,TESTBANK for Spreadsheet Modeling and Decision
Analysis A Practical Introduction to Business
Analytics , 9th Edition Cliff Ragsdale
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
1. The essence of decision analysis is
a. breaking down complex situations into manageable elements.
b. choosing the best course of action among alternatives.
c. finding the root cause of why something has gone wrong.
d. thinking ahead to avoid negative consequences.
ANSWER: b
2. All of the following are reasons why someone would wish to use a spreadsheet model except
a. to implement a computer model.
b. because spreadsheets are convenient.
c. to analyze decision alternatives.
d. because spreadsheets lead to increased opportunities.
ANSWER: d
3. Which of the following fields of study uses computers, statistics, and mathematics to solve business
problems?
a. Accounting
b. Information systems
c. Business analytics
d. Scientific management
ANSWER: c
4. Anchoring effects occur in decision-making problems when
a. decision makers are tied too closely to previous decisions.
b. organizations refuse to consider new alternatives.
c. a seemingly trivial factor serves as a starting point for estimations.
d. a person in a position of authority exerts his or her opinion very forcefully.
ANSWER: c
5. Virtually everyone who uses a spreadsheet today for model building and decision making
a. is a practitioner of business analytics.
b. possesses an advanced knowledge of mathematics and computer programming languages.
c. is a CPA.
d. is in a position to influence decision makers.
ANSWER: a
6. Which of the following statements is true of using models in problem solving and decision analysis?
a. It is a fairly new idea.
b. It is required in order to find good solutions.
c. It is something virtually everyone has done before.
d. It is tied to the use of computers.
ANSWER: c
7. A road map is an example of a
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,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
a. mathematical model.
b. mental model.
c. physical model.
d. visual model.
ANSWER: d
8. The textbook figure shown below of the problem-solving process is an example of a
a. mental model.
b. prescriptive model.
c. graphical model.
d. visual model.
ANSWER: d
9. Which of the following is most likely to be used when faced with the decision of how to arrange
furniture in a room?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
ANSWER: b
10. To illustrate how a complex system will be built, an engineer will likely use a
a. mathematical model.
b. mental model.
c. physical model.
d. visual model.
ANSWER: d
11. Which of the following is the type of model used throughout this textbook?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
ANSWER: a
12. The best models
a. accurately reflect relevant characteristics of the real-world object or decision.
b. are mathematical models.
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,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
c. replicate all aspects of the real-world object or decision.
d. replicate the characteristics of a component in isolation from the rest of the system.
ANSWER: a
13. A mathematical model is considered to be valid when
a. it accurately represents the relevant characteristics of the object or decision.
b. it has passed a validation test.
c. it replicates all aspects of the object or decision.
d. the left- and right-hand sides of expressions are equal.
ANSWER: a
14. All of the following are benefits of modeling except that
a. modeling delivers needed information on a more timely basis.
b. modeling finds the right answers to incorrect or flawed problem statements.
c. modeling is helpful in examining things that would be impossible to do in reality.
d. modeling is less expensive than implementing several alternative solutions.
ANSWER: b
15. Better decision making using a modeling process is achieved due to the
a. interaction with the spreadsheet.
b. visualization of the system being studied.
c. insight gained through the process.
d. timeliness of the results obtained.
ANSWER: c
16. The term "mathematics" is used to encompass not only the most familiar elements of math, such as
algebra, but also
a. profit and revenue calculations.
b. calculus
c. logic.
d. expense calculations.
ANSWER: c
17. The specification or description of the relationship between the dependent and independent variables
is generally called a
a. constraint.
b. declaration.
c. function.
d. mathematical model.
ANSWER: c
18. Variables are termed independent when they satisfy which of the following?
a. The function value depends upon their values.
b. The decision maker has no control over them.
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,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
c. The variables have no relationship to one another.
d. The variable is described as an output of the spreadsheet model.
ANSWER: a
19. In the following expression, what is the dependent variable?
a. Profit
b. Revenue
c. Expenses
d. Loss
ANSWER: a
20. In a spreadsheet, input cells correspond conceptually to
a. dependent variables.
b. functions.
c. independent variables.
d. output cells.
