Introduction to Management Science

Test Bank For Introduction to Management Science 12 th Edition Geoff Willis Bernard W. Taylor III

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1 Copyright © 2016 Pearson Education, Inc.Introduction to Management Science, 12e (Taylor) Chapter 1 Management Science

1) A management science solution can be either a recommended decision or information that helps a manager make a decision.

Answer: TRUE

Diff: 2 Page Ref: 5

Section Heading: The Management Science Approach to Problem Solving

Keywords: model, management science techniques

AACSB: Analytical thinking

2) A variable is a value that is usually a coefficient of a parameter in an equation.

Answer: FALSE

Diff: 1 Page Ref: 3

Section Heading: The Management Science Approach to Problem Solving

Keywords: variable

AACSB: Analytical thinking

3) Parameters are known, constant values that are usually coefficients of variables in equations.

Answer: TRUE

Diff: 1 Page Ref: 3

Section Heading: The Management Science Approach to Problem Solving

Keywords: parameter

AACSB: Analytical thinking

4) Data are pieces of information from the problem environment.

Answer: TRUE

Diff: 1 Page Ref: 4

Section Heading: The Management Science Approach to Problem Solving

Keywords: data

AACSB: Analytical thinking

5) A model is a mathematical representation of a problem situation including variables, parameters, and equations.

Answer: TRUE

Diff: 1 Page Ref: 3

Section Heading: The Management Science Approach to Problem Solving

Keywords: model, management science techniques

AACSB: Analytical thinking

6) A management science technique usually applies to a specific model type.

Answer: TRUE

Diff: 1 Page Ref: 3

Section Heading: The Management Science Approach to Problem Solving

Keywords: models, management science techniques

AACSB: Analytical thinking

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2 Copyright © 2016 Pearson Education, Inc.7) The first step of the management science process is to define the problem.

Answer: FALSE

Diff: 2 Page Ref: 2

Section Heading: The Management Science Approach to Problem Solving

Keywords: management science process

AACSB: Analytical thinking

8) The term big data refers to numbers of large magnitude, i.e., greater than or equal to one billion.

Answer: FALSE

Diff: 1 Page Ref: 7

Section Heading: Management Science and Business Analytics

Keywords: big data, analytics

AACSB: Application of knowledge

9) A key component of business analytics is the recent availability of large amounts of data.

Answer: TRUE

Diff: 1 Page Ref: 7

Section Heading: Management Science and Business Analytics

Keywords: big data, analytics

AACSB: Application of knowledge

10) Business analytics brings together the disciplines of information systems, management science, statistics, and mathematical modeling.

Answer: TRUE

Diff: 1 Page Ref: 7

Section Heading: Management Science and Business Analytics

Keywords: big data, analytics

AACSB: Application of knowledge

11) Management science modeling techniques provide results that are known with certainty.

Answer: FALSE

Diff: 2 Page Ref: 17

Section Heading: Management Science Modeling Techniques

Keywords: management science modeling techniques, certainty

AACSB: Analytical thinking

12) The term "sensitivity analysis" refers to testing how a problem solution reacts to changes in one or more of the model parameters.

Answer: TRUE

Diff: 1 Page Ref: 11 Section Heading: Model Building: Break-Even Analysis

Keywords: sensitivity analysis, parameter changes

AACSB: Application of knowledge

13) Variable costs depend on the number of items produced.

Answer: TRUE

Diff: 1 Page Ref: 8 Section Heading: Model Building: Break-Even Analysis

Keywords: variable cost, break-even analysis

AACSB: Application of knowledge

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3 Copyright © 2016 Pearson Education, Inc.14) Fixed cost is the difference between total cost and total variable cost.

Answer: TRUE

Diff: 1 Page Ref: 8 Section Heading: Model Building: Break-Even Analysis

Keywords: total cost, break-even analysis

AACSB: Application of knowledge

15) The break-even point is the volume that equates total revenue with total cost.

Answer: TRUE

Diff: 1 Page Ref: 9 Section Heading: Model Building: Break-Even Analysis

Keywords: break-even analysis

AACSB: Analytical thinking

16) In general, an increase in price increases the break-even point if all costs are held constant.

Answer: FALSE

Diff: 1 Page Ref: 11 Section Heading: Model Building: Break-Even Analysis

Keywords: break-even analysis

AACSB: Analytical thinking

17) If variable costs increase, but price and fixed costs are held constant, the break-even point will decrease.

Answer: FALSE

Diff: 2 Page Ref: 11 Section Heading: Model Building: Break-Even Analysis

Keywords: break-even analysis

AACSB: Analytical thinking

18) Managers utilize spreadsheets to conduct their own analyses in management science studies.

Answer: TRUE

Diff: 2 Page Ref: 13

Section Heading: Computer Solution

Keywords: spreadsheets

AACSB: Analytical thinking

19) Management science techniques focus primarily on observation, model construction, and implementation to find an appropriate solution to a problem.

Answer: FALSE

Diff: 2 Page Ref: 16

Section Heading: Management Science Modeling Techniques

Keywords: mgt science modeling techniques, steps of the scientific method

AACSB: Analytical thinking

20) Management science modeling techniques focus on model construction and problem solution.

Answer: TRUE

Diff: 2 Page Ref: 15

Section Heading: Management Science Modeling Techniques

Keywords: mgt science model techniques, model constr, prob solution

AACSB: Analytical thinking

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