Managerial Decision Modeling w/ Spreadsheets, 3e (Balakrishnan/Render/Stair)
Chapter 1 Introduction to Managerial Decision Making

1.1 Chapter Questions

1) Which of the following variables is considered random or probabilistic? A) future interest rates B) last year's advertising budget C) last week's sales data D) historical stock prices E) historical interest rates
Answer: A
Page Ref: 3
Topic: Types of Decision Models
Difficulty: Moderate

2) Which of the following variables is considered non-random or deterministic? A) next year's cash flow projections B) future interest rates C) last year's income D) projected value of the euro next week E) projected NASDAQ index
Answer: C
Page Ref: 2
Topic: Types of Decision Models
Difficulty: Moderate

3) Determining how much the solution will change if there are changes in the input data is part of: A) model formulation B) model solution C) model interpretation D) model development E) model assessment
Answer: C
Page Ref: 7
Topic: Steps Involved in Decision Modeling
Difficulty: Easy 4) If all the variables in a model are under the control of the decision maker, then the model is considered to be: A) probabilistic B) random C) mathematical D) schematic E) deterministic
Answer: E
Page Ref: 2
Topic: Types of Decision Models
Difficulty: Easy

5) Which of the following models is a picture or drawing of reality? A) physical model B) schematic model C) scale model D) mathematical model E) analytical model
Answer: B
Page Ref: 6
Topic: Steps Involved in Decision Modeling
Difficulty: Easy

6) Acquiring input data is part of: A) model solution B) model formulation C) model interpretation D) model testing E) model identification
Answer: B
Page Ref: 6
Topic: Steps Involved in Decision Modeling
Difficulty: Easy

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