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Management Information Systems, 12e (Laudon)Chapter 12 Enhancing Decision Making1) Unstructured decisions are novel and nonroutine, and there is no well-understood or agreed-on procedure for making them.Answer: TRUEDiff: 1Page Ref: 456AACSB: Reflective ThinkingCASE: ContentObjective: 12.12) A structured decision can be made by following a well-defined set of procedures. No feel or intuition is necessary.Answer: TRUEDiff: 1Page Ref: 456AACSB: Reflective ThinkingCASE: ContentObjective: 12.13) Middle management face primarily unstructured decisions.Answer: FALSEDiff: 2Page Ref: 456AACSB: Reflective ThinkingCASE: ContentObjective: 12.14) Structured decision making is most prevalent at lower organizational levels.Answer: TRUEDiff: 1Page Ref: 456AACSB: Reflective ThinkingCASE: ContentObjective: 12.15) Operational managers tend to make more structured decisions.Answer: TRUEDiff: 1Page Ref: 457AACSB: Reflective ThinkingCASE: ContentObjective: 12.16) Improving the quality of high-value decision making by an executive will save an organization far more money than improving the quality of lesser-value decisions made at a lower level.Answer: FALSEDiff: 2Page Ref: 455AACSB: Use of ITCASE: ContentObjective: 12.37) The intelligence phase of decision making consists of discovering, identifying, and understanding the problems occurring in the organization.Answer: TRUEDiff: 1Page Ref: 458AACSB: Reflective ThinkingCASE: ContentObjective: 12.18) The implementation phase of Simons decision making model includes choosing among solution alternatives.Answer: FALSEDiff: 2Page Ref: 458AACSB: Reflective ThinkingCASE: ContentObjective: 12.19) The first stage in Simons decision-making process model is the design stage.Answer: FALSEDiff: 2Page Ref: 458AACSB: Reflective ThinkingCASE: ContentObjective: 12.110) The classical model of management does not address what exactly managers do when they plan, decide things, and control the work of others.Answer: TRUEDiff: 2Page Ref: 458AACSB: Reflective ThinkingCASE: ContentObjective: 12.111) MIS typically produce fixed, regularly scheduled reports based on data extracted and summarized from the firms underlying transaction processing systems.Answer: TRUEDiff: 1Page Ref: 471AACSB: Use of ITCASE: ContentObjective: 12.212) DSS primarily address structured problems.Answer: FALSEDiff: 1Page Ref: 472AACSB: Use of ITCASE: ContentObjective: 12.313) What-if analysis works forward from known or assumed conditions.Answer: TRUEDiff: 1Page Ref: 472AACSB: Reflective ThinkingCASE: ContentObjective: 12.314) Backward sensitivity analysis software is used for goal seeking.Answer: TRUEDiff: 1Page Ref: 472AACSB: Reflective ThinkingCASE: ContentObjective: 12.315) Data visualization technologies help distill large amounts of information into easily read textual lists.Answer: FALSEDiff: 1Page Ref: 467AACSB: Use of ITCASE: ContentObjective: 12.316) DSS are a special category of GIS.Answer: FALSEDiff: 1Page Ref: 467AACSB: Use of ITCASE: ContentObjective: 12.217) A geographic information system is a decision support system designed specifically to work with spatial information.Answer: TRUEDiff: 1Page Ref: 467AACSB: Use of ITCASE: ContentObjective: 12.418) GDSS facilitate the solution of unstructured problems by a set of decision makers working together as a group in either the same location or different locations. Answer: TRUEDiff: 1Page Ref: 475AACSB: Use of ITCASE: ContentObjective: 12.419) Web-based tools for videoconferencing and electronic meetings are the primary tools for GDSS.Answer: FALSEDiff: 3Page Ref: 475AACSB: Use of ITCASE: ContentObjective: 12.420) During a GDSS meeting, the attendees control the use of GDSS tools.Answer: FALSEDiff: 1Page Ref: 477AACSB: Use of ITCASE: ContentObjective: 12.421) Which of the following statements best describes the business value of improved decision making?A) Improved decision making creates better products. B) Improved decision making results in a large monetary value for the firm as numerous small daily decisions affecting efficiency, production, costs, and more add up to large annual values. C) Improved