EBTM 350 - Chapter 1 Quiz
True or False: A deterministic model is one in which all model input information is either known or assumed to be known with certainty.
True
Using the accompanying chart, how many gallons will be sold if the price is increased to $4.75? A. 843 B. 833.26 C. 818 D. 798.72
A. 843
Which of the following statements is correct about descriptive analytics? A. Descriptive analytics helps companies classify their customers into segments to develop specific marketing campaigns. B. Descriptive analytics can predict risk and find relationships in data not readily apparent with traditional analyses. C. Descriptive analytics helps detect hidden patterns in large quantities of data to group data into sets to predict behavior. D. Descriptive analytics can use mathematical techniques with optimization to make decisions that take into account the uncertainty in the data.
A. Descriptive analytics helps companies classify their customers into segments to develop specific marketing campaigns.
Which of the following statements is correct about prescriptive analytics? A. Prescriptive analytics uses data to determine a course of action to be executed in a given situation. B. Prescriptive analytics detects patterns in historical data and extrapolates them forward in time. C. Prescriptive analytics identifies patterns and relationships existing in large data sets. D. Prescriptive analytics summarizes data into meaningful charts and reports that can be standardized or customized.
A. Prescriptive analytics uses data to determine a course of action to be executed in a given situation.
Which of the following statements is true about prescriptive decision models? A. Prescriptive decision models help decision-makers identify the best solution to decision problems. B. Prescriptive decision models help make trade-offs between greater rewards and risks of potential losses. C. Prescriptive decision models help describe relationships and influence of various elements in the model. D. Prescriptive decision models help make predictions of how demand is influenced by price.
A. Prescriptive decision models help decision-makers identify the best solution to decision problems.
Which of the following is not a challenge faced by organizations that want to develop analytics capabilities? A. profitability and customer satisfaction B. competing business priorities C. a lack of understanding of how to use analytics D. difficulty in getting good data and sharing information
A. profitability and customer satisfaction
Which of the following statements is true about decision variables? A. Decision variables are assumed to be constant. B. Decision variables can be selected at the discretion of the decision-maker. C. Decision variables are always uncertain. D. Decision variables cannot be directly controlled by the decision-maker.
B. Decision variables can be selected at the discretion of the decision-maker.
Which of the following inputs of a decision model is an example of data? A. inflation rates B. costs C. investment allocations D. estimated consumer demand
B. costs
The demand for coffee beans over a period of three months has been represented in the form of an L-shaped curve. Which form of model was used here? A. kinesthetic (tactile) model B. visual model C. verbal model D. mathematical model
B. visual model
Which of the following statements is correct about descriptive decision models? A. Descriptive decision models aim to predict what will happen in the future. B. Descriptive decision models do not facilitate evaluation of different decisions. C. Descriptive decision models describe relationships but do not tell a manager what to do. D. Descriptive decision models help analyze the risks associated with various decisions.
C. Descriptive decision models describe relationships but do not tell a manager what to do.
In the accompanying spreadsheet, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. Which of the following is the Excel formula to determine the number of units sold? A. =B8 B. =MAX(0,B8,B9) C. =MIN(0,B8,B9) D. =MIN(B8,B9)
D. =MIN(B8,B9)
What does business analytics use to help managers make better decisions? A. statistical analysis and quantitative methods B. mathematical or computer-based models C. data and information technology D. all of the above
D. all of the above
A manager at Gampco Inc. wishes to know the company's revenue and profit in its previous quarter. Which of the following business analytics will help the manager? A. predictive analytics B. prescriptive analytics C. normative analytics D. descriptive analytics
D. descriptive analytics
Identify the uncontrollable variable from the following inputs of a decision model. A. intercity distances B. machine capacities C. staffing levels D. investment returns
D. investment returns
A trader who wants to predict short-term movements in stock prices is likely to use which type of analytics? A. descriptive B. normative C. prescriptive D. predictive
D. predictive
Which of the following is the first phase in problem-solving? A. defining the problem B. structuring the problem C. analyzing the problem D. recognizing the problem
D. recognizing the problem
The manager at Soul Walk Inc., a shoe manufacturing company, wants to set a new price (P) for a shoe model to maximize total profit. The demand (D) as a function of price is represented as D=1,500-2.5P. The total cost (C) as a function of demand is represented as C=3,200+3.5D. Which of the following is a model for total profit as a function of price? A. [4521+(4.5*price)] * price-9684.25 B. (1,250 *price) + (5 x price^2) - 8,320 C. (3.5 *prices^2) + 3,200minus(1925.50 x price) D. (1,508.75 *price) - (2.5 * price^2) - 8,450
D. (1,508.75 *price) - (2.5 * price^2) - 8,450 (NOTE: Profit=P*D-C) Profit= Px(1500-2.5P)-(3200*3.5(1500-2.5P)
True or False The complexity of a problem increases when the problem belongs to an individual rather than a group.
False