BIT 3434 Midterm 1 with complete solutions 2024/2025

BIT 3434 Midterm 1 What is the anchoring effect? - correct answer - When seemingly trivial factors serves as a starting point for estimations. ex: 1x2x3x4x5x6x7x8 people may think this is less than 8x7x6x5x4x3x2x1 if they were guessing (They the same) What is the framing effect? - correct answer How a decision maker views or perceives the alternatives in a decision problem--- often in a win/loss perspective. Ex: you just been given $1000, but must choose one option A) receive another $500 with ccertainty B) Flip a coin and receive $1000 more if you win but lose nothing if you lose. What is business analytics? - correct answer A field of study that uses computer,stats, and math to solve business problems. What is a Computer Model? - correct answer Making a model to find out something on the computer. What are the characteristics of models? - correct answer - Simplified versions of the things they represent. - A valid model accurately represents the relevant characteristics of the objects or decision being studied. What is the Profit equation? - correct answer Revenue- Expenses What are Prescriptive Models? - correct answer Predicting or estimating what value for the dependent value (Profit in the profit equation) - To optimize Finding best solution