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


"#$

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.


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
Answer: a

22.

Difficulty: Easy

Reference: p. 47"

Evaluation 4hat =uality of the 3++ did 8rocter 9 6amble employ that was most integral to the determination of an effective solution for optimi#ing their supply chain: a. b.

Ability to tie numerous legacy systems into a single 3++ %odeling capabilities

c. d.

+upport of unstructured decision making Use of e0pert systems

Answer: +

2".

Reference: pp. 47",47'

4here there is no well-understood or agreed-on procedure for making a decision, it is said to be> a. b. c. d.

undocumented. unstructured. documented. semistructured.

Answer: +

2$.


Difficulty: Easy

Reference: p. 474

)he type of decision that can made by following a definite procedure is called a?n@> a. b. c. d.

structured decision. unstructured decision. semistructured decision. procedural decision.

Answer: a

Difficulty: Easy

"#5

Reference: p. 474

2&.

Analysis 4hich type of decision is deciding whether to introduce a new product line: a. b. c. d.

+tructured Unstructured 'ecurring Nonrecurring

Answer: +

Difficulty: Easy

Reference: pp. 474,475

Analysis in terms of categorize 2(.

Analysis 4hich type of decision is calculating gross pay for hourly workers: a. b. c. d.

+tructured Unstructured 'ecurring Nonrecurring

Answer: a

Difficulty: Easy

Reference: p. 475

Analysis in terms of categorize 2*.

4hich type of decision is more prevalent at lower organi#ational levels: a. b. c. d.

8rocedural Unstructured +tructured +emistructured

Answer: c

2.

Difficulty: Easy

Reference: p. 475

4hich type of decision is most common at higher levels of management: a. b. c. d.

+emistructured Unstructured +tructured Undocumented

Answer: +

Difficulty: Easy

"#6

Reference: p. 475

2/.

'ank-and-file employees tend to make more of these types of decisions> a. b. c. d.

semistructured. unstructured. structured. procedural.

Answer: c

".

planning, financing, implementation, and maintenance. planning, design, implementation, and maintenance. intelligence, design, choice, and implementation. intelligence, design, financing, and implementation.

Answer: c

a. b.

3esign ntelligence

c. d.

hoice mplementation

Reference: p. 476

Difficulty: Easy

Reference: p. 476

n contrast to the classical model of management, behavioral models see the actual behavior of managers as being BBBBBBBBBB. a. b. c. d.

more s ystematic more informal more reflective more well organi#ed

Answer: +

"".


4hich phase of decision making finds or recogni#es a problem, need, or opportunity:

Answer: +

"2.

Reference: p. 475

+imons description of decision making consists of four stages> a. b. c. d.

"1.

Difficulty: Easy


Reference: p. 477

%int#bergs classification of managerial roles defines three main categories> a. b. c. d.

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

Answer: a


"#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%


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


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: 


"##

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
Answer: +

Reference: p. 4%'

Eptimi#ation +ensitivity analysis +tatistical
Answer: 


Reference: p. 4%'

5ackward sensitivity analysis software is used for> a. b. c. d.

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

Answer: c

$.


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: (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: +


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


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: 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


'&"

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

&&.


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: +

&.


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: 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.


Answer: a


Reference: p. 4#7

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


Answer: c

((.

Reference: p. 4#7

dea organi#ers in a 63++> a.

(&.


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


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: 


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.
'&7

Reference: p. 4%'

$.

1*at is t*e +usiness 2alue of a D003

3++ can help companies improve supply chain management and customer relationship management. +ome take advantage of the company-wide data provided by enterprise systems. 3++ today can also harness the interactive capabilities of the 4eb to provide decision-support tools to both employees and customers. Difficulty: (ar

&.

Reference: p. 4#&

Analysis f +ot* conte!porary E00 an D00 incorporate tools for !oelin an analysis w*at ualities istinuis* t*e two types of syste!3

3++ are concerned with solving more specific business problems, such as determining the best pricing for a product, establishing optimi#ed delivery routes, whereas 7++ are designed specifically for e0ecutives to use as a way of managing the company and seeing an overview of both e0ternal and internal information in order to monitor more general business situations. )he 7++ modeling tools would be used to provide different views of status, rather than to analy#e large amounts of data to arrive at a solution for a specific problem. Difficulty: Meiu!

