Deck 6: Prescriptive Analytics: Optimization and Simulation

Question 1

Business analysis is the monitoring,scanning,and interpretation of collected environmental information.

Answer 1

False

Question 2

Spreadsheets are clearly the most popular developer modeling tool.

Answer 2

False

Question 3

Simulation is the appearance of reality.

Answer 3

True

Question 4

Simulation is normally used only when a problem is too complex to be treated using numerical optimization techniques.

Question 5

A model builder makes predictions and assumptions regarding input data,many of which deal with the assessment of certain futures.

Question 6

Online commerce and communication has created an immense need for forecasting and an abundance of available information for performing it.

Question 7

Result variables are considered independent variables.

Question 8

Spreadsheets include all possible tools needed to deploy a custom DSS.

Question 9

All quantitative models are typically made up of six basic components.

Question 10

Simulations are an experimental,expensive,error-prone method for gaining insight into complex decision-making situations.

Question 11

A decision made under risk is also known as a probabilistic or stochastic decision-making situation.

Question 12

Many quantitative models of decision theory are based on comparing a single measure of effectiveness,generally some form of utility to the decision maker.

Question 13

VIS uses animated computer graphic displays to present the impact of different managerial decisions.

Question 14

Modeling is a key element for prescriptive analytics.

Question 15

Decision situations that involve a finite and usually not too large number of alternatives are modeled through an approach called decision analysis.

Question 16

In the School District of Philadelphia case,Excel and an add-in was used to evaluate different vendor options.

Question 17

Every LP model has some internal intermediate variables that are not explicitly stated.

Question 18

In decision making under uncertainty,it is assumed that complete knowledge is available.

Question 19

The pessimistic approach assumes that the worst possible outcome for each alternative will occur and selects the best of these.

Question 20

A decision table shows the relationships of the problem graphically and can handle complex situations in a compact form.

Question 21

A decision tree can be cumbersome if there are

A)uncertain results.
B)few alternatives.
C)many alternatives.
D)pre-existing decision tables.

Question 22

When the decision maker must consider several possible outcomes for each alternative,each with a given probability of occurrence,this is decision making under

A)certainty.
B)uncertainty.
C)risk.
D)duress.

Question 23

Which of the following is NOT a characteristic displayed by a LP allocation problem?

A)Each activity in which the resources are used yields a return in terms of the stated goal.
B)The resources are used in the production of products or services.
C)There is a single way in which the resources can be used.
D)The allocation is usually restricted by several limitations and requirements.

Question 24

What type of VIM models display a visual image of the result of one decision alternative at a time?

A)static
B)dynamic
C)DSS
D)VIS

Question 25

Which of the following is the order of simulation methodology?

A)Define the problem,Construct the simulation model,Test and validate the model,Design the experiment,Conduct the experiment,Implement the results,Evaluate the results.
B)Construct the simulation model,Test and validate the model,Define the problem,Design the experiment,Conduct the experiment,Evaluate the results,Implement the results.
C)Define the problem,Construct the simulation model,Test and validate the model,Evaluate the results,Implement the results,Design the experiment,Conduct the experiment.
D)Define the problem,Construct the simulation model,Test and validate the model,Design the experiment,Conduct the experiment,Evaluate the results,Implement the results.

Question 26

Which of the following is NOT an assumption used by a LP allocation problem?

A)Returns from different allocations can be compared.
B)The return from any allocation is independent of other allocations.
C)The total return is the sum of the returns yielded by the different activities.
D)All data are unknown with decision making under uncertainty.

Question 27

Important spreadsheet features for modeling include all of the following EXCEPT

A)what-if analysis.
B)goal seeking.
C)macros.
D)pivot tables.

Question 28

Which of the following is NOT a disadvantage of a simulation?

A)An optimal solution cannot be guaranteed,but relatively good ones are generally found.
B)Simulation software sometimes requires special skills because of the complexity of the formal solution method.
C)Simulation is often the only DSS modeling method that can readily handle relatively unstructured problems.
D)Simulation model construction can be a slow and costly process,although newer modeling systems are easier to use than ever.

Question 29

Which of the following is NOT a characteristic displayed by a LP allocation problem?

