Test Bank in Conjunction with Introduction to Management Science,Hillier,4e

Chapter 01

Introduction



True / False Questions



1. Managers need to know the mathematical theory behind the techniques of management
science so that they can lead management science teams.
True False




2. Spreadsheets allow many managers to conduct their own analyses in management
science studies.
True False




3. Management science is a discipline that attempts to aid managerial decision making by
applying a scientific approach to managerial problems that involve quantitative factors.
True False




4. The discovery of the simplex method in 1947 was the beginning of management science
as a discipline.
True False




5. Management scientists make managerial decisions based on the quantitative factors
involved in the problem.
True False




6. Management scientists don't make managerial decisions.
True False

,7. Managers make decisions based solely on the quantitative factors involved in the
problem.
True False

,8. A management science team will try to conduct a systematic investigation of a problem
that includes careful data gathering, developing and testing hypotheses, and then applying
sound logic in the analysis.
True False




9. The mathematical model of a business problem is the system of equations and related
mathematical expressions that describes the essence of the problem.
True False




10. Once management makes its decisions, the management science team typically is
finished with its involvement in the problem.
True False




11. A cost that varies with the production volume would be a fixed cost.
True False




12. A cost that varies with the production volume would be a variable cost.
True False




13. At the break-even point, management is indifferent between producing a product and
not producing it.
True False




14. A constraint is an algebraic variable that represents a quantifiable decision to be made.
True False

, 15. A decision variable is an algebraic variable that represents a quantifiable decision to be
made.
True False




16. A parameter in a model is a variable that represents a decision to be made.
True False




17. The objective function for a model is a mathematical expression of the measure of
performance for the problem in terms of the decision variables.
True False




18. Sensitivity analysis is used to check the effect of changes in the model.
True False




Multiple Choice Questions



19. Enlightened future managers should know which of the following?
A. The power and relevance of management science.
B. When management science can and cannot be applied.
C. How to apply the major techniques of management science.
D. How to interpret the results of a management science study.
E. All of the above.