1-Most transaction processing systems use sophisticated mathematical models or statistical techniques.
Select one:
True
False
2-Unstructured decisions are taken in the following situations except:
a.
Unclear procedures
b.
Uncertainty
c.
Enough information provided
d.
Exceptional
The Correct Answer and Explanation is :
1. Most transaction processing systems use sophisticated mathematical models or statistical techniques.
Answer: False
Explanation:
Transaction Processing Systems (TPS) are primarily designed to manage day-to-day operations and handle routine, repetitive transactions efficiently. Their main focus is on collecting, storing, modifying, and retrieving data transactions like payroll, order processing, and inventory control. These systems rely on well-defined rules and straightforward processing mechanisms rather than complex mathematical models or statistical techniques.
Sophisticated mathematical models or statistical techniques are more commonly associated with decision-support systems (DSS), business analytics, or artificial intelligence systems. TPS systems prioritize operational accuracy and reliability over advanced analytics, which are typically secondary concerns.
2. Unstructured decisions are taken in the following situations except:
Correct Answer: c. Enough information provided
Explanation:
Unstructured decisions occur in scenarios where problems are novel, complex, and lack predefined solutions or guidelines. They often involve a significant level of uncertainty, and decision-makers must rely on judgment, intuition, or creativity rather than established procedures.
- a. Unclear procedures: This is a hallmark of unstructured decisions, as there are no defined methods to address the issue.
- b. Uncertainty: Unstructured decisions are common in uncertain situations where outcomes and risks are not easily predictable.
- d. Exceptional: Unique or exceptional situations require unstructured decisions because they deviate from routine and standardized scenarios.
However, when enough information is provided (c), decisions tend to become structured or semi-structured, as sufficient data and guidelines allow for systematic analysis and the application of standard decision-making frameworks. Structured decisions are characterized by clear criteria and rules, minimizing ambiguity.
For instance, launching a new product in an undefined market requires unstructured decision-making due to uncertainty and lack of past data. Conversely, a decision about restocking inventory based on sales trends and forecasts would be structured because sufficient information is available.
In summary, unstructured decisions are associated with the absence of clarity, predictable patterns, or established norms, and “enough information provided” removes these complexities, making decisions more structured.