Business Intelligence, 4e Sharda/Delen/Turban) Chapter6 Prescriptive Analytics: Optimization and simulation 1)In the School District of Philadelphia case, Excel and an add-in was used to evaluate different vendor options Answer: TRUE Diff: 2 Page Ref: 321 2) Modeling is a key element for prescriptive analytics Answer TRUE Diff: 1 Page Ref: 322 3) Business analysis is the monitoring, scanning, and interpretation of collected environmental information Answer: FALSE Diff: 2 Page Ref: 324 4)Online commerce and communication has created an immense need for forecasting and an abundance of available information for performing it Answer: TRUE Diff: 2 Page Ref: 324 5)All quantitative models are typically made up of six basic components Answer: FALSI Diff: 2 Page Ref: 328 6) Result variables are considered independent variables Answer: FALsE Diff: 2 Page Ref: 328 7) In decision making under uncertainty, it is assumed that complete knowledge is available Answer: FALSE Diff: 2 Page Ref: 330 8)a decision made under risk is also known as a probabilistic or stochastic decision-making situation Answer: TRUE Diff: 2 Page Ref: 331 9)Spreadsheets include all possible tools needed to deploy a custom Dss Answer: FALSE Diff: 2 Page Ref: 332 O) Spreadsheets are clearly the most popular developer modeling tool Answer: FALsE Diff: 2 Page Ref: 333 Copyright C 2018 Pearson Education, Inc
1 Copyright © 2018 Pearson Education, Inc. Business Intelligence, 4e (Sharda/Delen/Turban) Chapter 6 Prescriptive Analytics: Optimization and Simulation 1) In the School District of Philadelphia case, Excel and an add-in was used to evaluate different vendor options. Answer: TRUE Diff: 2 Page Ref: 321 2) Modeling is a key element for prescriptive analytics. Answer: TRUE Diff: 1 Page Ref: 322 3) Business analysis is the monitoring, scanning, and interpretation of collected environmental information. Answer: FALSE Diff: 2 Page Ref: 324 4) Online commerce and communication has created an immense need for forecasting and an abundance of available information for performing it. Answer: TRUE Diff: 2 Page Ref: 324 5) All quantitative models are typically made up of six basic components. Answer: FALSE Diff: 2 Page Ref: 328 6) Result variables are considered independent variables. Answer: FALSE Diff: 2 Page Ref: 328 7) In decision making under uncertainty, it is assumed that complete knowledge is available. Answer: FALSE Diff: 2 Page Ref: 330 8) A decision made under risk is also known as a probabilistic or stochastic decision-making situation. Answer: TRUE Diff: 2 Page Ref: 331 9) Spreadsheets include all possible tools needed to deploy a custom DSS. Answer: FALSE Diff: 2 Page Ref: 332 10) Spreadsheets are clearly the most popular developer modeling tool. Answer: FALSE Diff: 2 Page Ref: 333
11)Every LP model has some internal intermed iate variables that are not explicitly stated Answer: TRUE Diff: 2 Page Ref: 340 12)A model builder makes predictions and assumptions regard ing input data, many of which deal with the assessment of certain futures Answer: FALSE Diff: 2 Page Ref: 347 13)Many quantitative models of decision theory are based on comparing a single measure of effectiveness, generally some form of utility to the decision maker Answer TRUE Diff: 2 Page Ref: 346 14)A decision table shows the relationships of the problem graphically and can handle complex situations in a compact form Answer: FALSE Diff: 2 Page Ref: 350-351 15) Decision situations that involve a finite and usually not too large number of alternatives are modeled through an approach called decision analysis Answer: TRUE Diff: 2 Page Ref: 349 16) The pessimistic approach assumes that the worst possible outcome for each alternative will occur and selects the best of these answe Diff: 2 Page Ref: 350-351 17) Simulation is the appearance of reality answe RUE Diff: 1 Page Ref: 352 18)Simulation is normally used only when a problem is too complex to be treated using numerical optimization techniques Answer: TRUE Diff: 2 age Ref: 352 19)Simulations are an experimental, expensive, error-prone method for gaining insight into complex decision-making situations Answer: FALSE Diff: 2 Page Ref: 359 20)VIS uses animated computer graphic displays to present the impact of d ifferent managerial Answer: TRUE Diff: 2 Page Ref: 360 Copyright C 2018 Pearson Education, Inc
