BUSOBA 2321 EXAM #1 QUESTIONS
& ANSWERS|| 2025 LATEST UPDATE
good - ANSWERDo the following qualities align with a good or bad decision?
1. based on logic
2. considers all options available
3. considers all information available at the present time
1. based on logic
2. considers all options available
3. considers all information available at the present time - ANSWERWhat are the 3
qualities of a good decision?
logic - ANSWERAre good decisions based on logic or personal choice?
no - ANSWERDoes a bad decision consider all available options?
yes - ANSWERDoes a good decision consider all available options?
yes - ANSWERDoes a bad decision dismiss and not consider all available options?
no - ANSWERDoes a good decision not consider all available options?
no - ANSWERIs a bad decision based on logic?
bad - ANSWERDo the following qualities align with a good or bad decision?
1. does not consider all options
2. does not consider all available information
3. pick and choose what to present in order to support an idea
4. bias
no - ANSWERIs a good decision bias?
yes - ANSWERIs a bad decision bias?
bad - ANSWERWe pick and choose what to present in order to support an idea when
we've made a _____ decision.
false - ANSWERTrue or False:
We pick and choose what to present in order to support an idea when we've made a
good decision.
,yes - ANSWERCan a good decision result in a negative outcome?
yes - ANSWERCan a bad decision result in a positive outcome?
false - ANSWERTrue or False:
A good decision can only result in a good outcome.
true - ANSWERTrue or False:
A bad decision can result in both a good and bad outcome.
A good decision that has a favorable outcome because it is worse to make a bad
decision with a favorable outcome, as it will make you think that you made the right
decision and you will keep making it. - ANSWERIs it better to have a good decision that
gives you an unfavorable outcome or a bad decision that gives you a favorable
outcome? Why?
1. Define the problem
2. List all alternatives/options
3. Identify the outcomes for each alternative (States of Nature)
4. Identify the payoff for each combination of alternatives and outcomes
5. Pick a technique to apply to the decision model, then make a decision -
ANSWERWhat are the 5 steps in decision analysis
1. model will represent reality
2. provides clear recommendations
3. saves time and money
4. could be the only reasonable way to solve for a complex set of equations -
ANSWERWhat are the 4 basic components of decision modeling?
1. formulate
2. solution
3. interpret - ANSWERWhat are the 3 steps in decision modeling?
formuation - ANSWERWhat step of decision modeling do the following qualities apply
to:
1. define the problem
2. develop the model
3. acquire data
solution - ANSWERWhat step of decision modeling do the following qualities apply to:
1. develop solution
2. test solution
interpret - ANSWERWhat step of decision modeling do the following qualities apply to:
, 1. analyze
2. sensitivity to market changes
3. implement
1. represent a business problem
2. maximize/minimize a quantity
3. have limitations (constraints)
4. have alternatives available - ANSWERA model will show what 4 things?
1. objective function
2. decision variables
3. optimal solution
4. constraints - ANSWERWhat are the 4 properties of linear programs?
1. certainty
2. proportionality
3. additivity
4. divisibility - ANSWERWhat are the 4 assumptions of linear programs?
1. Are we maximizing or minimizing?
2. What are we maximizing or minimizing?
3. What are the decision variables?
4. What are the constraints? - ANSWERWhat 4 questions must we answer when
approaching a linear programming problem?
multiple optimal solution - ANSWERWhat type of linear programming solution provides
more than 1 solution that gives the most profit.
infeasible solution - ANSWERWhat type of linear programming solution provides no
solutions that meet all the variable constraints?
unbounded solution - ANSWERWhat type of linear programming solution provides a
solution with no limit (i.e., there is no optimal solution).
more - ANSWERIn a linear programming problem that results in an unbounded solution,
as the variable represented on the y-axis approaches infinity, does the solution become
more or less optimal?
(1) write them by hand
(2) convert to a linear equation - ANSWERWhen we write constraints must first __(1)__
and then __(2)__.
constraints - ANSWERNon-negativity is included as one of our _____.
