MIS10E_testbank_CH12.doc

Chapter 12

Enhancing Decision Making True-False Questions

1.

Unstructured decisions are novel and nonroutine, and there is no well-understood or agreedon procedure for making them. Answer: True

2.

Reference: p. 475

Difficulty: Easy

Reference: p. 475

Difficulty: Easy

Reference: p. 476

Difficulty: Meiu!

Reference: p. 476

)he first stage in +imons decision-making process model is the design stage. Answer: False

/.

Difficulty: Easy

)he implementation phase of +imons decision making model includes choosing among solution alternatives. Answer: False

.

Reference: p. 475

)he intelligence phase of decision making consists of discovering, identifying, and understanding the problems occurring in the organi#ation. Answer: True

*.

Difficulty: Easy

'ank-and-file employees tend to make more structured decisions. Answer: True

(.

Reference: p. 474

%iddle management tends to face more structured decision scenarios, and rarely include unstructured components. Answer: False

&.

Difficulty: Easy

Unstructured decision making is most prevalent at lower organi#ational levels. Answer: False

$.

Reference: p. 474

A structured decision can be made by following a well-defined set of procedures. No feel! or intuition is necessary. Answer: True

".

Difficulty: Easy

Difficulty: Easy

Reference: p. 476

)he classical model of management does not address what e0actly managers do when they plan, decide things, and control the work of others. Answer: True

Difficulty: Meiu!

"#$

Reference: p. 477

1.

%+ typically produce fi0ed, regularly scheduled reports based on data e0tracted and summari#ed from the firms underlying transaction processing systems. Answer: True

11.

Difficulty: Meiu!

Reference: p. 4%&

Difficulty: Easy

Reference: p. 4%'

5ackward sensitivity analysis software is used for goal seeking. Answer: True

1&.

Reference: p. 4%&

4hat-if analysis works forward from known or assumed conditions. Answer: True

1$.

Difficulty: Easy

)he earliest 3++ were data-driven. Answer: False

1".

Reference: p. 4%&

3++ primarily address structured problems. Answer: False

12.

Difficulty: Easy

Difficulty: Easy

Reference: p. 4%'

3ata visuali#ation technologies help distill large amounts of information into easily read lists of te0t. Answer: False

1(.

Difficulty: Easy

Reference: p. 4#&

3++ are a special category of 6+. Answer: False

1.

Reference: p. 4#&

A geographic information system is a decision support system designed specifically to work with spatial information. Answer: True

1*.

Difficulty: Easy

Difficulty: Easy

Reference: p. 4#&

4ith an environmental scanning facility, 7++ are able to detect signals of problems in the organi#ational environment that indicate strategic threats and opportunities Answer: True

1/.

Reference: p. 4#4

4eb-based tools for videoconferencing and electronic meetings are the primary tools for 63++. Answer: False

2.

Difficulty: Easy

Difficulty: (ar

Reference: p. 4#6

3uring a 63++ electronic meeting, the attendees control the use of 63++ tools. Answer: False

Difficulty: Easy

"#4

Reference: p. 4#7

Multiple-)*oice Questions

21.

Analysis According to your reading of the te0t, 8rocter 9 6ambles use of 3++ illustrates the use of information systems to implement which common business strategy: a. b. c. d.

;ow-cost leadership 8roduct differentiation a. b. c. d.

interpersonal, informational, and decisional. symbolic, decisional, and interpersonal. symbolic, interpersonal, and technical. technical, interpersonal, and informational.

Answer: a

Difficulty: Meiu!

"#7

Reference: p. 477

"$.

)he role of liaison falls into which of %int#bergs managerial classifications: a. b. c. d.

3ecisional nformational nterpersonal +ymbolic

Answer: c

"&.

3ecisional nformational nterpersonal +ymbolic

Answer: a

a. b.

+pokesperson 'esource allocator

c. d.

;eader Nerve center

Reference: p. 47%

Difficulty: Meiu!

Reference: p. 47%

As discussed in the chapter te0t, the three main reasons that investments in information technology do not always produce positive results are> a. b. c. d.

management support, technical logistics, and us er compliance. organi#ation, environment, culture. information =uality, information integrity, and information accuracy. information =uality, organi#ational culture, and management filters.

Answer: 

".

Difficulty: (ar

4hich of the following managerial roles is not supported by information systems:

Answer: c

"*.

