SPREADSHEET MODELING AND
DECISION ANALYSIS EXAM QUESTIONS
AND CORRECT ANSWERS. VERIFIED
2025/2026.
Computer Model Ch. 1 pg. 1 - ANS A set of mathematical relationships and logical
assumptions implemented in a computer as a representation of some real-world object,
decision problem, or phenomenon.
Spreadsheet Model Ch. 1 pg. 1 - ANS a computer model implemented via a spreadsheet.
Business Analytics Ch. 1 pg. 1 - ANS a field of study that uses data, computers, statistics, and
mathematics to solve business problems. Involves using the methods and tools of science to
drive business decision making. "It is the science of making better decisions."
Mental Model Ch. 1 pg. 3 - ANS picturing what each model looks like in your mind's eye.
Sometimes all that is required to analyze a problem and make a decision
Visual Model Ch. 1 pg. 3 - ANS for More complex decisions, could be a set of drawings or
blueprints of a real world-structure. A road map is another type of visual model because it
assists a driver in analyzing the various routes from one location to another.
Physical or Scale Models Ch. 1 pg. 3 - ANS helps to study physical variables like aerodynamics,
maximizing efficiency design, etc.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Mathematical Model Ch. 1 pg. 3 - ANS uses mathematical relationships to describe or
represent an object or decision problem.
A Model Ch. 1 pg. 3 - ANS Is a simplified representation of reality.
Valid Model Ch. 1 pg. 4 - ANS 1. accurately represents the relevant characteristics of the
object or decision problem being studied.
2. it is often less expensive to analyse decision problems using a model.
3. models often deliver needed information on a timelier basis.
4. models are frequently helpful in examining things that would be impossible to do in reality.
(crash dummies)
5. models allow us to gain insight and understanding about the object or decision problem
under investigation. The ultimate purpose of using models is to improve decision making.
Profit Equation Ch. 1 pg. 4 - ANS Profit = Revenue - Expenses
Functional Relationship
Profit = f(Revenue, Expenses)
Dependent Variable Ch. 1 pg. 5 - ANS The dependent variable (Y) depends on the
independent variables (X1, X2) to exist, like Profit cannot be realized without the independent
variables revenue and expenses.
Independent Variables Ch. 1 pg. 5 - ANS Independent variables are (X) variables that exist
alone but support the dependent variable (Y)
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
DECISION ANALYSIS EXAM QUESTIONS
AND CORRECT ANSWERS. VERIFIED
2025/2026.
Computer Model Ch. 1 pg. 1 - ANS A set of mathematical relationships and logical
assumptions implemented in a computer as a representation of some real-world object,
decision problem, or phenomenon.
Spreadsheet Model Ch. 1 pg. 1 - ANS a computer model implemented via a spreadsheet.
Business Analytics Ch. 1 pg. 1 - ANS a field of study that uses data, computers, statistics, and
mathematics to solve business problems. Involves using the methods and tools of science to
drive business decision making. "It is the science of making better decisions."
Mental Model Ch. 1 pg. 3 - ANS picturing what each model looks like in your mind's eye.
Sometimes all that is required to analyze a problem and make a decision
Visual Model Ch. 1 pg. 3 - ANS for More complex decisions, could be a set of drawings or
blueprints of a real world-structure. A road map is another type of visual model because it
assists a driver in analyzing the various routes from one location to another.
Physical or Scale Models Ch. 1 pg. 3 - ANS helps to study physical variables like aerodynamics,
maximizing efficiency design, etc.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Mathematical Model Ch. 1 pg. 3 - ANS uses mathematical relationships to describe or
represent an object or decision problem.
A Model Ch. 1 pg. 3 - ANS Is a simplified representation of reality.
Valid Model Ch. 1 pg. 4 - ANS 1. accurately represents the relevant characteristics of the
object or decision problem being studied.
2. it is often less expensive to analyse decision problems using a model.
3. models often deliver needed information on a timelier basis.
4. models are frequently helpful in examining things that would be impossible to do in reality.
(crash dummies)
5. models allow us to gain insight and understanding about the object or decision problem
under investigation. The ultimate purpose of using models is to improve decision making.
Profit Equation Ch. 1 pg. 4 - ANS Profit = Revenue - Expenses
Functional Relationship
Profit = f(Revenue, Expenses)
Dependent Variable Ch. 1 pg. 5 - ANS The dependent variable (Y) depends on the
independent variables (X1, X2) to exist, like Profit cannot be realized without the independent
variables revenue and expenses.
Independent Variables Ch. 1 pg. 5 - ANS Independent variables are (X) variables that exist
alone but support the dependent variable (Y)
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
