Exam
Name___________________________________

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false. 

1) 

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

1) 

_______ 

2) 

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

2) 

_______ 

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. 

3) 

_______ 

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. 

4) 

_______ 

5) 

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

5) 

_______ 

6) 

The Quantitative Analysis Approach consists of six steps. 

6) 

_______ 

7) 

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

7) 

_______ 

8) 

Decision variables may also be called parameters. 

8) 

_______ 

9) 

Model variables can be controllable or uncontrollable. 

9) 

_______ 

10) 

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

10) 

______ 

11) 

A model is a representation of a situation. 

11) 

______ 

12) 

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

12) 

______ 

13) 

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

13) 

______ 

14) 

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

14) 

______ 

15) 

A profit equation is an example of a schematic model. 

15) 

______ 

16) 

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

16) 

______ 

17) 

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

17) 

______ 

18) 

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

18) 

______ 

19) 

A sensitivity analysis allows a manager to answer the "what if" questions. 

19) 

______ 

20) 

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

20) 

______ 

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 

21) 

Which of the following terms is interchangeable with quantitative analysis? 

21) 

______ 

A) 

statistics 

B) 

economics 

C) 

management science 

D) 

financial analysis 

E) 

None of the above 

22) 

Operations Research is known as 

22) 

______ 

A) 

the science of better. 

B) 

the science of modeling. 

C) 

the science of sensitivity analysis. 

D) 

the science of numerical analysis. 

E) 

None of the above 

23) 

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

23) 

______ 

A) 

John R. Locke 

B) 

Henri Fayol 

C) 

Charles Babbage 

D) 

Frederick W. Taylor 

E) 

Adam Smith 

24) 

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

24) 

______ 

A) 

algorithm 

B) 

model 

C) 

analysis 

D) 

objective 

E) 

None of the above 

25) 

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

25) 

______ 

A) 

algorithm. 

B) 

parameter. 

C) 

decision variable. 

D) 

solution. 

E) 

None of the above 

26) 

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

26) 

______ 

A) 

diagnostic analysis. 

B) 

objective. 

C) 

complete enumeration. 

D) 

algorithm. 

E) 

None of the above 

27) 

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. 

27) 

______ 

A) 

scale 

B) 

objective 

C) 

implicit 

D) 

normal 

E) 

sensitivity 

28) 

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

28) 

______ 

A) 

Implementing the Results 

B) 

Observing a hypothesis 

C) 

Testing a Solution 

D) 

Developing a Solution 

E) 

Defining the Problem 

29) 

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

29) 

______ 

A) 

uncontrollable variable. 

B) 

break-even point. 

C) 

garbage in, garbage out. 

D) 

postoptimality. 

E) 

None of the above 

30) 

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

30) 

______ 

A) 

a parameter specification model. 

B) 

a sensitivity analysis model. 

C) 

a quantitative analysis model. 

D) 

a postoptimality relationship. 

E) 

None of the above 

31) 

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

31) 

______ 

A) 

The U.S. Civil War 

B) 

The Korean War 

C) 

World War II 

D) 

The Vietnam War 

E) 

World War I 

32) 

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

32) 

______ 

A) 

Models can help decision makers formulate problems. 

B) 

Models can save time. 

C) 

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

D) 

Models accurately represent reality. 

E) 

All of the above 

33) 

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

33) 

______ 

A) 

algorithm. 

B) 

parameter. 

C) 

uncontrollable variable. 

D) 

decision variable. 

E) 

enumeration variable. 

34) 

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

34) 

______ 

A) 

incomplete enumeration. 

B) 

sensitivity analysis. 

C) 

the trial-and-error method. 

D) 

complete enumeration. 

E) 

algorithmic approximation. 

35) 

Models that do not involve risk or chance are 

35) 

______ 

A) 

postoptimality models. 

B) 

deterministic models. 

C) 

MIS models. 

D) 

probabilistic models. 

E) 

None of the above 

36) 

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

36) 

______ 

A) 

one 

B) 

four 

C) 

three 

D) 

two 

E) 

six 

37) 

Postoptimality analysis is most closely associated with 

37) 

______ 

A) 

developing a model. 

B) 

writing a computer program. 

C) 

sensitivity analysis. 

D) 

collecting input data. 

E) 

None of the above 

38) 

The break-even point is an example of a 

38) 

______ 

A) 

postoptimality model. 

B) 

schematic model. 

C) 

quantitative analysis model. 

D) 

sensitivity analysis model. 

E) 

None of the above 

39) 

Stochastic models are synonymous with 

39) 

______ 

A) 

conceptual models. 

B) 

deterministic models 

C) 

schematic models. 

D) 

qualitative models. 

E) 

None of the above 

40) 

A controllable variable is also called a 

40) 

______ 

A) 

measurable quantity. 

B) 

decision variable. 

