TEST BANK for Introduction to Management Science 12th Edition ISBN 9781323314753. _TABLE OF CONTENTS_ Chapter 1 Management Science Chapter 2 Linear Programming: Model Formulation and Graphical Solut ion Chapter 3 Linear Programming: Computer Solution and Sensitivity Analysis Chapter 4 Linear Progra...
,Introduction to Management Science, 12e (Taylor)
Chapter 1 Management Science
1) A management science solution can be either a recommended decision or information that helps a
manager make a decision.
Answer: TRUE
Diff: 2 Page Ref: 5
Section Heading: The Management Science Approach to Problem Solving
Keywords: model, management science techniques
AACSB: Analytical thinking
2) A variable is a value that is usually a coefficient of a parameter in an equation.
Answer: FALSE
Diff: 1 Page Ref: 3
Section Heading: The Management Science Approach to Problem Solving
Keywords: variable
AACSB: Analytical thinking
3) Parameters are known, constant values that are usually coefficients of variables in equations.
Answer: TRUE
Diff: 1 Page Ref: 3
Section Heading: The Management Science Approach to Problem Solving
Keywords: parameter
AACSB: Analytical thinking
4) Data are pieces of information from the problem environment.
Answer: TRUE
Diff: 1 Page Ref: 4
Section Heading: The Management Science Approach to Problem Solving
Keywords: data
AACSB: Analytical thinking
5) A model is a mathematical representation of a problem situation including variables, parameters, and
equations.
Answer: TRUE
Diff: 1 Page Ref: 3
Section Heading: The Management Science Approach to Problem Solving
Keywords: model, management science techniques
AACSB: Analytical thinking
6) A management science technique usually applies to a specific model type.
Answer: TRUE
Diff: 1 Page Ref: 3
Section Heading: The Management Science Approach to Problem Solving
Keywords: models, management science techniques
AACSB: Analytical thinking
1
,7) The first step of the management science process is to define the problem.
Answer: FALSE
Diff: 2 Page Ref: 2
Section Heading: The Management Science Approach to Problem Solving
Keywords: management science process
AACSB: Analytical thinking
8) The term big data refers to numbers of large magnitude, i.e., greater than or equal to one billion.
Answer: FALSE
Diff: 1 Page Ref: 7
Section Heading: Management Science and Business Analytics
Keywords: big data, analytics
AACSB: Application of knowledge
9) A key component of business analytics is the recent availability of large amounts of data.
Answer: TRUE
Diff: 1 Page Ref: 7
Section Heading: Management Science and Business Analytics
Keywords: big data, analytics
AACSB: Application of knowledge
10) Business analytics brings together the disciplines of information systems, management science,
statistics, and mathematical modeling.
Answer: TRUE
Diff: 1 Page Ref: 7
Section Heading: Management Science and Business Analytics
Keywords: big data, analytics
AACSB: Application of knowledge
11) Management science modeling techniques provide results that are known with certainty.
Answer: FALSE
Diff: 2 Page Ref: 17
Section Heading: Management Science Modeling Techniques
Keywords: management science modeling techniques, certainty
AACSB: Analytical thinking
12) The term "sensitivity analysis" refers to testing how a problem solution reacts to changes in one or
more of the model parameters.
Answer: TRUE
Diff: 1 Page Ref: 11
Section Heading: Model Building: Break-Even Analysis
Keywords: sensitivity analysis, parameter changes
AACSB: Application of knowledge
13) Variable costs depend on the number of items produced.
Answer: TRUE
Diff: 1 Page Ref: 8
Section Heading: Model Building: Break-Even Analysis
Keywords: variable cost, break-even analysis
AACSB: Application of knowledge
2
, 14) Fixed cost is the difference between total cost and total variable cost.
Answer: TRUE
Diff: 1 Page Ref: 8
Section Heading: Model Building: Break-Even Analysis
Keywords: total cost, break-even analysis
AACSB: Application of knowledge
15) The break-even point is the volume that equates total revenue with total cost.
Answer: TRUE
Diff: 1 Page Ref: 9
Section Heading: Model Building: Break-Even Analysis
Keywords: break-even analysis
AACSB: Analytical thinking
16) In general, an increase in price increases the break-even point if all costs are held constant.
Answer: FALSE
Diff: 1 Page Ref: 11
Section Heading: Model Building: Break-Even Analysis
Keywords: break-even analysis
AACSB: Analytical thinking
17) If variable costs increase, but price and fixed costs are held constant, the break-even point will
decrease.
Answer: FALSE
Diff: 2 Page Ref: 11
Section Heading: Model Building: Break-Even Analysis
Keywords: break-even analysis
AACSB: Analytical thinking
18) Managers utilize spreadsheets to conduct their own analyses in management science studies.
Answer: TRUE
Diff: 2 Page Ref: 13
Section Heading: Computer Solution
Keywords: spreadsheets
AACSB: Analytical thinking
19) Management science techniques focus primarily on observation, model construction, and
implementation to find an appropriate solution to a problem.
Answer: FALSE
Diff: 2 Page Ref: 16
Section Heading: Management Science Modeling Techniques
Keywords: mgt science modeling techniques, steps of the scientific method
AACSB: Analytical thinking
20) Management science modeling techniques focus on model construction and problem solution.
Answer: TRUE
Diff: 2 Page Ref: 15
Section Heading: Management Science Modeling Techniques
Keywords: mgt science model techniques, model constr, prob solution
AACSB: Analytical thinking
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AcademiContent. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $27.15. You're not tied to anything after your purchase.
