Chapter 01 – Introduction
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True / False Questions
1. Managers need to know the mathematical theory behind the techniques of management
science so that they can lead management science teams.
2. Spreadsheets allow many managers to conduct their own analyses in management science
studies.
3. Management science is a discipline that attempts to aid managerial decision making by
applying a scientific approach to managerial problems that involve quantitative factors.
4. The discovery of the simplex method in 1947 was the beginning of management science as
a discipline.
5. Management scientists make managerial decisions based on the quantitative factors
involved in the problem.
6. Management scientists don’t make managerial decisions.
7. Managers make decisions based solely on the quantitative factors involved in the problem.
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8. A management science team will try to conduct a systematic investigation of a problem that
includes careful data gathering, developing and testing hypotheses, and then applying sound
logic in the analysis.
9. The mathematical model of a business problem is the system of equations and related
mathematical expressions that describes the essence of the problem.
10. Once management makes its decisions, the management science team typically is finished
with its involvement in the problem.
11. A cost that varies with the production volume would be a fixed cost.
12. A cost that varies with the production volume would be a variable cost.
13. At the break-even point, management is indifferent between producing a product and not
producing it.
14. A constraint is an algebraic variable that represents a quantifiable decision to be made.
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15. A decision variable is an algebraic variable that represents a quantifiable decision to be
made.
16. A parameter in a model is a variable that represents a decision to be made.
17. The objective function for a model is a mathematical expression of the measure of
performance for the problem in terms of the decision variables.
18. Sensitivity analysis is used to check the effect of changes in the model.
Multiple Choice Questions
19. Enlightened future managers should know which of the following?
20. The rapid development of the management science discipline can be credited in part to:
A. World War I.
