✅ Correct Answer:
It minimises the sum of the squared differences between the actual values of the dependent variable and the estimated values of the dependent variable as per regression equation.

📘 Explanation:

• The method of least squares in simple linear regression is used to find the best-fitting line that minimizes the difference between the observed data points and the predicted values from the regression model.

• This method works by minimizing the sum of the squared differences between the actual (observed) values of the dependent variable and the values predicted by the regression equation.

❌ Why other options are incorrect:

• Option 1 and Option 2 focus on the independent variable, but least squares aims to minimize errors in predicting the dependent variable.

• Option 4 mentions minimizing squared values of the dependent variable, but the objective is not about the dependent variable’s squared values themselves—it’s about minimizing prediction errors.

✅ Final Answer:
It minimises the sum of the squared differences between the actual values of dependent variable and the estimated values of the dependent variable as per regression equation.

✅ Correct answer: (2) Utility analyses → (4) Indifference curve analysis → (1) Law of Demand → (3) Demand Elasticity analysis → (5) Demand Forecasting

✅ Explanation:

• Utility analyses (2):
  This is the first step in understanding what drives consumer choices. Utility analysis helps identify the level of satisfaction a consumer derives from consuming goods and services. This analysis assumes that consumers make decisions to maximize their total utility within their budget constraints. Without understanding utility, it’s hard to grasp why a product is in demand in the first place.

• Indifference curve analysis (4):
  Building on utility, indifference curve analysis maps consumer preferences in a more realistic, ordinal way. It shows combinations of goods that give equal satisfaction and allows analysts to understand how consumers make trade-offs between different products while staying on the same level of satisfaction. This helps in constructing a more nuanced demand curve.

• Law of Demand (1):
  Once preferences and satisfaction levels are understood, the Law of Demand is applied to analyze how quantity demanded changes with price, assuming other factors remain constant. This principle provides the foundation of the demand curve — that demand decreases when price increases, and vice versa.

• Demand Elasticity analysis (3):
  After the demand curve is established, we assess how responsive demand is to changes in price, income, or other factors. Elasticity analysis helps in pricing strategies, tax impact evaluation, and understanding market sensitivity.

• Demand Forecasting (5):
  With a solid theoretical and analytical understanding of consumer behavior and sensitivity, we can now forecast future demand. This involves using statistical models and historical data, informed by utility, preference, and elasticity, to predict how consumers will behave under various scenarios. This is crucial for business planning and inventory management.

✅ Final Answer: (2) Utility analyses → (4) Indifference curve analysis → (1) Law of Demand → (3) Demand Elasticity analysis → (5) Demand Forecasting

✅ Correct Answer: 3, 1, 2, 4, 5

✅ Explanation:
In the Anglo-Saxon Model of Corporate Governance, authority flows from shareholders at the top, who are the ultimate owners of the company. They elect the Board of Directors, which holds the next level of authority and is responsible for strategic oversight. The Board appoints Managers, who handle the company’s operations. Employees work under managerial supervision, and trade unions, while they may represent employee interests, do not possess formal corporate authority.

✅ Final Answer: 3, 1, 2, 4, 5

✅ Correct Answer: a-ii, b-iv, c-i, d-iii

✅ Explanation:
This is a matching question that connects economic and organizational concepts with their respective descriptions. Each item in List I refers to a specific economic theory or organizational model, and we need to match it with the correct explanation in List II.

• a. Snob effect: This concept involves the idea that some consumers demand a smaller quantity of a good as more people buy it, in order to maintain exclusivity and be different from the majority. This matches with ii.

• b. Network Theory of Organization: This theory suggests that a large organization can operate similarly to a smaller firm by creating links between well-connected individuals across different levels of the organization, promoting a decentralized network. This corresponds to iv.

• c. Stackelberg model: The Stackelberg model in economics describes a market scenario where a dominant firm (the leader) moves first, and the other firms (followers) adjust based on the leader’s actions, capturing a significant portion of the market. This aligns with i.

• d. Sales maximization model: This model is based on the idea that, after achieving an adequate rate of profit, oligopolistic firms aim to maximize their sales, often as a strategy to improve market share and outcompete others, even if it doesn’t maximize profit directly. This matches with iii.

✅ Final Answer: a-ii, b-iv, c-i, d-iii.

