Question 1

Using the graph below, the feasible region for the function represented in the graph is

Accepted Answer

A) -1 £ X £ 1, -1 £ Y £ 1. 
B) -1.5 £ X £ 1, 0 £ Y £ 8. 
C) -1.5 £ X £ 2.0, -1.5 £ Y £ 2.0. 
D) 0 £ X £ 1, 0 £ Y £ 1. 
A) -1 £ X £ 1, -1 £ Y £ 1. 
B) -1.5 £ X £ 1, 0 £ Y £ 8. 
C) -1.5 £ X £ 2.0, -1.5 £ Y £ 2.0. 
D) 0 £ X £ 1, 0 £ Y £ 1.

Question 2

A function that is bowl-shaped down is called a __________ function.

Accepted Answer

A) concave 
B) convex 
C) conic 
D) linear 
A) concave 
B) convex 
C) conic 
D) linear

Question 3

One of the ways to formulate the Markowitz model is to

Accepted Answer

A) maximize the variance of the portfolio subject to a constraint on the expected return of the portfolio. 
B) minimize the expected return of the portfolio subject to a constraint on variance. 
C) minimize the variance of the portfolio subject to a constraint on the expected return of the portfolio. 
D) minimize the expected return of the portfolio with no constraint on variance. 
A) maximize the variance of the portfolio subject to a constraint on the expected return of the portfolio. 
B) minimize the expected return of the portfolio subject to a constraint on variance. 
C) minimize the variance of the portfolio subject to a constraint on the expected return of the portfolio. 
D) minimize the expected return of the portfolio with no constraint on variance.

Question 4

A(n) __________ is a set of points defining the minimum possible risk for a set of return values.

Accepted Answer

A) contour 
B) efficient frontier 
C) unity constraint 
D) reduced gradient 
A) contour 
B) efficient frontier 
C) unity constraint 
D) reduced gradient

Question 5

Which of the following functions yields the shape shown below? ​

Accepted Answer

A) f(X, Y) = X2 + Y2 
B) f(X, Y) = Xsin(2πY) + Ysin(2πX) 
C) f(X, Y) = -X2 - Y2 
D) f(X, Y) = Xsin(5πX) + Ysin(5πY) 
A) f(X, Y) = X2 + Y2 
B) f(X, Y) = Xsin(2πY) + Ysin(2πX) 
C) f(X, Y) = -X2 - Y2 
D) f(X, Y) = Xsin(5πX) + Ysin(5πY)

Question 6

A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as

Accepted Answer

A) a capital budgeting pricing model. 
B) a market share optimization model. 
C) the Hauck maximum variance portfolio model. 
D) the Markowitz mean-variance portfolio model. 
A) a capital budgeting pricing model. 
B) a market share optimization model. 
C) the Hauck maximum variance portfolio model. 
D) the Markowitz mean-variance portfolio model.

Question 7

The measure of risk most often associated with the Markowitz portfolio model is the

Accepted Answer

A) expected return of the portfolio. 
B) annual interest on the portfolio. 
C) variance of the portfolio's return. 
D) number of investments listed in the portfolio. 
A) expected return of the portfolio. 
B) annual interest on the portfolio. 
C) variance of the portfolio's return. 
D) number of investments listed in the portfolio.

Question 8

In reviewing the image below, what is the minimum value for this function?

Accepted Answer

A) -8 
B) 0 
C) -1 
D) 1 
A) -8 
B) 0 
C) -1 
D) 1

Question 9

The reduced gradient is analogous to the __________ for linear models.

Accepted Answer

A) binary variable 
B) binding constraint 
C) reduced cost 
D) objective coefficient 
A) binary variable 
B) binding constraint 
C) reduced cost 
D) objective coefficient

Question 10

If all the squared terms in a quadratic function have a negative coefficient and there are no cross-product terms, then the function is a __________ function.

Accepted Answer

A) convex quadratic 
B) nonlinear objective 
C) concave quadratic 
D) negative elliptical 
A) convex quadratic 
B) nonlinear objective 
C) concave quadratic 
D) negative elliptical

Question 11

In the Bass forecasting model, the ___________ measures the likelihood of adoption, assuming no influence from someone who has already purchased (adopted) the product.

Accepted Answer

A) coefficient of correlation 
B) coefficient of imitation 
C) coefficient of independence 
A) coefficient of correlation 
B) coefficient of imitation 
C) coefficient of independence

Question 12

A global minimum

Accepted Answer

A) is also a local maximum. 
B) need not be a local maximum, but vice versa is true. 
C) is also a local minimum. 
D) need not be local minimum, but vice versa is true. 
A) is also a local maximum. 
B) need not be a local maximum, but vice versa is true. 
C) is also a local minimum. 
D) need not be local minimum, but vice versa is true.

