,200 cups of coffee. • What is the rate at which radio spots are being converted into cups sold or the rate of cups per spot? • Output = conversion rate, r x Input • 1,200 cups = conversion rate x 25 radio spots • Conversion rate, r = Q/Spot = 1,200 cups/25 spots • Conversion rate, r = Q/Spot = 48 cups per radio spot
# 3 Calculate the Input • From a single point of observed conversion rate and output • Your coffee shop sold 1,200 cups of coffee last week. Experience has taught you that you normally sell 12 cups per hour. • How many hours was your cafe open last week? • Quantity sold = conversion rate, r x Input • 1,200 cups sold = 12 cups per hour x Hours • Hours open = 1,200 cups/12 cups per hour • Hours open = 100 hours
The Two-Factor Machine is an identity • Output = (conversion rate, r) x Input • Know Two, Calculate the Third
#4) Comparing performance • You have Two Coffee shops • Coffee shop #1 has a staff of servers who sell an average of 60 cups per week • Coffee Shop # 2 has a staff of servers who sell an average of 56 cups per week • Coffee shop #1 has a better performance than shop #2. • True or False or not enough information?
#3 Comparing Two Performances Do NOT use conversion rates or ratios as standalone performance metrics!
Any Questions? • There are lots of potential qualitative questions in chapter 1