True or False:

1. When HP approaches problem-solving, the first step in solving business problems is building a model
that enables decision makers to develop a good understanding of the problem. (False)
2. In a decision making environment, continuous change always validates the assumptions of the decision makers.
(False)
3. The most important feature of management support systems is the computational efficiency involved
in making a decision. (False)
4. Web-based decision support systems can provide support to both individuals and groups that act in a
decision-making capacity. (True)
5. Single decision makers rarely face decisions with multiple objectives in organizations and so are not
the focus of data analytics tools. (False)
6. The design phase of decision making is where the decision maker examines reality and identifies and defines the
problem. (False)
7. Only after the failed implementation of a decision can the decision maker return a prior stage of decision
making. (False)
8. Web-based collaboration tools (e.g., GSS) can assist in multiple stages of decision making, not just the
intelligence phase. (True)
9. Uncovering the existence of a problem can be achieved through monitoring and analyzing of the
organization's productivity level. The derived measurements of productivity are based on real data.
(True)
10. Qualitative elements of a problem cannot be incorporated into formal decision models, so one can
only seek to minimize their impact. (False)
11. Since the business environment involves considerable uncertainty, a manager cannot use modeling
to estimate the risks resulting from specific actions. (False)
12. A normative model examines all the possible alternatives in order to prove that the one selected is
the best. (True)
13. Since a descriptive model checks the performance of the system for only a subset of all possible
alternatives, there is no guarantee that a selected alternative will be optimal. (True)
14. Generating alternatives manually is often necessary in the model-building process. The best option
for the decision makers is to generate as many of these alternatives as is conceivable. (False)
15. Generally speaking, people intuitively estimate risk quite accurately. (False)
16. A data warehouse can support the intelligence phase of decision making by continuously monitoring
both internal and external information, looking for early signs of problems and opportunities through
a Web-based enterprise information portal or dashboard. (True)
17. Business intelligence systems typically support solving a certain problem or evaluate an opportunity, while
decision support systems monitor situations and identify problems and/or opportunities, using analytic
methods. (False)
18. Artificial intelligence-based DSS fall into this category of document-driven DSS. (False)
19. The DSS component that includes the financial, statistical, management science, or other quantitative
models is called the model management subsystem. (True)
20. Knowledge-based management subsystems provide intelligence to augment the decision maker's own
intelligence. (True)
Multiple Choice:
1. The HP Case illustrates that after analytics are chosen to solve a problem, building a new decision
model from scratch or purchasing one may not always be the best approach. Why is that?
A) Analytic models work better when they are built from scratch or purchased.
B) A related tool requiring slight modification may already exist.
C) CIOs are more likely to allocate funds to new development.
D) Decision models should never be purchased, only developed in house.
2. Groupthink in a decision-making environment occurs when
A) group members accept the same timeframe for problem solving without complaining.
B) group members all accept a course of action without thinking for themselves.
C) group members all use the same analytic tools without having a choice.
D) group members are all working together for the firm's success.
3. All of the following statements about decision style are true EXCEPT
A) heuristic styles can also be democratic.
B) autocratic styles are authority-based.
C) decision styles may vary among lower-level managers.
D) decision styles are consistent among top managers.
4. A search for alternatives occurs in which phase of the decision making/action model?
A) the intelligence phase
B) the implementation phase
C) the choice phase
D) the design phase
5. All of the following are benefits of using models for decision support EXCEPT
A) you can find out probable outcomes of an action before actually taking it.
B) using well-designed models always guarantees you success in implementation.
C) it is easier to manipulate a model than a real system.
D) the cost of a model is usually much lower than manipulating the system in implementation.
6. In the design phase of decision making, selecting a principle of choice or criteria means that
A) optimality is not the only criterion for acceptable solutions.
B) if an objective model is used with hard data, all decision makers will make the same choice.
C) risk acceptability is a subjective concept and plays little part in modeling.
D) using well-designed models guarantees you success in real life.
7. What form of decision theory assumes that decision makers are rational beings who always seek to
strictly maximize economic goals?
A) satisficing decision theory
B) human optimal decision theory
C) normative decision theory
D) the theory of bounded rationality
8. When an Accounts Payable department improves their information system resulting in faster
payments to vendors, without the Accounts Receivable Department doing the same, leading to a
cash flow crunch, what can we say happened in decision-theoretic terms?
 A) cash flow problems
B) profit minimization
C) suboptimization
D) optimization
9. All of the following statements about risk in decision making are correct EXCEPT
A) all business decisions incorporate an element of risk.
B) decision makers frequently measure risk and uncertainty incorrectly.
C) most decision makers are pessimistic about decision outcomes.
D) methodologies are available for handling extreme uncertainty.
10. The Web can play a significant role in making large amounts of information available to decision
makers. Decision makers must be careful that this glut of information does not
A) detract from the quality and speed of decision making.
B) take on the same credibility of internally-generated data.
C) increase their enthusiasm for data available on the web.
D) take on the same role as human intuition.
11. All of the following statements about the decision implementation phases are true EXCEPT
A) ES and KMS can help in training and support for decision implementation.
B) implementation is every bit as important as the decision itself.
C) ERP, CRP, and BPM tools can all help track decision implementation.
D) employees need only the decisions from the CEO, not the rationale.
12. For DSS, why are semi-structured or unstructured decisions the main focus of support?
A) MIS staff prefer to work on solving unstructured and semi-structured decisions.
B) There are many more unstructured and semi-structured decisions than structured in
organizations.
C) Unstructured and semi-structured decisions are the easiest to solve.
D) They include human judgment, which is incorporated into DSS.
13. What class of DSS incorporates simulation and optimization?
A) model-driven DSS
B) communications-driven/Group DSS
C) knowledge-driven DSS
D) data-driven DSS
14. When a DSS is built, used successfully and integrated into the company's business processes, it was most likely built for
a(n)
A) one-off decision.
B) unimportant decision.
C) ambiguous decision.
D) recurrent decision.
15. The fact that many organizations share many similar problems means that in sourcing a DSS, it is often wiser to acquire
a(n)
A) offshored DSS.
B) consultant-developed DSS.
C) custom-made DSS.
 D) ready-made DSS.
16. The software that manages the DSS database and enables relevant data to be accessed by DSS application programs is
called
A) KWS.
B) CRM.
C) ERP.
D) DBMS.
17. The model management subsystem provides the system's analytical capabilities and appropriate software management.
Which of the following is NOT an element of the model management subsystem?
A) MBMS
B) model base
C) model execution, integration, and command processor
D) DBMS
18. While Microsoft Excel can be an efficient tool for developing a DSS, compared to using a
programming language like C++, a shortcoming of Excel is
A) errors can creep into formulas somewhat easily.
B) Excel is not widely understood compared to a language like C++.
C) it cannot be used effectively for small or medium sized problems.
D) it is not widely available for purchase.
19. What type of user interface has been recognized as an effective DSS GUI because it is familiar, user
friendly, and a gateway to almost all sources of necessary information and data?
A) visual basic interfaces
B) Web browsers
C) ASP.net
D) mainframe interfaces
20. The user communicates with and commands the DSS through the user interface subsystem.
Researchers assert that some of the unique contributions of DSS are derived from
A) the user being considered part of the system.
B) the intensive interaction between the computer and the decision maker.
C) some DSS user interfaces utilizing natural-language input (i.e., text in a human language).
D) the Web browser.