Deck 2: Foundations and Technologies for Decision Making

Question 1

Generally speaking, people intuitively estimate risk quite accurately.

Answer 1

False

Question 2

Qualitative elements of a problem cannot be incorporated into formal decision models, so one can only seek to minimize their impact.

Answer 2

False

Question 3

The DSS component that includes the financial, statistical, management science, or other quantitative models is called the model management subsystem.

Answer 3

True

Question 4

When HP approaches problem-solving, the first step in solving business problems is building a model that enables decision makers to develop a good understanding of the problem.

Question 5

Only after the failed implementation of a decision can the decision maker return a prior stage of decision making.

Question 6

Knowledge-based management subsystems provide intelligence to augment the decision maker's own intelligence.

Question 7

The design phase of decision making is where the decision maker examines reality and identifies and defines the problem.

Question 8

Single decision makers rarely face decisions with multiple objectives in organizations and so are not the focus of data analytics tools.

Question 9

A data warehouse can support the intelligence phase of decision making by continuously monitoring both internal and external information, looking for early signs of problems and opportunities through a Web-based enterprise information portal or dashboard.

Question 10

In a decision making environment, continuous change always validates the assumptions of the decision makers.

Question 11

Since the business environment involves considerable uncertainty, a manager cannot use modeling to estimate the risks resulting from specific actions.

Question 12

Artificial intelligence-based DSS fall into this category of document-driven DSS.

Question 13

Since a descriptive model checks the performance of the system for only a subset of all possible alternatives, there is no guarantee that a selected alternative will be optimal.

Question 14

Web-based decision support systems can provide support to both individuals and groups that act in a decision-making capacity.

Question 15

The most important feature of management support systems is the computational efficiency involved in making a decision.

Question 16

Uncovering the existence of a problem can be achieved through monitoring and analyzing of the organization's productivity level. The derived measurements of productivity are based on real data.

Question 17

Business intelligence systems typically support solving a certain problem or evaluate an opportunity, while decision support systems monitor situations and identify problems and/or opportunities, using analytic methods.

Question 18

Generating alternatives manually is often necessary in the model-building process. The best option for the decision makers is to generate as many of these alternatives as is conceivable.

Question 19

A normative model examines all the possible alternatives in order to prove that the one selected is the best.

Question 20

Web-based collaboration tools (e.g., GSS) can assist in multiple stages of decision making, not just the intelligence phase.

Question 21

What class of DSS incorporates simulation and optimization?

A) model-driven DSS
B) data-driven DSS
C) communications-driven/Group DSS
D) knowledge-driven DSS

Question 22

What form of decision theory assumes that decision makers are rational beings who always seek to strictly maximize economic goals?

A) the theory of bounded rationality
B) normative decision theory
C) satisficing decision theory
D) human optimal decision theory

Question 23

The Web can play a significant role in making large amounts of information available to decision makers. Decision makers must be careful that this glut of information does not

A) increase their enthusiasm for data available on the web.
B) take on the same credibility of internally-generated data.
C) take on the same role as human intuition.
D) detract from the quality and speed of decision making.

Question 24

While Microsoft Excel can be an efficient tool for developing a DSS, compared to using a programming language like C++, a shortcoming of Excel is

A) it cannot be used effectively for small or medium sized problems.
B) Excel is not widely understood compared to a language like C++.
C) it is not widely available for purchase.
D) errors can creep into formulas somewhat easily.

Question 25

All of the following are benefits of using models for decision support EXCEPT

A) it is easier to manipulate a model than a real system.
B) you can find out probable outcomes of an action before actually taking it.
C) using well-designed models always guarantees you success in implementation.
D) the cost of a model is usually much lower than manipulating the system in implementation.

Question 26

All of the following statements about decision style are true EXCEPT

A) autocratic styles are authority-based.
B) decision styles are consistent among top managers.
C) heuristic styles can also be democratic.
D) decision styles may vary among lower-level managers.

Question 27

The HP Case illustrates that after analytics are chosen to solve a problem, building a new decision model from scratch or purchasing one may not always be the best approach. Why is that?

A) Decision models should never be purchased, only developed in house.
B) A related tool requiring slight modification may already exist.
C) CIOs are more likely to allocate funds to new development.
D) Analytic models work better when they are built from scratch or purchased.

Question 28

When an Accounts Payable department improves their information system resulting in faster payments to vendors, without the Accounts Receivable Department doing the same, leading to a cash flow crunch, what can we say happened in decision-theoretic terms?

A) optimization
B) profit minimization
C) suboptimization
D) cash flow problems

Question 29

When a DSS is built, used successfully and integrated into the company's business processes, it was most likely built for a(n)

A) recurrent decision.
B) one-off decision.
C) unimportant decision.
D) ambiguous decision.

Question 30

The software that manages the DSS database and enables relevant data to be accessed by DSS application programs is called

A) KWS.
B) ERP.
C) DBMS.
D) CRM.

Question 31

The user communicates with and commands the DSS through the user interface subsystem. Researchers assert that some of the unique contributions of DSS are derived from

A) the Web browser.
B) the user being considered part of the system.
C) some DSS user interfaces utilizing natural-language input (i.e., text in a human language).
D) the intensive interaction between the computer and the decision maker.

Question 32

In the design phase of decision making, selecting a principle of choice or criteria means that

A) if an objective model is used with hard data, all decision makers will make the same choice.
B) risk acceptability is a subjective concept and plays little part in modeling.
C) using well-designed models guarantees you success in real life.
D) optimality is not the only criterion for acceptable solutions.

Question 33

What type of user interface has been recognized as an effective DSS GUI because it is familiar, user friendly, and a gateway to almost all sources of necessary information and data?

