ch10
1.
Forecasts are rarely perfect.
True False
2.
Once accepted by managers, forecasts should not be overridden.
True False
3.
Statistical models to forecast economic trends are called econometric models.
True False
4.
The difference between a forecast
ch9S
1.
The maximax approach is an optimistic strategy.
True False
2.
An example of maximax decision making is a person buying lottery tickets in hopes of a very big
payoff.
True False
3.
The maximin approach involves choosing the alternative with the hig
ch9
1.
States of nature are alternatives available to a decision maker.
True False
2.
In decision analysis, states of nature refer to possible future conditions.
True False
3.
Prior probabilities refer to the relative likelihood of possible states of natu
ch5
1.
An optimal solution is only optimal with respect to a particular mathematical model that provides only a
representation of the actual problem.
True False
2.
The purpose of a linear programming study is to help guide management's final decision by p
ch8
1.
Linear programming assumes that the profit from each activity is proportional to the level of that
activity.
True False
2.
If the slope of a graph never increases but sometimes decreases as the level of the activity increases, then
it is said to ha
ch3
1.
When formulating a linear programming model on a spreadsheet, the decisions to be made are located in
the data cells.
True False
2.
When formulating a linear programming model on a spreadsheet, the constraints are located (in part) in
the output ce
ch6
1.
Network representations can be used for financial planning.
True False
2.
A network representation is a very specific conceptual aid and is only used in special cases.
True False
3.
All network optimization problems actually are special types of li
ch2
1.
Linear programming problems may have multiple goals or objectives specified.
True False
2.
Linear programming allows a manager to find the best mix of activities to pursue and at what levels.
True False
3.
Linear programming problems always involve
ch4
1.
If two managers are given the same business problem to analyze with a spreadsheet, their spreadsheet
models will likely be almost identical.
True False
2.
There is a systematic procedure that will lead to a single correct spreadsheet model.
True Fa
ch1
1.
Managers need to know the mathematical theory behind the techniques of management science so that
they can lead management science teams.
True False
2.
Spreadsheets allow many managers to conduct their own analyses in management science studies.
Tr