TEST BANK
TEST BANK
,Multiple Choice
1. The decisions concerning an organization’s goals and future plans are called _____.
a. financial decisions b. tactical decisions
c. strategic decisions d. operational decisions
ANSWER: c
2. Tactical decisions are concerned with _____.
a. the day-to-day activities of the organization
b. the goals and plans of the organization
c. the domain of operations managers, who are close to the customer
d. how the organization should achieve the goals and objectives set by its strategy
ANSWER: d
3. Picks and Axes Inc. is an Internet-based retail seller of hiking boots and mountaineering gear. The company decides to
open retail stores across the major areas of the city to help complement its Internet-based strategy. This activity would be
categorized as a(n) _____.
a. tactical decision b. operational decision
c. strategic decision d. financial decision
ANSWER: c
4. _____ is the most critical step of the decision-making process.
a. Choosing an alternative b. Identifying and defining the problem
c. Evaluating the alternatives d. Determining the set of alternatives
ANSWER: b
5. Which of the following is not an approach to making decisions?
a. Tradition b. Rules of thumb
c. Intuition d. Guess and check
ANSWER: d
6. Data-driven decision making tends to decrease a firm's _____.
a. market value b. productivity
c. risk d. profit
ANSWER: c
7. Data dashboards are a type of _____analytics.
a. predictive b. descriptive
c. prescriptive d. decision
ANSWER: b
8. The extraction of information on the number of shipments, how much was included in each shipment, the date each
shipment was sent, and so on from the manufacturing plant’s database exemplifies _____
a. spreadsheet models b. data dashboards
c. data mining d. data queries
ANSWER: d
,9. Corporate-level managers use ______ to summarize sales by region, current inventory levels, and other company-wide
metrics all in a single screen.
a. simulations b. crosstabulation
c. data dashboards d. tables
ANSWER: c
10. A forecast that helps direct police officers to areas where crimes are likely to occur based on past data is an example
of _____.
a. predictive analytics b. decision analysis
c. prescriptive analytics d. descriptive analytics
ANSWER: a
11. Which one of the following is used in predictive analytics?
a. Data dashboard b. Linear regression
c. Data visualization d. Optimization model
ANSWER: b
12. A retail store owner offers a discount on product A and predicts that the customers would purchase products B and C
in addition to product A. Identify the technique used to make such a prediction.
a. Data query b. Simulation
c. Data mining d. Data dashboards
ANSWER: c
13. _____ are used in the pharmaceutical industry to assess the risk of introducing a new drug.
a. Data dashboards b. Charts
c. Spreadsheet models d. Simulations
ANSWER: d
14. Which of the following analytical techniques helps us arrive at the best decision?
a. Predictive analytics b. Data mining
c. Prescriptive analytics d. Descriptive analytics
ANSWER: c
15. Simulation optimization helps _____.
a. in identifying the constraints of the situation
b. to find good decisions in highly complex and highly uncertain settings
c. in assigning values to outcomes
d. to model certainty using optimization techniques
ANSWER: b
16. When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses _____ to
develop an optimal strategy.
a. utility theory b. predictive analytics
c. data mining d. decision analysis
ANSWER: d
17. _____ assigns values to outcomes based on the decision maker’s attitude toward risk, loss, and other factors.
, a. Simulation optimization b. Utility theory
c. Optimization model d. Data dashboard
ANSWER: b
18. Which of the following best exemplifies big data?
a. Five hundred Facebook users upload one thousand pictures per day.
b. Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing
the Web on a daily basis.
c. A local grocery store collects data from those that scan their loyalty card.
d. A pharmacy keeps track of customer purchases to send its customers coupons.
ANSWER: b
19. Which of the following sources of big data is not publicly available?
a. Twitter
b. Weather data
c. Medical records
d. Sports records
ANSWER: c
20. Advanced analytics generally refers to _____.
a. descriptive and prescriptive analytics b. simulation
c. predictive and prescriptive analytics d. decision analysis
ANSWER: c
21. In the financial sector, _____ are used to construct financial instruments such as derivatives.
a. descriptive and prescriptive models b. predictive models
c. descriptive models d. prescriptive models
ANSWER: b
22. Optimization models can be used to _____.
a. assess the risk of investment portfolios
b. forecast future financial performance
c. successfully manage commercial real estate risk
d. decide on how to invest cash received from insurance policies
ANSWER: d
23. Utility theory is the study of the _____ or relative desirability of a particular outcome that reflects the decision
maker’s attitude toward a collection of factors, such as profit, loss, and risk.
a. total worth
b. total cost
c. feasibility
d. financial wellness
ANSWER: a
24. _____ refers to the technology that allows data, collected from sensors in all types of machines, to be sent over the
Internet to repositories where it can be stored and analyzed.
