Information Systems International Edition 10th Edition by Ralph M. Stair – Test Bank

Information Systems International Edition 10th Edition by Ralph M. Stair – Test Bank

Chapter 10: Information and Decision Support Systems

 

TRUE/FALSE

 

1. The ultimate goal of management information and decision support systems is to help managers at the highest level in the organization make automated decisions with little or no effort.

 

ANS:  F                    PTS:   1

 

2. A well-known model developed by Herbert Simon divides the decision making phase of the problem solving process into three stages: design, implementation, and monitoring.

 

ANS:  F                    PTS:   1

 

3. Programmed decisions are made using a rule, procedure, or quantitative method.

 

ANS:  T                    PTS:   1

 

4. In general, computerized decision support systems can optimize or minimize.

 

ANS:  F                    PTS:   1

 

5. Heuristics, also known as “rules of thumb,” are commonly accepted guidelines or procedures that usually find a good solution.

 

ANS:  T                    PTS:   1

 

6. An MIS provides managers and decision makers with information to help achieve organizational goals.

 

ANS:  T                    PTS:   1

 

7. Since an MIS helps make decisions about internal problems, only internal data need be entered to the MIS.

 

ANS:  F                    PTS:   1

 

8. A key indicator report summarizes the previous day’s critical activities and is typically available at the beginning of each workday.

 

ANS:  T                    PTS:   1

 

9. Demand reports are produced on a regular schedule, the same time each day, week, or month.

 

ANS:  F                    PTS:   1

 

 

10. Drill down reports are automatically produced when a situation is unusual or requires management action.

 

ANS:  F                    PTS:   1

 

11. An MIS can be divided along functional lines to produce reports tailored to individual functions.

 

ANS:  T                    PTS:   1

 

12. Most financial MISs integrate financial and operational information from multiple sources, including the Internet, into multiple systems.

 

ANS:  F                    PTS:   1

 

13. Cost centers are units within the company that do not directly generate income.

 

ANS:  T                    PTS:   1

 

14. Internal auditing involves analyzing the internal financial condition of the firm.

 

ANS:  F                    PTS:   1

 

15. The use of computerized systems is emphasized at all levels of manufacturing-from the shop floor to the executive suite.

 

ANS:  T                    PTS:   1

 

16. CAD is used in the development and design of complex structures and products.

 

ANS:  T                    PTS:   1

 

17. The economic order quantity is calculated to minimize the number of times an inventory item must be reordered.

 

ANS:  F                    PTS:   1

 

18. A flexible manufacturing system uses computers to link the components of the production process into an effective system.

 

ANS:  F                    PTS:   1

 

19. A marketing MIS supports managerial activities in product development, distribution, pricing, promotions, and sales.

 

ANS:  T                    PTS:   1

 

20. Product development data yields valuable information for the development and marketing of new products.

 

ANS:  F                    PTS:   1

 

21. Traditionally, executives simply added a profit margin to total costs to set prices and guarantee a decent profit.

 

ANS:  T                    PTS:   1

 

22. Computerized sales analysis is important to identify products, sales personnel, and customers that contribute to profits and those that do not.

 

ANS:  T                    PTS:   1

 

23. The overall purpose of the human resource planning subsystem is to aid in the recruiting and selecting of personnel.

 

ANS:  F                    PTS:   1

 

24. A decision support system includes people, procedures, software, databases, and devices to help assemble, store, manipulate, and display geographic information.

 

ANS:  F                    PTS:   1

 

25. Decision support systems are only used by the top levels of management.

 

ANS:  F                    PTS:   1

 

26. An ad hoc DSS is concerned with situations or decisions that come up frequently during the life of the organization.

 

ANS:  F                    PTS:   1

 

27. DSS and MIS systems are actually quite similar in numerous ways, including the types of problems solved, the support given to users, and the decision emphasis and approach.

 

ANS:  F                    PTS:   1

 

28. The database management system of a DSS can also connect to external databases to give decision makers even more information and decision support beyond that available through just corporate databases.

 

ANS:  T                    PTS:   1

 

29. The Delphi approach is a group decision making approach that encourages diversity among group members and fosters creativity and original thinking in decision making.

