Chapter 1 Introduction to Quantitative Analysis

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

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

3) 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.

4) 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.

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

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

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

8) The Quantitative Analysis Approach
consists of six steps.
9) A mathematical model shows the
relationship between quantifiable and non-quantifiable information.

10) Decision variables may also be called
parameters.

11) Model variables can be controllable or
uncontrollable.

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

13) A model is a representation of a
situation.

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

15) Trying various approaches and picking
the one resulting in the best decision is called incomplete enumeration.
16) All problems can be solved by
considering only the quantitative issues.

17) A profit equation is an example of a
schematic model.

18) Testing the data and model should be
done before the results have been analyzed.
19) Sensitivity analysis helps us estimate
the effect of known and unknown errors in our model.

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

21) A sensitivity analysis allows a
manager to answer the “what if” questions.

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

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

24) Which of the following terms is
interchangeable with quantitative analysis?
A) management science
B) economics
C) financial analysis
D) statistics
E) None of the above
25) 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.
E) None of the above

26) 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
E) Charles Babbage

27) 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
E) operations research

28) 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
E) qualitative analysis

29) A(n) ________ is a representation of
reality or a real-life situation.
A) objective
B) model
C) analysis
D) algorithm
E) None of the above

30) 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.
E) None of the above