Reference: p. 47%

)he role of entrepreneur falls into which of %int#bergs managerial classifications: a. b. c. d.

"(.

Difficulty: (ar

Difficulty: Meiu!

Reference: p. 47%

)he concern that data values of an information source fall within a defined range reflects which =uality dimension of information: a. b. c. d.

Accuracy ntegrity Calidity onsistency

Answer: c

Difficulty: (ar

"#%

Reference: p. 47#

"/.

)he concern that the structure of data is consistent within an information source reflects which =uality dimension of information: a. b. c. d.

Accuracy ntegrity Calidity onsistency

Answer: +

$.

Reference: p. 47#

%+ typically produce> a. b. c. d.

new ways of looking at data that emphasi#e change, fle0ibility, and rapid response. fi0ed, regularly scheduled reports based on data e0tracted from the organi#ations )8+. solutions to semistructured problems appropriate for middle management decision making. assumptions, responses to ad hoc =ueries, and graphic representations of e0isting data.

Answer: +

$1.

Difficulty: (ar

Difficulty: Easy

Reference: p. 4%&

Analysis An information system for a building company that tracks construction costs for various proDects across the United +tates would be categori#ed as a type of> a. b. c. d.

3++. %+. 6+. 3++.

Answer: +

$2.

Reference: p. 4%&

)hese systems support decision making by enabling users to e0tract useful information that was previously buried in large =uantities of data> a.

6++.

b. c. d.

7++. )8+. 3++.

Answer: 

$".

Difficulty: Easy

Difficulty: Easy

Reference: p. 4%"

)he components of a 3++ are the> a. b. c. d.

internal corporate database, e0ternal data sources, and analysis tools. data visuali#ation tools, software, and graphics capabilities. database, graphics capabilities, and analysis tools. database, software system, and user interface.

Answer: 

Difficulty: Meiu!

"##

Reference: p. 4%"

$$.

A 3++ database is a collection of> a. b. c. d.

historical data e0tracted from transaction processing systems. current or historical data from several applications or groups. e0ternal data typically mined from the nternet and other third-party sources. the corporations current transaction data.

Answer: +

$&.

Eptimi#ation +ensitivity analysis +tatistical a. b. c. d.

supply chain optimi#ation. historical what-if analysis. goal seeking. reverse forecasting.

Answer: c

$.

Difficulty: Meiu!

4hich type of model is used to help managers use historical data to estimate future conditions and sales figures resulting from these conditions: a. b. c. d.

$*.

Reference: p. 4%"

4hich type of model asks what-if =uestions repeatedly to determine the impact on outcomes of changes in one or more factors: a. b. c. d.

$(.

Difficulty: Meiu!

Difficulty: (ar

Reference: p. 4%'

Analysis Fou would use an optimi#ation model to> a. b. c. d.

proDect future conditions and predict the effect of these conditions on sales. determine the proper mi0 of products within a given market to ma0imi#e profits. determine the price of a product given fluctuating sales and advertising budget. establish the best relationship between price and sales and marketing budgets.

Answer: +

Difficulty: Meiu!

Analysis in terms of categorize

'&&

Reference: p. 4%'

$/.

A pivot table is a> a. b. c. d.

spreadsheet tool that displays two or more dimensions of data in a convenient format. type of relational database. chart tool that can rotate columnar data =uickly and visually. tool for performing sensitivity analysis.

Answer: a

&.

Reference: p. 4%'

)he chapter case on 'enaults information systems illustrates the use of which type of system to move to a pull-based model for its supply chain: a. b. c. d.

3++ 3++ 6+ 63++

Answer: +

&1.

Difficulty: Easy

Difficulty: Meiu!

Reference: p. 4%%

Synthesis 4hich of 8orters competitive forces was at work in the 'enaults decision to develop an information system to help improve their supply chain: a. b. c. d.

+ubstitute products and services New market entrants )raditional competitors None, in this case, 'enaults problem was based on the =uality of their product

Answer: c

&2.

Reference: p. 4%%

)his information system uses data visuali#ation technology to analy#e and display data for planning and decision making in the form of digiti#ed maps. a. b.

6+ 3++

c. d.

%+ )8+

Answer: a

&".

Difficulty: Meiu!

Difficulty: Easy

Reference: p. 4#&

A system that uses data mining to guide decisions about customer retention can be categori#ed as a> a. b. c. d.