✅ Correct Answer: (m + n) sources and (m + n) destinations

📘 Explanation:

A transshipment problem is an extension of a transportation problem. In a transportation problem, goods are shipped from origins (sources) to destinations. In a transshipment problem, in addition to origins and destinations, there are intermediate points (called transshipment points) where goods can be transferred between different routes.

• In a transshipment problem, the origins and destinations are treated as sources and destinations, but there are also transshipment points where goods can be transferred. This increases the number of sources and destinations.

Thus, for a transshipment problem, with m origins and n destinations, the number of sources becomes m + n (including both origins and transshipment points), and the number of destinations is also m + n (including both destinations and transshipment points).

❌ Why the other options are incorrect:

• (m + n – 1) sources and equal number of destinations:
  This is not correct because the transshipment problem involves both origins, destinations, and transshipment points, not just a reduction by 1.

• (m – n) sources and (m – n) destinations:
  This is not the correct relationship. The number of sources and destinations in a transshipment problem is the sum of origins and destinations, not the difference.

• (m + n – 2) sources and (m + n – 2) destinations:
  This does not apply to the transshipment problem either. The correct number of sources and destinations is m + n.

✅ Final Answer: (m + n) sources and (m + n) destinations

✅ Correct Answer: a-iv, b-iii, c-ii, d-i

✅ Explanation:

✅ a. Passenger → iv. No ability to do and will to do

• Explanation: The “Passenger” is someone who wants to do something (will) but lacks the skills or ability to take effective action.

• They are motivated but often need training, mentoring, or support.

• They tend to go along for the ride but don’t lead.

• Example: A person passionate about starting a business but lacking basic business knowledge.

✅ b. Star / Ideal → iii. Ability to do and will to do

• Explanation: The “Star” or “Ideal” entrepreneur is the model entrepreneur.

• They have the ability (skills, knowledge, innovation, leadership) and the motivation to act and succeed.

• These are the top performers and often lead successful ventures.

• Example: A skilled and passionate entrepreneur who builds a scalable startup.

✅ c. Deadwood → ii. No ability to do and no will to do

• Explanation: “Deadwood” refers to individuals who are neither capable nor motivated.

• They may be in the system (perhaps due to inheritance or formality) but contribute nothing.

• They are unproductive and stagnant.

• Example: An uninterested family member running a business poorly without any desire to improve.

✅ d. May run → i. Ability to do and no will to do

• Explanation: “May run” entrepreneurs have the potential (skills and knowledge), but lack the motivation to take action or drive the business.

• They may succeed if pushed or if external factors change their motivation.

• Often found in people who have technical skills but aren’t interested in taking initiative.

• Example: A trained engineer with entrepreneurial potential but no drive to launch a venture.

✅ Final Answer: a-iv, b-iii, c-ii, d-i

🛑 All the options given for the question are characteristic of an employee under high stress level. Hence, we have justified the answer based on the default answer given.

✅ Correct Answer: Careless mistakes

✅ Explanation: While high stress can lead to anxiety, nervousness, and even poor judgment, careless mistakes are more directly related to lack of focus or being overwhelmed rather than a core symptom of high stress itself. Stress may contribute to mistakes, but these errors typically result from a lack of attention or rushed decision-making under pressure.

❌ Why the other options are incorrect:

• Anxiety: Stress often leads to heightened anxiety, which affects concentration and emotional state.

• Nervousness: Nervousness is a common reaction to stress and can manifest in physical and emotional symptoms like restlessness or fidgeting.

• Low and bad judgmental ability: Stress can impair judgment, causing individuals to make less informed decisions, which is a known consequence of stress.

✅ Final Answer: Careless mistakes.

✅ Correct Answer: Both (A) and (R) are correct and (R) is the correct explanation of (A).

✅ Explanation:

1. In an oligopolistic market, a few firms dominate, and each firm’s decisions about price and output strongly affect and are affected by rivals.
2. Therefore, an oligopolist cannot simultaneously fix both the price and the quantity independently.
3. It must anticipate competitor reactions.
4. Hence, the assertion is correct, and the reason correctly explains the assertion — the strong interdependence among firms forces them to consider possible moves and countermoves.

✅ Final Answer: Both (A) and (R) are correct and (R) is the correct explanation of (A).

✅ Correct Answer: 1, 2 and 4 only

✅ Explanation:

The question is about identifying notable myths related to entrepreneurs and entrepreneurship. Myths are widely held but false beliefs. Let’s analyze each option:

(a) Entrepreneurs are academics and social misfits
✅ Myth – This stereotype suggests entrepreneurs are outliers in society or academia. In reality, entrepreneurs come from diverse social and academic backgrounds and are often well-networked individuals.