C) 

parameter. 

D) 

mathematical model. 

E) 

None of the above 

41) 

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

41) 

______ 

A) 

trial and error. 

B) 

variablization. 

C) 

complete enumeration. 

D) 

an algorithm. 

E) 

None of the above 

42) 

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

42) 

______ 

A) 

(Selling Price Per Unit —Variable Cost Per Unit) / Fixed Cost 

B) 

Selling Price Per Unit — (Fixed Cost / Variable Cost Per Unit) 

C) 

Fixed Cost / (Variable Cost Per Unit — Selling Price Per Unit) 

D) 

Fixed Cost / (Selling Price Per Unit —Variable Cost Per Unit) 

E) 

Fixed Cost / Variable Cost Per Unit 

43) 

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

43) 

______ 

A) 

constant. 

B) 

decision variable. 

C) 

uncontrollable variable. 

D) 

parameter. 

E) 

None of the above 

44) 

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

44) 

______ 

A) 

valid 

B) 

optimal 

C) 

robust 

D) 

feasible 

E) 

sensitive 

45) 

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

45) 

______ 

A) 

Optimizer 

B) 

Solver 

C) 

Analysis Tool-Pak 

D) 

Algorithm Builder 

E) 

Goal Seek 

46) 

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? 

46) 

______ 

A) 

Goal Search 

B) 

Target Search 

C) 

Goal Seek 

D) 

Solver 

E) 

Target Seek 

47) 

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

47) 

______ 

A) 

QA for Windows. 

B) 

Excel QM. 

C) 

Goal Seek in Excel. 

D) 

POM-QM for Windows. 

E) 

Solver in Excel. 

48) 

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

48) 

______ 

A) 

There will be no data available to test the model. 

B) 

The problem may not fit a textbook approach. 

C) 

Not everyone will understand the problem in the same way. 

D) 

All of the above 

E) 

None of the above 

49) 

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

49) 

______ 

A) 

scale model 

B) 

physical model 

C) 

abstract model 

D) 

mathematical model 

E) 

schematic model 

50) 

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

50) 

______ 

A) 

resistance to change 

B) 

hard-to-understand mathematics 

C) 

lack of commitment 

D) 

validity of the data 

E) 

subjective solutions 

ESSAY.  Write your answer in the space provided or on a separate sheet of paper. 

51) 

Quantitative analysis is ________. 

52) 

Identify the steps of the quantitative analysis approach. 

53) 

A controllable variable is also called a ________ variable. 

54) 

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

55) 

Identify some possible problems in the quantitative analysis approach. 

56) 

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. 

57) 

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

58) 

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

59) 

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

60) 

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

61) 

________ models do not involve risk or chance. 

62) 

________ models are synonymous with stochastic models. 

63) 

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

 

1) 

TRUE 

2) 

FALSE 

3) 

FALSE 

4) 

TRUE 

5) 

FALSE 

6) 

FALSE 

7) 

FALSE 

8) 

FALSE 

9) 

TRUE 

10) 

TRUE 

11) 

TRUE 

12) 

FALSE 

13) 

FALSE 

14) 

FALSE 

15) 

FALSE 

16) 

TRUE 

17) 

TRUE 

18) 

TRUE 

19) 

TRUE 

20) 

TRUE 

21) 

C 

22) 

A 

23) 

D 

24) 

B 

25) 

C 

26) 

D 

27) 

E 

28) 

B 

29) 

C 

30) 

C 

31) 

C 

32) 

E 

33) 

B 

34) 

C 

35) 

B 

36) 

C 

37) 

C 

38) 

C 

39) 

E 

40) 

B 

41) 

C 

42) 

D 

43) 

B 

44) 

A 

45) 

B 

46) 

C 

47) 

A 

48) 

D 

49) 

E 

50) 

E 

51) 

the scientific approach to managerial decision making 

52) 

(1) Defining the Problem, (2) Developing a Model, (3) Acquiring Input Data, (4) Developing a Solution, (5) Testing the Solution, (6) Analyzing the Results, and (7) Implementing the Results 

53) 

decision 

54) 

schematic 

55) 

Answers will vary but may include conflicting viewpoints, ignoring the impact on other departments, poor assumptions, outdated solutions, difficulty matching the textbook approach, trading off model complexity with ease of understanding, poor input data, hard-to-understand mathematics, and having only one answer is limiting. 

56) 

Answers will vary but may include (1) lack of commitment by management, (2) resistance to change by management, and (3) lack of commitment by quantitative analysts. 

57) 

qualitative 

58) 

garbage in, garbage out 

59) 

complete enumeration 

60) 

sensitivity or postoptimality 

61) 

Deterministic 

62) 

Probabilistic 

63) 

Answers will vary; one solution is for analysts to work with users and take their feelings into account instead of telling them what to do.