Chapter 1 - Introduction

Chapter 1 - Introduction Page 1

Quantitative Methods for Business 13th Edition Anderson Test Bank True / False

• The process of decision making is more limited than that of problem solving.
• True
• False

ANSWER: True

POINTS: 1

TOPICS: Problem solving and decision making

• The terms 'stochastic' and 'deterministic' have the same meaning in quantitative analysis.
• True
• False

ANSWER: False

POINTS: 1

TOPICS: Model development

• The volume that results in marginal revenue equaling marginal cost is called the break-even point.
• True
• False

ANSWER: False

POINTS: 1

TOPICS: Problem solving and decision making

• Problem solving encompasses both the identification of a problem and the action to resolve it.
• True
• False

ANSWER: True

POINTS: 1

TOPICS: Problem solving and decision making

• The decision making process includes implementation and evaluation of the decision.
• True
• False

ANSWER: False

POINTS: 1

TOPICS: Problem solving and decision making

• The most successful quantitative analysis will separate the analyst from the managerial team until after the problem is

fully structured.

• True
• False

ANSWER: False

POINTS: 1 1 / 4

Chapter 1 - Introduction Page 2

TOPICS: Quantitative analysis

• The value of any model is that it enables the user to make inferences about the real situation.
• True
• False

ANSWER: True

POINTS: 1

TOPICS: Model development

• Uncontrollable inputs are the decision variables for a model.
• True
• False

ANSWER: False

POINTS: 1

TOPICS: Model development

• The feasible solution is the best solution possible for a mathematical model.
• True
• False

ANSWER: False

POINTS: 1

TOPICS: Model solution

• A company seeks to maximize profit subject to limited availability of man-hours. Man-hours is a controllable input.
• True
• False

ANSWER: False

POINTS: 1

TOPICS: Model development

• Frederick Taylor is credited with forming the first MS/OR interdisciplinary teams in the 1940's.
• True
• False

ANSWER: False

POINTS: 1

TOPICS: Introduction

• To find the choice that provides the highest profit and the fewest employees, apply a single-criterion decision process.
• True
• False

ANSWER: False

POINTS: 1

TOPICS: Problem solving and decision making

• The most critical component in determining the success or failure of any quantitative approach to decision making is

problem definition. 2 / 4

Chapter 1 - Introduction Page 3

• True
• False

ANSWER: True

POINTS: 1

TOPICS: Quantitative analysis

• The first step in the decision making process is to identify the problem.
• True
• False

ANSWER: True

POINTS: 1

TOPICS: Introduction

• All uncontrollable inputs or data must be specified before we can analyze the model and recommend a decision or

solution for the problem.

• True
• False

ANSWER: True

POINTS: 1

TOPICS: Quantitative analysis

• In quantitative analysis, the optimal solution is the mathematically-best solution.
• True
• False

ANSWER: True

POINTS: 1

TOPICS: Quantitative analysis

• If you are deciding to buy either machine A, B, or C with the objective of minimizing the sum of labor, material and

utility costs, you are dealing with a single-criterion decision.

• True
• False

ANSWER: True

POINTS: 1

TOPICS: Problem solving and decision making

• Model development should be left to quantitative analysts; the model user's involvement should begin at the

implementation stage.

• True
• False

ANSWER: False

POINTS: 1

TOPICS: Problem solving and decision making

• A feasible solution is one that satisfies at least one of the constraints in the problem.
• True 3 / 4

Chapter 1 - Introduction Page 4

• False

ANSWER: False

POINTS: 1

TOPICS: Model solution

• A toy train layout designed to represent an actual railyard is an example of an analog model.
• True
• False

ANSWER: False

POINTS: 1

TOPICS: Model development

Multiple Choice

• The field of management science
• concentrates on the use of quantitative methods to assist in decision making.
• approaches decision making rationally, with techniques based on the scientific method.
• is another name for decision science and for operations research.
• each of these choices are true.

ANSWER: d

POINTS: 1

TOPICS: Introduction

• Identification and definition of a problem
• cannot be done until alternatives are proposed.
• is the first step of decision making.
• is the final step of problem solving.
• requires consideration of multiple criteria.

ANSWER: b

POINTS: 1

TOPICS: Problem solving and decision making

• Decision alternatives
• should be identified before decision criteria are established.
• are limited to quantitative solutions
• are evaluated as a part of the problem definition stage.
• are best generated by brain-storming.

ANSWER: a

POINTS: 1

TOPICS: Problem solving and decision making

• Decision criteria
• are the choices faced by the decision maker.
• are the problems faced by the decision maker.
• are the ways to evaluate the choices faced by the decision maker.
• / 4