(b) Entrepreneurs must fit into an ideal profile
✅ Myth – There’s no one-size-fits-all personality or background for successful entrepreneurs. Innovation and success come from a wide variety of personal traits and experiences.

(c) Entrepreneurs are doers and thinkers
❌ Not a myth – This is a truth, not a myth. Entrepreneurs are typically both action-oriented (doers) and strategic (thinkers).

(d) All Entrepreneurs need is money
✅ Myth – While funding is important, it’s not sufficient. Vision, persistence, planning, and execution are just as critical.

(e) Entrepreneurs are not born but made
❌ Not a myth – This is a truth, widely accepted in entrepreneurship theory. It emphasizes that entrepreneurial traits can be learned and developed.

✅ Final Answer: (a), (b), and (d)

✅ Correct Answer: 2 and 3 only

✅ Explanation:
The unrecognized forms of organizational justice in the given options are Shareholder justice and Collateral justice. These are not typically discussed in mainstream organizational justice frameworks.

• Shareholder justice focuses on the fairness of how shareholders are treated in the organization, which is a less conventional view of organizational justice.

• Collateral justice refers to the fairness in the treatment of individuals or groups indirectly impacted by organizational decisions, like local communities or the environment, which is also not widely recognized as a formal type of organizational justice.

❌ Why the other options are incorrect:

• Procedural justice (Option 1): This is a recognized form of organizational justice that refers to the fairness of the processes used to make decisions.

• Interactional justice (Option 4): This is another recognized form of organizational justice, focusing on the fairness of interpersonal treatment and communication during decision-making.

✅ Final Answer: 2 and 3 only.

✅ Correct Answer: 1 and 3 only

📘 Explanation:

(1) Quartile range

✅ Not affected much — The interquartile range (IQR) is based on the middle 50% of data (Q3 − Q1), so extreme values (outliers) don’t influence it significantly.

(2) Standard deviation

❌ Affected — Standard deviation measures the spread around the mean, and outliers can significantly increase this spread.

(3) Median

✅ Not affected — The median is the middle value and is resistant to extreme values. So even with outliers, the median stays fairly stable.

(4) Regression coefficients

❌ Affected — Outliers can heavily influence regression coefficients, especially in linear regression, by pulling the line toward themselves.

✅ Final Answer: 1 and 3 only

✅ Correct Answer: (2), (4), and (5) only

✅ Explanation:

The question asks for the most common errors made by entrepreneurs. Let’s analyze each statement:

(1) To anticipate roadblocks
❌ Not an error – This is actually a good practice. Successful entrepreneurs are expected to anticipate and plan for roadblocks.

(2) No commitment or dedication
✅ Common error – Lack of personal commitment and dedication is a frequent reason for entrepreneurial failure. Passion and persistence are critical for success.

(3) Proposing market niche (Segment)
❌ Not an error – Identifying and targeting a niche market is generally considered a strength in entrepreneurship, not a mistake.

(4) Lack of demonstrated experience
✅ Common error – Entrepreneurs often start ventures without sufficient experience in the industry or management, which can lead to poor decision-making.

(5) No realistic goals
✅ Common error – Setting vague or unrealistic goals often leads to confusion, misaligned efforts, and failure to achieve targets.

✅ Final Answer: (2), (4), and (5) only

✅ Correct answer: (2), (4)

✅ Explanation:

A price ceiling is a maximum price set by the government that is below the equilibrium price. When this happens, it causes the price of the commodity to be set lower than the market-clearing price.

• (2) Shortage of commodity:
  Since the price is lower, demand increases (because consumers want to buy more at a lower price), but supply decreases (because producers are less willing to supply at the lower price). This results in a shortage — there is not enough supply to meet the higher demand.

• (4) Black marketing:
  Because of the shortage, consumers who still want the product may be willing to pay a higher price than the controlled price. This leads to black marketing, where the product is sold illegally at prices above the ceiling price.

❌ Why the other options are incorrect:

• Commodity glut in market (1):
  A glut occurs when the price is set above the equilibrium price (i.e., a price floor), not below. A price ceiling below equilibrium results in a shortage, not a glut.

• Demand erosion (3):
  A price ceiling generally increases demand due to the lower price, so demand erosion is not an expected outcome. In fact, demand increases when prices are lowered, not eroded.

