Chapter 1—Introduction to Modeling and Decision Analysis
MULTIPLE CHOICE
1. The essence of decision analysis is:
a. breaking down complex situations into manageable elements.
b. choosing the best course of action among alternatives.
c. finding the root cause of why something has gone wrong.
d. thinking ahead to avoid negative consequences.
ANS: B PTS: 1
2. Why would someone wish to use a spreadsheet model?
a. To implement a computer model.
b. Because spreadsheets are convenient.
c. To analyze decision alternatives.
d. All of these.
ANS: D PTS: 1
3. Which of the following fields of study is defined in Chapter One as the one that "uses computers,
statistics, and mathematics to solve business problems"?
a. Accounting
b. Information systems
c. Management science
d. Scientific management
ANS: C PTS: 1
4. In a decision-making problem, anchoring effects occur when
a. decision makers are tied too closely to previous decisions.
b. organizations refuse to consider new alternatives.
c. a seemingly trivial factor serves as a starting point for estimations.
d. a person in a position of authority exerts his or her opinion very forcefully.
ANS: C PTS: 1
5. Virtually everyone who uses a spreadsheet today for model building and decision making
a. is a practitioner of management science.
b. possesses an advanced knowledge of mathematics and computer programming languages.
c. is a CPA.
d. is in a position to influence decision makers.
ANS: A PTS: 1
, 6. Which of the following statements is true of using models in problem solving and decision
analysis?
a. It is a fairly new idea.
b. It is required in order to find good solutions.
c. It is something everyone has done before.
d. It is tied to the use of computers.
ANS: C PTS: 1
7. A road map is an example of
a. a mathematical model.
b. a mental model.
c. a physical model.
d. a visual model.
ANS: D PTS: 1
8. The textbook figure of the problem-solving process is an example of a
a. mental model.
b. prescriptive model.
c. graphical model.
d. visual model.
ANS: D PTS: 1
9. Which of the following is most likely to be used when faced with the decision of how to arrange
furniture in a room?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
ANS: B PTS: 1
10. To illustrate how a complex system will be built, an engineer will likely use a
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
ANS: D PTS: 1
11. Which of the following is the type of model used throughout this textbook?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
, ANS: A PTS: 1
12. The best models
a. accurately reflect relevant characteristics of the real-world object or decision.
b. are mathematical models.
c. replicate all aspects of the real-world object or decision.
d. replicate the characteristics of a component in isolation from the rest of the system.
ANS: A PTS: 1
13. A mathematical model is considered to be "valid" when
a. it accurately represents the relevant characteristics of the object or decision.
b. it has passed a validation test.
c. it replicates all aspects of the object or decision.
d. the left-hand and right-hand sides of expressions are equal.
ANS: A PTS: 1
14. All of the following are benefits of modeling except:
a. Modeling delivers needed information on a more timely basis.
b. Modeling finds the right answers to incorrect or flawed problem statements.
c. Modeling is helpful in examining things that would be impossible to do in reality.
d. Modeling is less expensive than implementing several alternative solutions.
ANS: B PTS: 1
15. Better decision making due to using a modeling process is achieved due to
a. the interaction with the spreadsheet.
b. the visualization of the system being studied.
c. the insight gained through the process.
d. the timeliness of the results obtained.
ANS: C PTS: 1
16. In this text we use the term "mathematics" to encompass
i. familiar elements of math such as algebra.
ii. logic.
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
ANS: C PTS: 1
17. The specification or description of the relationship between the dependent and independent
variables is generally called
a. a constraint.
, b. a declaration.
c. a function.
d. a mathematical model.
ANS: C PTS: 1
18. Variables are termed independent when they satisfy which of the following?
a. The function value depends upon their values.
b. The decision maker has no control over them.
c. The variables have no relationship to one another.
d. The variable is described as an output of the spreadsheet model.
