Chapter 1 Introduction to Quantitative Analysis
Operations Research is known as
the science of better
All problems can be solved by considering only the quantitative issues. T or F
FALSE
Decision variables may also be called parameters. T or F
FALSE
In the Early 1900s, Henry Ford pioneered the principles of the scientific approach to management T or F
FALSE
Who is credited with pioneering the principles of the scientific approach to management?
Frederick W. Taylor
A set of logical and mathematical operations performed in a specific sequence is called a(n)
algorithm
What Excel feature is an optimization technique that can maximize or minimize a quantity given a set of limitations or constraints?
solver
A controllable variable is also called a ________ variable.
decision
Quantitative analysis is ________.
the scientific approach to managerial decision making
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. T or F
FALSE
The Quantitative Analysis Approach consists of six steps. T or F
FALSE
Trying various approaches and picking the one resulting in the best decision is called incomplete enumeration. T or F
FALSE
When a problem is difficult to quantify, it may be necessary to develop unspecific objectives. T or F
FALSE
One problem in using a quantitative model is that the necessary data may be unavailable. T or F
TRUE
What are some possible problems in the quantitative analysis approach.
conflicting viewpoints, ignoring the impact on other departments, poor assumptions, outdated solutions, difficulty matching the textbook approach, trading off model complexity with ease of understanding, poor input data, hard-to-understand mathematics,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.
A controllable variable is also called a
decision variable
A measurable quantity that may vary, or is subject to change, and can be controlled is known as a(n)
decision variable
The break-even point of a simple profit model represents a(n)
decision variable
Trying various approaches and picking the one that results in the best decision is called
the trial and error method
What are the steps of the quantitative analysis approach.
(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
What are three potential problems with people (two with management and one with the quantitative analysts themselves) that may hinder successful implementation of a quantitative model.
(1) lack of commitment by management, (2) resistance to change by management, and (3) lack of commitment by quantitative analysts.
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
C) Observing a Hypothesis
________ models do not involve risk or chance.
Deterministic
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
E) All of the above
Stochastic models are synonymous with A) deterministic models B) schematic models. C) qualitative models. D) conceptual models. E) None of the above
E) None of the above
A mathematical model shows the relationship between quantifiable and non-quantifiable information. T or F
FALSE
A parameter is a measurable quantity that may vary or is subject to change. T or F
FALSE
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.
QA for Windows
The widespread applicability of operations research methods to business followed which war?
World War II
Expressing profits through the relationship among unit price, fixed costs, and variable costs is an example of
a quantitative analysis model
Evaluating all possible values of a variable in a model is called
complete enumeration
Models that do not involve risk or chance are
deterministic model
What is the formula for the break-even point of a simple profit model?
f / (s-v)
The condition of improper data yielding misleading results is referred to as
garbage in, garbage out
A(n) ________ is a representation of reality or a real-life situation.
model
If input data are accurate to three significant digits, then the solution results can be accurate to how many significant digits?
three
A(n) ________ model is one that is accurate and correctly represents the problem or system under investigation.
valid
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
D) All of the above
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
D) subjective solutions
A profit equation is an example of a schematic model. T or F
FALSE
________ models are synonymous with stochastic models.
Probabilistic
A model is a representation of a situation. T or F
TRUE
A sensitivity analysis allows a manager to answer the "what if" questions. T or F
TRUE
A series of steps or procedures that are repeated is known as an algorithm. T or F
TRUE
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. T or F
TRUE
Interviews, statistical sampling, and company reports provide input data for quantitative analysis models T or F
TRUE
Model variables can be controllable or uncontrollable. T or F
TRUE
Models can help us analyze a problem and sell a decision to those who must implement it. T or F
TRUE
Sensitivity analysis helps us estimate the effect of known and unknown errors in our model. T or F
TRUE
Testing the data and model should be done before the results have been analyzed. T or F
TRUE
What 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
goal seek
What term is interchangeable with quantitative analysis?
management science
A measurable quantity that is inherent in the problem is called a(n)
parameter
In making a decision, both ________ and quantitative factors must be considered.
qualitative
The break-even point is an example of a
quantitative analysis model
What is a picture, drawing, or chart of reality?
schematic model
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.
sensitivity
Postoptimality analysis is most closely associated with
sensitivity analysis
Once we have a solution, we should then perform ________ analysis.
sensitivity or postoptimality analysis