Skip to content
Exam Guides

Quantitative Analysis for Management 13th Edition Test Bank

Simplify your study sessions with Quantitative Analysis for Management 13th Edition Test Bank, an exam guide designed for effective revision and maximum retention.

Preview 16 of 991 pages

See the first 16 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    Quantitative Analysis for Management, 13e (Render et al.) Chapter 1 Introduction to Quantitative Analysis 1) Interviews, statistical sampling, and company reports provide input data for quantitative analysis models. Answer: TRUE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 2) In the early 1900s, Henry Ford pioneered the principles of the scientific approach to management. Answer: FALSE Diff: Moderate Topic: WHAT IS QUANTITATIVE ANALYSIS? LO: 1.1: Describe the quantitative analysis approach and understand how to apply it to a real situation. AACSB: Analytical thinking Classification: Concept 3) 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. Answer: FALSE Diff: Moderate Topic: INTRODUCTION LO: 1.6: Recognize possible problems in using quantitative analysis. AACSB: Analytical thinking Classification: Concept 4) 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. Answer: TRUE Diff: Moderate Topic: WHAT IS QUANTITATIVE ANALYSIS? LO: 1.1: Describe the quantitative analysis approach and understand how to apply it to a real situation. AACSB: Analytical thinking Classification: Concept

  2. Page 2
  3. Page 3
    Read page 3 as text

    5) Business Analytics is a data - driven approach to decision making that allows companies to make better decisions. Answer: TRUE Diff: Moderate Topic: BUSINESS ANALYTICS LO: 1.2: Describe the three categories of business analytics. AACSB: Analytical thinking Classification: Concept 6) Descriptive Analytics is aimed at forecasting future outcomes based on patterns in the past data. Answer: FALSE Diff: Moderate Topic: BUSINESS ANALYTICS LO: 1.2: Describe the three categories of business analytics. AACSB: Analytical thinking Classification: Concept 7) When a problem is difficult to quantify, it may be necessary to develop unspecific objectives. Answer: FALSE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 8) The Quantitative Analysis Approach consists of six steps. Answer: FALSE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 9) A mathematical model shows the relationship between quantifiable and non - quantifiable information. Answer: FALSE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept

  4. Page 4
    Read page 4 as text

    10) Decision variables may also be called parameters. Answer: FALSE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 11) Model variables can be controllable or uncontrollable. Answer: TRUE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 12) A series of steps or procedures that are repeated is known as an algorithm. Answer: TRUE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 13) A model is a representation of a situation. Answer: TRUE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 14) A parameter is a measurable quantity that may vary or is subject to change. Answer: FALSE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept

  5. Page 5
    Read page 5 as text

    15) Trying various approaches and picking the one resulting in the best decision is called incomplete enumeration. Answer: FALSE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 16) All problems can be solved by considering only the quantitative issues. Answer: FALSE Diff: Easy Topic: WHAT IS QUANTITATIVE ANALYSIS? LO: 1.1: Describe the quantitative analysis approach and understand how to apply it to a real situation. AACSB: Analytical thinking Classification: Concept 17) A profit equation is an example of a schematic model. Answer: FALSE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 18) Testing the data and model should be done before the results have been analyzed. Answer: TRUE Diff: Easy Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 19) Sensitivity analysis helps us estimate the effect of known and unknown errors in our model. Answer: TRUE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept

  6. Page 6
    Read page 6 as text

    20) Models can help us analyze a problem and sell a decision to those who must implement it. Answer: TRUE Diff: Easy Topic: HOW TO DEVELOP A QUANTITATIVE ANALYSIS MODEL LO: 1.4: Prepare a quantitative analysis model. AACSB: Analytical thinking Classification: Concept 21) A sensitivity analysis allows a manager to answer the "what if" questions. Answer: TRUE Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 22) One problem in using a quantitative model is that the necessary data may be unavailable. Answer: TRUE Diff: Easy Topic: POSSIBLE PROBLEMS IN THE QUANTITATIVE ANALYSIS APPROACH LO: 1.6: Recognize possible problems in using quantitative analysis. AACSB: Analytical thinking Classification: Concept 23) Management support and user involvement are not essential in the successful implementation of quantitative analysis projects. Answer: FALSE Diff: Easy Topic: IMPLEMENTATION — NOT JUST THE FINAL STEP LO: 1.7: Recognize implementation concerns of quantitative analysis. AACSB: Analytical thinking Classification: Concept 24) Revenue is calculated by subtracting expenses from profit. Answer: FALSE Diff: Easy Topic: HOW TO DEVELOP A QUANTITATIVE ANALYSIS MODEL LO: 1.4: Prepare a quantitative analysis model. AACSB: Analytical thinking Classification: Application

