South Western Federal Taxation 2010, Comprehensive Volume, 33th Edition - Chapter1

CHAPTER 1
Introduction to Quantitative Analysis

TRUE/FALSE

1.1 Interviews, statistical sampling, and company reports provide input data for quantitative analysis models.

ANSWER: TRUE {moderate, THE QUANTITATIVE ANALYSIS APPROACH}

1.2 In the early 1900s, Henry Ford pioneered the principles of the scientific approach to management.

ANSWER: FALSE {moderate, WHAT IS QUANTITATIVE ANALYSIS?}

1.3 Managers do not need to be familiar with the limitations, assumptions, and/ or specific applicability of the quantitative analysis technique to use it for accurate decision making.

ANSWER: FALSE {moderate, INTRODUCTION}

1.4 During World War II, many new scientific and quantitative techniques were developed to assist the military, and these developments were so successful that many companies started using similar techniques in managerial decision making and planning after the war.

ANSWER: TRUE {moderate, WHAT IS QUANTITATIVE ANALYSIS?}

1.5 When a problem is difficult to quantify, it may be necessary to develop unspecific objectives.

ANSWER: FALSE {moderate, THE QUANTITATIVE ANALYSIS APPROACH}

1.6 The Quantitative Analysis Approach consists of six steps.

ANSWER: FALSE {moderate, THE QUANTITATIVE ANALYSIS APPROACH}

1.7 A mathematical model shows the relationship between quantifiable and non-quantifiable information.

ANSWER: FALSE {moderate, THE QUANTITATIVE ANALYSIS APPROACH}

1.8 Decision variables may also be called parameters.

ANSWER: FALSE {moderate, THE QUANTITATIVE ANALYSIS APPROACH}

1.9 Model variables can be controllable or uncontrollable.

ANSWER: TRUE {moderate, THE QUANTITATIVE ANALYSIS APPROACH}

1.10 A series of steps or procedures that are repeated is known as an algorithm.

ANSWER: TRUE {moderate, THE QUANTITATIVE ANALYSIS APPROACH}

1.11 A model is a