Question 1

Which decision-making tool limits decision making to information known at the stage at which the decision is being made?

Accepted Answer

A)  analytical hierarchy process 
B)  net present value 
C)  real options 
D)  internal rate of return 
A)  analytical hierarchy process 
B)  net present value 
C)  real options 
D)  internal rate of return

Question 2

Under what circumstances would a real-option analysis be preferable to a discounted cash flow analysis?

Accepted Answer

Real-option analysis would be preferable

Question 3

Given the following income stream, if the rate of return on a three-year U.S. Treasury note was currently 5 percent, what decision would you make about the possible investment?

Accepted Answer

A)  it would most likely be a poor investment 
B)  it would most likely be a good investment 
C)  it could be positive or negative 
D)  there is not enough information to be able to judge 
A)  it would most likely be a poor investment 
B)  it would most likely be a good investment 
C)  it could be positive or negative 
D)  there is not enough information to be able to judge

Question 4

Describe the various tools available to assist in making choices about innovation project.

Accepted Answer

There are several tools available to ass

Question 5

Which decision making tool that provides the right but not the obligation to make a future investment?

Accepted Answer

A)  analytical hierarchy process 
B)  net present value 
C)  internal rate of return 
D)  real options 
A)  analytical hierarchy process 
B)  net present value 
C)  internal rate of return 
D)  real options

Question 6

Which decision-making tool provides a quantitative evaluation of a choice that is based on the value and probability of outcomes, and accounts for the influence of staged decision making on risk?

Accepted Answer

A)  analytical hierarchy process 
B)  internal rate of return 
C)  Monte Carlo simulation 
D)  decision trees 
A)  analytical hierarchy process 
B)  internal rate of return 
C)  Monte Carlo simulation 
D)  decision trees

Question 7

Which project map category would include efforts that extend existing projects?

Accepted Answer

A)  derivative projects 
B)  platform projects 
C)  creative projects 
D)  breakthrough projects 
A)  derivative projects 
B)  platform projects 
C)  creative projects 
D)  breakthrough projects

Question 8

What quantitative method for evaluating innovative projects estimates the value of a project today given the amount and timing of cash outflows and inflows and the discount rate?

Accepted Answer

A)  analytical hierarchy process 
B)  real options 
C)  net present value 
D)  internal rate of return 
A)  analytical hierarchy process 
B)  real options 
C)  net present value 
D)  internal rate of return

Question 9

Portfolio models take a wide variety of forms, including pie charts and bubble diagrams and are always based on quantitative data.

Accepted Answer

A) True 
 B)False

Question 10

A breakthrough project would be one with a high degree of process change and a low degree of product change.

Accepted Answer

A) True 
 B)False

Question 11

Given the following stream of cash flows assuming a current discount rate of 10 percent, if the initial investment were $1.8 million, what is the payback period?

Accepted Answer

A)  1 year 
B)  2 years 
C)  3 years 
D)  longer than 3 years 
A)  1 year 
B)  2 years 
C)  3 years 
D)  longer than 3 years

Question 12

Given the following table of dimension weights, what is the priority vector for dimension A?
‪

Accepted Answer

A)  .54 
B)  .60 
C)  1.80 
D)  2.67 
A)  .54 
B)  .60 
C)  1.80 
D)  2.67

Question 13

Which project map category would include efforts to create new product families?

Accepted Answer

A)  derivative projects 
B)  platform projects 
C)  creative projects 
D)  breakthrough projects 
A)  derivative projects 
B)  platform projects 
C)  creative projects 
D)  breakthrough projects

Question 14

Which project map category would include efforts based on fundamentally new ideas?

Accepted Answer

A)  derivative projects 
B)  platform projects 
C)  creative projects 
D)  breakthrough projects 
A)  derivative projects 
B)  platform projects 
C)  creative projects 
D)  breakthrough projects

Question 15

Loan payments on a commercial building would be classified as which type of cost?

Accepted Answer

A)  total costs 
B)  labor costs 
C)  fixed costs 
D)  variable costs 
A)  total costs 
B)  labor costs 
C)  fixed costs 
D)  variable costs

Question 16

What is the best explanation of comparative decision-making tools?

Accepted Answer

A)  tools that compare projects on the basis of scales or words 
B)  tolls that evaluate projects based on the basis of numerical calculations 
C)  tools that pit projects against each other 
D)  tools that compare projects against standard scales 
A)  tools that compare projects on the basis of scales or words 
B)  tolls that evaluate projects based on the basis of numerical calculations 
C)  tools that pit projects against each other 
D)  tools that compare projects against standard scales

Question 17

Which decision-making tool breaks a problem down into a series of different criteria and choices?

Accepted Answer

A)  analytic hierarchy process 
B)  net present value 
C)  internal rate of return 
D)  checklist 
A)  analytic hierarchy process 
B)  net present value 
C)  internal rate of return 
D)  checklist

Question 18

What decision-making tool provides a visual representation of decisions and their effects on outcomes, cost, and risks?