  7. Page 7
    Read page 7 as text

    25) In order for a break - even quantity to exist in the presence of positive fixed costs, sales price must exceed variable cost per unit. Answer: TRUE Diff: Moderate Topic: HOW TO DEVELOP A QUANTITATIVE ANALYSIS MODEL LO: 1.4: Prepare a quantitative analysis model. AACSB: Analytical thinking Classification: Application 26) Which of the following terms is interchangeable with quantitative analysis? A) management science B) economics C) financial analysis D) statistics Answer: A Diff: Easy Topic: WHAT IS QUANTITATIVE ANALYSIS? LO: 1.1: Describe the quantitative analysis approach and understand how to apply it to a real situation. AACSB: Analytical thinking Classification: Concept 27) Operations Research is known as A) the science of numerical analysis. B) the science of sensitivity analysis. C) the science of better. D) the science of modeling. Answer: C Diff: Moderate Topic: INTRODUCTION LO: 1.1: Describe the quantitative analysis approach and understand how to apply it to a real situation. AACSB: Analytical thinking Classification: Concept 28) Who is credited with pioneering the principles of the scientific approach to management? A) Adam Smith B) Henri Fayol C) John R. Locke D) Frederick W. Taylor Answer: D Diff: Moderate Topic: WHAT IS QUANTITATIVE ANALYSIS? LO: 1.1: Describe the quantitative analysis approach and understand how to apply it to a real situation. AACSB: Analytical thinking Classification: Concept 29) Which of the following techniques involves the study and consolidation of historical data for

  8. Page 8
    Read page 8 as text

    a business and an industry? A) descriptive analytics B) prescriptive analytics C) predictive analytics D) management science Answer: A Diff: Moderate Topic: BUSINESS ANALYTICS LO: 1.2: Describe the three categories of business analytics. AACSB: Analytical thinking Classification: Concept 30) Which of the following techniques involves the use of optimization methods to provide new and better ways to operate based on specific business objectives? A) descriptive analytics B) prescriptive analytics C) predictive analytics D) quantitative analysis Answer: B Diff: Moderate Topic: BUSINESS ANALYTICS LO: 1.2: Describe the three categories of business analytics. AACSB: Analytical thinking Classification: Concept 31) A(n) ________ is a representation of reality or a real - life situation. A) objective B) model C) analysis D) algorithm Answer: B Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept

  9. Page 9
    Read page 9 as text

    32) A measurable quantity that may vary, or is subject to change, and can be controlled is known as a(n) A) decision variable. B) algorithm. C) parameter. D) solution. Answer: A Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 33) A set of logical and mathematical operations performed in a specific sequence is called a(n) A) complete enumeration. B) diagnostic analysis. C) algorithm. D) objective. Answer: C Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 34) 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. A) sensitivity B) implicit C) normal D) scale Answer: A Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept

  10. Page 10
    Read page 10 as text

    35) 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 Answer: C Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 36) The condition of improper data yielding misleading results is referred to as A) garbage in, garbage out. B) break - even point. C) uncontrollable variable. D) postoptimality. Answer: A Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 37) Expressing profits through the relationship among unit price, fixed costs, and variable costs is an example of A) a sensitivity analysis model. B) a quantitative analysis model. C) a postoptimality relationship. D) a parameter specification model. Answer: B Diff: Easy Topic: HOW TO DEVELOP A QUANTITATIVE ANALYSIS MODEL LO: 1.4: Prepare a quantitative analysis model. AACSB: Analytical thinking Classification: Concept

  11. Page 11
    Read page 11 as text

    38) The widespread applicability of operations research methods to business followed which war? A) the U.S. Civil War B) World War I C) World War II D) the Korean War Answer: C Diff: Moderate Topic: WHAT IS QUANTITATIVE ANALYSIS? LO: 1.1: Describe the quantitative analysis approach and understand how to apply it to a real situation. AACSB: Analytical thinking Classification: Concept 39) A measurable quantity that is inherent in the problem is called a(n) A) decision variable. B) uncontrollable variable. C) algorithm. D) parameter. Answer: D Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 40) Trying various approaches and picking the one that results in the best decision is called A) the trial - and - error method. B) incomplete enumeration. C) complete enumeration. D) algorithmic approximation. Answer: A Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept

  12. Page 12
    Read page 12 as text

    41) Models that do not involve risk or chance are A) probabilistic models. B) postoptimality models. C) deterministic models. D) MIS models. Answer: C Diff: Moderate Topic: HOW TO DEVELOP A QUANTITATIVE ANALYSIS MODEL LO: 1.4: Prepare a quantitative analysis model. AACSB: Analytical thinking Classification: Concept 42) If input data are accurate to three significant digits, then the solution results can be accurate to how many significant digits? A) one B) two C) three D) four Answer: C Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 43) Postoptimality analysis is most closely associated with A) collecting input data. B) developing a model. C) sensitivity analysis. D) writing a computer program. Answer: C Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept

  13. Page 13
    Read page 13 as text

    44) The break - even point is an example of a A) postoptimality model. B) quantitative analysis model. C) schematic model. D) sensitivity analysis model. Answer: B Diff: Easy Topic: HOW TO DEVELOP A QUANTITATIVE ANALYSIS MODEL LO: 1.4: Prepare a quantitative analysis model. AACSB: Analytical thinking Classification: Concept 45) A controllable variable is also called a A) parameter. B) decision variable. C) mathematical model. D) measurable quantity. Answer: B Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 46) Evaluating all possible values of a variable in a model is called A) trial and error. B) complete enumeration. C) an algorithm. D) variablization. Answer: B Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept 47) What is the formula for the break - even point of a simple profit model? A) Fixed Cost / Variable Cost Per Unit B) (Selling Price Per Unit - Variable Cost Per Unit) / Fixed Cost C) Fixed Cost / (Selling Price Per Unit - Variable Cost Per Unit) D) Fixed Cost / (Variable Cost Per Unit - Selling Price Per Unit) Answer: C Diff: Moderate Topic: HOW TO DEVELOP A QUANTITATIVE ANALYSIS MODEL LO: 1.4: Prepare a quantitative analysis model. AACSB: Analytical thinking Classification: Concept 48) The break - even point of a simple profit model represents a(n)

  14. Page 14
    Read page 14 as text

    A) decision variable. B) uncontrollable variable. C) parameter. D) constant. Answer: A Diff: Difficult Topic: HOW TO DEVELOP A QUANTITATIVE ANALYSIS MODEL LO: 1.4: Prepare a quantitative analysis model. AACSB: Analytical thinking Classification: Concept 49) Which Excel feature is an optimization technique that can maximize or minimize a quantity given a set of limitations or constraints? A) Optimizer B) Goal Seek C) Analysis Tool - Pak D) Solver Answer: D Diff: Difficult Topic: THE ROLE OF COMPUTERS AND SPREADSHEET MODELS IN THE QUANTITATIVE ANALYSIS APPROACH LO: 1.5: Use computers and spreadsheet models to perform quantitative analysis. AACSB: Information technology Classification: Concept 50) Which 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? A) Solver B) Goal Search C) Target Search D) Goal Seek Answer: D Diff: Difficult Topic: THE ROLE OF COMPUTERS AND SPREADSHEET MODELS IN THE QUANTITATIVE ANALYSIS APPROACH LO: 1.5: Use computers and spreadsheet models to perform quantitative analysis. AACSB: Information technology Classification: Concept

  15. Page 15
    Read page 15 as text

    51) 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) QA for Windows. Answer: D Diff: Moderate Topic: THE ROLE OF COMPUTERS AND SPREADSHEET MODELS IN THE QUANTITATIVE ANALYSIS APPROACH LO: 1.5: Use computers and spreadsheet models to perform quantitative analysis. AACSB: Information technology Classification: Concept 52) As one attempts to develop a model, which of the following problems might she encounter? A) The assumptions made in order to apply the model will not be violated. B) The model will provide an array of possible answers to the question the analyst poses. C) Everyone will understand the problem in the same way. D) Accurate data will not be available for the model. Answer: D Diff: Easy Topic: POSSIBLE PROBLEMS IN THE QUANTITATIVE ANALYSIS APPROACH LO: 1.6: Recognize possible problems in using quantitative analysis. AACSB: Analytical thinking Classification: Concept 53) Which of the following is a picture, drawing, or chart of reality? A) scale model B) physical model C) mathematical model D) schematic model Answer: D Diff: Moderate Topic: THE QUANTITATIVE ANALYSIS APPROACH LO: 1.3: Describe the use of modeling in quantitative analysis. AACSB: Analytical thinking Classification: Concept

  16. Page 16
    Read page 16 as text

    54) 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 Answer: D Diff: Moderate Topic: POSSIBLE PROBLEMS IN THE QUANTITATIVE ANALYSIS APPROACH LO: 1.6: Recognize possible problems in using quantitative analysis. AACSB: Analytical thinking Classification: Concept 55) The quantitative analysis approach begins with A) data. B) analysis. C) models. D) statistics. Answer: A Diff: Easy Topic: WHAT IS QUANTITATIVE ANALYSIS? LO: 1.1: Describe the quantitative analysis approach and understand how to apply it to a real situation. AACSB: Analytical thinking Classification: Concept 56) The popularity of the quantitative analysis approach is largely attributed to A) big data. B) computers. C) the deep web. D) the worldwide web. Answer: B Diff: Moderate Topic: WHAT IS QUANTITATIVE ANALYSIS? LO: 1.1: Describe the quantitative analysis approach and understand how to apply it to a real situation. AACSB: Analytical thinking Classification: Concept

975 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Business Management study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.