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Test Bank for Introduction to Management Science, 13th Edition

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Test Bank for Introduction to Management Science, 13th Edition - Page 1 preview image1Introduction to Management Science, 13e(Taylor)Chapter 1 Management Science1) A management science solution can be either a recommended decision or information thathelps a manager make a decision.Answer: TRUEDiff: 2Page Ref: 5Section Heading: The Management Science Approach to Problem SolvingKeywords: model, management science techniquesAACSB: Analytical thinking2) A variable is a value that is usually a coefficient of a parameter in an equation.Answer: FALSEDiff: 1Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: variableAACSB: Analytical thinking3) Parameters are known, constant values that are usually coefficients of variables in equations.Answer: TRUEDiff: 1Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: parameterAACSB: Analytical thinking4) Data are pieces of information from the problem environment.Answer: TRUEDiff: 1Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: dataAACSB: Analytical thinking5) A model is a mathematical representation of a problem situation including variables,parameters, and equations.Answer: TRUEDiff: 1Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: model, management science techniquesAACSB: Analytical thinking6) A management science technique usually applies to a specific model type.Answer: TRUEDiff: 1Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: models, management science techniquesAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 2 preview image
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Test Bank for Introduction to Management Science, 13th Edition - Page 3 preview image27) The first step of the management science process is to define the problem.Answer: FALSEDiff: 2Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: management science processAACSB: Analytical thinking8) The termbig datarefers to numbers of large magnitude, i.e., greater than or equal to onebillion.Answer: FALSEDiff: 1Page Ref: 7Section Heading: Management Science and Business AnalyticsKeywords: big data, analyticsAACSB: Application of knowledge9) A key component of business analytics is the recent availability of large amounts of data.Answer: TRUEDiff: 1Page Ref: 7Section Heading: Management Science and Business AnalyticsKeywords: big data, analyticsAACSB: Application of knowledge10) Business analytics brings together the disciplines of information systems, managementscience, statistics, and mathematical modeling.Answer: TRUEDiff: 1Page Ref: 7Section Heading: Management Science and Business AnalyticsKeywords: big data, analyticsAACSB: Application of knowledge11) Management science modeling techniques provide results that are known with certainty.Answer: FALSEDiff: 2Page Ref: 18Section Heading: Management Science Modeling TechniquesKeywords: management science modeling techniques, certaintyAACSB: Analytical thinking12) The termsensitivity analysisrefers to testing how a problem solution reacts to changes in oneor more of the model parameters.Answer: TRUEDiff: 1Page Ref: 12Section Heading: Model Building: Break-Even AnalysisKeywords: sensitivity analysis, parameter changesAACSB: Application of knowledge
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Test Bank for Introduction to Management Science, 13th Edition - Page 4 preview image313) Variable costs depend on the number of items produced.Answer: TRUEDiff: 1Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: variable cost, break-even analysisAACSB: Application of knowledge14) Fixed cost is the difference between total cost and total variable cost.Answer: TRUEDiff: 1Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: total cost, break-even analysisAACSB: Application of knowledge15) The break-even point is the volume that equates total revenue with total cost.Answer: TRUEDiff: 1Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking16) In general, an increase in price increases the break-even point if all costs are held constant.Answer: FALSEDiff: 1Page Ref: 12Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking17) If variable costs increase, but price and fixed costs are held constant, the break-even pointwill decrease.Answer: FALSEDiff: 2Page Ref: 12Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking18) Managers utilize spreadsheets to conduct their own analyses in management science studies.Answer: TRUEDiff: 2Page Ref: 14Section Heading: Computer SolutionKeywords: spreadsheetsAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 5 preview image419) Management science techniques focus primarily on observation, model construction, andimplementation to find an appropriate solution to a problem.Answer: FALSEDiff: 2Page Ref: 16Section Heading: Management Science Modeling TechniquesKeywords: management science modeling techniques, steps of the scientific methodAACSB: Analytical thinking20) Management science modeling techniques focus on model construction and problemsolution.Answer: TRUEDiff: 2Page Ref: 16Section Heading: Management Science Modeling TechniquesKeywords: management science model techniques, model construction, problem solutionAACSB: Analytical thinking21) A typical objective function might be written as 3S + 2R + 5Z≤ 20.Answer: FALSEDiff: 2Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: objective functionAACSB: Analytical thinking22) Decision Support Systems (DSS) use computers to help decision makers address complexproblems.Answer: TRUEDiff: 1Page Ref: 21Section Heading: Management Science Models in Decision Support SystemsKeywords: decision making, management scienceAACSB: Application of knowledge23) In both an objective function and a constraint, the decision variables are represented bynumbers.Answer: FALSEDiff: 1Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: decision variablesAACSB: Analytical thinking24) A DSS is a type of ERP system.Answer: FALSEDiff: 2Page Ref: 22Section Heading: The Management Science Approach to Problem SolvingKeywords: DSS, ERPAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 6 preview image525) A key element of a decision support system (DSS) is the person using the system.Answer: TRUEDiff: 2Page Ref: 21Section Heading: Management Science Models in Decision Support SystemsKeywords: decision support systemsAACSB: Analytical thinking26) An ERP system is software that is capable of connecting functions and processes across anentire company.Answer: TRUEDiff: 1Page Ref: 22Section Heading: The Management Science Approach to Problem SolvingKeywords: ERP, enterprise resource planningAACSB: Analytical thinking27) A company may use an intranet for communication among its own business units that arescattered geographically.Answer: TRUEDiff: 1Page Ref: 22Section Heading: The Management Science Approach to Problem SolvingKeywords: intranetAACSB: Analytical thinking28) ________ are pieces of information from the problem environment.Answer: DataDiff: 1Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: dataAACSB: Application of knowledge29) A(n) ________ is a functional relationship including variables, parameters, and equations.Answer: modelDiff: 1Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: modelAACSB: Application of knowledge30) ________ is the term used to describe a collection of numbers that is massive in size.Answer: Big dataDiff: 1Page Ref: 7Section Heading: Management Science and Business AnalyticsKeywords: big data, analyticsAACSB: Application of knowledge
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Test Bank for Introduction to Management Science, 13th Edition - Page 7 preview image631) ________ uses large amounts of data with management science techniques and modeling tohelp managers make decisions.Answer: Business analyticsDiff: 1Page Ref: 7Section Heading: Management Science and Business AnalyticsKeywords: big data, analyticsAACSB: Application of knowledge32) Management science techniques include ________ techniques, models that are representedas diagrams, presenting a pictorial representation of the system being analyzed.Answer: networkDiff: 1Page Ref: 16Section Heading: Management Science Modeling TechniquesKeywords: management science, networksAACSB: Application of knowledge33) An increase in output typically results in an increase in the ________ cost.Answer: total variable, totalDiff: 1Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking34) ________ techniques provide results that contain uncertainty, unlike mathematicalprogramming techniques which are deterministic.Answer: ProbabilisticDiff: 1Page Ref: 18Section Heading: Management Science Modeling TechniquesKeywords: management science techniques, probabilistic techniquesAACSB: Analytical thinking35) ________ costs are independent of the volume of goods produced and remain constant.Answer: FixedDiff: 1Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: fixed cost, break-even analysisAACSB: Analytical thinking36) Total revenue minus total cost equals ________.Answer: profitDiff: 1Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: profit, break-even analysisAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 8 preview image737) The ________ is the volume that equates total revenue with total cost.Answer: break-even pointDiff: 1Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking38) A(n) ________ represents a limitation to achieving maximum profits due to limitedresources.Answer: constraintDiff: 1Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: constraint, model developmentAACSB: Analytical thinking39) One way to test how a management science model reacts to changes in its parameters is toconduct ________ analysis.Answer: sensitivityDiff: 1Page Ref: 12Section Heading: Model Building: Break-Even AnalysisKeywords: sensitivity analysisAACSB: Analytical thinking40) ________ consist of models that are represented as diagrams rather than as strictlymathematical techniques.Answer: NetworksDiff: 2Page Ref: 16Section Heading: Management Science Modeling TechniquesKeywords: network flow modelsAACSB: Analytical thinking41) A management science technique that does not assume that all parameters are known withcertainty is a(n) ________ technique.Answer: probabilisticDiff: 2Page Ref: 18Section Heading: Management Science Modeling TechniquesKeywords: probabilistic techniquesAACSB: Analytical thinking42) A(n) ________ is a computer-based system that helps decision-makers address complexproblems that involve different parts of