,CHAPTER 1: INTRODUCTION TO MODELING AND DECISION ANALYSIS
1. The essence of decision analysis is:
a. breaking down complex situations into manageable elements.
b. choosing the best course of action among alternatives.
c. finding the root cause of why something has gone wrong.
d. thinking ahead to avoid negative consequences.
ANSWER: b
2. Why would someone wish to use a spreadsheet model?
a. To implement a computer model.
b. Because spreadsheets are convenient.
c. To analyze decision alternatives.
d. All of these.
ANSWER: d
3. Which of the following fields of study is defined in Chapter One as the one that "uses computers, statistics, and
mathematics to solve business problems"?
a. Accounting
b. Information systems
c. Business analytics
d. Scientific management
ANSWER: c
4. In a decision-making problem, anchoring effects occur when
a. decision makers are tied too closely to previous decisions.
b. organizations refuse to consider new alternatives.
c. a seemingly trivial factor serves as a starting point for estimations.
d. a person in a position of authority exerts his or her opinion very forcefully.
ANSWER: c
5. Virtually everyone who uses a spreadsheet today for model building and decision making
a. is a practitioner of business analytics.
b. possesses an advanced knowledge of mathematics and computer programming languages.
c. is a CPA.
d. is in a position to influence decision makers.
,Chapter 1: Introduction to Modeling and Decision Analysis
6. Which of the following statements is true of using models in problem solving and decision analysis?
a. It is a fairly new idea.
b. It is required in order to find good solutions.
c. It is something everyone has done before.
d. It is tied to the use of computers.
ANSWER: c
7. A road map is an example of
a. a mathematical model.
b. a mental model.
c. a physical model.
d. a visual model.
ANSWER: d
8. The textbook figure of the problem-solving process is an example of a
a. mental model.
b. prescriptive model.
c. graphical model.
d. visual model.
ANSWER: d
9. Which of the following is most likely to be used when faced with the decision of how to arrange furniture in a room?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
ANSWER: b
10. To illustrate how a complex system will be built, an engineer will likely use a
a. mathematical model.
b. mental model.
c. physical model.
d. visual model.
ANSWER: d
11. Which of the following is the type of model used throughout this textbook?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
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