2 Copyright © 2018 Pearson Education, Inc. 11) Every LP model has some internal intermediate variables that are not explicitly stated. Answer: TRUE Diff: 2 Page Ref: 340 12) A model builder makes predictions and assumptions regarding input data, many of which deal with the assessment of certain futures. Answer: FALSE Diff: 2 Page Ref: 347 13) Many quantitative models of decision theory are based on comparing a single measure of effectiveness, generally some form of utility to the decision maker. Answer: TRUE Diff: 2 Page Ref: 346 14) A decision table shows the relationships of the problem graphically and can handle complex situations in a compact form. Answer: FALSE Diff: 2 Page Ref: 350-351 15) Decision situations that involve a finite and usually not too large number of alternatives are modeled through an approach called decision analysis. Answer: TRUE Diff: 2 Page Ref: 349 16) The pessimistic approach assumes that the worst possible outcome for each alternative will occur and selects the best of these. Answer: TRUE Diff: 2 Page Ref: 350-351 17) Simulation is the appearance of reality. Answer: TRUE Diff: 1 Page Ref: 352 18) Simulation is normally used only when a problem is too complex to be treated using numerical optimization techniques. Answer: TRUE Diff: 2 Page Ref: 352 19) Simulations are an experimental, expensive, error-prone method for gaining insight into complex decision-making situations. Answer: FALSE Diff: 2 Page Ref: 359 20) VIS uses animated computer graphic displays to present the impact of different managerial decisions. Answer: TRUE Diff: 2 Page Ref: 360
21)A more general form of an influence diagram is called a(n) A)forecast B)environmental scan C)cognitive map D)static m Answer: C Diff: 2 Page Ref: 324 2)A(n) is a graphical representation of a model A)multid imensional analysis B)influence diagram C)OLAP model D)Whisker plot answer: B Diff: 2 Page Ref: 327 23)Which of the following is NOT a component of a quantitative model? A)result variables B)decision variables C)classes D)parameters Al nswer C Diff: 2 Page Ref: 328 24) Intermed iate result variables reflect intermediate outcomes in A)mathematical models B)flowcharts C)decision trees D)ROI calculations Diff: 2 Page Ref: 329 25)When the decision maker must consider several possible outcomes for each alternative, each with a given probability of occurrence, this is decision making under A)certainty B)uncertainty C)risk D)d Answer: C Diff: 2 Page Ref: 331 Copyright C 2018 Pearson Education, Inc
3 Copyright © 2018 Pearson Education, Inc. 21) A more general form of an influence diagram is called a(n) A) forecast. B) environmental scan. C) cognitive map. D) static model. Answer: C Diff: 2 Page Ref: 324 22) A(n) ________ is a graphical representation of a model. A) multidimensional analysis B) influence diagram C) OLAP model D) Whisker plot Answer: B Diff: 2 Page Ref: 327 23) Which of the following is NOT a component of a quantitative model? A) result variables B) decision variables C) classes D) parameters Answer: C Diff: 2 Page Ref: 328 24) Intermediate result variables reflect intermediate outcomes in A) mathematical models. B) flowcharts. C) decision trees. D) ROI calculations. Answer: A Diff: 2 Page Ref: 329 25) When the decision maker must consider several possible outcomes for each alternative, each with a given probability of occurrence, this is decision making under A) certainty. B) uncertainty. C) risk. D) duress. Answer: C Diff: 2 Page Ref: 331
26)When the decision maker knows exactly what the outcome of each course of action will be this is decision making under A)certainty B)uncertainty C)risk D)duress Answer: A Diff: 2 Page Ref: 330 27)A(n) preadsheet model represents behavior over time A)static B)dynamic C)looped D)add-in A nswer B Diff: 2 Page Ref: 336 28)Important spreadsheet features for modeling include all of the following EXCEPT A)what-if analysis B)goal seeki C)macros D)pivot tables Answer: D Diff: 2 Page Ref: 335 29)Which of the following is NoT a characteristic displayed by a LP allocation problem? A)Alimited quantity of economic resources is available for allocation B) The resources are used in the production of products or services C) There are two or more ways in which the resources can be used D)The problem is not bound by constraints Diff: 2 Page Ref: 338 30)Which of the following is Not a characteristic displayed by a LP allocation problem? A) Each activity in which the resources are used yields a return in terms of the stated goal B) The resources are used in the production of products or services C)There is a single way in which the resources can be used D)The allocation is usually restricted by several limitations and requirements Answer: C Diff: 2 Page Ref: 338 Copyright C 2018 Pearson Education, Inc