✅ Final Answer: (2), (4)

✅ Correct Answer: Deming W.E.

📘 Explanation:

W. Edwards Deming is widely credited for helping Japan become a global leader in the quality of its manufactured products. Deming, an American statistician, introduced a philosophy of continuous quality improvement and the Plan-Do-Check-Act (PDCA) cycle to Japanese manufacturers after World War II. His work with Japanese companies, particularly in the 1950s and 1960s, laid the foundation for what became known as the Japanese quality revolution.

He is known for his significant contributions to statistical quality control and for teaching that quality should be built into the process, not inspected at the end.

❌ Why the other options are incorrect:

• Schonberger R. J.:
  While Schonberger is well-known for his contributions to lean manufacturing and just-in-time (JIT) production, he is not primarily credited with Japan’s rise in product quality.

• Juran J.M.:
  Joseph M. Juran was also instrumental in promoting quality management practices and is a key figure in the development of quality control, but Deming is more widely associated with Japan’s emergence as a leader in product quality.

• Goddard W:
  This person is not generally associated with Japan’s quality leadership in manufacturing.

✅ Final Answer: Deming W.E.

✅ Correct Answer: a-ii, b-iii, c-iv, d-i

✅ Explanation:

• Ind AS 21 relates to the Effect of Change in Exchange Rate (exchange rate fluctuations impact revenue recognition, and thus are addressed under this standard).

• Ind AS 2 governs the Valuation of Inventories, outlining how inventory should be measured, recognized, and valued.

• Ind AS 3 pertains to the Cash Flow Statement, providing guidelines for preparing the statement that shows the cash inflows and outflows over a period.

• Ind AS 9 concerns Revenue Recognition, establishing how and when revenue should be recognized in financial statements.

✅ Final Answer: a-ii, b-iii, c-iv, d-i

✅ Correct Answer: 3, 1, 5, 4, 2

Explanation:

This question is related to the stages of group development that typically occur as a team forms and works together. The correct sequence aligns with the stages of group development described in Tuckman’s Model, which are Forming, Storming, Norming, Performing, and Adjourning.

Here’s the correct sequence explained:

1. (3) Eager, anxious, gather impressions and data about the similarities and differences among members: At the Forming stage, members are typically eager, anxious, and focused on learning about each other. They are gathering impressions and trying to understand the team dynamics.

2. (1) Lot of competition and hostilities: In the Storming stage, competition and conflicts arise as individuals assert their opinions, and differences become more apparent. This leads to disagreements and challenges within the group.

3. (5) Less dissatisfied and a feeling of belongingness to the group: As the team moves into the Norming stage, members begin to resolve their conflicts and feel more connected, leading to a sense of belonging and decreased dissatisfaction.

4. (4) Interdependence in personal relations: In the Performing stage, the group works together more effectively and relies on each other to achieve common goals, with increased interdependence and cooperation.

5. (2) Upset and depressed: The Adjourning stage can sometimes be marked by feelings of loss or sadness as the group disbands after completing its objectives. Members may feel upset or depressed about the group’s dissolution.

✅ Final Answer: 3, 1, 5, 4, 2.

✅ Correct Answer: Work life constraints

✅ Explanation:
The passage highlights that work-life constraints are a significant challenge, especially for women employees. Many women forego career opportunities if they involve relocation, which presents a family life constraint. However, remote work alleviates this constraint by providing flexibility, allowing employees to balance work and family life more effectively.

❌ Why the other options are incorrect:

• Cloud data security: While data security could be a concern for remote work, it is not mentioned as a major challenge in the passage.

• Augmented reality: The passage briefly mentions that augmented reality could address loneliness, but this is more of a solution to a challenge rather than a challenge itself.

• Promotional bias: Although the passage mentions bias against remote working, it doesn’t directly discuss promotional bias as a significant challenge. The focus is more on work-life balance and flexibility.

✅ Final Answer: Work life constraints

Correct Answer: 1, 2 and 4 only

Details:

(1) Each occurrence of an event is independent of the occurrence of the other event

✅ True — Independence is a key assumption in Poisson processes. One event doesn’t affect another.

(2) The probability of an occurrence is the same for any two intervals of equal length

✅ True — This is known as stationarity of the process, another essential assumption.

