Quantitative Methods for Business 13th Edition David Anderson - Test Bank

,True / False

1. The process of decision making is more limited than that of problem solving.
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: Problem solving and decision making

2. The terms 'stochastic' and 'deterministic' have the same meaning in quantitative analysis.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Model development

3. The volume that results in marginal revenue equaling marginal cost is called the break-even point.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Problem solving and decision making

4. Problem solving encompasses both the identification of a problem and the action to resolve it.
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: Problem solving and decision making

5. The decision making process includes implementation and evaluation of the decision.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Problem solving and decision making

6. The most successful quantitative analysis will separate the analyst from the managerial team until after the problem is
fully structured.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Quantitative analysis

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

,ANSWER: True
POINTS: 1
TOPICS: Model development

8. Uncontrollable inputs are the decision variables for a model.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Model development

9. The feasible solution is the best solution possible for a mathematical model.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Model solution

10. A company seeks to maximize profit subject to limited availability of man-hours. Man-hours is a controllable input.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Model development

11. Frederick Taylor is credited with forming the first MS/OR interdisciplinary teams in the 1940's.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Introduction

12. To find the choice that provides the highest profit and the fewest employees, apply a single-criterion decision process.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Problem solving and decision making

13. The most critical component in determining the success or failure of any quantitative approach to decision making is
problem definition.
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: Quantitative analysis

14. The first step in the decision making process is to identify the problem.

, a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: Introduction

15. All uncontrollable inputs or data must be specified before we can analyze the model and recommend a decision or
solution for the problem.
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: Quantitative analysis

16. In quantitative analysis, the optimal solution is the mathematically-best solution.
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: Quantitative analysis

17. 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.
a. True
b. False
ANSWER: True
POINTS: 1
TOPICS: Problem solving and decision making

18. Model development should be left to quantitative analysts; the model user's involvement should begin at the
implementation stage.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Problem solving and decision making

19. A feasible solution is one that satisfies at least one of the constraints in the problem.
a. True
b. False
ANSWER: False
POINTS: 1
TOPICS: Model solution

20. A toy train layout designed to represent an actual railyard is an example of an analog model.
a. True
b. False
ANSWER: False