ANSWER: c
21. The categories of modeling techniques include all of the following except
a. descriptive models.
b. predictive models.
c. prescriptive models.
d. preventive models.
ANSWER: d
22. The following spreadsheet model is an example of a
A B
1 Purchase price $32,500
2 less:
3 Down payment $ 6,500
4 Trade-in $ 4,000
5 Amount financed $22,000
6
7 Term of loan 5 years
8
9 Annual interest rate 11.25%
10
11 Monthly payment $481.08
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,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
12
a. descriptive model.
b. predictive model.
c. prescriptive model.
d. preventive model.
ANSWER: c
23. Solutions to which of the following categories of modeling techniques indicate a course of action to
the decision maker?
a. Descriptive models
b. Predictive models
c. Prescriptive models
d. Preventive models
ANSWER: c
24. In which of the following categories of modeling techniques do the independent variables have
unknown or uncertain values or coefficients?
a. Descriptive models
b. Predictive models
c. Prescriptive models
d. Probabilistic models
ANSWER: a
25. In which of the following categories of modeling techniques are the specifications of the relationships
between dependent and independent variables unknown or poorly defined?
a. Descriptive models
b. Open models
c. Predictive models
d. Prescriptive models
ANSWER: c
26. Which of the following categories of modeling techniques includes optimization techniques?
a. Capitalistic models
b. Descriptive models
c. Predictive models
d. Prescriptive models
ANSWER: d
27. Which of the following categories of modeling techniques addresses uncertainty in the values of the
independent variables?
a. Descriptive models
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,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
b. Predictive models
c. Prescriptive models
d. Scale models
ANSWER: a
28. Which of the following categories of modeling techniques involves determining the value of a
dependent variable based on specific values of independent variables?
a. Biased models.
b. Descriptive models.
c. Predictive models.
d. Prescriptive models.
ANSWER: c
29. To be effective, a modeler must
a. be an effective presenter of results.
b. collect the proper input data for the model.
c. understand how modeling fits into the entire problem-solving process.
d. apply the correct modeling technique.
ANSWER: c
30. Identifying the real problems faced by the decision maker
a. is not important since the decision maker has already defined the problem.
b. requires insight, some imagination, time and a good bit of detective work.
c. first requires a well-defined problem statement.
d. will lead to developing the best model.
ANSWER: b
31. The ultimate goal of the problem identification step of the problem-solving process is
a. collecting lots of information.
b. helping the decision maker realize there is a problem.
c. identifying the root problem(s) causing the mess.
d. convincing the decision maker the mess is really a problem that can be solved.
ANSWER: c
32. Which step of the problem-solving process is considered the most important?
a. Identify problem
b. Analyze model
c. Test results
d. Implement solution
ANSWER: a
33. Which of the following steps in the problem-solving process is most likely to incur resistance from
people affected by the proposed solution?
a. Formulate model
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,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
b. Use model to analyze problem
c. Test results
d. Implement solution
ANSWER: d
34. Which of the following statements is true about different modeling techniques that are available to
solve managerial decision problems?
a. The wrong choice of modeling technique is a common source of implementation difficulties.
b. Managers should develop a strong preference and expertise in one technique to use when
faced with problems.
c. The fundamental characteristics of the problem guide the selection of an appropriate modeling
technique.
d. Most problems faced by managers are fundamentally the same.
ANSWER: c
35. In which step of the problem-solving process is the main focus to generate and evaluate alternatives?
a. Identify problem
b. Formulate model
c. Use model to analyze problem
d. Test results
ANSWER: c
36. Which of the following is true of "What if?" analysis?
a. A well-designed spreadsheet facilitates "What if?" analysis.
b. It is not very useful when working with non-mathematical models.
c. "What if?" analysis is an efficient optimization technique.
d. "What if?" analysis is useful in creating a well-defined problem statement.
ANSWER: a
37. Beneficial uses of the testing process include all of the following except:
a. double checking the validity of the model.
b. finding that some important assumption has been left out of the model.
c. giving no new insights into the nature of the problem.
d. improving solutions after the implementation step.
