Question Bank in line with Quantitative Methods for Business,Anderson,13e

True / False


1. The process of decision making is more limited than that of problem solving.
a. True

b. False

ANSWER: True

POINTS: 1

TOPICS: Problem solving and decision making



2. The terms 'stochastic' and 'deterministic' have the same meaning in quantitative analysis.
a. True

b. False

ANSWER: False

POINTS: 1

TOPICS: Model development



3. The volume that results in marginal revenue equaling marginal cost is called the break-even
point.
a. True

b. False

ANSWER: False

POINTS: 1

TOPICS: Problem solving and decision making



4. Problem solving encompasses both the identification of a problem and the action to resolve it.
a. True

b. False

,ANSWER: True

POINTS: 1

TOPICS: Problem solving and decision making



5. The decision making process includes implementation and evaluation of the decision.
a. True

b. False

ANSWER: False

POINTS: 1

TOPICS: Problem solving and decision making



6. The most successful quantitative analysis will separate the analyst from the managerial team
until after the problem is fully structured.
a. True

b. False

ANSWER: False

POINTS: 1

TOPICS: Quantitative analysis



7. The value of any model is that it enables the user to make inferences about the real situation.
a. True

b. False

ANSWER: True

POINTS: 1

TOPICS: Model development



8. Uncontrollable inputs are the decision variables for a model.

, a. True

b. False

ANSWER: False

POINTS: 1

TOPICS: Model development



9. The feasible solution is the best solution possible for a mathematical model.
a. True

b. False

ANSWER: False

POINTS: 1

TOPICS: Model solution



10. A company seeks to maximize profit subject to limited availability of man-hours. Man-hours
is a controllable input.
a. True

b. False

ANSWER: False

POINTS: 1

TOPICS: Model development



11. Frederick Taylor is credited with forming the first MS/OR interdisciplinary teams in the
1940's.
a. True

b. False

ANSWER: False

, POINTS: 1

TOPICS: Introduction



12. To find the choice that provides the highest profit and the fewest employees, apply a single-
criterion decision process.
a. True

b. False

ANSWER: False

POINTS: 1

TOPICS: Problem solving and decision making



13. The most critical component in determining the success or failure of any quantitative
approach to decision making is problem definition.
a. True

b. False

ANSWER: True

POINTS: 1

TOPICS: Quantitative analysis



14. The first step in the decision making process is to identify the problem.
a. True

b. False

ANSWER: True

POINTS: 1

TOPICS: Introduction



15. All uncontrollable inputs or data must be specified before we can analyze the model and
recommend a decision or solution for the problem.