3++ %+ 3++ 7++

Answer: a

Difficulty: Meiu!

'&"

Reference: p. 4#&

&$.

Analysis 3ell omputers online tools for selecting and customi#ing a new 8 are a type of> a. b. c. d.

3++. 3++. 4eb-based 6+. ntelligent agent.

Answer: a

&&.

Difficulty: Meiu!

Reference: p. 4#"

Analysis As discussed in the chapter case, the E%8+)A) system developed by the New Fork ity 8olice was a type of> a. b. c. d.

3++. 83++. 6+. 63++.

Answer: c

&(.

Reference: p. 4#'

)he easy use of graphics in an 7++ allows the user to> a. b. c. d.

look at more data in less time with greater clarity. use creative analysis. =uickly manipulate )8+ and historical data. decentrali#e decision making.

Answer: a

&*.

Difficulty: Easy

Difficulty: Easy

Reference: pp. 4#$,5&4

7++> a. support the structured decision making of senior e0ecutives. b. have the ability to drill down into lower levels of detail. c. easily integrate data from different systems. d. are primarily driven by information derived from a companys transaction processing systems. Answer: +

&.

Difficulty: Meiu!

Reference: p. 4#4

70ecutives need a wide range of BBBBBBBBBBBBBBBBBB as well as internal data. a. b. c. d.

structured informal system e0ternal

Answer: 

Difficulty: Easy

'&'

Reference: p. 4#4

&/.

A well-designed 7++ will allow management to> a. b. c. d.

have greater span of control. allow lower levels of management greater control. lessen the need to review lower levels of operation. all of the above.

Answer: 

(.

double-entry bookkeeping. N6 metrics analysis. balanced scorecards. return on investment.

Answer: 

Difficulty: Easy

Reference: p. 4#5

4hich of the following features of an 7++ supplements traditional financial metrics with measurements from additional perspectives, such as customers, or learning and growth: a.

5alanced scorecards

b. c. d.

3igital dashboard 6raphic visuali#ation tools 3rill-down capabilities

Answer: a

(2.

Reference: p. 4#4

)he traditional measurement of value for companies includes financial metrics such as> a. b. c. d.

(1.

Difficulty: Meiu!

Difficulty: Easy

Reference: p. 4#5

Analysis )he information system used by aesars 7ntertainment, which combines data from internal )8+ with information from financial systems and e0ternal sources to deliver reports such as profit-loss statements, impact analyses, is an e0ample of> a. b.

3++ 7++

c. d.

3++ %+

Answer: +

Difficulty: Easy

'&$

Reference: p. 4#6

(".

7lectronic =uestionnaires in a 63++> a. b. c. d.

facilitate the organi#ed integration and synthesis of ideas generated during brainstorming. document group agreement on definitions of words and terms central to the proDects. use structured approaches to evaluate the impact of an emerging proposal on the organi#ation. aid the organi#ers in pre-meeting planning by identifying issues of concern.

Answer: 

($.

b. c. d.

facilitate the organi#ed integration and synthesis of ideas generated during brainstorming. document group agreement on definitions of words and terms central to the proDects. use structured approaches to evaluate the impact of an emerging proposal on the organi#ation. aid the organi#ers in pre-meeting planning by identifying issues of concern.

Answer: a

Difficulty: Meiu!

Reference: p. 4#7

+takeholder identification and analysis tools in a 63++> a. b. c. d.

facilitate the organi#ed integration and synthesis of ideas generated during brainstorming. document group agreement on definitions of words and terms central to the proDects. use structured approaches to evaluate the impact of an emerging proposal on the organi#ation. aid the organi#ers in pre-meeting planning by identifying issues of concern.

Answer: c

((.

Reference: p. 4#7

dea organi#ers in a 63++> a.

(&.

Difficulty: Meiu!

Difficulty: Easy

Reference: p. 4#7

An essential component in the ability of 63++ to contribute to a collaborative environment is> a.

allowing users to contribute simultaneously.

b. c. d.

using structured methods for evaluating ideas. identifying users informally. guarantee of user anonymity.

Answer: 

Difficulty: Easy

'&4

Reference: p. 4#%

(*.

n an electronic meeting system, group interaction activities include> a. b. c. d.

session planning, documenting organi#ational memory, enhancing personal productivity, and enterprise analysis. session planning, prioriti#ing, policy development and organi#ational memory. idea generation, evaluating comple0 problems, and large groups. idea generation, idea organi#ation, prioriti#ing, and policy development.

