Deck 1: Introduction to Quantitative Analysis

Question 1

The Quantitative Analysis Approach consists of six steps.

Answer 1

False

Question 2

Trying various approaches and picking the one resulting in the best decision is called incomplete enumeration.

Answer 2

False

Question 3

In the early 1900s, Henry Ford pioneered the principles of the scientific approach to management.

Answer 3

False

Question 4

Interviews, statistical sampling, and company reports provide input data for quantitative analysis models.

Question 5

During World War II, many new scientific and quantitative techniques were developed to assist the military, and these developments were so successful that many companies started using similar techniques in managerial decision making and planning after the war.

Question 6

Model variables can be controllable or uncontrollable.

Question 7

A parameter is a measurable quantity that may vary or is subject to change.

Question 8

Sensitivity analysis helps us estimate the effect of known and unknown errors in our model.

Question 9

A mathematical model shows the relationship between quantifiable and non-quantifiable information.

Question 10

Decision variables may also be called parameters.

Question 11

A series of steps or procedures that are repeated is known as an algorithm.

Question 12

Descriptive Analytics is aimed at forecasting future outcomes based on patterns in the past data.

Question 13

A model is a representation of a situation.

Question 14

Business Analytics is a data-driven approach to decision making that allows companies to make better decisions.

Question 15

Managers do not need to be familiar with the limitations, assumptions, and/or specific applicability of the quantitative analysis technique to use it for accurate decision making.

Question 16

All problems can be solved by considering only the quantitative issues.

Question 17

Models can help us analyze a problem and sell a decision to those who must implement it.

Question 18

When a problem is difficult to quantify, it may be necessary to develop unspecific objectives.

Question 19

A profit equation is an example of a schematic model.

Question 20

Testing the data and model should be done before the results have been analyzed.

Question 21

The widespread applicability of operations research methods to business followed which war?

A)the U.S.Civil War
B)World War I
C)World War II
D)the Korean War

Question 22

Management support and user involvement are not essential in the successful implementation of quantitative analysis projects.

Question 23

The condition of improper data yielding misleading results is referred to as

A)garbage in, garbage out.
B)break-even point.
C)uncontrollable variable.
D)postoptimality.

Question 24

Which of the following is not one of the steps in the quantitative analysis approach?

A)Defining the Problem
B)Developing a Solution
C)Observing a Hypothesis
D)Testing a Solution

Question 25

Revenue is calculated by subtracting expenses from profit.

Question 26

A(n)________ is a representation of reality or a real-life situation.

A)objective
B)model
C)analysis
D)algorithm

Question 27

Trying various approaches and picking the one that results in the best decision is called

A)the trial-and-error method.
B)incomplete enumeration.
C)complete enumeration.
D)algorithmic approximation.

Question 28

Expressing profits through the relationship among unit price, fixed costs, and variable costs is an example of

A)a sensitivity analysis model.
B)a quantitative analysis model.
C)a postoptimality relationship.
D)a parameter specification model.

Question 29

In order for a break-even quantity to exist in the presence of positive fixed costs, sales price must exceed variable cost per unit.

Question 30

Which of the following techniques involves the study and consolidation of historical data for a business and an industry?

A)descriptive analytics
B)prescriptive analytics
C)predictive analytics
D)management science

Question 31

Which of the following techniques involves the use of optimization methods to provide new and better ways to operate based on specific business objectives?

A)descriptive analytics
B)prescriptive analytics
C)predictive analytics
D)quantitative analysis

Question 32

The ability to examine the variability of a solution due to changes in the formulation of a problem is an important part of the analysis of the results.This type of analysis is called ________ analysis.

A)sensitivity
B)implicit
C)normal
D)scale

Question 33

A measurable quantity that may vary, or is subject to change, and can be controlled is known as a(n)

A)decision variable.
B)algorithm.
C)parameter.
D)solution.

Question 34

One problem in using a quantitative model is that the necessary data may be unavailable.

Question 35

A set of logical and mathematical operations performed in a specific sequence is called a(n)

A)complete enumeration.
B)diagnostic analysis.
C)algorithm.
D)objective.

Question 36

A sensitivity analysis allows a manager to answer the "what if" questions.

Question 37

Who is credited with pioneering the principles of the scientific approach to management?

A)Adam Smith
B)Henri Fayol
C)John R.Locke
D)Frederick W.Taylor

Question 38

Which of the following terms is interchangeable with quantitative analysis?

A)management science
B)economics
C)financial analysis
D)statistics

Question 39

A measurable quantity that is inherent in the problem is called a(n)

A)decision variable.
B)uncontrollable variable.
C)algorithm.
D)parameter.

Question 40

Operations Research is known as

A)the science of numerical analysis.
B)the science of sensitivity analysis.
C)the science of better.
D)the science of modeling.

Question 41

Models that do not involve risk or chance are

A)probabilistic models.
B)postoptimality models.
C)deterministic models.
D)MIS models.

