Monte Carlo Simulation and Model-Based Decision Making Quiz
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Questions and Answers

What is the purpose of Model-Based Decision Making?

  • To skip the decision-making process entirely
  • To complicate the decision-making process
  • To test out decisions before making real-world choices (correct)
  • To eliminate all possible outcomes

    • What is the main focus of Prescriptive Analytics?

  • Analyzing historical data
  • Predicting future outcomes with certainty
  • Ignoring specific scenarios and past performance
  • Examining data to answer 'What should be done' or 'What can we do to make a desired outcome happen' (correct)

    • What is the first step in Model Based Decision Making?

  • Environmental Scanning and Analysis
  • Skip the problem identification step
  • Identification of the Problem (correct)
  • Variable Identification

    • What is the purpose of Environmental Scanning and Analysis in Model Based Decision Making?

    <p>To understand the factors that might influence the decision</p> Signup and view all the answers

    What does Variable Identification involve in Model Based Decision Making?

    <p>Recognizing all the elements or factors that can be changed, controlled, or that will impact the outcome</p> Signup and view all the answers

    How does Prescriptive Analytics recommend actions?

    <p>Based on desired outcomes and specific scenarios, taking into account available resources and past performance</p> Signup and view all the answers

    Which of the following best describes prescriptive analytics?

    <p>Informs decision-making by providing possible actions to achieve desired outcomes</p> Signup and view all the answers

    In the context of modeling, what do static models represent?

    <p>A snapshot of a system or process at a specific point in time</p> Signup and view all the answers

    What do dynamic models represent in the context of modeling?

    <p>Systems or processes over time that can capture changes and trends</p> Signup and view all the answers

    Which of the following is an example of a dynamic model?

    <p>A stock market simulation that shows how stock prices change over time</p> Signup and view all the answers

    What is the main focus of uncertainty in decision-making?

    <p>Several outcomes for each decision with unknown probabilities</p> Signup and view all the answers

    Which tool is known as the most popular end-user modeling tool with powerful functions and programmability?

    <p>Spreadsheet</p> Signup and view all the answers

    What is the primary focus of prescriptive analytics?

    <p>Providing possible actions to achieve desired outcomes based on forecasts and predictive analytics</p> Signup and view all the answers

    What do static models not account for in their representation?

    <p>Snapshot of a system or process at a specific point in time</p> Signup and view all the answers

    Static models do not account for changes over time, while dynamic models can capture changes, trends, and evolution.

    <p>True</p> Signup and view all the answers

    Prescriptive analytics uses past and present data to make informed predictions about future events.

    <p>False</p> Signup and view all the answers

    Uncertainty in decision-making means that all potential outcomes are known.

    <p>False</p> Signup and view all the answers

    Modeling under certainty assumes complete knowledge, while modeling under risk analysis involves probability of each outcome being known.

    <p>True</p> Signup and view all the answers

    Variables in a business scenario might include costs, prices, demand, and supply.

    <p>True</p> Signup and view all the answers

    Decision modeling with spreadsheets is not flexible and easy to use.

    <p>False</p> Signup and view all the answers

    Prescriptive analytics focuses on recommending actions based on the predicted outcomes of different decisions.

    <p>True</p> Signup and view all the answers

    Environmental scanning and analysis does not play a role in Model-Based Decision Making.

    <p>False</p> Signup and view all the answers

    Dynamic models represent a system or process at a specific point in time.

    <p>False</p> Signup and view all the answers

    The most popular end-user modeling tool with powerful functions and programmability is a spreadsheet.

    <p>True</p> Signup and view all the answers

    Prescriptive analytics is a type of advanced analytics that examines data to answer the question 'What should be done.'

    <p>True</p> Signup and view all the answers

    Model-Based Decision Making creates a simplified version of a situation to explore outcomes before making real-world choices.

    <p>True</p> Signup and view all the answers

    Before applying prescriptive analytics, it is crucial to clearly define the problem by specifying the objectives, constraints, and desired outcomes.

    <p>True</p> Signup and view all the answers

    Environmental Scanning and Analysis involves reviewing the external and internal environments to gather relevant information.

    <p>True</p> Signup and view all the answers

    Identifying variables in Model Based Decision Making means recognizing all the elements or factors that can be changed, controlled, or that will impact the outcome.

    <p>True</p> Signup and view all the answers

    Prescriptive analytics takes into account specific scenarios, available resources, and past performance to recommend actions based on desired outcomes.

    <p>True</p> Signup and view all the answers

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