POM 333 Chapter 1

Models that do not involve risk or chance are:

Deterministic Models

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

False

What is the formula for the Break-Even Point of a simple profit model?

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

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

Trial and Error Method

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

True

A model is a representation of a situation

True

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

True

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

True

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

True

A(n)______ is an abstract representation of reality or of a real-life situation

model