Math 540

Topics: Decision theory, Costs, Variable cost Pages: 34 (6687 words) Published: July 27, 2013
Introduction to Management Science, 11e (Taylor)
Chapter 1 Management Science

1) Management science involves the philosophy of approaching a problem in a subjective manner. Answer: FALSE
Diff: 1 Page Ref: 2
Section Heading: The Management Science Approach to Problem Solving Keywords: scientific approach
AACSB: Analytic skills

2) Management science techniques can be applied only to business and military organizations. Answer: FALSE
Diff: 1 Page Ref: 2
Section Heading: The Management Science Approach to Problem Solving Keywords: scientific approach, problem solving
AACSB: Analytic skills

3) Management scientists use the terms "data" and "information" interchangeably--that is, the two terms mean the same thing Answer: FALSE
Diff: 2 Page Ref: 4
Section Heading: The Management Science Approach to Problem Solving Keywords: data
AACSB: Analytic skills

4) 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: Analytic skills

5) 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: Analytic skills

6) 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: Analytic skills

7) 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: Analytic skills

8) 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: Analytic skills

9) 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: Analytic skills

10) 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: Analytic skills

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: Analytic skills

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: 10
Section Heading: Model Building: Break-Even Analysis
Keywords: sensitivity analysis, parameter changes

13) Fixed costs depend on the number of items produced.
Diff: 1 Page Ref: 7
Section Heading: Model Building: Break-Even Analysis
Keywords: fixed cost, break-even analysis
AACSB: Analytic skills

14) Variable costs depend on the number of items produced.
Diff: 1 Page Ref: 7
Section Heading: Model Building: Break-Even Analysis
Keywords: variable cost, break-even analysis

15) 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

16) The break-even point is the volume that...