Uncontrollable variables may also be called parameters. True False Quantitative

Question

Uncontrollable variables may also be called parameters. True False
Quantitative factors are data that can be accurately calculated. True False
The maximax decision criterion is used by pessimistic decision makers and maximizes the maximum outcome for every alternative. True False
Any problem that can be presented in a decision table can also be graphically portrayed in a decision tree. True False
Mean absolute deviation (MAD) is simply the sum of forecast errors. True False
A seasonal index of 1 means that the season is average. True False
Section-II
Circle/tick the right answer from the answers given below. (1×6 = 6)
Which of the following is not one of the steps in the quantitative analysis approach? A) Defining the Problem B) Developing a Solution C) Observing a hypothesis D) Testing a Solution
What is the formula for the break-even point of a simple profit model? A) Fixed Cost / Variable Cost Per Unit B) (Selling Price Per Unit —Variable Cost Per Unit) / Fixed Cost C) Fixed Cost / (Selling Price Per Unit —Variable Cost Per Unit) D) Fixed Cost / (Variable Cost Per Unit — Selling Price Per Unit)
Which of the following is true about the expected value of perfect information? It is the amount you would pay for any sample study. It is calculated as EMV minus EOL. It is calculated as expected value with perfect information minus maximum EMV. None of the above
The following is an opportunity loss table.


What decision should be made based on the minimax regret criterion? Alternative 1 Alternative 2 Alternative 3 State of Nature C
Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day moving average. 14 13 15 28
A tracking signal was calculated for a particular set of demand forecasts. This tracking signal was positive. This would indicate that demand is greater than the forecast. demand is less than the forecast. demand is equal to the forecast. the MAD is negative.
Uncontrollable variables may also be called parameters. True False
Quantitative factors are data that can be accurately calculated. True False
The maximax decision criterion is used by pessimistic decision makers and maximizes the maximum outcome for every alternative. True False
Any problem that can be presented in a decision table can also be graphically portrayed in a decision tree. True False
Mean absolute deviation (MAD) is simply the sum of forecast errors. True False
A seasonal index of 1 means that the season is average. True False
Section-II
Circle/tick the right answer from the answers given below. (1×6 = 6)
Which of the following is not one of the steps in the quantitative analysis approach? A) Defining the Problem B) Developing a Solution C) Observing a hypothesis D) Testing a Solution
What is the formula for the break-even point of a simple profit model? A) Fixed Cost / Variable Cost Per Unit B) (Selling Price Per Unit —Variable Cost Per Unit) / Fixed Cost C) Fixed Cost / (Selling Price Per Unit —Variable Cost Per Unit) D) Fixed Cost / (Variable Cost Per Unit — Selling Price Per Unit)
Which of the following is true about the expected value of perfect information? It is the amount you would pay for any sample study. It is calculated as EMV minus EOL. It is calculated as expected value with perfect information minus maximum EMV. None of the above
The following is an opportunity loss table.


What decision should be made based on the minimax regret criterion? Alternative 1 Alternative 2 Alternative 3 State of Nature C
Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day moving average. 14 13 15 28
A tracking signal was calculated for a particular set of demand forecasts. This tracking signal was positive. This would indicate that demand is greater than the forecast. demand is less than the forecast. demand is equal to the forecast. the MAD is negative.
Uncontrollable variables may also be called parameters. True False
Quantitative factors are data that can be accurately calculated. True False
The maximax decision criterion is used by pessimistic decision makers and maximizes the maximum outcome for every alternative. True False
Any problem that can be presented in a decision table can also be graphically portrayed in a decision tree. True False
Mean absolute deviation (MAD) is simply the sum of forecast errors. True False
A seasonal index of 1 means that the season is average. True False
Section-II
Circle/tick the right answer from the answers given below. (1×6 = 6)
Which of the following is not one of the steps in the quantitative analysis approach? A) Defining the Problem B) Developing a Solution C) Observing a hypothesis D) Testing a Solution
What is the formula for the break-even point of a simple profit model? A) Fixed Cost / Variable Cost Per Unit B) (Selling Price Per Unit —Variable Cost Per Unit) / Fixed Cost C) Fixed Cost / (Selling Price Per Unit —Variable Cost Per Unit) D) Fixed Cost / (Variable Cost Per Unit — Selling Price Per Unit)
Which of the following is true about the expected value of perfect information? It is the amount you would pay for any sample study. It is calculated as EMV minus EOL. It is calculated as expected value with perfect information minus maximum EMV. None of the above
The following is an opportunity loss table.


What decision should be made based on the minimax regret criterion? Alternative 1 Alternative 2 Alternative 3 State of Nature C
Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day moving average. 14 13 15 28
A tracking signal was calculated for a particular set of demand forecasts. This tracking signal was positive. This would indicate that demand is greater than the forecast. demand is less than the forecast. demand is equal to the forecast. the MAD is negative.

Explanation / Answer

1. False.

REASON: Parameter is the quantity that remains constant throughout the analysis. Uncotrollable variable is a quantity that may vary within the abnalysis but it is not controlled by the decision maker.

2. True.

REASON: Quantitative factors are the data that can be quantified and verified and amenable to statistical manipulation.

3. False

REASON: Maximax is done by optimist. : looks at the best that could happen under each action and then chooses the action with the largest value.

4. True.

REASON: Decision tree is a graphical representation of decision table.

5. False

REASON: Mean Absolute Error (MAD) is the average distance between each data value and the mean

6. True

REASON: Seasonal index is a measure of how a particular season compares with the average season.

SINCE THE QUESTIONS ARE LARGE, ONLY SECTION I IS ANSWERED AS PER DIRECTIONS FOR ANSWERING.

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