Question 1

A cost that does not vary with the production volume would be a variable cost.

Accepted Answer

A) True 
 B)False

Question 2

A decision variable is an algebraic variable that represents a quantifiable decision to be made.

Accepted Answer

A) True 
 B)False

Question 3

Management scientists use mathematical techniques to make decisions, which are then implemented by managers.

Accepted Answer

A) True 
 B)False

Question 4

Managers make decisions based solely on the quantitative factors involved in the problem.

Accepted Answer

A) True 
 B)False

Question 5

"What-if analysis" is a process used to generate estimates for use in mathematical models.

Accepted Answer

A) True 
 B)False

Question 6

Managers must rely on management science experts to create and understand managerial problems.

Accepted Answer

A) True 
 B)False

Question 7

Managers need to know the mathematical theory behind the techniques of management science so that they can lead management science teams.

Accepted Answer

A) True 
 B)False

Question 8

In order to produce a new product, a firm must lease equipment at a cost of $10,000 per year. The managers feel that they can sell 5,000 units per year at a price of $7.50. What is the highest variable cost that will allow the firm to at least break even on this project?

Accepted Answer

A)  $2.50. 
B)  $3.50. 
C)  $4.50. 
D)  $5.50. 
E)  $6.50. 
A)  $2.50. 
B)  $3.50. 
C)  $4.50. 
D)  $5.50. 
E)  $6.50.

Question 9

Descriptive analytics is the process of using data to.

Accepted Answer

A)  analyze trends. 
B)  predict what will happen in the future. 
C)  determine the break-even point. 
D)  solve linear programming problems. 
E)  determine the best course of action for the future. 
A)  analyze trends. 
B)  predict what will happen in the future. 
C)  determine the break-even point. 
D)  solve linear programming problems. 
E)  determine the best course of action for the future.

Question 10

Business analytics is a field which.

Accepted Answer

A)  is the same as operations research. 
B)  aids managerial decision making through the use of data. 
C)  uses descriptive analytics to predict the future. 
D)  uses prescriptive analytics to analyze trends. 
E)  uses predictive analytics to determine the best course of action. 
A)  is the same as operations research. 
B)  aids managerial decision making through the use of data. 
C)  uses descriptive analytics to predict the future. 
D)  uses prescriptive analytics to analyze trends. 
E)  uses predictive analytics to determine the best course of action.

Question 11

Which of the following is TRUE about the break-even point?

Accepted Answer

A)  When sales are equal to the break-even point, profit will be zero. 
B)  When sales exceed the break-even point, profits will be negative. 
C)  When sales are below the break-even point, profits will be positive. 
D)  Once sales exceed the break-even point, profits no longer change if sales increase further. 
E)  The total revenue and total cost are equal at the point where profits are maximized. 
A)  When sales are equal to the break-even point, profit will be zero. 
B)  When sales exceed the break-even point, profits will be negative. 
C)  When sales are below the break-even point, profits will be positive. 
D)  Once sales exceed the break-even point, profits no longer change if sales increase further. 
E)  The total revenue and total cost are equal at the point where profits are maximized.

Question 12

Prescriptive analytics is the process of using data to.

Accepted Answer

A)  analyze trends. 
B)  predict what will happen in the future. 
C)  determine the break-even point. 
D)  solve linear programming problems. 
E)  determine the best course of action for the future. 
A)  analyze trends. 
B)  predict what will happen in the future. 
C)  determine the break-even point. 
D)  solve linear programming problems. 
E)  determine the best course of action for the future.

Question 13

Sensitivity analysis is used to check the effect of changes in the model.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an inequality or equation that expresses a restriction in a mathematical model?

Accepted Answer

A)  Decision variable. 
B)  Parameter. 
C)  Objective function. 
D)  Constraint. 
E)  None of the answer choices are correct. 
A)  Decision variable. 
B)  Parameter. 
C)  Objective function. 
D)  Constraint. 
E)  None of the answer choices are correct.

Question 15

Management science is based strongly on which of the following fields?

Accepted Answer

A)  Mathematics. 
B)  Computer science. 
C)  Business administration. 
D)  Mathematics and computer science only. 
E)  All of the answer choices are correct. 
A)  Mathematics. 
B)  Computer science. 
C)  Business administration. 
D)  Mathematics and computer science only. 
E)  All of the answer choices are correct.

Question 16

Which of the following are steps in a typical management science study?

Accepted Answer

A)  Define the problem and gather data. 
B)  Formulate a model to represent the problem. 
C)  Test the model and refine it as needed. 
D)  Help to implement the recommendations. 
E)  All of the answer choices are correct. 
A)  Define the problem and gather data. 
B)  Formulate a model to represent the problem. 
C)  Test the model and refine it as needed. 
D)  Help to implement the recommendations. 
E)  All of the answer choices are correct.

Question 17

The mathematical model of a business problem is the system of equations and related mathematical expressions that describes the essence of the problem.

