(Test Bank) An Introduction to Management Science - Quantitative Approach

Anderson, 15

Business

Test Bank

15th Edition

• $15.00 $50.00

---

Description

Test Bank for An Introduction to Management Science - Quantitative Approach, The downloadable file consists of 551 pages, and the total size of the file is 8.55 MB. Purchase now only for highly discounted price.

Author(s): Anderson

---

---

Study Note Preview

Page 1 Test Bank For An Introduction to Management Sci ence - Quantitative Approach, 15th Edition by Anderson True / False 1. The process of decision making is more limited than that of problem solving. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 2. The breakeven point is the point at which the volume of output produced is the result of total revenue equaling total cost. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Understand 3. Problem solving encompasses both the identification of a problem and the action to resolve it. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember Page 2 4. The decision -making process includes implementation and subsequent evaluation of the decision. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 5. Most successful quantitative analysis models will advise separating the management analyst from the managerial team until after the problem has been fully structured. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 6. The value of making a decision based on models is dependent on how closely the model represents the real situation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 7. Uncontrollable inputs are the decision variables for a model. a. True b. False ANSWER: False Page 3 POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Remember 8. The feasible solution is the best solution possible for a mathematical model. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 9. Frederic W. Taylor is credited with providing the foundation for quantitative methodology in the early part of the 20th century. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 10. To identify the choice that provides the highest profit and also uses the fewest employees, we apply a single -criterion decision process. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making Page 4 KEYWORDS: Bloom's: Understand 11. The most critical component in determining the success or failure of any quantitative approach to decision making is problem definition. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Remember 12. The first step in the decision -making process is to identify the problem. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 13. All uncontrollable inputs or data must be specified before we can analyze the model and recommend a decision or solution for the problem. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 14. If you are deciding to buy either machine A, B, or C with the objective of minimizing the sum of labor, material and utility costs, you are dealing with a single -criterion decision. a. True Page 5 b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 15. Model development should be left to quantitative analysts; the model user's involvement should begin at the implementation stage. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 16. A feasible solution is one that satisfies at least one of the constraints in the problem. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 17. A toy train layout designed to represent an actual railyard is an example of an analog model. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking Page 6 TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Remember 18. The last step in any problem -solving process is to choose the correct alternative among those available. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 19. Decision variables in a production process are those that cannot be controlled by the manager. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 20. The optimal solution to a model is one in which known, specific values provide the best output. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 21. If all the uncontrollable inputs into the decision -making process are known to the decision maker, the model of decision making is known as "stochastic." a. True Page 7 b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Remember Multiple Choice 22. The field of management science a. concentrates on the use of quantitative methods to assist in decision making. b. approaches decision making rationally, with techniques based on the scientific method. c. is another name for decision science and for operations research. d. All of these are correct. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 23. By identifying and defining a problem, we have a. taken the final step in the decision -making process. b. proposed all viable alternatives. c. considered multiple criteria. d. taken the first step of decision making. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 24. The set of decision alternatives a. should be identified before the decision criteria are established. b. are limited to quantitative solutions. Page 8 c. are evaluated as a part of the problem definition stage. d. are best generated by brainstorming. ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 25. Decision criteria a. are the choices faced by the decision maker. b. are the problems faced by the decision maker. c. are the ways to evaluate the choices faced by the decision maker. d. are unique for any problem. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 26. In a multicriteria decision problem a. it is impossible to select a single decision alternative. b. the decision maker must evaluate each alternative with respect to each criterion. c. successive decisions must be made over time. d. All of these are correct. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 27. The quantitative analysis approach requires a. the manager's prior experience with a similar problem. b. a relatively uncomplicated problem. c. mathematical expressions for the relationships. Page 9 d. All of these are correct. ANSWER: c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.02 - 1.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.2 Quantitative Analysis and Decision Making KEYWORDS: Bloom's: Remember 28. A thermometer is an example of a model that does not have the same physical appearance as that which is being modeled; thus, it is a(n) a. analog model. b. iconic model. c. mathematical model. d. qualitative model. ANSWER: a POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 29. Inputs to a quantitative model a. are a trivial part of the problem solving process. b. are uncertain for a stochastic model. c. are uncontrollable for the decision variables. d. must all be deterministic if the problem is to have a solution. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 30. When the value of the output cannot be determined even if the value of the controllable input is known, the model is a. analog. b. digital. Page 10 c. stochastic. d. deterministic. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 31. The volume that results in total revenue being equal to total cost is known as the a. breakeven point. b. marginal volume. c. marginal cost. d. profit mix. ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Remember 32. Management science and operations research both involve a. qualitative managerial skills. b. quantitative approaches to decision making. c. operational management skills. d. scientific research as opposed to applications. ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 33. George Dantzig is important in the history of management science because he developed a. the scientific management revolution. b. World War II operations research teams. c. the simplex method for linear programming. Page 11 d. powerful digital computers. ANSWER: c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 34. In order to undertake problem solving, the first step must be a. the determination of the correct analytical solution procedure. b. the definition of decision variables. c. the identification of a difference between the actual and desired state of affairs. d. None of these are correct. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 35. The process of problem definition must a. include specific objectives and operating constraints. b. occur prior to the quantitative analysis process. c. involve both the analyst and the user of the results. d. All of these are correct. ANSWER: d POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 36. A model that uses a system of symbols or expressions to represent a problem is called a(n) ______ model. a. mathematical b. iconic c. analog Page 12 d. constrained ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 37. Which of the following is NOT one of the commonly used names for the body of knowledge involving quantitative approaches to decision making? a. management science b. business analytics c. operations research d. efficiency studies ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 38. A valid reason for using a quantitative approach to the decision -making process is when a. the problem is repetitive, necessitating routine decision making. b. the problem is unique and the manager has no prior experience solving this sort of problem. c. the problem is particularly complex. d. All of these are correct. ANSWER: d POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.02 - 1.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.2 Quantitative Analysis and Decision Making KEYWORDS: Bloom's: Understand Subjective Short Answer 39. A snack food manufacturer buys corn for tortilla chips from two cooperatives, one in Iowa and one in Illinois. The price per unit of the Iowa corn is $6.00 and the price per unit of the Illinois corn is $5.50. Page 13 a. Define variables that would tell how many units to purchase from each source. b. Develop an objective function that would minimize the total cost. c. The manufacturer needs at least 12,000 units of corn. The Iowa cooperative can supply up to 8000 units, and the Illinois cooperative can supply at least 6000 units. Develop constraints for these conditions. ANSWER: a. Let x 1 = the number of units from Iowa Let x 2 = the number of units from Illinois b. Min 6x 1 + 5.5x 2 c. x1 + x 2 ≥ 12,000 x1 ≥ 8000 x1 ≥ 6000 POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Apply 40. The relationship d = 5000 − 25p describes what happens to demand (d) as price (p) varies. Here, price can vary between $10 and $50. a. How many units can be sold at the $10 price? How many can be sold at the $50 price? b. Model the expression for total revenue. c. Consider prices of $20, $30, and $40. Which of these three price alternatives will maximize total revenue? What are the values for demand and revenue at this price? ANSWER: a. For p = 10, d = 4750 For p = 50, d = 3750 b. TR = p(5000 − 25p) Page 14 c. For p = 20, d = 4500, TR = $90,000 For p = 30, d = 4250, TR = $127,500 For p = 40, d = 4000, TR = $160,000 (maximum total revenue) POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Apply 41. There is a fixed cost of $50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. a. Write an expression for total cost. b. Write an expression for total revenue. c. Write an expression for total profit. d. Find the breakeven point. ANSWER: a. C(x) = 50000 + 25x b. R(x) = 45x c. P(x) = 45x − (50000 + 25x) d. x = 2500 POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Apply 42. An author has received an advance against royalties of $10,000. The royalty rate is $1.00 for every book sold in the United States, and $1.35 for every book sold outside the United States. Define variables for this problem and write an expression that could be used to calculate the number of books to be sold to cover the advance. ANSWER: Let x1 = the number of books sold in the U.S. Let x2 = the number of books sold outside the U.S. Page 15 10000 = 1x1 + 1.35x 2 POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Apply 43. A university schedules summer school courses based on anticipated enrollment. The cost for faculty compensation, laboratories, student services, and allocated overhead for a computer class is $8500. If students pay $920 to enroll in the course, how large would enrollment have to be for the university to break even? ANSWER: Enrollment would need to be 10 students. POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Evaluate 44. As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed- and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) $6000 Variable cost per occupied room per night 20 Revenue per occupied room per night 75 a. Write the expression for total cost per month. Assume 30 days per month. b. Write the expression for total revenue per month. c. If there are 12 guest rooms available, can they break even? What percentage of rooms would need to be occupied, on average, to break even? ANSWER: a. C(x) = 6000 + 20(30)x (monthly) b. R(x) = 75(30)x (monthly) c. Breakeven occupancy = 3.64 or 4 occupied rooms per night, so they have enough rooms to breakeven. This would be a 33% occupancy rate.