OMGT 3223 TEST 1 QUESTIONS AND
ANSWERS
Business Decision Modeling - Correct Answers -The application of quantitative analysis
to managerial decision making.
What kind of models are we focused on? - Correct Answers -Quantitative
What are the two dimensions of models? - Correct Answers -Model Purpose and
Ceritainty
What kind of models fit under Model Purpose? - Correct Answers -Descriptive,
Prescriptive, and Predictive
What kind of models fit under Certainty? - Correct Answers -Deterministic and
Stochastic
What is the function of Goal Seek? - Correct Answers -Update one input to set one
output to a target value.
What is the use of Goal Seek? - Correct Answers -Breakeven Analysis
What is the function of the Data Analysis Toolkit? - Correct Answers -Perform statistical
analysis on data sets.
Discrete Random Variables - Correct Answers -May be numeric or categorical.
Numeric data is often, but not always, integers.
The interval may range from fixed limits or infinite limits.
Can take on a finite or infinite set of values.
Components of Decision Making - Correct Answers -1. States of Nature - An actual
event that may occur in the future.
2. Decision Alternatives - Options from which a decision maker can choose.
3. Outcomes - The result of a combination of states and decisions.
4. Decision Making Criteria - The basis on which the best alternative is selected.
Decision Making Criteria - Correct Answers -1. Maximax - Maximize the maximum
(best) outcome.
2. Maximin - Maximize the minimum (worst) outcome.
3. Maximax Regret - Minimize the maximum regret, i.e. the money left on the table.
4. Maximize Expected Outcome - Maximize the expected value of the outcome.
ANSWERS
Business Decision Modeling - Correct Answers -The application of quantitative analysis
to managerial decision making.
What kind of models are we focused on? - Correct Answers -Quantitative
What are the two dimensions of models? - Correct Answers -Model Purpose and
Ceritainty
What kind of models fit under Model Purpose? - Correct Answers -Descriptive,
Prescriptive, and Predictive
What kind of models fit under Certainty? - Correct Answers -Deterministic and
Stochastic
What is the function of Goal Seek? - Correct Answers -Update one input to set one
output to a target value.
What is the use of Goal Seek? - Correct Answers -Breakeven Analysis
What is the function of the Data Analysis Toolkit? - Correct Answers -Perform statistical
analysis on data sets.
Discrete Random Variables - Correct Answers -May be numeric or categorical.
Numeric data is often, but not always, integers.
The interval may range from fixed limits or infinite limits.
Can take on a finite or infinite set of values.
Components of Decision Making - Correct Answers -1. States of Nature - An actual
event that may occur in the future.
2. Decision Alternatives - Options from which a decision maker can choose.
3. Outcomes - The result of a combination of states and decisions.
4. Decision Making Criteria - The basis on which the best alternative is selected.
Decision Making Criteria - Correct Answers -1. Maximax - Maximize the maximum
(best) outcome.
2. Maximin - Maximize the minimum (worst) outcome.
3. Maximax Regret - Minimize the maximum regret, i.e. the money left on the table.
4. Maximize Expected Outcome - Maximize the expected value of the outcome.
