economics data bank
1. The process of decision making is more limited than that of problem solving.
2. The terms 'stochastic' and 'deterministic' have the same meaning in quantitative analysis.
3. The volume that results in marginal revenue equaling marginal cost is called the break-even point.
4. Problem solving encompasses both the identification of a problem and the action to resolve it.
5. The decision making process includes implementation and evaluation of the decision.
6. The most successful quantitative analysis will separate the analyst from the managerial team until after the problem is fully structured.
7. The value of any model is that it enables the user to make inferences about the real situation.
8. Uncontrollable inputs are the decision variables for a model.
9. The feasible solution is the best solution possible for a mathematical model.
10. A company seeks to maximize profit subject to limited availability of man-hours. Man-hours is a controllable input.
11. Frederick Taylor is credited with forming the first MS/OR interdisciplinary teams in the 1940's.
12. To find the choice that provides the highest profit and the fewest employees, apply a single-criterion decision process.
13. The most critical component in determining the success or failure of any quantitative approach to decision making is problem definition.
14. The first step in the decision making process is to identify the problem.
15. All uncontrollable inputs or data must be specified before we can analyze the model and recommend a decision or solution for the problem.
16. In quantitative analysis, the optimal solution is the mathematically-best solution.
17. If you are deciding to buy either machine A, B, or C with the objective of minimizing the sum of labor, material and utility costs, you are dealing with a single-criterion decision.
18. Model development should be left to quantitative analysts; the model user's involvement should begin at the implementation stage.
19. A feasible solution is one that satisfies at least one of the constraints in the problem.
20. A toy train layout designed to represent an actual railyard is an example of an analog model.