Question 1

The discovery of the simplex method in 1947 was the beginning of management science as a discipline.

Accepted Answer

Management science as a discipline began to develop before 1947, with roots in operations research and efforts during World War II to apply scientific methods to military and strategic problems. The simplex method, introduced by George Dantzig in 1947, significantly advanced the field of linear programming but was not the beginning of management science itself.

Question 2

Managers need to know the mathematical theory behind the techniques of management science so that they can lead management science teams.

Accepted Answer

Managers do not necessarily need to know the mathematical theory behind management science techniques in detail; they need to understand the capabilities, applications, and limitations of these techniques to effectively lead management science teams and make informed decisions.

Question 3

A mathematical model of a business problem allows a manager to evaluate both quantitative and qualitative aspects of the problem.

Accepted Answer

A mathematical model primarily focuses on quantitative aspects of a problem, using numerical data and equations to represent and analyze the problem, rather than qualitative aspects which involve subjective judgments and are not easily quantified.

Question 4

A cost that does not vary with the production volume would be a fixed cost.

Accepted Answer

Fixed costs are costs that do not change with the level of production, such as rent, insurance, salaries, etc.

Question 5

Management scientists use mathematical techniques to make decisions, which are then implemented by managers.

Accepted Answer

The answer of Management scientists use mathematical techniques to make...

Question 6

Managers must rely on management science experts to create and understand managerial problems.

Accepted Answer

Managers do not solely rely on management science experts to create and understand managerial problems. While these experts may provide valuable input and analysis, managers also draw on their own experiences, intuition, and feedback from employees to identify and address issues within their organization.

Question 7

The rapid growth of computing capability and power has led to a corresponding rapid growth of the management science discipline.

Accepted Answer

The statement is true. The growth of computing capability has allowed for more complex and sophisticated mathematical models to be developed and solved, leading to advancements in the field of management science.

Question 8

The mathematical model of a business problem is the system of equations and related mathematical expressions that describes the essence of the problem.

Accepted Answer

A mathematical model is a set of equations and mathematical expressions that describe a problem in quantitative terms. It helps in understanding, analyzing, and predicting the behavior of the system being studied.

Question 9

Managers make decisions based solely on the quantitative factors involved in the problem.

Accepted Answer

Managers may consider qualitative factors such as ethical, social, and environmental concerns when making decisions, in addition to quantitative factors.

Question 10

At the break-even point, management is indifferent between producing a product and not producing it.

Accepted Answer

At the break-even point, total revenue equals total costs, and therefore, there is no profit or loss. Management is indifferent between producing the product or not producing it because they would earn zero profits.

Question 11

The best way to solve a break-even problem with a spreadsheet model is to try different production quantities until the quantity that leads to profits of zero is found.

Accepted Answer

The best way to solve a break-even problem with a spreadsheet model is to use the break-even analysis formula that takes into account the fixed costs, variable costs, and selling price per unit to determine the production quantity needed to break even. This can be done by setting the profit or income formula equal to zero and solving for the production quantity. It is not necessary to try different production quantities.

Question 12

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.

Accepted Answer

This is true. A management science team will typically use a systematic approach to investigate a problem, which may involve data gathering, hypothesis development and testing, and logical analysis. This approach is designed to help ensure that decisions are based on sound information and reasoning.

Question 13

Management science is a discipline that attempts to aid managerial decision making by applying a scientific approach to managerial problems that involve quantitative factors.

Accepted Answer

Management science uses mathematical models and techniques to analyze and solve complex business problems and aid decision making. It involves a quantitative approach to managerial decision making.

Question 14

A cost that does not vary with the production volume would be a variable cost.

Accepted Answer

A cost that does not vary with the production volume is a fixed cost, not a variable cost.

Question 15

Once management makes its decisions, the management science team typically is finished with its involvement in the problem.

Accepted Answer

The management science team may need to assist with implementing and monitoring the decisions made by management to ensure they are effective and meet the intended goals.

Question 16

A decision variable is an algebraic variable that represents a quantifiable decision to be made.

Accepted Answer

A decision variable is an algebraic variable that represents a decision to be made in a quantifiable way. It is commonly used in optimization and decision making problems.

Question 17

Spreadsheets allow many managers to conduct their own analyses in management science studies.

Accepted Answer

Spreadsheets provide a user-friendly and flexible tool for managers to perform their own data analysis in management science studies.

Question 18

A cost that varies with the production volume would be a fixed cost.

Accepted Answer

A cost that varies with the production volume is a variable cost, not a fixed cost. Fixed costs are those that remain constant regardless of the production volume.

Question 19

A cost that varies with the production volume would be a variable cost.

Accepted Answer

Variable costs are costs that change in proportion to the level of production or sales. Examples include raw materials, direct labor, and variable overhead costs.

Question 20

A constraint is an algebraic variable that represents a quantifiable decision to be made.

Accepted Answer

A constraint is a condition or limitation that determines the feasible set of solutions in an optimization problem. It is not a variable representing a decision to be made.

Quiz 1: Introduction