Accepted Answer

A)  analytical hierarchy process 
B)  internal rate of return 
C)  Monte Carlo simulation 
D)  decision trees 
A)  analytical hierarchy process 
B)  internal rate of return 
C)  Monte Carlo simulation 
D)  decision trees

Question 19

If you were looking to maximize profits form your R&D investments, in which area would you be most likely to allocate more resources?

Accepted Answer

A)  derivative projects 
B)  platform projects 
C)  creative projects 
D)  breakthrough projects 
A)  derivative projects 
B)  platform projects 
C)  creative projects 
D)  breakthrough projects

Question 20

What type of decision-making tool compares projects on the basis of scales or words?

Accepted Answer

A)  qualitative 
B)  quantitative 
C)  comparative 
D)  scoring 
A)  qualitative 
B)  quantitative 
C)  comparative 
D)  scoring

Which decision-making tool limits decision making to information known at the stage at which the decision is being made?

Under what circumstances would a real-option analysis be preferable to a discounted cash flow analysis?

Given the following income stream, if the rate of return on a three-year U.S. Treasury note was currently 5 percent, what decision would you make about the possible investment?

Describe the various tools available to assist in making choices about innovation project.

Which decision making tool that provides the right but not the obligation to make a future investment?

Which decision-making tool provides a quantitative evaluation of a choice that is based on the value and probability of outcomes, and accounts for the influence of staged decision making on risk?

Which project map category would include efforts that extend existing projects?

What quantitative method for evaluating innovative projects estimates the value of a project today given the amount and timing of cash outflows and inflows and the discount rate?

Portfolio models take a wide variety of forms, including pie charts and bubble diagrams and are always based on quantitative data.

A breakthrough project would be one with a high degree of process change and a low degree of product change.

Given the following stream of cash flows assuming a current discount rate of 10 percent, if the initial investment were $1.8 million, what is the payback period?

Given the following table of dimension weights, what is the priority vector for dimension A? ‪

Which project map category would include efforts to create new product families?

Which project map category would include efforts based on fundamentally new ideas?

Loan payments on a commercial building would be classified as which type of cost?

What is the best explanation of comparative decision-making tools?

Which decision-making tool breaks a problem down into a series of different criteria and choices?

What decision-making tool provides a visual representation of decisions and their effects on outcomes, cost, and risks?

If you were looking to maximize profits form your R&D investments, in which area would you be most likely to allocate more resources?

What type of decision-making tool compares projects on the basis of scales or words?

Introduction

Technology Evolution

Technology Adoption and Diffusion

Sources of Innovation

Customer Needs

Product Development

Patents

Trade Secrets, Trademarks, and Copyrights

Capturing Value From Innovation

Competitive Advantage in High-Tech Industries

Technical Standards

Strategy in Networked Industries

Collaboration Strategies

Strategic Human Resource Management of Technical Professionals

Organization Structure for Technology Strategy

Filters

Exam 5: Selecting Innovation Projects

Which decision-making tool limits decision making to information known at the stage at which the decision is being made?

Under what circumstances would a real-option analysis be preferable to a discounted cash flow analysis?

Given the following income stream, if the rate of return on a three-year U.S. Treasury note was currently 5 percent, what decision would you make about the possible investment?

Describe the various tools available to assist in making choices about innovation project.

Which decision making tool that provides the right but not the obligation to make a future investment?

Which decision-making tool provides a quantitative evaluation of a choice that is based on the value and probability of outcomes, and accounts for the influence of staged decision making on risk?

Which project map category would include efforts that extend existing projects?

What quantitative method for evaluating innovative projects estimates the value of a project today given the amount and timing of cash outflows and inflows and the discount rate?

Portfolio models take a wide variety of forms, including pie charts and bubble diagrams and are always based on quantitative data.

A breakthrough project would be one with a high degree of process change and a low degree of product change.

Given the following stream of cash flows assuming a current discount rate of 10 percent, if the initial investment were $1.8 million, what is the payback period?

Given the following table of dimension weights, what is the priority vector for dimension A? ‪

Which project map category would include efforts to create new product families?

Which project map category would include efforts based on fundamentally new ideas?

Loan payments on a commercial building would be classified as which type of cost?

What is the best explanation of comparative decision-making tools?

Which decision-making tool breaks a problem down into a series of different criteria and choices?

What decision-making tool provides a visual representation of decisions and their effects on outcomes, cost, and risks?

If you were looking to maximize profits form your R&D investments, in which area would you be most likely to allocate more resources?

What type of decision-making tool compares projects on the basis of scales or words?

Introduction

Technology Evolution

Technology Adoption and Diffusion

Sources of Innovation

Customer Needs

Product Development

Patents

Trade Secrets, Trademarks, and Copyrights

Capturing Value From Innovation

Competitive Advantage in High-Tech Industries

Technical Standards

Strategy in Networked Industries

Collaboration Strategies

Strategic Human Resource Management of Technical Professionals

Organization Structure for Technology Strategy

Filters