Question 42

If input data are accurate to three significant digits, then the solution results can be accurate to how many significant digits?

A)one
B)two
C)three
D)four

Question 43

What is the formula for the break-even point of a simple profit model?

A)Fixed Cost / Variable Cost Per Unit
B)(Selling Price Per Unit - Variable Cost Per Unit)/ Fixed Cost
C)Fixed Cost / (Selling Price Per Unit - Variable Cost Per Unit)
D)Fixed Cost / (Variable Cost Per Unit - Selling Price Per Unit)

Question 44

Which of the following techniques involves forecasting models such as statistical and mathematical models?

A)descriptive analytics
B)prescriptive analytics
C)predictive analytics
D)quantitative analysis

Question 45

A controllable variable is also called a

A)parameter.
B)decision variable.
C)mathematical model.
D)measurable quantity.

Question 46

Which of these pairs of terms is in the order of greater scope to smaller scope?

A)business analytics - predictive analytics
B)predictive analytics - prescriptive analytics
C)prescriptive analytics - descriptive analytics
D)descriptive analytics - business analytics

Question 47

Postoptimality analysis is most closely associated with

A)collecting input data.
B)developing a model.
C)sensitivity analysis.
D)writing a computer program.

Question 48

Which of the following is a picture, drawing, or chart of reality?

A)scale model
B)physical model
C)mathematical model
D)schematic model

Question 49

Which Excel feature allows the user to specify a target or goal and the variable that is desired to change in order to achieve that goal?

A)Solver
B)Goal Search
C)Target Search
D)Goal Seek

Question 50

Evaluating all possible values of a variable in a model is called

A)trial and error.
B)complete enumeration.
C)an algorithm.
D)variablization.

Question 51

The break-even point is an example of a

A)postoptimality model.
B)quantitative analysis model.
C)schematic model.
D)sensitivity analysis model.

Question 52

Which of these techniques would be considered predictive analytics?

A)transportation models
B)economic order quantity models
C)linear programming
D)simulation

Question 53

The break-even point of a simple profit model represents a(n)

A)decision variable.
B)uncontrollable variable.
C)parameter.
D)constant.

Question 54

The popularity of the quantitative analysis approach is largely attributed to

A)big data.
B)computers.
C)the deep web.
D)the worldwide web.

Question 55

All of the following are real computer applications that perform quantitative analysis except

A)Solver in Excel.
B)Goal Seek in Excel.
C)Excel QM.
D)QA for Windows.

Question 56

The quantitative analysis approach begins with

A)data.
B)analysis.
C)models.
D)statistics.

Question 57

As one attempts to develop a model, which of the following problems might she encounter?

A)The assumptions made in order to apply the model will not be violated.
B)The model will provide an array of possible answers to the question the analyst poses.
C)Everyone will understand the problem in the same way.
D)Accurate data will not be available for the model.

Question 58

Which of the following is not considered a possible problem in the quantitative analysis approach?

A)validity of the data
B)lack of commitment
C)resistance to change
D)subjective solutions

Question 59

What element contributes to automation of the decision-making process?

A)predictive analytics being greater than prescriptive analytics
B)prescriptive analytics being greater than predictive analytics
C)lack of qualitative factors
D)presence of both production and operations management

Question 60

Which Excel feature is an optimization technique that can maximize or minimize a quantity given a set of limitations or constraints?

A)Optimizer
B)Goal Seek
C)Analysis Tool-Pak
D)Solver

Question 61

Successful implementation of a solution developed via quantitative analysis requires that the analyst

A)tell the users exactly what to do.
B)train the users in the theoretical underpinnings of the models considered.
C)work with users and take their feelings into account.
D)train the users in the theoretical underpinnings of the best model.

Question 62

Mickey built his lemonade stand out of $250 worth of plywood and paint.He sells a glass of lemonade for $3 and uses $1.25 of lemons, sugar and water to make his product.How many glasses of lemonade does he need to sell to break even?

A)170
B)161
C)152
D)143

Question 63

Shirley's time sitting at her desk was interrupted when two managers burst into her office with a particularly vicious problem - customer service ratings had been falling over the last quarter.The human resources manager explained that rewarding high performing workers with bonuses would improve customer service.The operations manager countered, noting that there was no way to identify high performing workers because different customer problems required radically different approaches by the workers.What roadblock is Shirley confronted with while trying to identify the true problem?

A)Conflicting viewpoints
B)Impact on other departments
C)Beginning assumptions
D)Solution outdated

Question 64

The analyst waited anxiously at his computer and finally the answer appeared - he would need 57 chickens to fund his retirement plan.Still, he had some nagging doubts about some assumptions he had made and he wondered how much faith he should put into the answer of 57.In order to test how reliable the figure 57 is, the analyst should conduct

A)simulation.
B)shock tests.
C)sensitivity analysis.
D)focus groups.