A) ASP.net
B) Web browsers
C) visual basic interfaces
D) mainframe interfaces

Question 34

For DSS, why are semistructured or unstructured decisions the main focus of support?

A) There are many more unstructured and semistructured decisions than structured in organizations.
B) MIS staff prefer to work on solving unstructured and semistructured decisions.
C) Unstructured and semistructured decisions are the easiest to solve.
D) They include human judgment, which is incorporated into DSS.

Question 35

All of the following statements about the decision implementation phases are true EXCEPT

A) implementation is every bit as important as the decision itself.
B) employees need only the decisions from the CEO, not the rationale.
C) ERP, CRP, and BPM tools can all help track decision implementation.
D) ES and KMS can help in training and support for decision implementation.

Question 36

The fact that many organizations share many similar problems means that in sourcing a DSS, it is often wiser to acquire a(n)

A) ready-made DSS.
B) custom-made DSS.
C) offshored DSS.
D) consultant-developed DSS.

Question 37

A search for alternatives occurs in which phase of the decision making/action model?

A) the design phase
B) the intelligence phase
C) the choice phase
D) the implementation phase

Question 38

Groupthink in a decision-making environment occurs when

A) group members all use the same analytic tools without having a choice.
B) group members accept the same timeframe for problem solving without complaining.
C) group members all accept a course of action without thinking for themselves.
D) group members are all working together for the firm's success.

Question 39

The model management subsystem provides the system's analytical capabilities and appropriate software management. Which of the following is NOT an element of the model management subsystem?

A) model base
B) MBMS
C) DBMS
D) model execution, integration, and command processor

Question 40

All of the following statements about risk in decision making are correct EXCEPT

A) all business decisions incorporate an element of risk.
B) decision makers frequently measure risk and uncertainty incorrectly.
C) methodologies are available for handling extreme uncertainty.
D) most decision makers are pessimistic about decision outcomes.

Question 41

The user communicates with and commands the DSS through the ________ subsystem.

Question 42

Geographical Information Systems (GIS) can be readily integrated with other, more traditional ________ components and tools for improved decision making.

Question 43

A DSS application can employ a data management subsystem, a model management subsystem, a user interface subsystem, and a(n) ________.

Question 44

The knowledge-based management subsystem can be interconnected with the organization's knowledge repository (part of a knowledge management system [KMS]), which is sometimes called the ________.

Question 45

The Watson Question Answering computing platform uses machine ________ to acquire vast amounts of new medical knowledge.

Question 46

DSS applications have been classified in several different ways. ________-driven DSS rely on knowledge coding, analysis, search, and retrieval for decision support.

Question 47

The model management subsystem includes financial, statistical, management science, and other quantitative models that provide the system's analytical capabilities plus appropriate software management. This software is often called a(n) ________.

Question 48

The ________ phase involves putting a recommended solution to work, not necessarily implementing a computer system.

Question 49

A(n) ________ is a typically mathematically based model that describes things as they are or as they are believed to be.

Question 50

________ is the conceptualization of a problem in an attempt to place it in a definable category, possibly leading to a standard solution approach.

Question 51

In the Station Casinos case, the decision support system brought about benefits from being able to capture, analyze and segment ________.

Question 52

DSS developed around optimization or simulation models and incorporate model formulation, maintenance, and management in distributed computing environments, are known as ________-driven DSS.

Question 53

At two opposite ends of the spectrum are autocratic and ________ decision styles.

Question 54

In creating a normative model, a decision maker examines all the alternatives to prove that the one selected is indeed the best, and is what the person would normally want. This process is basically known as ________.

Question 55

A(n) ________ map can help a decision maker sketch out the important qualitative factors and their causal relationships in a messy decision-making situation.

Question 56

The elevators case study shows that correct problem ________ is important in decision-making.

Question 57

Because DSS deal with semistructured or unstructured problems, it is often necessary to customize models, using programming tools and languages. For small and medium-sized DSS or for less complex ones, ________ software is usually used.

Question 58

The best decision makers accurately estimate the ________ associated with decision alternatives to aid their selection.

Question 59

Early definitions of a(n) ________ identified it as a system intended to support managerial decision makers in semistructured and unstructured decision situations.

Question 60

________ in decision making involves scanning the environment, either intermittently or continuously.

Question 61

According to Simon (1977), managerial decision making is synonymous with the entire management process. Give a working definition of decision making.

Question 62

A DSS is typically built to support the solution of a certain problem or to evaluate an opportunity. Describe three key characteristics and capabilities of DSS.

Question 63

A scenario is a statement of assumptions about the operating environment of a particular
system at a given time; that is, it is a narrative description of the decision-situation setting. What does a scenario describe, and what may it also provide?

Question 64

Name Simon's four phases of decision making and mention how they are impacted by the web.

Question 65

Relate four specific technologies that support all phases of the decision making process, and describe what they provide.

Question 66

A major characteristic of a DSS and many BI tools (notably those of business analytics) is the inclusion of at least one model. How does the text describe a model?

Question 67

Olavson and Fry (2008) have worked on many spreadsheet models for assisting decision makers at HP and have identified several lessons from both their successes and their failures when it comes to constructing and applying spreadsheet-based tools. How do they define a tool?

Question 68

Computer support can be provided at a broad level, enabling members of whole departments, divisions, or even entire organizations to collaborate online. Name some of the various systems that have evolved from computer support.

Question 69

According to Simon (1977), most human decision making, whether organizational or individual, involves a willingness to settle for a satisfactory solution, "something less than the best." This is called satisficing. How does a decision maker go about satisficing?

Question 70

Name and give a brief description of each of the components of a DSS application.