(3) Poisson distribution describes continuous occurrences over a specific time interval

❌ False — Poisson distribution is used for discrete events (e.g., number of calls, arrivals), even though they are measured over a continuous time or space interval. The events themselves are not continuous.

(4) In each interval, occurrences can range from zero to infinity

✅ True — The number of events in a Poisson distribution can be 0, 1, 2, …, with no upper limit.

✅ Correct Answer: Offers work-life balance

✅ Explanation:
The passage highlights that remote work suits women employees particularly well because it helps them balance their official and domestic responsibilities. Many women have to forego career opportunities if they involve relocation, which is often a family life constraint. Remote work allows them the flexibility to manage both work and personal life more effectively, thus offering a better work-life balance.

❌ Why the other options are incorrect:

• Bridges gender diversity: While remote work may contribute to gender diversity by providing opportunities for women, the passage specifically emphasizes the work-life balance aspect rather than just gender diversity.

• Offers equal opportunity: The passage does not focus on equal opportunity in a general sense, but rather on the specific benefits of remote work for women balancing family and work.

• Favors their soft-skill disposition: The passage does not address the soft skills of women or suggest that remote work favors their soft-skill abilities, but it does talk about family constraints and work-life balance.

✅ Final Answer: Offers work-life balance.

The correct answer is: ✅ Statement I is true but Statement II is false

✔️ Explanation:

Statement I: “The Transactional Analysis Model is an effective tool to understand why people behave in certain ways.”

✅ True
The Transactional Analysis (TA) Model, developed by Eric Berne, is widely used in psychology and communication studies to analyze human behavior. It breaks behavior into three ego states:

• Parent

• Adult

• Child

This helps in understanding patterns of communication, emotional reactions, and behavioral responses, making it an effective tool for analyzing why people behave the way they do.

Statement II: “The Transactional Analysis Model cannot be used to improve communication.”

❌ False
One of the main applications of TA is in improving interpersonal communication. By recognizing ego states, individuals can shift their responses to foster healthier, more constructive communication—especially in conflict resolution, counseling, leadership, and teamwork.

✅ Final Answer: Statement I is true but Statement II is false

✅ Correct Answer: Extension

✅ Explanation:
The extension motive is characterized by an individual’s urge to be relevant, useful, and contribute to the well-being of larger groups, including society at large. It goes beyond personal gain or immediate relationships and reflects a broader, more altruistic orientation. In the context of organizational climate, this motive supports corporate social responsibility, community involvement, and ethical conduct.

❌ Why the other options are incorrect:

• Affiliation 🤝
  Refers to the desire for close personal relationships and being liked by others. It focuses on small group bonding, not larger societal contribution.

• Influence 💼
  Involves the urge to lead, persuade, or have an impact on others, often linked to power or authority—not necessarily societal relevance.

• Achievement 🏆
  Refers to the drive to excel and succeed, particularly in setting and reaching goals. It is individual performance-focused, not collective or societal.

✅ Final Answer: Extension

✅ Correct Answer: 1, 5, 3, 2, 4

✅ Explanation:
The correct sequence of steps involved in Cost-Volume-Profit (CVP) Analysis is as follows:

1. Establishing the fixed and variable costs related to the product (Step 1):

   • This is the first step in CVP analysis where you identify and categorize the costs associated with producing and selling a product.

2. Calculating the relationship between sales volume and sales revenue by actual or assumed unit prices (Step 5):

   • Once you have identified the fixed and variable costs, you can assess how changes in sales volume affect total sales revenue. This typically involves using actual or assumed prices.

3. Working out P/V ratio by calculating contribution as a proportion of sales revenue (Step 3):

   • The P/V (Profit-Volume) ratio is derived by dividing the contribution (sales revenue minus variable costs) by the total sales revenue. It shows how much profit is generated from each unit of sales.

4. Drawing up break-even charts which establish the point at which sales start to produce profit (Step 2):

   • Using the P/V ratio and other data, you plot a break-even chart to visualize where total costs equal total revenue (i.e., break-even point), beyond which the company starts making a profit.

5. Determining the cumulative effect of each product on profitability to assess the effects of change in product mix (Step 4):

   • In this step, you analyze how different products contribute to overall profitability, especially when changes in the product mix (the combination of products sold) may affect profitability.

✅ Final Answer: 1, 5, 3, 2, 4

The correct answer is P > AVC.

Explanation:

In the short run, a perfectly competitive firm will produce at the level where P = MR = MC (Price equals Marginal Revenue, which equals Marginal Cost) to maximize profit or minimize loss.