ANS: A PTS: 1
19. In the following expression, which is (are) the dependent variable(s)?
PROFIT = REVENUE − EXPENSES
a. Profit
b. Revenue
c. Expenses
d. (b) and (c)
ANS: A PTS: 1
MULTIPLE CHOICE
1. The essence of decision analysis is:
a. breaking down complex situations into manageable elements.
b. choosing the best course of action among alternatives.
c. finding the root cause of why something has gone wrong.
d. thinking ahead to avoid negative consequences.
ANS: B PTS: 1
2. Why would someone wish to use a spreadsheet model?
a. To implement a computer model.
b. Because spreadsheets are convenient.
c. To analyze decision alternatives.
d. All of these.
ANS: D PTS: 1
3. Which of the following fields of study is defined in Chapter One as the one that "uses computers,
statistics, and mathematics to solve business problems"?
a. Accounting
b. Information systems
c. Management science
d. Scientific management
ANS: C PTS: 1
4. In a decision-making problem, anchoring effects occur when
a. decision makers are tied too closely to previous decisions.
b. organizations refuse to consider new alternatives.
c. a seemingly trivial factor serves as a starting point for estimations.
d. a person in a position of authority exerts his or her opinion very forcefully.
ANS: C PTS: 1
5. Virtually everyone who uses a spreadsheet today for model building and decision making
a. is a practitioner of management science.
b. possesses an advanced knowledge of mathematics and computer programming languages.
c. is a CPA.
d. is in a position to influence decision makers.
ANS: A PTS: 1
, 6. Which of the following statements is true of using models in problem solving and decision
analysis?
a. It is a fairly new idea.
b. It is required in order to find good solutions.
c. It is something everyone has done before.
d. It is tied to the use of computers.
ANS: C PTS: 1
7. A road map is an example of
a. a mathematical model.
b. a mental model.
c. a physical model.
d. a visual model.
ANS: D PTS: 1
8. The textbook figure of the problem-solving process is an example of a
a. mental model.
b. prescriptive model.
c. graphical model.
d. visual model.
ANS: D PTS: 1
9. Which of the following is most likely to be used when faced with the decision of how to arrange
furniture in a room?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
ANS: B PTS: 1
10. To illustrate how a complex system will be built, an engineer will likely use a
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
ANS: D PTS: 1
11. Which of the following is the type of model used throughout this textbook?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
, ANS: A PTS: 1
12. The best models
a. accurately reflect relevant characteristics of the real-world object or decision.
b. are mathematical models.
c. replicate all aspects of the real-world object or decision.
d. replicate the characteristics of a component in isolation from the rest of the system.
ANS: A PTS: 1
13. A mathematical model is considered to be "valid" when
a. it accurately represents the relevant characteristics of the object or decision.
b. it has passed a validation test.
c. it replicates all aspects of the object or decision.
d. the left-hand and right-hand sides of expressions are equal.
ANS: A PTS: 1
14. All of the following are benefits of modeling except:
a. Modeling delivers needed information on a more timely basis.
b. Modeling finds the right answers to incorrect or flawed problem statements.
c. Modeling is helpful in examining things that would be impossible to do in reality.
d. Modeling is less expensive than implementing several alternative solutions.
ANS: B PTS: 1
15. Better decision making due to using a modeling process is achieved due to
a. the interaction with the spreadsheet.
b. the visualization of the system being studied.
c. the insight gained through the process.
d. the timeliness of the results obtained.
ANS: C PTS: 1
16. In this text we use the term "mathematics" to encompass
i. familiar elements of math such as algebra.
ii. logic.
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
ANS: C PTS: 1
17. The specification or description of the relationship between the dependent and independent
variables is generally called
a. a constraint.
, b. a declaration.
c. a function.
d. a mathematical model.
ANS: C PTS: 1
18. Variables are termed independent when they satisfy which of the following?
a. The function value depends upon their values.
b. The decision maker has no control over them.
c. The variables have no relationship to one another.
d. The variable is described as an output of the spreadsheet model.
ANS: A PTS: 1
19. In the following expression, which is (are) the dependent variable(s)?
PROFIT = REVENUE − EXPENSES
a. Profit
b. Revenue
c. Expenses
d. (b) and (c)
ANS: A PTS: 1
