Test Bank -
Chapter_17___Decision_Analysis
Question 1
The decisions concerning an organization’s goals and future plans are called _____.
Answer Choices:
A. financial decisions
B. tactical decisions
C. strategic decisions ★ CORRECT ANSWER ★
D. operational decisions
Feedback:
Strategic decisions involve higher-level issues concerned with the overall direction of the
organization.
-------------------------------------------
Question 2
Tactical decisions are concerned with _____.
Answer Choices:
A. the day-to-day activities of the organization
B. the goals and plans of the organization
C. the domain of operations managers, who are close to the customer
D. how the organization should achieve the goals and objectives set by its strategy ★
CORRECT ANSWER ★
Feedback:
Tactical decisions concern how the organization should achieve the goals and objectives set by
its strategy.
-------------------------------------------
,Question 3
Picks and Axes Inc. is an Internet-based retail seller of hiking boots and mountaineering gear.
The company decides to open retail stores across the major areas of the city to help complement
its Internet-based strategy. This activity would be categorized as a(n) _____.
Answer Choices:
A. tactical decision
B. operational decision
C. strategic decision ★ CORRECT ANSWER ★
D. financial decision
Feedback:
Strategic decisions involve higher-level issues concerned with the overall direction of the
organization. These decisions define the organization’s overall goals and aspirations for the
future. Strategic decisions are usually the domain of higher-level executives and have a time
horizon of three to five years.
-------------------------------------------
Question 4
What is the most critical step of the decision-making process?
Answer Choices:
A. Choosing an alternative
B. Identifying and defining the problem ★ CORRECT ANSWER ★
C. Evaluating the alternatives
D. Determining the set of alternatives
Feedback:
Step 1 of decision making, identifying and defining the problem, is the most critical. Only if the
problem is well-defined, with clear metrics of success or failure (step 2), can a proper approach
for solving the problem (steps 3 and 4) be devised. Decision making concludes with the choice
of an alternative (step 5).
-------------------------------------------
,Question 5
Which of the following is NOT an approach to making decisions?
Answer Choices:
A. Tradition
B. Rules of thumb
C. Intuition
D. Guess and check ★ CORRECT ANSWER ★
Feedback:
There are a number of approaches to making decisions: tradition (“We’ve always done it this
way”), intuition (“gut feeling”), and rules of thumb (“As the restaurant owner, I schedule twice
the number of waiters and cooks on holidays”).
-------------------------------------------
Question 6
Data-driven decision making tends to decrease a firm's _____.
Answer Choices:
A. market value
B. productivity
C. risk ★ CORRECT ANSWER ★
D. profit
Feedback:
Firms guided by data-driven decision making have higher productivity and market value and
increased output and profitability.
-------------------------------------------
Question 7
Data dashboards are what type of analytics?
Answer Choices:
A. Predictive
B. Descriptive ★ CORRECT ANSWER ★
, C. Prescriptive
D. Decision
Feedback:
Descriptive analytics encompasses the set of techniques that describes what has happened in the
past.
-------------------------------------------
Question 8
The extraction of information on the number of shipments, how much was included in each
shipment, the date each shipment was sent, and so on from the manufacturing plant’s database
exemplifies _____.
Answer Choices:
A. spreadsheet models
B. data dashboards
C. data mining
D. data queries ★ CORRECT ANSWER ★
Feedback:
A data query is a request for information with certain characteristics from a database.
-------------------------------------------
Question 9
Which of the following do corporate-level managers use to summarize sales by region, current
inventory levels, and other company-wide metrics all in a single screen?
Answer Choices:
A. Simulations
B. Cross-tabulations
C. Data dashboards ★ CORRECT ANSWER ★
D. Tables
Feedback:
For corporate-level managers, daily data dashboards might summarize sales by region, current
inventory levels, and other company-wide metrics.
Chapter_17___Decision_Analysis
Question 1
The decisions concerning an organization’s goals and future plans are called _____.
Answer Choices:
A. financial decisions
B. tactical decisions
C. strategic decisions ★ CORRECT ANSWER ★
D. operational decisions
Feedback:
Strategic decisions involve higher-level issues concerned with the overall direction of the
organization.
-------------------------------------------
Question 2
Tactical decisions are concerned with _____.
Answer Choices:
A. the day-to-day activities of the organization
B. the goals and plans of the organization
C. the domain of operations managers, who are close to the customer
D. how the organization should achieve the goals and objectives set by its strategy ★
CORRECT ANSWER ★
Feedback:
Tactical decisions concern how the organization should achieve the goals and objectives set by
its strategy.
-------------------------------------------
,Question 3
Picks and Axes Inc. is an Internet-based retail seller of hiking boots and mountaineering gear.
The company decides to open retail stores across the major areas of the city to help complement
its Internet-based strategy. This activity would be categorized as a(n) _____.
Answer Choices:
A. tactical decision
B. operational decision
C. strategic decision ★ CORRECT ANSWER ★
D. financial decision
Feedback:
Strategic decisions involve higher-level issues concerned with the overall direction of the
organization. These decisions define the organization’s overall goals and aspirations for the
future. Strategic decisions are usually the domain of higher-level executives and have a time
horizon of three to five years.
-------------------------------------------
Question 4
What is the most critical step of the decision-making process?
Answer Choices:
A. Choosing an alternative
B. Identifying and defining the problem ★ CORRECT ANSWER ★
C. Evaluating the alternatives
D. Determining the set of alternatives
Feedback:
Step 1 of decision making, identifying and defining the problem, is the most critical. Only if the
problem is well-defined, with clear metrics of success or failure (step 2), can a proper approach
for solving the problem (steps 3 and 4) be devised. Decision making concludes with the choice
of an alternative (step 5).
-------------------------------------------
,Question 5
Which of the following is NOT an approach to making decisions?
Answer Choices:
A. Tradition
B. Rules of thumb
C. Intuition
D. Guess and check ★ CORRECT ANSWER ★
Feedback:
There are a number of approaches to making decisions: tradition (“We’ve always done it this
way”), intuition (“gut feeling”), and rules of thumb (“As the restaurant owner, I schedule twice
the number of waiters and cooks on holidays”).
-------------------------------------------
Question 6
Data-driven decision making tends to decrease a firm's _____.
Answer Choices:
A. market value
B. productivity
C. risk ★ CORRECT ANSWER ★
D. profit
Feedback:
Firms guided by data-driven decision making have higher productivity and market value and
increased output and profitability.
-------------------------------------------
Question 7
Data dashboards are what type of analytics?
Answer Choices:
A. Predictive
B. Descriptive ★ CORRECT ANSWER ★
, C. Prescriptive
D. Decision
Feedback:
Descriptive analytics encompasses the set of techniques that describes what has happened in the
past.
-------------------------------------------
Question 8
The extraction of information on the number of shipments, how much was included in each
shipment, the date each shipment was sent, and so on from the manufacturing plant’s database
exemplifies _____.
Answer Choices:
A. spreadsheet models
B. data dashboards
C. data mining
D. data queries ★ CORRECT ANSWER ★
Feedback:
A data query is a request for information with certain characteristics from a database.
-------------------------------------------
Question 9
Which of the following do corporate-level managers use to summarize sales by region, current
inventory levels, and other company-wide metrics all in a single screen?
Answer Choices:
A. Simulations
B. Cross-tabulations
C. Data dashboards ★ CORRECT ANSWER ★
D. Tables
Feedback:
For corporate-level managers, daily data dashboards might summarize sales by region, current
inventory levels, and other company-wide metrics.