However, for the firm to continue production, it needs to cover at least its variable costs. If P < AVC, the firm cannot cover its variable costs, and it should shut down temporarily. On the other hand, if P > AVC, the firm can cover its variable costs and may also contribute to covering some of its fixed costs, which means it will continue producing in the short run, even if it is making a loss.

Correct Answer:

• P > AVC: When the price is greater than average variable cost, the firm should continue operating in the short run, as it covers its variable costs and contributes toward its fixed costs.

Why the other options are incorrect:

• P < AVC: If the price is less than average variable cost, the firm is not able to cover its variable costs and should shut down in the short run.

• P = AVC: If the price is equal to AVC, the firm is not covering any of its fixed costs — only its variable costs.

• P ≥ AVC: This is also correct in principle, but the most accurate condition to focus on is P > AVC, because it implies the firm is making enough revenue to cover at least its variable costs.

Conclusion:

The best level of output in the short run is achieved when P > AVC, as this ensures that the firm can continue operating and covering its variable costs.

✅ Correct Answer: Focused Cost Leaders

📘 Explanation:
Focused Cost Leaders pursue a strategy of achieving the lowest cost in production or operations but within a narrow or specific market segment (a niche). This means they offer lower prices or have lower costs targeted at a particular group rather than the entire industry. The “focused” part refers to serving a limited market scope, and the “cost leader” part refers to competing primarily on cost advantage. This position is distinct from broad cost leadership, which targets the whole market.

❌ Why the other options are incorrect:

Focused Differentiators: Incorrect because this strategy involves offering unique or differentiated products/services within a narrow market segment, not focusing on cost leadership.

Cost Leaders: Incorrect because this refers to a broad market scope where the firm aims to be the lowest-cost producer industry-wide, not in a narrow segment.

Differentiators: Incorrect because this strategy focuses on uniqueness and product differentiation for a broad market, not on cost leadership or a narrow market.

✅ Final Answer: Focused Cost Leaders

✅ Correct Answer: Enlarging the market size.

✅ Explanation: “Sunday ho ya Monday, Roz Khao Ande”

In a perfectly competitive market, products are homogeneous and firms are price takers, so advertising is generally not used to differentiate products. However, when advertising does happen in perfect competition, it is typically aimed at enlarging the overall market size — for example, by encouraging more people to use the product category as a whole, not to promote one brand over another. Thus, advertising serves to increase overall demand rather than promote individual firms.

❌ Why the other options are incorrect:

• Informative to intimate product/service availability: Although some basic information might be shared, the primary role is enlarging the market, not just informing about availability.

• Very essential for the survival of the firm: In perfect competition, survival depends on efficiency and cost leadership, not on advertising. Firms cannot rely on selling costs to survive.

• Influencing buyer behavior: Since products are identical, advertising is not aimed at altering consumer preferences for a particular firm’s product.

✅ Final Answer: Enlarging the market size.

✅ Correct answer: 2, 4 and 5 only

✅ Explanation:
For price discrimination to succeed in different markets, the following conditions must be met:

1. Firm must have some control over the price of the product (2):
   The firm must have market power (often associated with monopolistic or oligopolistic structures) to set its own prices rather than accept market prices, as would be the case in perfect competition.

2. Price elasticity of demand must differ in different markets (4):
   Different consumer groups have different price sensitivities (elasticities of demand). Firms use this to charge higher prices in inelastic markets (where consumers are less responsive to price changes) and lower prices in elastic markets (where consumers are more price-sensitive).

3. Markets for the products must be separable (5):
   The firm must be able to segregate the markets (e.g., based on geographic location, consumer income, or other criteria) and prevent resale between different market segments to maintain differentiated pricing.

❌ Why the other options are incorrect:

• Firms must have strong interdependence per se (1):
  While interdependence between firms may be relevant in oligopolistic markets, it is not a necessary condition for price discrimination to occur. Price discrimination can be practiced even in markets with no interdependence.

• Differentiated products and strong entry restrictions (3):
  While product differentiation helps in price discrimination, strong entry restrictions are not a mandatory condition. Price discrimination can happen even in less restrictive markets.

✅ Final Answer: 2, 4 and 5 only

✅ Correct Answer: Rate of change in GNP deflator.