4 Copyright © 2018 Pearson Education, Inc. 26) When the decision maker knows exactly what the outcome of each course of action will be, this is decision making under A) certainty. B) uncertainty. C) risk. D) duress. Answer: A Diff: 2 Page Ref: 330 27) A(n) ________ spreadsheet model represents behavior over time. A) static B) dynamic C) looped D) add-in Answer: B Diff: 2 Page Ref: 336 28) Important spreadsheet features for modeling include all of the following EXCEPT A) what-if analysis. B) goal seeking. C) macros. D) pivot tables. Answer: D Diff: 2 Page Ref: 335 29) Which of the following is NOT a characteristic displayed by a LP allocation problem? A) A limited quantity of economic resources is available for allocation. B) The resources are used in the production of products or services. C) There are two or more ways in which the resources can be used. D) The problem is not bound by constraints. Answer: D Diff: 2 Page Ref: 338 30) Which of the following is NOT a characteristic displayed by a LP allocation problem? A) Each activity in which the resources are used yields a return in terms of the stated goal. B) The resources are used in the production of products or services. C) There is a single way in which the resources can be used. D) The allocation is usually restricted by several limitations and requirements. Answer: C Diff: 2 Page Ref: 338
31)Which of the following is NOT an assumption used by a LP allocation problem? A)Returns from different allocations can be compared B) The return from any allocation is independent of other allocations C)The total return is the sum of the returns yielded by the different activities D)All data are unknown with decision making under uncertainty A nswer Diff: 2 Page Ref: 338 32)Which of the following is NOT an assumption used by a Lp allocation problem? A)The resources are to be used in the most economical manner B) The return from any allocation is independent of other allocations C)Total returns cannot be compared D)All data are known with certainty A nswer C Diff: 2 Page Ref: 338 33) This method calculates the values of the inputs necessary to achieve a desired level of an output A)goal seek B)what-if C)sensitivity D)LP answer: A Diff: 2 Page Ref: 348 34)This method calculates the values of the inputs necessary to generate a zero profit outcome B)what-if C)sensitivity D)break-even Diff: 2 Page Ref: 349 35)The most common method for solving a risk analysis problem is to select the alternative with A)smallest expected value B)greatest expected value C)mean expected value D)med ian expected value Al nswer Diff: 2 Page Ref: 351 Copyright C 2018 Pearson Education, Inc
5 Copyright © 2018 Pearson Education, Inc. 31) Which of the following is NOT an assumption used by a LP allocation problem? A) Returns from different allocations can be compared. B) The return from any allocation is independent of other allocations. C) The total return is the sum of the returns yielded by the different activities. D) All data are unknown with decision making under uncertainty. Answer: D Diff: 2 Page Ref: 338 32) Which of the following is NOT an assumption used by a LP allocation problem? A) The resources are to be used in the most economical manner. B) The return from any allocation is independent of other allocations. C) Total returns cannot be compared. D) All data are known with certainty. Answer: C Diff: 2 Page Ref: 338 33) This method calculates the values of the inputs necessary to achieve a desired level of an output. A) goal seek B) what-if C) sensitivity D) LP Answer: A Diff: 2 Page Ref: 348 34) This method calculates the values of the inputs necessary to generate a zero profit outcome. A) goal seek B) what-if C) sensitivity D) break-even Answer: A Diff: 2 Page Ref: 349 35) The most common method for solving a risk analysis problem is to select the alternative with the A) smallest expected value. B) greatest expected value. C) mean expected value. D) median expected value. Answer: B Diff: 2 Page Ref: 351