an organization and operations.Answer: decision support system, DSSDiff: 1Page Ref: 21Section Heading: Management Science Models in Decision Support SystemsKeywords: decision support systemsAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 9 preview image843) The databases, management science models, and internet interact with the decision maker viathe ________.Answer: user interfaceDiff: 2Page Ref: 22Section Heading: Management Science Models in Decision Support SystemsKeywords: decision support system, user interfaceAACSB: Analytical thinking44) ________ systems connect the business functions of an entire company.Answer: Enterprise resource planning, ERPDiff: 1Page Ref: 21Section Heading: Management Science Models in Decision Support SystemsKeywords: ERP, enterprise resource planningAACSB: Analytical thinking45) The steps of the management science process are:A) problem definition, model construction, observation, model solution, implementation.B) observation, problem definition, model construction, model solution, implementation.C) model construction, problem definition, observation, model solution, implementation.D) observation, implementation, problem definition, model construction, model solution.Answer: BDiff: 1Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: steps of sci method, problem solving approach, management sci processAACSB: Analytical thinking46) A model is a functional relationship that includes:A) variables.B) parameters.C) equations.D) all of the aboveAnswer: DDiff: 1Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: modelAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 10 preview image947) Which of the following is an equation or an inequality that expresses a resource restriction ina mathematical model?A) a decision variableB) an objective functionC) a constraintD) a parameterAnswer: CDiff: 2Page Ref: 4Section Heading: The Management Science Approach to Problem SolvingKeywords: model, constraintAACSB: Analytical thinking48) There is considerable overlap in the scientific method and management science techniques.Which of the following steps is shared between them?A) observationB) problem definitionC) model constructionD) implementationAnswer: CDiff: 2Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: scientific approachAACSB: Analytical thinking49) Which of the following isincorrectwith respect to the use of models in decision making?A) They improve understanding of the problem.B) They promote subjectivity in decision making.C) They are generally easy to use.D) They provide a systematic approach to problem solving.Answer: BDiff: 3Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: model, problem solvingAACSB: Analytical thinking50) The field of management science:A) approaches decision making irrationally with techniques based on the scientific method.B) is another name for management or human resources management.C) concentrates on the use of quantitative methods to assist managers in decision making.D) is completely separate and distinct from all other disciplines.Answer: CDiff: 1Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: management science, operations researchAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 11 preview image1051) The processes of problem observation:A) cannot be done until alternatives are proposed.B) requires consideration of multiple criteria.C) is the first step of decision making.D) is the final step of problem solving.Answer: CDiff: 1Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: observation, problem observation, management science processAACSB: Analytical thinking52) The limits of the problem and the degree to which it pervades other units in the organizationmust be included during the ________ step of the management science process.A) observationB) definitionC) solutionD) implementationAnswer: BDiff: 1Page Ref: 2Section Heading: The Management Science Approach to Problem SolvingKeywords: management science processAACSB: Analytical thinking53) ________ involves determining the functional relationship between variables, parameters,and equations.A) Problem observationB) Problem definitionC) Model constructionD) Model solutionAnswer: CDiff: 1Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: management science process, model constructionAACSB: Analytical thinking54) Which steps of the management science process can either be a recommended decision orinformation that helps a manager make a decision?A) model implementationB) problem definitionC) model solutionD) problem formulationAnswer: CDiff: 2Page Ref: 3Section Heading: The Management Science Approach to Problem SolvingKeywords: management science process, model solutionAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 12 preview image1155) The result of an effective decision-making process should be monitored in order to:A) reveal the break-even point.B) reveal errors in the implementation.C) keep fixed and variable costs distinct.D) change the scientific method.Answer: BDiff: 2Page Ref: 7Section Heading: The Management Science Approach to Problem SolvingKeywords: decision making processAACSB: Analytical thinking56) Which of these disciplines typicallydoes notfall under the umbrella of analytics?A) information systemsB) statisticsC) management scienceD) operations