Quantitative Analysis for Management-Chapter 1 Introduction to Quantitative Analysisalse

March 1, 2020/in /by

Quantitative Analysis for Management,

Chapter 1 Introduction to Quantitative Analysisalse

true false

1) Interviews, statistical sampling, and company reports provide input data for quantitative analysis models.

2) In the early 1900s, Henry Ford pioneered the principles of the scientific approach to management.

3) Managers do not need to be familiar with the limitations, assumptions, and/or specific applicability of the quantitative analysis technique to use it for accurate decision making.

4) During World War II, many new scientific and quantitative techniques were developed to assist the military, and these developments were so successful that many companies started using similar techniques in managerial decision making and planning after the war.

5) Business Analytics is a data-driven approach to decision making that allows companies to make better decisions.

6) Descriptive Analytics is aimed at forecasting future outcomes based on patterns in the past data.

7) When a problem is difficult to quantify, it may be necessary to develop unspecific objectives.

8) The Quantitative Analysis Approach consists of six steps.

9) A mathematical model shows the relationship between quantifiable and non-quantifiable information.

10) Decision variables may also be called parameters.

11) Model variables can be controllable or uncontrollable.

12) A series of steps or procedures that are repeated is known as an algorithm.

13) A model is a representation of a situation.

14) A parameter is a measurable quantity that may vary or is subject to change.

15) Trying various approaches and picking the one resulting in the best decision is called incomplete enumeration.

16) All problems can be solved by considering only the quantitative issues.

17) A profit equation is an example of a schematic model.

18) Testing the data and model should be done before the results have been analyzed.

19) Sensitivity analysis helps us estimate the effect of known and unknown errors in our model.

20) Models can help us analyze a problem and sell a decision to those who must implement it.

21) A sensitivity analysis allows a manager to answer the “what if” questions.

22) One problem in using a quantitative model is that the necessary data may be unavailable.

23) Management support and user involvement are not essential in the successful implementation of quantitative analysis projects.

mcq

24) Which of the following terms is interchangeable with quantitative analysis?

A) management science

B) economics

C) financial analysis

D) statistics

E) None of the above

25) Operations Research is known as

A) the science of numerical analysis.

B) the science of sensitivity analysis.

C) the science of better.

D) the science of modeling.

E) None of the above

26) Who is credited with pioneering the principles of the scientific approach to management?

A) Adam Smith

B) Henri Fayol

C) John R. Locke

D) Frederick W. Taylor

E) Charles Babbage

27) Which of the following techniques involves the study and consolidation of historical data for a business and an industry?

A) descriptive analytics

B) prescriptive analytics

C) predictive analytics

D) management science

E) operations research

28) Which of the following techniques involves the use of optimization methods to provide new and better ways to operate based on specific business objectives?

A) descriptive analytics

B) prescriptive analytics

C) predictive analytics

D) quantitative analysis

E) qualitative analysis

Answer: B

Diff: 2

Topic: BUSINESS ANALYTICS

29) A(n) ________ is a representation of reality or a real-life situation.

A) objective

B) model

C) analysis

D) algorithm

E) None of the above

30) A measurable quantity that may vary, or is subject to change, and can be controlled is known as a(n)

A) decision variable.

B) algorithm.

C) parameter.

D) solution.

E) None of the above

31) A set of logical and mathematical operations performed in a specific sequence is called a(n)

A) complete enumeration.

B) diagnostic analysis.

C) algorithm.

D) objective.

E) None of the above

32) The ability to examine the variability of a solution due to changes in the formulation of a problem is an important part of the analysis of the results. This type of analysis is called ________ analysis.

A) sensitivity

B) implicit

C) normal

D) scale

E) objective

33) Which of the following is not one of the steps in the quantitative analysis approach?

A) Defining the Problem

B) Developing a Solution

C) Observing a hypothesis

D) Testing a Solution

E) Implementing the Results

34) The condition of improper data yielding misleading results is referred to as

A) garbage in, garbage out.

B) break-even point.

C) uncontrollable variable.

D) postoptimality.

E) None of the above

35) Expressing profits through the relationship among unit price, fixed costs, and variable costs is an example of

A) a sensitivity analysis model.

B) a quantitative analysis model.

C) a postoptimality relationship.

D) a parameter specification model.

E) None of the above

36) The widespread applicability of operations research methods to business followed which war?

A) The U.S. Civil War

B) World War I

C) World War II

D) The Korean War

E) The Vietnam War

37) Which of the following statement(s) are true regarding the advantages of mathematical modeling?

