TEST BANK for Introduction to Management Science 12th Edition ISBN 9781323314753. _TABLE OF CONTENTS_ Chapter 1 Management Science Chapter 2 Linear Programming: Model Formulation and Graphical Solut ion Chapter 3 Linear Programming: Computer Solution and Sensitivity Analysis Chapter 4 Linear Progra...
,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
1
,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
2
, 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
3
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