managementAnswer: DDiff: 2Page Ref: 7Section Heading: Management Science and Business AnalyticsKeywords: big data, analyticsAACSB: Application of knowledge57) The indicator that results in total revenues being equal to total cost is called the:A) marginal cost.B) marginal volume.C) break-even point.D) profit mix.Answer: CDiff: 1Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking58) Variable cost:A) depends on the number of units produced.B) plus marginal cost equals fixed cost.C) is equal to total cost in deterministic models.D) is the same as average cost.Answer: ADiff: 2Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 13 preview image1259) The components of break-even analysis are:A) cost and profit.B) volume and cost.C) volume, cost and profit.D) volume and profit.Answer: CDiff: 1Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking60) ________ are generally independent of the volume of units produced and sold.A) Fixed costsB) Variable costsC) ProfitsD) Average costAnswer: ADiff: 1Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking61) The purpose of break-even analysis is to determine the number of units of a product to sellthat will:A) appeal to the consumer.B) result in a profit.C) result in a loss.D) result in zero profit.Answer: DDiff: 2Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking62) Variable costdoes notinclude:A) raw materials and resources.B) staff and management salaries.C) material handling and freight.D) direct labor and packaging.Answer: BDiff: 2Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 14 preview image1363) Which variable isnota component of break-even analysis?A) fixed costsB) variable costsC) number of employeesD) number of customersAnswer: CDiff: 1Page Ref: 9Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking64) At the break-even point:A) total revenue equals total cost.B) profit is maximized.C) revenue is maximized.D) costs are minimized.Answer: ADiff: 1Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking65) If the price increases, but fixed and variable costs do not change, the break-even point:A) decreases.B) increases.C) remains the same.D) may increase or decrease, depending on sales.Answer: ADiff: 2Page Ref: 12Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking66) If the price decreases, but fixed and variable costs do not change, the break-even point:A) decreases.B) increases.C) remains the same.D) may increase or decrease, depending on sales.Answer: BDiff: 2Page Ref: 12Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 15 preview image1467) The term ________ refers to testing how a problem solution reacts to changes in one or moreof the model parameters.A) graphical solutionB) decision analysisC) sensitivity analysisD) break-even analysisAnswer: CDiff: 2Page Ref: 12Section Heading: Model Building: Break-Even AnalysisKeywords: sensitivity analysis, modeling processAACSB: Analytical thinking68) If fixed costs decrease, but variable cost and price remain the same, the break-even point:A) decreases.B) increases.C) remains the same.D) may increase or decrease depending on sales.Answer: ADiff: 2Page Ref: 13Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking69) If fixed costs increase, but variable cost and price remain the same, the break-even point:A) decreases.B) increases.C) remains the same.D) may increase or decrease depending on sales.Answer: BDiff: 2Page Ref: 13Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking70) Administrators at a university will charge students $175 to attend freshman orientation. Itcosts $10,000 to reserve a room, hire extra security, and bring in a moonwalk. Assume it costs$15 per student for the administrators to provide the course materials. How many students wouldhave to register for orientation for the university to break even?A) 54.25B) 58C) 56D) 62.5Answer: DDiff: 2Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking
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Test Bank for Introduction to Management Science, 13th Edition - Page 16 preview image1571) A university is planning a seminar. It costs $3000 to reserve a room, hire an instructor, andbring in the equipment. Assume it costs $25 per student for the administrators to provide thecourse materials. If we know that 20 people will attend, what price should be charged per personto break even?A) $120B) $150C) $175D) $200Answer: CDiff: 2Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking72) A university is planning an online seminar. It costs $30 to live stream an instructor fromElbonia. Assume it costs $25 per student for the administrators to provide the course materials. Ifwe know that 20 people will attend, what price should be charged per person to break even?A) $55B) $15C) $26.50D) $75.75Answer: CDiff: 2Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking73) It costs $50,000 to start a production process. Variable cost is $25 per unit and revenue is$45 per unit. What is the break-even point?A) 1000 unitsB) 1111 unitsC) 2000 unitsD) 2500 unitsAnswer: DDiff: 1Page Ref: 10Section Heading: Model Building: Break-Even AnalysisKeywords: break-even analysisAACSB: Analytical thinking
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Introduction To Management Science ...

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