A) Models accurately represent reality.

B) Models can help decision makers formulate problems.

C) Models can save time.

D) Models may be the only way to solve some large and complex problems in a timely manner.

E) All of the above

38) A measurable quantity that is inherent in the problem is called a(n)

A) decision variable.

B) uncontrollable variable.

C) algorithm.

D) parameter.

E) enumeration variable.

39) Trying various approaches and picking the one that results in the best decision is called

A) the trial-and-error method.

B) incomplete enumeration.

C) complete enumeration.

D) algorithmic approximation.

E) sensitivity analysis.

40) Models that do not involve risk or chance are

A) probabilistic models.

B) postoptimality models.

C) deterministic models.

D) MIS models.

E) None of the above

41) If input data are accurate to three significant digits, then the solution results can be accurate to how many significant digits?

A) one

B) two

C) three

D) four

E) six

42) Postoptimality analysis is most closely associated with

A) collecting input data.

B) developing a model.

C) sensitivity analysis.

D) writing a computer program.

E) None of the above

43) The break-even point is an example of a

A) postoptimality model.

B) quantitative analysis model.

C) schematic model.

D) sensitivity analysis model.

E) None of the above

44) A controllable variable is also called a

A) parameter.

B) decision variable.

C) mathematical model.

D) measurable quantity.

E) None of the above

45) Evaluating all possible values of a variable in a model is called

A) trial and error.

B) complete enumeration.

C) an algorithm.

D) variablization.

E) None of the above

46) What is the formula for the break-even point of a simple profit model?

A) Fixed Cost / Variable Cost Per Unit

B) (Selling Price Per Unit – Variable Cost Per Unit) / Fixed Cost

C) Fixed Cost / (Selling Price Per Unit – Variable Cost Per Unit)

D) Fixed Cost / (Variable Cost Per Unit – Selling Price Per Unit)

E) Selling Price Per Unit – (Fixed Cost / Variable Cost Per Unit)

47) The break-even point of a simple profit model represents a(n)

A) decision variable.

B) uncontrollable variable.

C) parameter.

D) constant.

E) None of the above

48) A(n) ________ model is one that is accurate and correctly represents the problem or system under investigation.

A) robust

B) valid

C) sensitive

D) optimal

E) feasible

49) Which Excel feature is an optimization technique that can maximize or minimize a quantity given a set of limitations or constraints?

A) Optimizer

B) Goal Seek

C) Analysis Tool-Pak

D) Algorithm Builder

E) Solver

50) Which Excel feature allows the user to specify a target or goal and the variable that is desired to change in order to achieve that goal?

A) Solver

B) Goal Search

C) Target Search

D) Goal Seek

E) Target Seek

51) All of the following are real computer applications that perform quantitative analysis except

A) Solver in Excel.

B) Goal Seek in Excel.

C) Excel QM.

D) POM-QM for Windows.

E) QA for Windows.

52) As one attempts to develop a model, which of the following problems might she encounter?

A) The problem may not fit a textbook approach.

B) There will be no data available to test the model.

C) Not everyone will understand the problem in the same way.

D) All of the above

E) None of the above

53) Which of the following is a picture, drawing, or chart of reality?

A) scale model

B) physical model

C) mathematical model

D) schematic model

E) abstract model

54) Which of the following is not considered a possible problem in the quantitative analysis approach?

A) validity of the data

B) lack of commitment

C) resistance to change

D) subjective solutions

E) hard-to-understand mathematics

55) Quantitative analysis is ________.

56) Identify the steps of the quantitative analysis approach.

57) What are the three categories of business analytics?

58) The study of the consolidation of historical data to describe how a company has performed in the past is called ________.

called ________.

60) The use of optimization methods to provide new and better ways to operate based on specific business objectives is called ________.

61) A controllable variable is also called a ________ variable.

62) A picture, drawing, or chart of reality is a ________ model

63) Identify some possible problems in the quantitative analysis approach.

64) Identify three potential problems with people (two with management and one with the quantitative analysts themselves) that may hinder successful implementation of a quantitative model.

65) In making a decision, both ________ and quantitative factors must be considered.

66) Inaccurate model input data leads to inaccurate model solutions. This phenomenon is commonly referred to as ________.

67) The solution process of ________ implies that we look at all possible solutions.

Complete enumeration

68) Once we have a solution, we should then perform ________ analysis.

69) ________ models do not involve risk or chance.

70) ________ models are uncertain.

71) How can an analyst overcome the threats to successful implementation of a quantitative model?