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Analytical Decision Frameworks Flashcards

7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Analytical Decision Frameworks flashcards as text

  1. A manager applies the analytic hierarchy process (AHP) to a vendor selection decision. The FIRST step in AHP is to:

    Answer: Decompose the decision into a hierarchy of goal, criteria, and alternatives

    AHP begins by structuring the decision as a hierarchy with the overall goal at the top, criteria in the middle, and alternatives at the bottom.

  2. A manager identifies that her team is continuing to invest in a failing project because of the money already spent. This represents:

    Answer: Sunk cost fallacy

    The sunk cost fallacy occurs when past irrecoverable investments—rather than future costs and benefits—drive continued commitment to a losing course of action.

  3. In linear programming, the 'feasible region' is BEST defined as:

    Answer: The set of all solutions that satisfy all constraints simultaneously

    The feasible region is the area of a graph containing all possible solutions that meet every constraint, within which the optimal solution is found.

  4. A manager uses a risk-impact/probability matrix to prioritize project risks. A risk with HIGH probability and HIGH impact should be treated with which response strategy FIRST?

    Answer: Avoid or mitigate proactively

    High-probability, high-impact risks sit in the critical zone of the matrix and demand immediate avoidance or mitigation strategies before the risk occurs.

  5. Which analytical framework is MOST useful when a manager needs to evaluate whether the benefits of a regulatory compliance program outweigh its implementation costs?

    Answer: Cost-benefit analysis (CBA)

    Cost-benefit analysis systematically compares the total expected costs against total expected benefits of a decision, making it ideal for compliance investment evaluation.

  6. A manager conducting a gap analysis identifies a performance shortfall. The gap is CORRECTLY defined as the difference between:

    Answer: Current state performance and the desired future state

    Gap analysis measures the difference between where an organization currently is and where it wants to be, forming the basis for improvement planning.

  7. A manager wants to determine whether customer satisfaction scores are statistically different between two service regions. Which analytical method is MOST appropriate?

    Answer: Hypothesis testing (t-test)

    A t-test compares the means of two groups to determine whether observed differences are statistically significant or attributable to chance variation.