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Business Intelligence, Analytics, Data Science, and AI, 5th Edition by Ramesh Sharda, Dursun Delen, Efraim Turban Chapter 8 Prescriptive Analytics: Optimization and Simulation €8,49
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Business Intelligence, Analytics, Data Science, and AI, 5th Edition by Ramesh Sharda, Dursun Delen, Efraim Turban Chapter 8 Prescriptive Analytics: Optimization and Simulation
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Business Intelligence, Analytics, Data Science, and AI, 5th Edition by Ramesh Sharda, Dursun Delen, Efraim Turban Chapter 8 Prescriptive Analytics: Optimization and Simulation 1) Modeling can be viewed as a science in its entirety. Answer: FALSE Diff: 2 Page Ref: 471 2) In the openin...

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Business Intelligence, Analytics, Data Science,
and AI, 5th Edition by Ramesh Sharda, Dursun
Delen, Efraim Turban
Chapter 8 Prescriptive Analytics: Optimization and Simulation

1) Modeling can be viewed as a science in its entirety.
Answer: FALSE
Diff: 2 Page Ref: 471

2) In the opening vignette, the solution helped to determine how many vendors to award
contracts to, as well as the size of each of the contracts.
Answer: FALSE
Diff: 2 Page Ref: 473

3) If linear programming can be successfully applied to a problem, the output is usually optimal.
Answer: TRUE
Diff: 1 Page Ref: 489

4) Making optimal decisions using analytical models is what is called prescriptive analytics.
Answer: TRUE
Diff: 1 Page Ref: 474

5) In order to be effective, analysts must use optimal models to solve problems without being
constrained by organizational culture.
Answer: FALSE
Diff: 2 Page Ref: 476

6) The use of simulation models is desirable because they can usually be solved in one pass,
without incurring the time and cost of iterations.
Answer: FALSE
Diff: 2 Page Ref: 505

7) An advantage of simulation is that it allows model builders to solve problems with minimal
interaction with users or managers.
Answer: FALSE
Diff: 2 Page Ref: 505

8) The current trend in prescriptive analytics is towards developing and using Web tools and
software to access and run modeling software.
Answer: TRUE
Diff: 1 Page Ref: 479
1
Copyright © 2024 Pearson Education Ltd.

,9) Using data cubes in OLAP systems opens the data up to analysis by more classes of models.
Answer: FALSE
Diff: 3 Page Ref: 479

10) Another name for result variables is independent variables.
Answer: FALSE
Diff: 2 Page Ref: 480
11) Taking a decision under risk is different from taking the decision under uncertainty.
Answer: TRUE
Diff: 2 Page Ref: 482

12) Spreadsheets are the second most popular tool for end-user modeling.
Answer: FALSE
Diff: 1 Page Ref: 484

13) Linear programming seeks to optimally allocate resources among competing activities and is
likely the best-known optimization model.
Answer: TRUE
Diff: 2 Page Ref: 490

14) Decision-making under uncertainty decision maker can only estimate the probability of
occurrence.
Answer: FALSE
Diff: 3 Page Ref: 483

15) Most managerial problems can be properly evaluated and solved using a single goal, such as
profit maximization.
Answer: FALSE
Diff: 3 Page Ref: 497

16) Sensitivity analysis seeks to assess the impact of changes in the input data and parameters on
the proposed solution.
Answer: TRUE
Diff: 2 Page Ref: 498

17) What if and goal seeking are the two most common methods of sensitivity analysis.
Answer: TRUE
Diff: 2 Page Ref: 499

18) An expected value is computed by dividing the results (i.e., outcomes) by their respective
probabilities and subtracting them.
Answer: FALSE
Diff: 2 Page Ref: 502

19) Time compression in a simulation allows managers to assess the long-term effects of many
policies.

2
Copyright © 2024 Pearson Education Ltd.

, Answer: TRUE
Diff: 2 Page Ref: 505

20) Simulation modeling process starts with the construction of the detail model of the system.
Answer: FALSE
Diff: 2 Page Ref: 506




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