 

ANS:  T                    PTS:   1

 

30. An executive support system would never be used by members of middle management.

 

ANS:  F                    PTS:   1

 

 

MULTIPLE CHOICE

 

1. A typical DSS includes many components including the ____ which allows decision makers to easily access and manipulate the DSS and to use common business terms and phrases.

a.	model base	c.	database
b.	dialogue manager	d.	external database access

 

 

ANS:  B                    PTS:   1

 

2. The ____ is not a component of the typical DSS?

a.	inference engine	c.	model base
b.	user interface	d.	database

 

 

ANS:  A                    PTS:   1

 

3. ____ is a common characteristic of an executive support system.

a.	Tailored for use by individual executives
b.	Provide drill-down capabilities
c.	Can be used in situations with a high degree of uncertainty
d.	All of the above

 

 

ANS:  D                    PTS:   1

 

4. The two phases of problem solving that were added to Hubert Simon’s original three-sate model are ____.

a.	intelligence and design	c.	choice and implementation
b.	design and choice	d.	implementation and monitoring

 

 

ANS:  D                    PTS:   1

 

5. The first stage in the problem solving process during which one identifies and defines potential problems or opportunities is the ____ stage.

a.	design	c.	intelligence
b.	choice	d.	monitoring

 

 

ANS:  C                    PTS:   1

 

6. During the ____ stage of the problem solving process, you develop alternative solutions to the problem and evaluate their feasibility.

a.	intelligence	c.	choice
b.	implementation	d.	design

 

 

ANS:  D                    PTS:   1

 

7. The performance of decision support systems is typically a function of decision quality and ____.

a.	problem complexity	c.	hardware
b.	cost	d.	software

 

 

ANS:  A                    PTS:   1

 

 

8. The most significant internal data sources for an MIS are the organization’s ____ .

a.	various DSS and GSS systems and users
b.	Internet Web sites
c.	various TPS and ERP systems and related databases
d.	data from customers, suppliers, competitors, and stockholders

 

 

ANS:  C                    PTS:   1

 

9. ____ reports are a set of reports developed to provide certain information upon request.

a.	exception	c.	scheduled
b.	drill-down	d.	demand

 

 

ANS:  D                    PTS:   1

 

10. The ____ report summarizes the previous day’s critical activities and is typically available at the start of each workday.

a.	demand	c.	exception
b.	drill-down	d.	key-indicator

 

 

ANS:  D                    PTS:   1

 

11. The ability to ____ is a characteristic of a MIS system.

a.	provide reports with fixed and standard formats
b.	allow users to develop custom reports
c.	use internal data stored in the computer system
d.	all of the above

 

 

ANS:  D                    PTS:   1

 

12. The ability to ____ is a characteristic of a financial MIS.

a.	integrate financial and operational information from multiple sources, including the Internet
b.	provide easy access to financial data through use of a corporate intranet to access corporate Web pages
c.	enable analysis of financial data along multiple dimensions
d.	all of the above

 

 

ANS:  D                    PTS:   1

 

13. ____ is an organizational unit within an enterprise that does not directly generate revenue.

a.	Cost center	c.	Investments
b.	Sales	d.	Subscriptions

 

 

ANS:  A                    PTS:   1

 

14. The ____ MIS subsystems and outputs are used to monitor and control the flow of materials, products, and services through the organization.

a.	financial	c.	human resources
b.	manufacturing	d.	marketing

 

 

ANS:  B                    PTS:   1

 

15. A(n) ____ is an approach that allows manufacturing facilities to rapidly and efficiently change from making one product to another.

a.	just in time	c.	flexible manufacturing system
b.	Computer Integrated Manufacturing	d.	all of the above

 

 

ANS:  C                    PTS:   1

 

16. A(n) ____ MIS supports managerial activities in product development, distribution, pricing, promotions, and sales forecasting.

a.	manufacturing	c.	financial
b.	marketing	d.	human resources

 

 

ANS:  B                    PTS:   1

 

17. Subsystems for the marketing MIS include ____.

a.	product development	c.	use and management of funds
b.	inventory control	d.	all of the above

 

 

ANS:  A                    PTS:   1

 

18. An effective ____ MIS enables an organization to keep personnel costs at a minimum while serving the required business processes needed to achieve corporate goals.

a.	financial	c.	HR
b.	manufacturing	d.	sales

 

 

ANS:  C                    PTS:   1

 

19. The focus of a DSS is on decision-making ____ when faced with unstructured or semistructured business problems.

a.	accuracy	c.	effectiveness
b.	efficiency	d.	timeliness

 

 

ANS:  C                    PTS:   1

 

20. Decision support systems ____.

a.	although skewed toward the top levels of management, can be used at all levels
b.	might support a decision maker in only one or two of the problem-solving phases
c.	support optimization, satisficing, and heuristic approaches
d.	all of the above

 

 

ANS:  D                    PTS:   1

 

21. One characteristic of a structured problem is that ____.

a.	it is straightforward, requiring known facts and relationships
b.	the relationships among the pieces of data are not always clear
c.	the data might be difficult to manipulate or obtain
d.	the decision maker might not know the information requirements of the decision in advance

 

 

ANS:  A                    PTS:   1