ANSWER: d
38. Implementing solutions to problems involves people and change. Which of the following is a
suggested approach to effectively implement solutions?
a. Centralizing decision-making authority to those who have specialized training in decision
making
b. Involving anyone affected by the decision in all steps of the problem-solving process
c. Making decisions according to majority vote
d. More skillfully communicating management decisions
ANSWER: b
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, Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
39. Which of the following problem-solving steps is often considered the most difficult?
a. Identify the problem.
b. Analyze the model.
c. Test results.
d. Implement the solution.
ANSWER: d
40. If the correct problem is not identified, the best that can be hoped for is
a. wasted time and effort.
b. useful experience in problem definition efforts.
c. a descriptive model.
d. the right answer to the wrong question.
ANSWER: d
41. Chapter 1 discussed all of the following except
a. how models of decision problems differ in a number of important characteristics.
b. how spreadsheet modeling and analysis fit into the problem-solving process.
c. how spreadsheet models of decision problems can be used to analyze the consequences of
possible courses of action.
d. how to implement a problem formulation as a spreadsheet model.
ANSWER: d
42. All of the following are CEO alternatives to start the OR/MS collaboration process except
a. require the OR/MS group to save their yearly salary in every study.
b. use OR/MS personnel as consultants.
c. hire some OR/MS professionals and give them a problem to work.
d. institute more participation from OR analysts.
ANSWER: a
43. The main point brought forward in the Chapter 1 "The World of Business Analytics" case reading is
that
a. at a cocktail party, it is more efficient to divide the dip into several bowls and place them
around the room.
b. competitive rivalry between IS and OR/MS groups can be turned to advantage when tackling
business process re-engineering projects.
c. information system analysts trained in management science can help turn ordinary
information systems into money-saving decision-support systems.
d. OR/MS professionals lack communication skills and tend to focus on "rigor without
relevance".
ANSWER: c
44. Which of the following statements is not true about the relationship between OR/MS and IS
professionals?
a. OR/MS analysts need IS professionals' data for their models.
Copyright Cengage Learning. Powered by Cognero. Page 8
Analysis A Practical Introduction to Business
Analytics , 9th Edition Cliff Ragsdale
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many
new editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
1. The essence of decision analysis is
a. breaking down complex situations into manageable elements.
b. choosing the best course of action among alternatives.
c. finding the root cause of why something has gone wrong.
d. thinking ahead to avoid negative consequences.
ANSWER: b
2. All of the following are reasons why someone would wish to use a spreadsheet model except
a. to implement a computer model.
b. because spreadsheets are convenient.
c. to analyze decision alternatives.
d. because spreadsheets lead to increased opportunities.
ANSWER: d
3. Which of the following fields of study uses computers, statistics, and mathematics to solve business
problems?
a. Accounting
b. Information systems
c. Business analytics
d. Scientific management
ANSWER: c
4. Anchoring effects occur in decision-making problems when
a. decision makers are tied too closely to previous decisions.
b. organizations refuse to consider new alternatives.
c. a seemingly trivial factor serves as a starting point for estimations.
d. a person in a position of authority exerts his or her opinion very forcefully.
ANSWER: c
5. Virtually everyone who uses a spreadsheet today for model building and decision making
a. is a practitioner of business analytics.
b. possesses an advanced knowledge of mathematics and computer programming languages.
c. is a CPA.
d. is in a position to influence decision makers.
ANSWER: a
6. Which of the following statements is true of using models in problem solving and decision analysis?
a. It is a fairly new idea.
b. It is required in order to find good solutions.
c. It is something virtually everyone has done before.
d. It is tied to the use of computers.
ANSWER: c
7. A road map is an example of a
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
a. mathematical model.
b. mental model.
c. physical model.
d. visual model.
ANSWER: d
8. The textbook figure shown below of the problem-solving process is an example of a
a. mental model.
b. prescriptive model.
c. graphical model.
d. visual model.
ANSWER: d
9. Which of the following is most likely to be used when faced with the decision of how to arrange
furniture in a room?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
ANSWER: b
10. To illustrate how a complex system will be built, an engineer will likely use a
a. mathematical model.
b. mental model.
c. physical model.
d. visual model.