a. Internet of Things (IoT)
TEST BANK
,Multiple Choice
1. The decisions concerning an organization’s goals and future plans are called _____.
a. financial decisions b. tactical decisions
c. strategic decisions d. operational decisions
ANSWER: c
2. Tactical decisions are concerned with _____.
a. the day-to-day activities of the organization
b. the goals and plans of the organization
c. the domain of operations managers, who are close to the customer
d. how the organization should achieve the goals and objectives set by its strategy
ANSWER: d
3. Picks and Axes Inc. is an Internet-based retail seller of hiking boots and mountaineering gear. The company decides to
open retail stores across the major areas of the city to help complement its Internet-based strategy. This activity would be
categorized as a(n) _____.
a. tactical decision b. operational decision
c. strategic decision d. financial decision
ANSWER: c
4. _____ is the most critical step of the decision-making process.
a. Choosing an alternative b. Identifying and defining the problem
c. Evaluating the alternatives d. Determining the set of alternatives
ANSWER: b
5. Which of the following is not an approach to making decisions?
a. Tradition b. Rules of thumb
c. Intuition d. Guess and check
ANSWER: d
6. Data-driven decision making tends to decrease a firm's _____.
a. market value b. productivity
c. risk d. profit
ANSWER: c
7. Data dashboards are a type of _____analytics.
a. predictive b. descriptive
c. prescriptive d. decision
ANSWER: b
8. The extraction of information on the number of shipments, how much was included in each shipment, the date each
shipment was sent, and so on from the manufacturing plant’s database exemplifies _____
a. spreadsheet models b. data dashboards
c. data mining d. data queries
ANSWER: d
,9. Corporate-level managers use ______ to summarize sales by region, current inventory levels, and other company-wide
metrics all in a single screen.
a. simulations b. crosstabulation
c. data dashboards d. tables
ANSWER: c
10. A forecast that helps direct police officers to areas where crimes are likely to occur based on past data is an example
of _____.
a. predictive analytics b. decision analysis
c. prescriptive analytics d. descriptive analytics
ANSWER: a
11. Which one of the following is used in predictive analytics?
a. Data dashboard b. Linear regression
c. Data visualization d. Optimization model
ANSWER: b
12. A retail store owner offers a discount on product A and predicts that the customers would purchase products B and C
in addition to product A. Identify the technique used to make such a prediction.
a. Data query b. Simulation
c. Data mining d. Data dashboards
ANSWER: c
13. _____ are used in the pharmaceutical industry to assess the risk of introducing a new drug.
a. Data dashboards b. Charts
c. Spreadsheet models d. Simulations
ANSWER: d
14. Which of the following analytical techniques helps us arrive at the best decision?
a. Predictive analytics b. Data mining
c. Prescriptive analytics d. Descriptive analytics
ANSWER: c
15. Simulation optimization helps _____.
a. in identifying the constraints of the situation
b. to find good decisions in highly complex and highly uncertain settings
c. in assigning values to outcomes
d. to model certainty using optimization techniques
ANSWER: b
16. When a decision maker is faced with several alternatives and an uncertain set of future events, s/he uses _____ to
develop an optimal strategy.
a. utility theory b. predictive analytics
c. data mining d. decision analysis
ANSWER: d
17. _____ assigns values to outcomes based on the decision maker’s attitude toward risk, loss, and other factors.
, a. Simulation optimization b. Utility theory
c. Optimization model d. Data dashboard
ANSWER: b
18. Which of the following best exemplifies big data?
a. Five hundred Facebook users upload one thousand pictures per day.
b. Cellphone owners around the world generate vast amounts of data by calling, texting, tweeting, and browsing
the Web on a daily basis.
c. A local grocery store collects data from those that scan their loyalty card.
d. A pharmacy keeps track of customer purchases to send its customers coupons.
ANSWER: b
19. Which of the following sources of big data is not publicly available?
a. Twitter
b. Weather data
c. Medical records
d. Sports records
ANSWER: c
20. Advanced analytics generally refers to _____.
a. descriptive and prescriptive analytics b. simulation
c. predictive and prescriptive analytics d. decision analysis
ANSWER: c
21. In the financial sector, _____ are used to construct financial instruments such as derivatives.
a. descriptive and prescriptive models b. predictive models
c. descriptive models d. prescriptive models
ANSWER: b
22. Optimization models can be used to _____.
a. assess the risk of investment portfolios
b. forecast future financial performance
c. successfully manage commercial real estate risk
d. decide on how to invest cash received from insurance policies
ANSWER: d
23. Utility theory is the study of the _____ or relative desirability of a particular outcome that reflects the decision
maker’s attitude toward a collection of factors, such as profit, loss, and risk.
a. total worth
b. total cost
c. feasibility
d. financial wellness
ANSWER: a
24. _____ refers to the technology that allows data, collected from sensors in all types of machines, to be sent over the
Internet to repositories where it can be stored and analyzed.
a. Internet of Things (IoT)