Reference: p. 4#&

Analysis in terms of differentiate (.

Synthesis ist an escri+e at least t*ree ways in w*ic* 80 can +e use +y !oern +usiness.

6eographic information systems are a special category of 3++ that use data visuali#ation technology to analy#e and display data for planning and decision making in the form of digiti#ed maps. 6+ can best be used to support decisions that re=uire knowledge about the geographic distribution of people or other resources in scientific research, resource management, and development planning. 6+ have modeling capabilities, allowing managers to change data and automatically revise business scenarios to find better solutions.
Synthesis in terms of propose, model

'&%

Reference: p. 4#&

*.

Evaluation 1*at o you see as t*e +usiness 2alue of a 8D003

63++ helps groups make decisions about unstructured problems.
Reference: pp. 4#%,4##

Evaluation in terms of assess, judge .

Descri+e an e9plain *ow a 8D00 wor/s to en*ance roup ecision !a/in. 1*at are at least four factors in2ol2e in t*e successful outco!e of any roup !eetin3

5eyond three to five attendees the traditional meeting process breaks down. 63++ software tools contribute to a more collaborative atmosphere by guaranteeing contributors anonymity so that attendees can focus on evaluating the ideas themselves. )he 63++ software tools follow structured methods for organi#ing and evaluating ideas and for preserving the results of meetings, allowing non-attendees to locate needed information after the meeting. )he documentation of the meeting by one group at one site can also be used as input to another meeting on the same proDect at another site. f properly designed and supported, 63++ meetings can increase the number of ideas generated and the =uality of decisions while producing the desired results in fewer meetings. )he nature of electronic meeting technology is only one of a number of factors that affect meeting processes and output. )he outcome of group meetings depends upon the composition of the group, the manner in which the problem is presented to the group, the facilitators effectiveness, the organi#ations culture and environment, the =uality of the planning, the cooperation of the attendees, and the appropriateness of tools selected for different types of meetings and decision problems. Difficulty: Meiu!

'&#

Reference: pp. 4#%,4##

/.

Evaluation ou *a2e +een *ire as a consultant for an esta+lis*e +icycle parts !anufacturer to assist senior !anae!ent in plannin a new E00. 1*at factors will you a2ise !anae!ent to ta/e into consieration3

+tudent answers will vary, but should take into account technical difficulties ?integrating data from different systems@, the types of information and overview of the organi#ation needed, and change management. An e0ample answer is> A maDor challenge of building e0ecutive support systems has been to integrate data from systems designed for very different purposes so that senior e0ecutives can review organi#ational performance from a firm-wide perspective. 7++ must be designed so that high-level managers and others can use them without much training. Ene area that merits special attention is the determination of e0ecutive information re=uirements. 7++ need to have some facility for environmental scanning. A key information re=uirement of managers at the strategic level is the capability to detect signals of problems in the organi#ational environment that indicate strategic threats and opportunities. )he 7++ need to be designed so that both e0ternal and internal sources of information can be used for environmental scanning purposes. mplementation of the 7++ must be carefully managed to neutrali#e the opposition of managers at the lower levels of the organi#ation, because 7++ potentially could give top e0ecutives the ability to e0amine their work without their knowledge. Difficulty: Meiu!

Reference: pp. 4#$,4#6

Evaluation in terms of assess /.

1*at is t*e +alance scorecar !oel3 1*y is it particularly useful3 1*ere oes it et its infor!ation3

)he balanced scorecard is a model for analy#ing firm performance that supplements traditional financial measures with measurements from additional business perspectives, such as customers, internal business processes, and learning and growth. %anagers can use balanced scorecard systems to see how well the firm is meeting its strategic goals. 3ata to fill out the scorecard, from sources such as financial ledger applications and client retention and market penetration ratios, feed a central data warehouse. )he data is mined and ad-hoc reports can be created. Difficulty: Meiu!

'"&

Reference: p. 4#5

MIS10E_testbank_CH12.doc

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