ANSWER: d
11. Which of the following is the type of model used throughout this textbook?
a. Mathematical model
b. Mental model
c. Physical model
d. Visual model
ANSWER: a
12. The best models
a. accurately reflect relevant characteristics of the real-world object or decision.
b. are mathematical models.
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
c. replicate all aspects of the real-world object or decision.
d. replicate the characteristics of a component in isolation from the rest of the system.
ANSWER: a
13. A mathematical model is considered to be valid when
a. it accurately represents the relevant characteristics of the object or decision.
b. it has passed a validation test.
c. it replicates all aspects of the object or decision.
d. the left- and right-hand sides of expressions are equal.
ANSWER: a
14. All of the following are benefits of modeling except that
a. modeling delivers needed information on a more timely basis.
b. modeling finds the right answers to incorrect or flawed problem statements.
c. modeling is helpful in examining things that would be impossible to do in reality.
d. modeling is less expensive than implementing several alternative solutions.
ANSWER: b
15. Better decision making using a modeling process is achieved due to the
a. interaction with the spreadsheet.
b. visualization of the system being studied.
c. insight gained through the process.
d. timeliness of the results obtained.
ANSWER: c
16. The term "mathematics" is used to encompass not only the most familiar elements of math, such as
algebra, but also
a. profit and revenue calculations.
b. calculus
c. logic.
d. expense calculations.
ANSWER: c
17. The specification or description of the relationship between the dependent and independent variables
is generally called a
a. constraint.
b. declaration.
c. function.
d. mathematical model.
ANSWER: c
18. Variables are termed independent when they satisfy which of the following?
a. The function value depends upon their values.
b. The decision maker has no control over them.
Copyright Cengage Learning. Powered by Cognero. Page 3
,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
c. The variables have no relationship to one another.
d. The variable is described as an output of the spreadsheet model.
ANSWER: a
19. In the following expression, what is the dependent variable?
a. Profit
b. Revenue
c. Expenses
d. Loss
ANSWER: a
20. In a spreadsheet, input cells correspond conceptually to
a. dependent variables.
b. functions.
c. independent variables.
d. output cells.
ANSWER: c
21. The categories of modeling techniques include all of the following except
a. descriptive models.
b. predictive models.
c. prescriptive models.
d. preventive models.
ANSWER: d
22. The following spreadsheet model is an example of a
A B
1 Purchase price $32,500
2 less:
3 Down payment $ 6,500
4 Trade-in $ 4,000
5 Amount financed $22,000
6
7 Term of loan 5 years
8
9 Annual interest rate 11.25%
10
11 Monthly payment $481.08
Copyright Cengage Learning. Powered by Cognero. Page 4
,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
12
a. descriptive model.
b. predictive model.
c. prescriptive model.
d. preventive model.
ANSWER: c
23. Solutions to which of the following categories of modeling techniques indicate a course of action to
the decision maker?
a. Descriptive models
b. Predictive models
c. Prescriptive models
d. Preventive models
ANSWER: c
24. In which of the following categories of modeling techniques do the independent variables have
unknown or uncertain values or coefficients?
a. Descriptive models
b. Predictive models
c. Prescriptive models
d. Probabilistic models
ANSWER: a
25. In which of the following categories of modeling techniques are the specifications of the relationships
between dependent and independent variables unknown or poorly defined?
a. Descriptive models
b. Open models
c. Predictive models
d. Prescriptive models
ANSWER: c
26. Which of the following categories of modeling techniques includes optimization techniques?
a. Capitalistic models
b. Descriptive models
c. Predictive models
d. Prescriptive models
ANSWER: d
27. Which of the following categories of modeling techniques addresses uncertainty in the values of the
independent variables?
a. Descriptive models
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,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
b. Predictive models
c. Prescriptive models
d. Scale models
ANSWER: a
28. Which of the following categories of modeling techniques involves determining the value of a
dependent variable based on specific values of independent variables?
a. Biased models.
b. Descriptive models.
c. Predictive models.
d. Prescriptive models.
ANSWER: c
29. To be effective, a modeler must
a. be an effective presenter of results.
b. collect the proper input data for the model.
c. understand how modeling fits into the entire problem-solving process.
d. apply the correct modeling technique.