✅ Explanation:
The rate of change in the GNP deflator better explains inflation because the GNP deflator captures the price changes across the entire economy, including consumer goods, investment goods, government services, and net exports. It reflects overall inflation by measuring how much of the rise in GNP is due to higher prices rather than increased output. Tracking the rate of change in the GNP deflator gives a comprehensive picture of inflationary trends across the full spectrum of the economy, not just a part like consumers or wholesalers.

❌ Why the other options are incorrect:

• GNP deflator: Only gives the level of price change, not the rate of change which is needed to properly understand inflation dynamics over time.

• Wholesale Price Index (WPI): Measures price changes at the wholesale level and does not include services. It’s not as comprehensive and misses retail consumer price changes.

• Consumer Price Index (CPI): Focuses only on a fixed basket of consumer goods and services, ignoring investment goods and government purchases, thus not reflecting entire economic inflation.

✅ Final Answer: Rate of change in GNP deflator.

✅ Correct Answer: μ ± 3σ

📘 Explanation:

In statistical quality control (SQC), the expected process variation or natural tolerance refers to the variation that occurs naturally in a process when it is in a state of statistical control. This is commonly represented by:

• μ (mean of the process),

• σ (standard deviation of the process).

The natural tolerance limits are typically defined as μ ± 3σ, which represents the range within which 99.73% of the process data should fall, assuming the process follows a normal distribution. This is a key concept used in control charts and quality management.

❌ Why the other options are incorrect:

• μ ± 1σ:
  This would cover only 68.27% of the data in a normal distribution, which is too narrow for defining natural tolerance.

• μ ± 2σ:
  This covers about 95.45% of the data, which is wider than μ ± 1σ but still not the typical range used for natural tolerance.

• μ ± (s/(n^0.5)):
  This formula is used for standard error when estimating the mean of a sample, not for natural tolerance in quality control.

✅ Final Answer: μ ± 3σ

✅ Correct Answer: N ≥ 20 n

📘 Explanation: The finite population multiplier is used to adjust the standard error when sampling from a finite population. It corrects for the fact that, in a finite population, sampling without replacement can influence the results.

The finite population multiplier approaches 1 when the sample size $n$ is small relative to the population size N. Specifically, when the sample size is less than 5% of the population size, the correction factor becomes very small and can be approximated as 1.

• For the finite population multiplier to be approximately 1, the sample size n should be a small fraction of the population size $N.$

  One rule of thumb is:

  $$N\ge 20n$$

  This means that the population size should be at least 20 times the sample size for the finite population correction to have a minimal effect on the standard error.

✅ Final Answer: N ≥ 20 n

The correct answer is Contingency.

Explanation:

• Contingency approach: This approach emphasizes that there is no one-size-fits-all rule or universal method for managing organizations. Instead, it stresses that the best course of action for managers depends on the specific circumstances or situation they face. The contingency approach suggests that management practices should be adapted to fit the unique conditions of the organization, such as its environment, culture, and goals.

• System approach: This approach views the organization as a system of interrelated parts working together to achieve common objectives. It focuses on understanding the interactions between various components within the organization, rather than emphasizing situational adaptability like the contingency approach.

• Mathematical approach: This approach applies quantitative techniques and mathematical models to management problems. It involves using tools like optimization, simulations, and decision-making models, but it does not focus on the flexibility required for different management situations.

• Empirical approach: This approach is based on observing and analysing real-world management practices and experiences. While it involves learning from past situations, it is not specifically focused on the idea that there are no universal rules, like the contingency approach.

Conclusion:

The contingency approach is the one that stresses that there are no universal rules for managers to follow, as it suggests management actions should be tailored to the specific situation.

✅ Correct Answer: (2), (3), and (4)

📘 Explanation:

• (2): Become compliant with government regulations — While Lean and FMT are not directly about regulation compliance, they do need to adhere to regulatory standards, especially in industries where safety and quality standards are crucial.

• (3): Increase utilization of individual machines through better scheduling — A key principle of Lean and FMT is to optimize machine utilization, often through advanced scheduling techniques that minimize downtime and ensure better throughput.

• (4): Improve quality control at all stages of the manufacturing process — Lean and FMT emphasize maintaining quality throughout the production process, reducing defects, and ensuring continuous improvement.

❌ Why (1) is incorrect:

• (1): Becoming compliant with government regulations is relevant but not the core focus of Lean or FMT. They focus primarily on process optimization, waste reduction, and improving flexibility.

✅ Final Answer: (2), (3), and (4) only