Deck 10: Business Analytics With Simulation

Question 1

Simulation methodology can be used as a prescriptive analytics tool.

Answer 1

True

Question 2

The practicality of the simulation methodology is based on its ability to achieve optimal solutions.

Answer 2

False

Question 3

If the structure of the systems to be modeled is complex, then the modeler should avoid using simulation methodology as a prescriptive analytics tool.

Answer 3

False

Question 4

The state of the system is the set of variables necessary for describing the system and its values at a given point during a simulation run.

Question 5

The state variables of a restaurant change when a customer arrives, when an order is taken, and when the food is served. As such, the restaurant can be represented with a continuous simulation model.

Question 6

The state variables of a weather system change continuously as weather patterns evolve. As such, a weather simulation model can be represented with a continuous simulation model.

Question 7

A static simulation model represents the system over a period of time.

Question 8

Dynamic models have an embedded simulation clock and mimic the behavior of the system from a given start time to a given end time.

Question 9

A deterministic simulation model represents the system over a period of time.

Question 10

A stochastic model represents the system over a period of time.

Question 11

A queuing model with random arrivals and random processing times is a deterministic and dynamic model.

Question 12

The purpose of the simulation study establishes the objective function of the model, which is also known as the independent variable in the model.

Question 13

The scope of the study is defined by the time required to complete the simulation study and the organizational unit included in the study.

Question 14

Simulation studies are normally limited to systems that encompass isolated business units.

Question 15

When one or more input variables are random, then the output variables are also random.

Question 16

In a simulation model, input variables are called dependent variables.

Question 17

The simulation modeler must perform a pilot run in order to compare the performance of the model with the performance of the system being simulated.

Question 18

The purpose of pilot runs in a simulation model is to generate enough solutions to perform model validation and verification.

Question 19

The volume of big data allows the simulation modeler to use larger datasets to better define statistical distributions.

Question 20

Simulation modeling focuses more on causality and less on relationships.

Question 21

Which of the following explains why simulation is a preferred prescriptive analytics tool when investigating the behavior of complex systems?

A) Simulation can be used to find optimal solutions for complex systems.
B) Simulation can be used to mimic the complexity of the systems and test alternative solutions.
C) Simulation can be used to replace other mathematical programming techniques.
D) All of the above

Question 22

Which of the following is not an advantage of simulation methodology as compared to mathematical programming techniques?

A) Finding optimal solutions
B) Investigating hypothetical scenarios before implementing potential costly changes
C) Dealing with relatively complex systems
D) None of the above

Question 23

Simulation methodology can be used to test business scenarios without significant process disruptions. These scenarios include:

A) Testing different machines with different capabilities.
B) Testing new facility locations.
C) Testing alternative product designs.
D) Testing scheduling policies.
E) All of the above

Question 24

Simulation models can become a powerful tool for decision makers when:

A) Business systems are complex.
B) Business systems are simple.
C) The goal is to reach the optimal solution.
D) All of the above

Question 25

A system is a collection of entities and sub-entities that:

A) Interact with each other.
B) Use resources to transform input into output.
C) Generate information and data for further analysis.
D) All of the above

Question 26

A simulation model is discrete when the state of the variables:

A) Does not change over time.
B) Changes at discrete points in time.
C) Changes at continuous points in time.
D) All of the above

Question 27

A simulation model is continuous has variables whose state:

A) Does not change overtime.
B) Changes at discrete points in time.
C) Changes continuously.
D) All of the above

Question 28

Which of the following is true about a static simulation model?

A) A static simulation model represents the system at a given point in time.
B) A static simulation model is different from Monte Carlo simulation model.
C) A static simulation model is used for decision-making under certainty.
D) All of the above

Question 29

Which of the following is true about a dynamic simulation model?

A) A dynamic simulation model represents the system at a given point in time.
B) A dynamic simulation model is also known as Monte Carlo simulation model.
C) A dynamic simulation model is used to decision-making under uncertainty.
D) All of the above

Question 30

Which of the following is true about a deterministic simulation model?

A) The model contains no random variables.
B) The model is also known as a Monte Carlo simulation model.
C) The model may have one or more random variables.
D) All of the above

Question 31

Which of the following is true about a stochastic simulation model?

A) The model contains at least one random variable.
B) The model must contain only random input variables.
C) The model is used for decision-making under certainty.
D) All of the above

Question 32

Which of the following is a step in the simulation methodology?

A) Describing the problem in order to understand the business model
B) Designing a conceptual model
C) Collecting data
D) All of the above

Question 33

Which of the following is not a step in the simulation methodology?

A) Analyzing input
B) Designing experiments
C) Running the simulation model
D) Analyzing output

Question 34

Which of the following is an important part of the business description?

A) Establishing the purpose and scope of the simulation model
B) Analyzing the results and generating recommendations
C) Designing alternative scenarios
D) All of the above

Question 35

The conceptual model of the simulation model involves:

A) Identifying the scope of the model.
B) Identifying the timeframe of the simulation study.
C) Identifying the goals of the model.
D) All of the above

Question 36

Which of the following is a goal of the conceptual design stage of the simulation methodology?

A) Identifying the information needed to build the simulation model
B) Identifying the information already available to build the simulation model
C) Identifying the information that needs to be collected to build the simulation model
D) All of the above

Question 37

Which of the following can be a source of input data for a simulation model?

A) Historical records
B) Observations
C) Interviews
D) All of the above

Question 38

Which of the following functions must be performed in stochastic data input?

A) Testing data for independence
B) Testing data for homogeneity
C) Fitting data for statistical distributions
D) All of the above

Question 39

The decision maker must ensure that input variables are:

A) Independent.
B) Dependent.
C) Heterogenic.
D) All of the above

Question 40

The decision maker must ensure that input variables are:

A) Dependent.
B) Homogenized.
C) Heterogenic.
D) All of the above

Question 41

Which of the following is not a basic element of a simulation model?

A) Entity
B) Location
C) Speed
D) Process flow
E) Resource

Question 42

A simulation model is valid when it represents:

A) The correct real-life system.
B) The real-life system correctly.
C) Both a and b
D) Neither a nor b

Question 43

A simulation model is verified when it represents:

A) The correct real-life system.
B) The real-life system correctly.
C) Both a and b
D) Neither a nor b

Question 44

In a simulation run, the warm-up period is used to:

A) Validate the model performance.
B) Bring the system to a stable state.
C) Test the system with idle resources.
D) All of the above

Question 45

During analysis in simulation methodology, the decision maker can perform:

A) Descriptive statistics such as points and estimates.
B) Hypothesis testing.
C) Risk analysis.
D) All of the above

Question 46

The goal of simulation model is to provide insight and practical recommendations. Specifically, the analysis of the results can help to:

A) Identify the best scenario among several hypothetical scenarios.
B) Identify what will happen under various scenarios.
C) Determine the real-world outcome of the simulated system.
D) All of the above

Question 47

Big Data offers opportunities when applied to simulation models, mostly due to the dimension(s) of:

A) Volume.
B) Velocity.
C) Variety.
D) All of the above

Question 48

Big Data poses challenges when applied to simulation models, mostly due to the dimension(s) of:

A) Volume.
B) Veracity.
C) Variety.
D) All of the above