Testbank for Introduction to Management Science, 13e, Global Edition (Taylor).

Testbank for Introduction to Management Science, 13e,
Global Edition (Taylor)




pg. 1

,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: 25
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: 23
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: 23
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: 24
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: 23
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: 23
Section Heading: The Management Science Approach to Problem Solving
Keywords: models, management science techniques
AACSB: Analytical thinking




pg. 2

,7) The first step of the management science process is to define the problem.
Answer: FALSE
Diff: 2 Page Ref: 22
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: 27
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: 27
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: 27
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: 38
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: 32
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.




pg. 3

, Answer: TRUE
Diff: 1 Page Ref: 29
Section Heading: Model Building: Break-Even Analysis
Keywords: variable cost, break-even analysis
AACSB: Application of knowledge

14) Fixed cost is the difference between total cost and total variable cost.
Answer: TRUE
Diff: 1 Page Ref: 29
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: 30
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: 32
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: 32
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: 34
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: 36




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