Answer: 

(.

Difficulty: (ar

Reference: p. 4#%

63++> a.

are designed to allow meeting attendees to share their thoughts in real-time with their peers. b. support decisions that re=uire knowledge about the geographic distribution of resources. c. are typically used with geographically dispersed attendees. d. implement structured methods for organi#ing and evaluating ideas. Answer: 

(/.

Reference: p.4#%

63++ are most useful for tasks involving> a. b. c. d.

session planning, organi#ational memory, personal productivity, and enterprise analysis. idea generation, comple0 problems, and large groups. idea generation, idea organi#ation, prioriti#ing, and policy development. session planning, prioriti#ing, policy development, and organi#ational memory.

Answer: +

*.

Difficulty: (ar

Difficulty: Meiu!

Reference: p. 4##

+ynthesis )he chapter case discussing 8E7 systems illustrates> a. b.

the =uantifiable advantages of even simple 8E7 systems in reducing the high rates of adverse drug events. the health risks engendered by physician non-compliance with 8E7 systems.

c. d.

the comple0ity of merging legacy systems with new 8E7 systems. the comple0ity of evaluating and managing new 8E7 systems.

Answer: 

Difficulty: Meiu!

Reference: pp. 5&5,5&%

Synthesis in the sense of apply Fill n t*e lan/s

*1.

0tructured decisions are repetitive and routine, for which known algorithms provide solutions. Difficulty: Easy

'&5

Reference: p. 474

*2.

)he third stage in +imons description of decision making is choice. Difficulty: M eiu!

*".

)he concept of management filters describes situations in which managers act on biases that reDect information that does not conform to their e0pectations. Difficulty: Meiu!

*$.

Reference: p. 4#"

A Digital dashboard uses an easy-to-understand display to provide management with a comprehensive view of firm performance on a single screen. Difficulty: (ar

.

Reference: p. 4%'

A?n@ customer decision-support system (CDSS) supports the decision-making processes of an e0isting or potential customer. Difficulty: Easy

*/.

Reference: p. 4%'

A?n@ optimization model determines the best resource allocation to ma0imi#e or minimi#e specified variables. Difficulty: Meiu!

*.

Reference: p. 4%'

A?n@ model is an abstract representation illustrating the components or relationships of a phenomenon. Difficulty: Easy

**.

Reference: pp. 4%&,4%"

Ef the three main 3++ components, the software system comprises the tools used for data analysis. Difficulty: Easy

*(.

Reference: p. 47#

Model-driven 3++ have analysis capabilities based on strong theories and used to perform what-if! and similar kinds of analyses. Difficulty: Easy

*&.

Reference: p . 476

Reference: p. 4#5

roup decision-support systems (DSS) facilitate the solution to unstructured problems by a set of decision-makers working together as a group. Difficulty: Easy

Essay Questions

'&6

Reference: p. 4#6

1.

Descri+e M0 an D00 an ifferentiate +etween t*e!.

%+ provide information on the firms performance to help managers monitor and control the business. )hey typically produce hard copy, fi0ed, regularly scheduled reports based on data e0tracted and summari#ed from the organi#ations underlying transaction processing systems. 3++ provide new sets of capabilities for nonroutine decisions and user control. %+ accents reports based on routine flows of data and assists in the general control of the organi#ation. 3++ emphasi#es change, fle0ibility, and rapid response to unstructured problems. Difficulty: Meiu!

2.

Reference: p. 4%&

1*at is t*e ifference +etween a !oel-ri2en an a ata-ri2en D003

%odel-driven 3++ use some type of model to perform what-if! and other types of analyses. )heir analysis capabilities were based on a strong theory or model combined with a good user interface to make the model easy to use. 3ata-driven 3++ analy#e large pools of data found in maDor organi#ational systems. )hey support decision making by allowing users to e0tract useful information that was previously buried in large =uantities of data. Difficulty: Meiu!

".

Reference: pp. 4%&,4%"

Discuss four types of !oels co!!only use +y D00.

+tatistical modeling software can be used to help establish relationships, such as relating product sales to differences in age, income, or other factors between communities. Eptimi#ation models determined optimal resource allocation to ma0imi#e or minimi#e specified variables such as cost or time. A classic use of optimi#ation models is to determine the proper mi0 of products within a given market to ma0imi#e profits.