Question 65

Shirley's time sitting at her desk was interrupted when the human resources manager burst into her office with a particularly vexing problem - customer service ratings had been falling over the last quarter.The human resources manager explained that they were behind on training programs for their workers.Shirley assembled a task force consisting of the brightest minds in the organization and gave them a charge - to look at the previous quarter's issues and to develop training courses over the next 48 months to solve those issues.What roadblock is Shirley confronted with while trying to identify the true problem?

A)Conflicting viewpoints
B)Impact on other departments
C)Beginning assumptions
D)Solution outdated

Question 66

What are the three categories of business analytics?

Question 67

If the quantitative analyst is not an integral element of the department facing the problem

A)the solution is usually not accepted and implemented.
B)analyst morale is usually higher.
C)departmental morale is improved.
D)sometimes the modeling activity becomes an end to itself.

Question 68

Most data generated in a firm come from

A)customer comment/feedback cards.
B)accounting reports.
C)information technology.
D)the worldwide web.

Question 69

KJ built his taco truck out of $75,000,000 worth of titanium and duct tape.He uses $2.25 of ground beef, $0.75 of cheese, and $0.25 of lettuce in each taco.If he sells tacos at $10 each, what is his break-even quantity?

A)11,111,111
B)22,222,222
C)40,000,000
D)400,000

Question 70

Identify the steps of the quantitative analysis approach.

Question 71

Mickey built his lemonade stand out of $75,000 worth of plywood and paint.He sells a glass of lemonade for $30 and uses $1.25 of lemons, sugar and water to make his product.How many glasses of lemonade does he need to sell to break even?

A)2608
B)2544
C)2396
D)2434

Question 72

As a general rule, complex problems require

A)complex models.
B)mathematical models.
C)ending assumptions.
D)accounting data.

Question 73

KJ built his taco truck out of $75,000,000 worth of titanium and duct tape.He uses $5.25 of ground beef, $2.25 of cheese, and $1.50 of lettuce in each taco.If he sells tacos at $10 each, what is his break-even quantity?

A)1,250,000
B)15,000,000
C)75,000,000
D)750,000,000

Question 74

Mickey built his lemonade stand out of $75,000 worth of plywood and paint.He uses $2.25 of lemons, sugar and water to make his product.What does the selling price of the lemonade need to be to break even at 40 glasses?

A)$2,024.50
B)$1,877.25
C)$2,196.50
D)$1,956.75

Question 75

The analyst waited anxiously at his computer and finally the answer appeared - he would need 57 chickens to fund his retirement plan.Still, he had some nagging doubts about some assumptions he had made and he wondered how much faith he should put into the answer of 57.In order to test how reliable the figure 57 is, the analyst varied a number of parameters in the model and ran multiple tests for each set of input data.Each time, the model suggested he acquire 57 chickens - sometimes one more or one less, but never more than one chicken either side of 57.We could describe the solution as

A)correct.
B)static.
C)parametric.
D)robust.

Question 76

KJ built his taco truck out of $75,000,000 worth of titanium and duct tape.He uses $10.25 of organic bok choy, $6.75 of Wisconsin cheddar cheese, and $25.25 of foie gras in each taco.If he sells tacos at $475 each, what is his break-even quantity?

A)167,125
B)173,310
C)181,292
D)194,640

Question 77

The authors cite resistance to quantitative analysis as a major reason for lack of adoption.According to a Swedish study, what percentage of projects proposed by top management was actually implemented?

A)58%
B)98%
C)78%
D)38%

Question 78

Shirley's time sitting at her desk was interrupted when the human resources manager burst into her office with a particularly pernicious problem - customer service ratings had been falling over the last quarter.The human resources manager explained that salaries were too low.Shirley reasoned that if salaries were too low, she could simply institute an across the board 50% increase for all employees."That was easy," Shirley thought to herself as she returned to her office to begin shopping for a new car.What roadblock is Shirley confronted with while trying to identify the true problem?

A)Conflicting viewpoints
B)Impact on other departments
C)Beginning assumptions
D)Solution outdated

Question 79

Shirley's time sitting at her desk was interrupted when the human resources manager burst into her office with a particularly nasty problem - customer service ratings had been falling over the last quarter.The human resources manager explained that rewarding high performing workers with bonuses would improve customer service.Shirley agreed and implemented a bonus scale that initially seemed effective, however the increased payout for bonuses meant there was less money available for offsite storage used by the IT division.Sadly, their system backup tapes would have to be held at the same location as their main system.What roadblock is Shirley confronted with while trying to identify the true problem?

A)Conflicting viewpoints
B)Impact on other departments
C)Beginning assumptions
D)Solution outdated

Question 80

The authors cite resistance to quantitative analysis as a major reason for lack of adoption.According to a Swedish study, what percentage of projects proposed by quantitative analysts was actually implemented?

A)40%
B)15%
C)65%
D)80%