MSIS 3223 Final Exam Questions with Verified
Correct Answers
What is the Variable Cost Formula?
Unit Variable Cost x Quantity Produced
T/F: Quantity produced is a decision option typically based on demand.
TRUE
Multiple outputs may be evaluated using what?
One-Way data tables
Two-Way data tables can evaluate ONLY what?
One output variable
T/F: Predictive models focus on understanding the future.
TRUE
What are Sales Levels often used for?
To plan inventory levels.
What do Predictive Models incorporate?
They Incorporate the uncertainty element
What are Decision Variables?
Variables you're trying to define
What is Objective Function?
The quantity that is to be minimized or maximized.
, What is the most important tool in Prescriptive Analytics?
Optimization
What are Constraints?
Limitations, requirements, or other restrictions that are imposed on any solution, either from
practical or technological considerations or by management policy.
What are Simple Bounds?
Constrain the value of a single variable
What are Limitations?
Usually involve the allocation of scarce resources
What are Requirements?
Involve the specification of minimum levels of performance
What are Proportional Relationships?
Often found in problems involving mixtures or blends of materials or strategies
What are Balance Constraints?
Essentially state that Input = Output and ensure that the flow of material or money is
accounted for at locations or between time periods.
What is Integer Tolerance?
The parameter that specifies when the Solver algorithm will terminate an optimization
process with integer constraints
What should the Value of Integer Tolerance be?
Correct Answers
What is the Variable Cost Formula?
Unit Variable Cost x Quantity Produced
T/F: Quantity produced is a decision option typically based on demand.
TRUE
Multiple outputs may be evaluated using what?
One-Way data tables
Two-Way data tables can evaluate ONLY what?
One output variable
T/F: Predictive models focus on understanding the future.
TRUE
What are Sales Levels often used for?
To plan inventory levels.
What do Predictive Models incorporate?
They Incorporate the uncertainty element
What are Decision Variables?
Variables you're trying to define
What is Objective Function?
The quantity that is to be minimized or maximized.
, What is the most important tool in Prescriptive Analytics?
Optimization
What are Constraints?
Limitations, requirements, or other restrictions that are imposed on any solution, either from
practical or technological considerations or by management policy.
What are Simple Bounds?
Constrain the value of a single variable
What are Limitations?
Usually involve the allocation of scarce resources
What are Requirements?
Involve the specification of minimum levels of performance
What are Proportional Relationships?
Often found in problems involving mixtures or blends of materials or strategies
What are Balance Constraints?
Essentially state that Input = Output and ensure that the flow of material or money is
accounted for at locations or between time periods.
What is Integer Tolerance?
The parameter that specifies when the Solver algorithm will terminate an optimization
process with integer constraints
What should the Value of Integer Tolerance be?
