Mathematics Chapter 1 Homework Because The Success These Techniques During World

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CHAPTER 1

INTRODUCTION TO MANAGERIAL DECISION MODELING

SOLUTIONS TO DISCUSSION QUESTIONS

1-1. Decision modeling is the scientific approach to managerial decision-making. This type of analysis is

a logical and rational approach to making decisions. Emotions, guesswork, and whim are not part of the

1-2. Deterministic models assume that all the relevant input data are known with certainty. That is, these

models assume that all the information needed for modeling the decision-making problem environment is

available, with fixed and known values. Students should be able to find several examples from the

1-3. Quantitative factors are typically identifiable and measurable, making their inclusion in the model

1-4. Unlike quantitative factor that have identifiable scales of measure (for example, length may be

1-5. Decision modeling is a step-by-step process that allows decision makers to investigate problems

using quantitative techniques. The steps of the decision modeling process include defining the problem,

developing a model, acquiring input data, developing a solution, testing the solution, analyzing the

results, and implementing the results. In every case, the analysis begins with defining the problem. The

1-6. Sometimes we may discover during a later step of the decision modeling approach that we made a

mistake in setting up an earlier step. For example, during the testing of the solution, we may notice that

1-7. Although the formal study of decision modeling and the refinement of the tools and techniques of the

scientific method have occurred only in the recent past, quantitative approaches to decision making have

1-8. The types of models mentioned in this chapter are physical, scale, schematic, and mathematical. The

1-9. Input data can come from company reports and documents, interviews with employees and other

personnel, direct measurement, and sampling procedures. For many problems, a number of different

1-10. A decision variable is an unknown quantity whose value can be controlled by the decision maker.

1-11. A problem parameter is a measurable (usually known) quantity that is inherent in the problem.

1-12. Some advantages of using spreadsheets for decision modeling are: (1) spreadsheets are capable of

quickly calculating results for a given set of input values, (2) spreadsheets are effective tools for sorting

1-13. Implementation is the process of taking the solution and incorporating it into the company or

1-14. Sensitivity analysis and post-optimality analysis allow the decision maker to determine how the

final solution to the problem will change when the input data or the model change. This type of analysis is

1-15. There are a large number of quantitative terms that may not be understood by managers. Examples

1-16. Many decision modelers enjoy building mathematical models and solving them to find the optimal

solution to a problem. Others enjoy dealing with other technical aspects, for example, data analysis and

collection, computer programming, or computations.

1-17. Users need not become involved in technical aspects of the decision modeling technique, but they

1-18. Churchman meant that sophisticated mathematical solutions and proofs can be dangerous because