1. The term decision analysis refers to testing how a problem solution reacts to changes in one or more of the model parameters. True False
2. Fixed costs depend on the number of items produced.True False
3. Total cost equal the fixed cost plus the variable cost per unit divided by volume. True False
4. Profit is the difference between total revenue and total cost.True False
5. An experiment is an activity that results in one of several possible outcomes. True False
6. Variable costs are independent of volume and remain constant. True False
7. The events in an experiment are mutually exclusive if only one can occur at a time. True False
8. The probabilities of mutually exclusive events sum to zero. True False
9. A model is a functional relationship and include:
variables
parameters
equations
all of the above
10. Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model?
decision variable.
data
an objective function.
a constraint.
a parameter.
11. In a given experiment, the probabilities of all mutually exclusive events sum to one. True False
12. Which of the following is not an alternative name for management science? decision sciences
quantitative methods
quantitative analysis
operations research
decision support systems
13. The steps of the scientific method are:
problem definition, model construction, observation, model solution, implementation. observation, problem definition, model construction, model solution, implementation.
model construction, problem definition, observation, model solution, implementation. observation, implementation, problem definition, model construction, model solution.
14. A frequency distribution is an organization of numerical data about the events in an experiment. True False
15. A set of events is collectively exhaustive when it includes _______ the events that can occur in an experiment.
some of one of all any of
16. Objective probabilities that can be stated prior to the occurrence of an event are subjective a priori
classical or a priori
none of the above
17. Which of the following is incorrect with respect to the use of models in decision making?
they improve understanding of the problem
they promote subjectivity in decision making
they are generally easy to use
they provide a systematic approach to problem solving
18. In a given experiment the probabilities of mutually exclusive events sum to
0.5
1
none of the above
19. A ___________ probability is the probability that two or more events that are not mutually exclusive can occur simultaneously.
joint
marginal
subjective
binomial
20. ____________ techniques include uncertainty and assume that there can be more than one model solution.
Deterministic
Probabilistic
Distribution
Probability