BUSINESS ANALYSIS CHAPTER 10

Which of the following is true of spreadsheet packages used in business analytics?

• They are more expensive than specialized packages.

• They require substantial user training.

• They come preloaded on computers.

• They do not have specialized functions to perform detailed analyses.

Spreadsheet models are referred to as what-if models because they _____.

• are mathematical and logic-based models

• allow easy instantaneous recalculation for a change in model inputs

• come preloaded on computers

• have specialized functions to perform detailed analysis

A _____ decision is one in which companies have to decide whether they should manufacture a product or outsource production to another firm.

• goal seek

• two-way

• voting-based

• make-versus-buy

The modeling process begins with the framing of a _____ model that shows the relationships between the various parts of the problem being modeled.

• mathematical

• conceptual

• circular

• correlation

 

The conceptual model _____.

• helps in organizing the data requirements

• controls the model inputs

• has tools defined to identify the optimal solution

• explores the effects of changing model parameters

A(n) _____ is a visual representation that shows which entities affect others in a model.

• decision tree diagram

• influence diagram

• entity chart

• time series plot

What do nodes in an influence diagram represent?

• Parts of the model

• Influence levels

• Road maps

• Environmental factors

 

The influence in an influence diagram is visually depicted by _____.

• a circular symbol.

• an arrow.

• a straight line

• the height of the influence diagram.

 

Which of the following approaches is a good way to proceed with the influence diagram building for a problem?

• The influence diagram for the entire problem is built first and then separate portions are clustered to form separate models.

• The influence diagram for all the model parts at the same level are built in parallel to reduce the likelihood of error.

• The influence diagram is reverse engineered—the diagram is developed in the opposite direction starting with the model output.

• The influence diagram for a portion of the problem is built first and then expanded until the total problem is conceptually modeled.

Using the diagram below, which of the following would be a likely mathematical expression for Total Cost?

• Total Cost = Total Variable Cost × Fixed Cost

• Total Cost = Fixed Cost + Total Variable Cost

• Total Cost = Total Variable Cost + Total Revenue × Production Volume

• Total Cost = Fixed Cost + Total Variable Cost + Production Volume