39
Chapter 4
Modeling and Analysis
True-False Questions
1.
A DSS can be composed of several models, some standard and some custom built, used
collectively to support strategic decisions in the company.
Answer
:
True
Difficulty
:
Easy
Page Reference
:
136
2.
The predictive analytics is essential for construction and manipulation of models because
when a decision is implemented, the results usually occur in the future.
Answer
:
True
Difficulty
:
Easy
Page Reference
:
138
3.
Integrity and applicability issues are not important to models.
Answer
:
False
Difficulty
:
Moderate
Page Reference
:
140
4.
DSS uses mostly qualitative models, whereas expert systems use quantitative models in their
applications.
Answer
:
False
Difficulty
:
Moderate
Page Reference
:
141
5.
To utilize models and solution techniques effectively, one must truly gain experience through
developing and solving simple ones.
Answer
:
True
Difficulty
:
Easy
Page Reference
:
141
6.
Modeling involves data analysis with trend lines and establishing relationships with
statistical methods.
Answer
:
False
Difficulty
:
Easy
Page Reference
:
141
7.
In decision making under uncertainty, the decision maker considers situations in which
several outcomes are possible for each course of action. In this case, the decision maker can
estimate the probability of occurrence of the possible outcomes.
Answer
:
False
Difficulty
:
Easy
Page Reference
:
144
8.
The pessimistic approach assumes that the best possible outcome of each alternative will
occur and then selects the best of the bests (stocks).
Answer
:
False
Difficulty
:
Easy
Page Reference
:
149

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