Consider the Spreadsheet Model Shown in the Figure Below A) Descriptive Model

question 16

Multiple Choice

Consider the spreadsheet model shown in the figure below. This is an example of a $\begin{array}{|l|l|r|l|}\hline&A&B&C\\\hline 1 & & \\\hline 2 & & \\\hline 3 & \text { Purchase price } & \$ 32,500& \\\hline 4 & \text { 1ess: } & \\\hline 5 & \text { Down payment } & \$ 6,500 \\\hline 6 & \text { Trade-in } & \$ 4,000 \\\hline 7 & \text { Amount financed } & \$ 22,000 \\\hline 8 & & \\\hline 9 & \text { Term of loan } & 5 \text { years } \\\hline 10 & & \\\hline 11 & \text { Annual interest rate } & 11.25 \% \\\hline 12 & & \\\hline 13 & \text { Monthly payment } & \$ 481.08 \\\hline 14 & & \\\hline\end{array}$

• A) descriptive model.
• B) predictive model.
• C) prescriptive model.
• D) preventive model.

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Definitions:

Control Subsystem

A component of a management system designed to regulate the operation and ensure activities are aligned with objectives.

PDCA Cycle

A method of process improvement comprising four steps: Plan, Do, Check, and Act.

Deming

Refers to W. Edwards Deming, a statistician and quality control expert who developed principles for improving business processes and product quality.

Pareto Analysis

A statistical technique in decision-making used to select a limited number of tasks that produce significant overall effect.