Deck 8: Prescriptive Analytics: Optimization and Simulation

Question 1

In the opening vignette, the solution helped to determine how many vendors to award contracts to, as well as the size of each of the contracts.

Answer 1

True

Question 2

In the School District of Philadelphia opening vignette,the district was able to use the standard version of Microsoft Excel exclusively to perform the needed analysis.

Answer 2

False

Question 3

The use of simulation models is desirable because they can usually be solved in one pass, without incurring the time and cost of iterations.

Answer 3

False

Question 4

An advantage of simulation is that it allows model builders to solve problems with minimal interaction with users or managers.

Question 5

The trend is towards developing and using Web tools and software to access and run modeling software.

Question 6

Using data cubes in OLAP systems opens the data up to analysis by more classes of models.

Question 7

Linear programming seeks to optimally allocate resources among competing activities and is likely the best-known optimization model.

Question 8

Sensitivity analysis seeks to assess the impact of changes in the input data and parameters on the proposed solution.

Question 9

Time compression in a simulation allows managers some feel as to the long-term effects of many policies.

Question 10

The analytic hierarchy process (AHP) can be categorized as a model that creates optimization via algorithm.

Question 11

Which of the following is NOT a component of decision support mathematical processes?

A) result variables
B) decision variables
C) controlled variables
D) uncontrolled variables

Question 12

"Customer Income" is an example of an uncontrolled variable (parameter) that would be associated with what type of decision variable?

A) prime rate
B) audit schedule
C) taffing level
D) advertising budget

Question 13

Because real decision-making situations involve some randomness and deal with semistructured or unstructured situations it can be said that "reality is complex." What type of decision support method is often successfully employed under these conditions?

A) simulation
B) genetic algorithms
C) optimization
D) human intuition

Question 14

Sensitivity analysis is important in management support systems for all of the following reasons EXCEPT:

A) it allows flexibility and adaptation to changing conditions.
B) it permits the manager to input data to increase his/her confidence in the model.
C) it improves the mathematical optimality of the generated solutions.
D) it provides a better understanding of the model and the decision-making situation.

Question 15

List four rational economic assumptions the linear programming allocation model is based upon.

Question 16

What is the most common method for treating risk in decision trees and tables?

Question 17

List five major types of simulation.