ANSWER: c
30. Identifying the real problems faced by the decision maker
a. is not important since the decision maker has already defined the problem.
b. requires insight, some imagination, time and a good bit of detective work.
c. first requires a well-defined problem statement.
d. will lead to developing the best model.
ANSWER: b
31. The ultimate goal of the problem identification step of the problem-solving process is
a. collecting lots of information.
b. helping the decision maker realize there is a problem.
c. identifying the root problem(s) causing the mess.
d. convincing the decision maker the mess is really a problem that can be solved.
ANSWER: c
32. Which step of the problem-solving process is considered the most important?
a. Identify problem
b. Analyze model
c. Test results
d. Implement solution
ANSWER: a
33. Which of the following steps in the problem-solving process is most likely to incur resistance from
people affected by the proposed solution?
a. Formulate model
Copyright Cengage Learning. Powered by Cognero. Page 6
,Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
b. Use model to analyze problem
c. Test results
d. Implement solution
ANSWER: d
34. Which of the following statements is true about different modeling techniques that are available to
solve managerial decision problems?
a. The wrong choice of modeling technique is a common source of implementation difficulties.
b. Managers should develop a strong preference and expertise in one technique to use when
faced with problems.
c. The fundamental characteristics of the problem guide the selection of an appropriate modeling
technique.
d. Most problems faced by managers are fundamentally the same.
ANSWER: c
35. In which step of the problem-solving process is the main focus to generate and evaluate alternatives?
a. Identify problem
b. Formulate model
c. Use model to analyze problem
d. Test results
ANSWER: c
36. Which of the following is true of "What if?" analysis?
a. A well-designed spreadsheet facilitates "What if?" analysis.
b. It is not very useful when working with non-mathematical models.
c. "What if?" analysis is an efficient optimization technique.
d. "What if?" analysis is useful in creating a well-defined problem statement.
ANSWER: a
37. Beneficial uses of the testing process include all of the following except:
a. double checking the validity of the model.
b. finding that some important assumption has been left out of the model.
c. giving no new insights into the nature of the problem.
d. improving solutions after the implementation step.
ANSWER: d
38. Implementing solutions to problems involves people and change. Which of the following is a
suggested approach to effectively implement solutions?
a. Centralizing decision-making authority to those who have specialized training in decision
making
b. Involving anyone affected by the decision in all steps of the problem-solving process
c. Making decisions according to majority vote
d. More skillfully communicating management decisions
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 7
, Name: Class: Date:
Chapter 01 Introduction to Modeling and Decision Analysis
39. Which of the following problem-solving steps is often considered the most difficult?
a. Identify the problem.
b. Analyze the model.
c. Test results.
d. Implement the solution.
ANSWER: d
40. If the correct problem is not identified, the best that can be hoped for is
a. wasted time and effort.
b. useful experience in problem definition efforts.
c. a descriptive model.
d. the right answer to the wrong question.
ANSWER: d
41. Chapter 1 discussed all of the following except
a. how models of decision problems differ in a number of important characteristics.
b. how spreadsheet modeling and analysis fit into the problem-solving process.
c. how spreadsheet models of decision problems can be used to analyze the consequences of
possible courses of action.
d. how to implement a problem formulation as a spreadsheet model.
ANSWER: d
42. All of the following are CEO alternatives to start the OR/MS collaboration process except
a. require the OR/MS group to save their yearly salary in every study.
b. use OR/MS personnel as consultants.
c. hire some OR/MS professionals and give them a problem to work.
d. institute more participation from OR analysts.
ANSWER: a
43. The main point brought forward in the Chapter 1 "The World of Business Analytics" case reading is
that
a. at a cocktail party, it is more efficient to divide the dip into several bowls and place them
around the room.
b. competitive rivalry between IS and OR/MS groups can be turned to advantage when tackling
business process re-engineering projects.
c. information system analysts trained in management science can help turn ordinary
information systems into money-saving decision-support systems.
d. OR/MS professionals lack communication skills and tend to focus on "rigor without
relevance".
ANSWER: c
44. Which of the following statements is not true about the relationship between OR/MS and IS
professionals?
a. OR/MS analysts need IS professionals' data for their models.
Copyright Cengage Learning. Powered by Cognero. Page 8