& ANSWERS|| 2025 LATEST UPDATE
good - ANSWERDo the following qualities align with a good or bad decision?
1. based on logic
2. considers all options available
3. considers all information available at the present time
1. based on logic
2. considers all options available
3. considers all information available at the present time - ANSWERWhat are the 3
qualities of a good decision?
logic - ANSWERAre good decisions based on logic or personal choice?
no - ANSWERDoes a bad decision consider all available options?
yes - ANSWERDoes a good decision consider all available options?
yes - ANSWERDoes a bad decision dismiss and not consider all available options?
no - ANSWERDoes a good decision not consider all available options?
no - ANSWERIs a bad decision based on logic?
bad - ANSWERDo the following qualities align with a good or bad decision?
1. does not consider all options
2. does not consider all available information
3. pick and choose what to present in order to support an idea
4. bias
no - ANSWERIs a good decision bias?
yes - ANSWERIs a bad decision bias?
bad - ANSWERWe pick and choose what to present in order to support an idea when
we've made a _____ decision.
false - ANSWERTrue or False:
We pick and choose what to present in order to support an idea when we've made a
good decision.
,yes - ANSWERCan a good decision result in a negative outcome?
yes - ANSWERCan a bad decision result in a positive outcome?
false - ANSWERTrue or False:
A good decision can only result in a good outcome.
true - ANSWERTrue or False:
A bad decision can result in both a good and bad outcome.
A good decision that has a favorable outcome because it is worse to make a bad
decision with a favorable outcome, as it will make you think that you made the right
decision and you will keep making it. - ANSWERIs it better to have a good decision that
gives you an unfavorable outcome or a bad decision that gives you a favorable
outcome? Why?
1. Define the problem
2. List all alternatives/options
3. Identify the outcomes for each alternative (States of Nature)
4. Identify the payoff for each combination of alternatives and outcomes
5. Pick a technique to apply to the decision model, then make a decision -
ANSWERWhat are the 5 steps in decision analysis
1. model will represent reality
2. provides clear recommendations
3. saves time and money
4. could be the only reasonable way to solve for a complex set of equations -
ANSWERWhat are the 4 basic components of decision modeling?
1. formulate
2. solution
3. interpret - ANSWERWhat are the 3 steps in decision modeling?
formuation - ANSWERWhat step of decision modeling do the following qualities apply
to:
1. define the problem
2. develop the model
3. acquire data
solution - ANSWERWhat step of decision modeling do the following qualities apply to:
1. develop solution
2. test solution
interpret - ANSWERWhat step of decision modeling do the following qualities apply to:
, 1. analyze
2. sensitivity to market changes
3. implement
1. represent a business problem
2. maximize/minimize a quantity
3. have limitations (constraints)
4. have alternatives available - ANSWERA model will show what 4 things?
1. objective function
2. decision variables
3. optimal solution
4. constraints - ANSWERWhat are the 4 properties of linear programs?
1. certainty
2. proportionality
3. additivity
4. divisibility - ANSWERWhat are the 4 assumptions of linear programs?
1. Are we maximizing or minimizing?
2. What are we maximizing or minimizing?
3. What are the decision variables?
4. What are the constraints? - ANSWERWhat 4 questions must we answer when
approaching a linear programming problem?
multiple optimal solution - ANSWERWhat type of linear programming solution provides
more than 1 solution that gives the most profit.
infeasible solution - ANSWERWhat type of linear programming solution provides no
solutions that meet all the variable constraints?
unbounded solution - ANSWERWhat type of linear programming solution provides a
solution with no limit (i.e., there is no optimal solution).
more - ANSWERIn a linear programming problem that results in an unbounded solution,
as the variable represented on the y-axis approaches infinity, does the solution become
more or less optimal?
(1) write them by hand
(2) convert to a linear equation - ANSWERWhen we write constraints must first __(1)__
and then __(2)__.
constraints - ANSWERNon-negativity is included as one of our _____.
