Indicate whether the sentence or statement is true or false.
F 1. Management science is the application of a scientific approach to solving management problems in order to help managers make decisions faster.
F 3. Management science techniques focus primarily on 3 specific steps of the management science process (observation, model construction and implementation) to find an appropriate solution to a problem.
F 4. Total cost equal the fixed cost plus the variable cost per unit divided by volume.
T 5. A model is a functional relationship including variables, parameters, and equations.
Identify the letter of the choice that best completes the statement or answers the question.
B 6. The steps of the scientific method are:
a. problem definition, model construction, observation, model solution, implementation.
b. observation, problem definition, model construction, model solution, implementation.
c. model construction, problem definition, observation, model solution, implementation.
d. observation, implementation, problem definition, model construction, model solution.
B 7. Which of the following is incorrect with respect to the use of models in decision making?
a. they improve understanding of the problem
b. they promote subjectivity in decision making
c. they are generally easy to use
d. they provide a systematic approach to problem solving
A 8. The quantitative analysis approach requires
a. mathematical expressions for the relationship
b. uncomplicated problems
c. the manager to have prior experience with similar problems
d. all of the above
D 9. Which of the following statements is false?
a. common sense is one test of the validity of a model.
b. one way to validate a model is to predict history.
c. models are usually built sequentially rather than iteratively.
d. model validation means making sure that the available information obtained from the analysis is understood in the context of the original real world situation.
B 10. The limits of the problem and the degree to which it pervades other units other units in the organization must be included during the __________ step of the management science process.
Solution contains answers of Multiple choice question with detailed explanation.