decision making enables senior executives to more accurately foresee future financial trends. D) Improved decision making strengthens customer and supplier intimacy, which reduces costs. Answer: BDiff: 1Page Ref: 455AACSB: Analytic SkillsCASE: AnalysisObjective: 12.222) When there is no well-understood or agreed-on procedure for making a decision, it is said to beA) undocumented.B) unstructured.C) documented.D) semistructured.Answer: BDiff: 1Page Ref: 456AACSB: Reflective ThinkingCASE: ContentObjective: 12.123) The type of decision that can made by following a definite procedure is called a(n) _ decision.A) structuredB) unstructuredC) semistructuredD) proceduralAnswer: ADiff: 1Page Ref: 456AACSB: Reflective ThinkingCASE: ContentObjective: 12.124) Which type of decision is deciding whether to introduce a new product line?A) structuredB) unstructuredC) recurringD) nonrecurringAnswer: BDiff: 1Page Ref: 456AACSB: Analytic SkillsCASE: AnalysisObjective: 12.125) Which type of decision is calculating gross pay for hourly workers?A) structuredB) unstructuredC) semistructuredD) none of the aboveAnswer: ADiff: 1Page Ref: 456AACSB: Analytic SkillsCASE: AnalysisObjective: 12.126) The decision to approve a capital budget is an example of a(n) _ decision.A) semistructuredB) unstructuredC) structuredD) undocumentedAnswer: BDiff: 2Page Ref: 456AACSB: Analytic SkillsCASE: AnalysisObjective: 12.127) The decisions involved in creating and producing a corporate intranet can be classified as _ decisions.A) proceduralB) unstructuredC) structuredD) semistructuredAnswer: DDiff: 2Page Ref: 456AACSB: Analytic SkillsCASE: AnalysisObjective: 12.128) Checking store inventory is an example of a(n) _ decision.A) semistructuredB) unstructuredC) structuredD) none of the aboveAnswer: CDiff: 2Page Ref: 456AACSB: Analytic SkillsCASE: AnalysisObjective: 12.129) Simons description of decision making consists of which four stages?A) planning, financing, implementation, and maintenanceB) planning, design, implementation, and maintenanceC) intelligence, design, choice, and implementationD) intelligence, design, financing, and implementationAnswer: CDiff: 2Page Ref: 457AACSB: Reflective ThinkingCASE: ContentObjective: 12.130) Which phase of decision making finds or recognizes a problem, need, or opportunity?A) designB) intelligenceC) choiceD) implementationAnswer: BDiff: 1Page Ref: 458AACSB: Reflective ThinkingCASE: ContentObjective: 12.131) The five classical functions of managers are planning, organizing, deciding, controlling, and A) coordinating.B) leading.C) managing.D) negotiating.Answer: ADiff: 3Page Ref: 458AACSB: Reflective ThinkingCASE: ContentObjective: 12.232) In contrast to the classical model of management, behavioral models see the actual behavior of managers as being moreA) systematic.B) informal.C) reflective.D) well organized.Answer: BDiff: 2Page Ref: 458AACSB: Reflective ThinkingCASE: ContentObjective: 12.233) Behavioral models of managers find that, from observation, managersA) perform often fewer than 100 activities a day. B) operate best with standardized, predictable, printed information. C) create a formalized, hierarchic structure of contacts to provide filtered information. D) typically work in a fragmented manner, with only 10% of activities exceeding an hour in duration. Answer: DDiff: 2Page Ref: 458AACSB: Reflective ThinkingCASE: ContentObjective: 12.234) Mintzbergs classification of managerial roles outlines which three main categories?A) interpersonal, informational, and decisionalB) symbolic, decisional, and interpersonalC) symbolic, interpersonal, and technicalD) technical, interpersonal, and informationalAnswer: ADiff: 2Page Ref: 459AACSB: Reflective ThinkingCASE: ContentObjective: 12.235) The role of liaison falls into which of Mintzbergs managerial classifications?A) decisionalB) informationalC) interpersonalD) symbolicAnswer: CDiff: 3Page Ref: 459AACSB: Reflective ThinkingCASE: ContentObjective: 12.236) The role of entrepreneur falls into which of Mintzbergs managerial classifications?A) decisionalB) informationalC) interpersonalD) symbolicAnswer: ADiff: 3Page Ref: 459AACSB: Reflective ThinkingCASE: ContentObjective: 12.237) According to Mintzberg, managers in their informational role act asA) figureheads for the organization.B) leaders.C) nerve centers of the organization.D) negotiators.Answer: CDiff: 2Page Ref: 459AACSB: Reflective ThinkingCASE: ContentObjective: 12.238) Which of the following managerial roles is not supported by information systems?A) liaisonB) nerve centerC) leaderD) negotiatorAnswer: DDiff: 3Page Ref: 459AACSB: Reflective ThinkingCASE: ContentObjective: 12.239) As discussed in the chapter text, the three main reasons that investments in information technology do not always produce positive results areA) management support, technical logistics, and user compliance.B) organization, environment, culture.C) information quality, information integrity, and information accuracy.D) information quality, organizational culture, and management filters.Answer: DDiff: 2Page Ref: 460AACSB: Use of ITCASE: ContentObjective: 12.240) The concern that data values of an information source fall within a defined range reflects which quality dimension of information?A) accuracyB) integrityC) validityD) consistencyAnswer: CDiff: 3Page Ref: 460AACSB: Reflective ThinkingCASE: ContentObjective: 12.241) The concern that the structure of data is consistent within an information source reflects which quality dimension of information?A) accuracyB) integrityC) validityD) consistencyAnswer: BDiff: 3Page Ref: 460AACSB: Reflective ThinkingCASE: ContentObjective: 12.242) MIS typically produceA) new ways of looking at data that emphasize change, flexibility, and rapid response.B) fixed, regularly scheduled reports based on data extracted from the organizations TPS.C) solutions to semistructured problems appropriate for middle management decision making.D) assumptions, responses to ad hoc queries, and graphic representations of existing data.Answer: BDiff: 1Page Ref: 471AACSB: Use of ITCASE: ContentObjective: 12.443) An information system for a building company that tracks construction costs for various projects across the United States would be categorized as a type ofA) DSS.B) MIS.C) GIS.D) GDSS.Answer: BDiff: 1Page Ref: 471AACSB: Analytic SkillsCASE: AnalysisObjective: 12.444) Which of the following describes how the Simon framework of decision-making works in high-velocity decision environments?A) All four steps of the process are handled by software algorithms; humans are eliminated from the decisions because they are too slow.B) The first three steps of the process are handled by software algorithms and the final step is handled by experienced managers.C) The first two steps of Simons framework are eliminated and the final two steps are handled by software algorithms.D) All fours steps are performed by humans with the support of high-speed, high-volume DSS and ESS.Answer: ADiff: 2Page Ref: 461AACSB: Analytic SkillsCASE: EvaluationObjective: 12.145) Which types of decisions are automated for high-velocity decision-making?A) highly-structured decisionsB) semi-structured financial decisionsC) unstructured financial decisionsD) all of the aboveAnswer: ADiff: 1Page Ref: 461AACSB: Reflective ThinkingCASE: AnalysisObjective: 12.146) Which of the following is a disadvantage of high-velocity, automated decision-making systems?A) inability to handle high volumes of decisionsB) inability to handle structured decisionsC) inability to handled semi-structured decisionsD) inability to control themselves and respond to new environmentsAnswer: DDiff: 2Page Ref: 461AACSB: Use of ITCASE: AnalysisObjective: 12.147) Which of the following types of systems would be used to present senior marketing executives with in-depth information about customer retention, satisfaction, and quality performance.A) CDSSB) MISC) DSSD) ESSAnswer: DDiff: 2Page Ref: 474AACSB: Analytic SkillsCASE: AnalysisObjective: 12.448) Measures defined by management and used to internally evaluate the success of a firms financial, business process, customer, and learning and growth are calledA) benchmarks.B) KPIs.C) the balanced scorecard method.D) BPM.Answer: BDiff: 2Page Ref: 474AACSB: Reflective ThinkingCASE: ContentObjective: 12.449) The management methodology of using a firms strategy to generate operational targets for the business and measuring progress towards them using the firms enterprise systems is calledA) benchmarks.B) KPIs.C) the balanced scorecard method.D) BPM.Answer: DDiff: 2Page Ref: 475AACSB: Reflective ThinkingCASE: ContentObjective: 12.450) The chapter case discussing the Montgomery County public school system illustrates the use of A) MIS to achieve greater operational excellence. B) ESS to enable better decision making. C) DSS to enable better decision making.D) GDSS to enable greater efficiency.Answer: CDiff: 3Page Ref: 469AACSB: Analytic SkillsCASE: SynthesisObjective: 12.351) Which of the following best describes the term business analytics?A) the infrastructure for collecting and managing business dataB) the tools and techniques used to analyze and understand business dataC) software developed exclusively for business managementD) information systems involved in business decision makingAnswer: BDiff: 2Page Ref: 462AACSB: Reflective ThinkingCASE: ContentObjective: 12.352) Which of the following statements best describes the term business intelligence?A) the infrastructure for collecting and managing business dataB) the tools and techniques used to analyze and understand business dataC) software developed exclusively for business managementD) information systems involved in business decision makingAnswer: ADiff: 2Page Ref: 462AACSB: Reflective ThinkingCASE: ContentObjective: 12.353) Business intelligence would be useful for analyzing and decision-making in which of the following situations?A) deciding what marketing techniques are most successful with high-value customersB) identifying the most efficient methods for packing and delivering finished products to destinationsC) forecasting the effect on sales given projected future variations in weather and other environmental variablesD) all of the aboveAnswer: DDiff: 2Page Ref: 462AACSB: Analytic SkillsCASE: AnalysisObjective: 12.354) Which of the following companies is not one of the top five producers of business intelligence and analytics products?A) SunB) MicrosoftC) SAPD) IBMAnswer: ADiff: 2Page Ref: 463AACSB: Reflective ThinkingCASE: ContentObjective: 12.355) Which of the following is not one of the six main elements in the business intelligence environment discussed in this chapter?A) managerial users and methodsB) organizational environmentC) user interfaceD) data from the business environmentAnswer: BDiff: 2Page Ref: 463-465AACSB: Reflective ThinkingCASE: ContentObjective: 12.356) Backward sensitivity analysis software is used forA) supply chain optimization.B) historical what-if analysis.C) goal seeking.D) reverse forecasting.Answer: CDiff: 3Page Ref: 472AACSB: Use of ITCASE: ContentObjective: 12.357) A pivot table is aA) spreadsheet tool that displays two or more dimensions of data in a convenient format.B) type of relational database.C) chart tool that can rotate columnar data quickly and visually.D) tool for performing sensitivity analysis.Answer: ADiff: 1Page Ref: 472AACSB: Use of ITCASE: ContentObjective: 12.358) Which type of information system uses data visualization technology to analyze and display data for planning and decision making in the form of digitized maps?A) GISB) DSSC) MISD) TPSAnswer: ADiff: 1Page Ref: 467AACSB: Use of ITCASE: ContentObjective: 12.359) As discussed in the chapter case, the system used in South Carolina to estimate and map the regional damage and losses resulting from an earthquake was a type of A) CDSS.B) GSS.C) GIS.D) GDSS.Answer: CDiff: 1Page Ref: 467AACSB: Analytic SkillsCASE: AnalysisObjective: 12.360) GDSSA) are designed to allow meeting attendees to share their thoughts in real-time with their peers.B) support decisions that require knowledge about the geographic distribution of resources.C) are typically used with geographically dispersed attendees.D) implement structured methods for organizing and evaluating ideas.Answer: DDiff: 2Page Ref: 475AACSB: Use of ITCASE: ContentObjective: 12.461) An essential component in t
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