MIS Decision Support Systems 1 — Questions and Answers
Question 1: What is the primary purpose of a Decision Support System (DSS)?
- To automate routine business transactions
- To support managerial decision-making with data analysis (Correct answer)
- To replace human decision-makers entirely
- To process payroll information
Correct answer: To support managerial decision-making with data analysis
A DSS is designed to support managerial decision-making by providing analytical tools and data access.
Question 2: Which component of a DSS stores and manages data used for analysis?
- Model base
- User interface
- Database (Correct answer)
- Knowledge base
Correct answer: Database
The database component of a DSS stores the data that managers use for analytical decision-making.
Question 3: What type of DSS helps groups of decision-makers collaborate?
- Executive Information System
- Group Decision Support System (GDSS) (Correct answer)
- Expert System
- Transaction Processing System
Correct answer: Group Decision Support System (GDSS)
A Group Decision Support System (GDSS) is designed to facilitate collaborative decision-making among groups.
Question 4: Which DSS modeling technique allows managers to test scenarios by changing variables?
- Sensitivity analysis
- Regression modeling
- What-if analysis (Correct answer)
- Goal-seeking analysis
Correct answer: What-if analysis
What-if analysis in a DSS allows managers to test scenarios by changing variables to see potential outcomes.
Question 5: A DSS that uses historical data to forecast future outcomes is an example of which type?
- Normative DSS
- Descriptive DSS
- Prescriptive DSS
- Predictive DSS (Correct answer)
Correct answer: Predictive DSS
A predictive DSS uses historical data and statistical models to forecast future events or outcomes.
Question 6: Which of the following is NOT a typical component of a classical DSS?
- Database management system
- Model management system
- Payroll processing system (Correct answer)
- User interface
Correct answer: Payroll processing system
Classical DSS components include database management, model management, and user interface — payroll processing is a TPS function.
MIS Decision Support Systems 1
What is the primary purpose of a Decision Support System (DSS)?