A)A limited quantity of economic resources is available for allocation.
B)The resources are used in the production of products or services.
C)There are two or more ways in which the resources can be used.
D)The problem is not bound by constraints.

Question 30

This method calculates the values of the inputs necessary to generate a zero profit outcome.

A)goal seek
B)what-if
C)sensitivity
D)break-even

Question 31

Which of the following is NOT a component of a quantitative model?

A)result variables
B)decision variables
C)classes
D)parameters

Question 32

When the decision maker knows exactly what the outcome of each course of action will be,this is decision making under

A)certainty.
B)uncertainty.
C)risk.
D)duress.

Question 33

A(n)________ spreadsheet model represents behavior over time.

A)static
B)dynamic
C)looped
D)add-in

Question 34

A(n)________ is a graphical representation of a model.

A)multidimensional analysis
B)influence diagram
C)OLAP model
D)Whisker plot

Question 35

Which of the following is NOT an assumption used by a LP allocation problem?

A)The resources are to be used in the most economical manner.
B)The return from any allocation is independent of other allocations.
C)Total returns cannot be compared.
D)All data are known with certainty.

Question 36

Intermediate result variables reflect intermediate outcomes in

A)mathematical models.
B)flowcharts.
C)decision trees.
D)ROI calculations.

Question 37

If a simulation result does NOT match the intuition or judgment of the decision maker,what can occur?

A)read/write error
B)visual distortion
C)project failure
D)confidence gap

Question 38

The most common method for solving a risk analysis problem is to select the alternative with the

A)smallest expected value.
B)greatest expected value.
C)mean expected value.
D)median expected value.

Question 39

This method calculates the values of the inputs necessary to achieve a desired level of an output.

A)goal seek
B)what-if
C)sensitivity
D)LP

Question 40

A more general form of an influence diagram is called a(n)

A)forecast.
B)environmental scan.
C)cognitive map.
D)static model.

Question 41

________ is performed by indicating a target cell,its desired value,and a changing cell.

Question 42

Spreadsheets use ________ to extend their functionality.

Question 43

Factors that are not under the control of the decision maker but can be fixed,are called ________.

Question 44

The ________ approach assumes that the best possible outcome of each alternative will occur and then selects the best of the best.

Question 45

Selecting the best ________ to work with is a laborious yet important task for companies and government organizations.

Question 46

The ________ approach can be used in conjunction with artificial intelligence.

Question 47

The most common simulation method for business decision problems is the ________ simulation.

Question 48

A(n)________ model can be constructed under assumed environments of certainty.

Question 49

Of the available solutions,at least one is the best,in the sense that the degree of goal attainment associated with it is the highest; this is called a(n)________ solution.

Question 50

Every LP model is composed of ________ variables whose values are unknown and are searched for.

Question 51

The components of a quantitative model are linked by ________ expressions.

Question 52

________,like data,must be managed to maintain their integrity,and thus their applicability.

Question 53

________ analysis is structured as "What will happen to the solution if an input variable,an assumption,or a parameter value is changed?"

Question 54

Multiple goals is a decision situation in which alternatives are evaluated with several,sometimes ________,goals.

Question 55

Identification of a model's variables (e.g.,decision,result,uncontrollable)is critical,as are the relationships among the ________.

Question 56

________ analysis attempts to assess the impact of a change in the input data or parameters on the proposed solution.

Question 57

In ________ simulation,one or more of the independent variables (e.g.,the demand in an inventory problem)are subject to chance variation.

Question 58

Risk ________ is a decision-making method that analyzes the risk (based on assumed known probabilities)associated with different alternatives.

Question 59

A probabilistic decision-making situation is a decision made under ________.

Question 60

Conventional ________ generally reports statistical results at the end of a set of experiments.

Question 61

How are linear programming models vulnerable when used in complex situation?

Question 62

Why is the Monte Carlo simulation popular for solving business problems?

Question 63

Provide some examples where a sensitivity analysis may be used.

Question 64

Why is there a trend to developing and using cloud-based tools for modeling?

Question 65

List and briefly discuss the major components of a quantitative model.

Question 66

Why do many believe that making decisions under uncertainty is more difficult than making decisions under risk?

Question 67

List and describe the most common approaches for treating uncertainty.

Question 68

Why are spreadsheet applications so commonly used for decision modeling?