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 m
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
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 refe
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
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
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,
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
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.
T
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 w
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 condu