Accepted Answer

A) True 
 B)False

Question 18

Managers may base their decisions on which of the following?

Accepted Answer

A)  Quantitative factors. 
B)  Their best judgment. 
C)  Opinions from other managers. 
D)  Past experience. 
E)  All of the answer choices are correct. 
A)  Quantitative factors. 
B)  Their best judgment. 
C)  Opinions from other managers. 
D)  Past experience. 
E)  All of the answer choices are correct.

Question 19

Production has indicated that they can produce widgets at a cost of $3.00 each if they lease new equipment at a cost of $10,000. Marketing has estimated the number of units they can sell at a number of prices (shown below). Which price/volume option will allow the firm to avoid losing money on this project?

Accepted Answer

A)  7,500 units at $17.50 each. 
B)  4,000 units at $20.00 each. 
C)  3,000 units at $22.50 each. 
D)  2,500 units at $25.00 each 
E)  1,500 units at $27.50 each. 
A)  7,500 units at $17.50 each. 
B)  4,000 units at $20.00 each. 
C)  3,000 units at $22.50 each. 
D)  2,500 units at $25.00 each 
E)  1,500 units at $27.50 each.

Question 20

A mathematical model of a business problem allows a manager to evaluate both quantitative and qualitative aspects of the problem.

Accepted Answer

A) True 
 B)False

A cost that does not vary with the production volume would be a variable cost.

A decision variable is an algebraic variable that represents a quantifiable decision to be made.

Management scientists use mathematical techniques to make decisions, which are then implemented by managers.

Managers make decisions based solely on the quantitative factors involved in the problem.

"What-if analysis" is a process used to generate estimates for use in mathematical models.

Managers must rely on management science experts to create and understand managerial problems.

Managers need to know the mathematical theory behind the techniques of management science so that they can lead management science teams.

In order to produce a new product, a firm must lease equipment at a cost of $10,000 per year. The managers feel that they can sell 5,000 units per year at a price of $7.50. What is the highest variable cost that will allow the firm to at least break even on this project?

Descriptive analytics is the process of using data to.

Business analytics is a field which.

Which of the following is TRUE about the break-even point?

Prescriptive analytics is the process of using data to.

Sensitivity analysis is used to check the effect of changes in the model.

Which of the following is an inequality or equation that expresses a restriction in a mathematical model?

Management science is based strongly on which of the following fields?

Which of the following are steps in a typical management science study?

The mathematical model of a business problem is the system of equations and related mathematical expressions that describes the essence of the problem.

Managers may base their decisions on which of the following?

A mathematical model of a business problem allows a manager to evaluate both quantitative and qualitative aspects of the problem.

Linear Programming: Basic Concepts

Linear Programming: Formulation and Applications

The Art of Modeling With Spreadsheets

What-If Analysis for Linear Programming

Network Optimization Problems

Using Binary Integer Programming to Deal With Yes-Or-No Decisions

Nonlinear Programming

Decision Analysis

Forecasting

Queueing Models

Computer Simulation: Basic Concepts

Computer Simulation With Analytic Solver

Filters

Exam 1: Introduction

A cost that does not vary with the production volume would be a variable cost.

A decision variable is an algebraic variable that represents a quantifiable decision to be made.

Management scientists use mathematical techniques to make decisions, which are then implemented by managers.

Managers make decisions based solely on the quantitative factors involved in the problem.

"What-if analysis" is a process used to generate estimates for use in mathematical models.

Managers must rely on management science experts to create and understand managerial problems.

Managers need to know the mathematical theory behind the techniques of management science so that they can lead management science teams.

In order to produce a new product, a firm must lease equipment at a cost of $10,000 per year. The managers feel that they can sell 5,000 units per year at a price of $7.50. What is the highest variable cost that will allow the firm to at least break even on this project?

Descriptive analytics is the process of using data to.

Business analytics is a field which.

Which of the following is TRUE about the break-even point?

Prescriptive analytics is the process of using data to.

Sensitivity analysis is used to check the effect of changes in the model.

Which of the following is an inequality or equation that expresses a restriction in a mathematical model?

Management science is based strongly on which of the following fields?

Which of the following are steps in a typical management science study?

The mathematical model of a business problem is the system of equations and related mathematical expressions that describes the essence of the problem.

Managers may base their decisions on which of the following?

A mathematical model of a business problem allows a manager to evaluate both quantitative and qualitative aspects of the problem.

Linear Programming: Basic Concepts

Linear Programming: Formulation and Applications

The Art of Modeling With Spreadsheets

What-If Analysis for Linear Programming

Network Optimization Problems

Using Binary Integer Programming to Deal With Yes-Or-No Decisions

Nonlinear Programming

Decision Analysis

Forecasting

Queueing Models

Computer Simulation: Basic Concepts

Computer Simulation With Analytic Solver

Filters