30 Questions
What is the purpose of Model-Based Decision Making?
To test out decisions before making real-world choices
What is the main focus of Prescriptive Analytics?
Examining data to answer 'What should be done' or 'What can we do to make a desired outcome happen'
What is the first step in Model Based Decision Making?
Identification of the Problem
What is the purpose of Environmental Scanning and Analysis in Model Based Decision Making?
To understand the factors that might influence the decision
What does Variable Identification involve in Model Based Decision Making?
Recognizing all the elements or factors that can be changed, controlled, or that will impact the outcome
How does Prescriptive Analytics recommend actions?
Based on desired outcomes and specific scenarios, taking into account available resources and past performance
Which of the following best describes prescriptive analytics?
Informs decision-making by providing possible actions to achieve desired outcomes
In the context of modeling, what do static models represent?
A snapshot of a system or process at a specific point in time
What do dynamic models represent in the context of modeling?
Systems or processes over time that can capture changes and trends
Which of the following is an example of a dynamic model?
A stock market simulation that shows how stock prices change over time
What is the main focus of uncertainty in decision-making?
Several outcomes for each decision with unknown probabilities
Which tool is known as the most popular end-user modeling tool with powerful functions and programmability?
Spreadsheet
What is the primary focus of prescriptive analytics?
Providing possible actions to achieve desired outcomes based on forecasts and predictive analytics
What do static models not account for in their representation?
Snapshot of a system or process at a specific point in time
Static models do not account for changes over time, while dynamic models can capture changes, trends, and evolution.
True
Prescriptive analytics uses past and present data to make informed predictions about future events.
False
Uncertainty in decision-making means that all potential outcomes are known.
False
Modeling under certainty assumes complete knowledge, while modeling under risk analysis involves probability of each outcome being known.
True
Variables in a business scenario might include costs, prices, demand, and supply.
True
Decision modeling with spreadsheets is not flexible and easy to use.
False
Prescriptive analytics focuses on recommending actions based on the predicted outcomes of different decisions.
True
Environmental scanning and analysis does not play a role in Model-Based Decision Making.
False
Dynamic models represent a system or process at a specific point in time.
False
The most popular end-user modeling tool with powerful functions and programmability is a spreadsheet.
True
Prescriptive analytics is a type of advanced analytics that examines data to answer the question 'What should be done.'
True
Model-Based Decision Making creates a simplified version of a situation to explore outcomes before making real-world choices.
True
Before applying prescriptive analytics, it is crucial to clearly define the problem by specifying the objectives, constraints, and desired outcomes.
True
Environmental Scanning and Analysis involves reviewing the external and internal environments to gather relevant information.
True
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.
True
Prescriptive analytics takes into account specific scenarios, available resources, and past performance to recommend actions based on desired outcomes.
True
Test your knowledge about Monte Carlo simulation and model-based decision making, which are used to explore outcomes and make informed decisions. This quiz covers topics such as prescriptive analytics and using simplified versions of situations to choose the best option.
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