Question 13

If a minimization problem has a single global optimum, will it have a local minimum? If yes, can it have more than one local minimum? Explain.

Accepted Answer

If a minimization problem has a single g

Question 14

A feasible solution is a(n) __________ if there are no other feasible solutions with a better objective function value in the immediate neighborhood.

Accepted Answer

A) efficient frontier 
B) local optimum 
C) global maximum 
D) diverging function 
A) efficient frontier 
B) local optimum 
C) global maximum 
D) diverging function

Question 15

One of the ways to use the Bass forecasting model is to wait until several periods of data for the problem under consideration are available. This is known as the ___________ approach.

Accepted Answer

A) branch-and-bound 
B) cutting plane 
C) rolling-horizon 
D) sensible-period 
A) branch-and-bound 
B) cutting plane 
C) rolling-horizon 
D) sensible-period

Question 16

If an optimization objective function produces a graph that is concave, will the global optimum be a maximum or minimum value? Explain.

Accepted Answer

If an optimization objective function pr

Question 17

In reviewing the image below, the point (0, 0, 0) is a(n) __________ for the given concave function. ​

Accepted Answer

A) local maximum 
B) local minimum 
C) convergence point 
D) endpoint 
A) local maximum 
B) local minimum 
C) convergence point 
D) endpoint

Question 18

A feasible solution is __________ if there are no other feasible points with a smaller objective function value in the entire feasible region.

Accepted Answer

A) a global minimum 
B) not a local maximum 
C) not a local minimum 
D) bowl-shaped 
A) a global minimum 
B) not a local maximum 
C) not a local minimum 
D) bowl-shaped

Question 19

Which of the following conclusions can be drawn from the below figure using the Bass forecasting model? (Note: Bass forecasting model is given by: Ft = (p + q[Ct - 1 /m]) (m - Ct - 1)
Where m = the number of people estimated to eventually adopt the new product,
Ct - 1 = the number of people who have adopted the product through time t - 1,
Q = the coefficient of imitation, and
P = the coefficient of innovation.

Accepted Answer

A) q  p 
C) m  m 
A) q  p 
C) m  m

Question 20

A nonlinear function with at least one term raised to the power of two is known as a

Accepted Answer

A) hyperbolic function. 
B) quadratic function. 
C) logarithmic function. 
D) cubic function. 
A) hyperbolic function. 
B) quadratic function. 
C) logarithmic function. 
D) cubic function.

Using the graph below, the feasible region for the function represented in the graph is

A function that is bowl-shaped down is called a __________ function.

One of the ways to formulate the Markowitz model is to

A(n) __________ is a set of points defining the minimum possible risk for a set of return values.

Which of the following functions yields the shape shown below?

A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as

The measure of risk most often associated with the Markowitz portfolio model is the

In reviewing the image below, what is the minimum value for this function?

The reduced gradient is analogous to the __________ for linear models.

If all the squared terms in a quadratic function have a negative coefficient and there are no cross-product terms, then the function is a __________ function.

In the Bass forecasting model, the ___________ measures the likelihood of adoption, assuming no influence from someone who has already purchased (adopted) the product.

A global minimum

If a minimization problem has a single global optimum, will it have a local minimum? If yes, can it have more than one local minimum? Explain.

A feasible solution is a(n) __________ if there are no other feasible solutions with a better objective function value in the immediate neighborhood.

One of the ways to use the Bass forecasting model is to wait until several periods of data for the problem under consideration are available. This is known as the ___________ approach.

If an optimization objective function produces a graph that is concave, will the global optimum be a maximum or minimum value? Explain.

In reviewing the image below, the point (0, 0, 0) is a(n) __________ for the given concave function.

A feasible solution is __________ if there are no other feasible points with a smaller objective function value in the entire feasible region.

A nonlinear function with at least one term raised to the power of two is known as a

Introduction

Descriptive Statistics

Data Visualization

Descriptive Data Mining

Probability: an Introduction to Modeling Uncertainty

Statistical Inference

Linear Regression

Time Series Analysis and Forecasting

Predictive Data Mining

Spreadsheet Models

Monte Carlo Simulation

Linear Optimization Models

Integer Linear Optimization Models

Decision Analysis

Filters

Exam 14: Nonlinear Optimization Models

Using the graph below, the feasible region for the function represented in the graph is

A function that is bowl-shaped down is called a __________ function.

One of the ways to formulate the Markowitz model is to

A(n) __________ is a set of points defining the minimum possible risk for a set of return values.

Which of the following functions yields the shape shown below? ​

A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as

The measure of risk most often associated with the Markowitz portfolio model is the

In reviewing the image below, what is the minimum value for this function?

The reduced gradient is analogous to the __________ for linear models.

If all the squared terms in a quadratic function have a negative coefficient and there are no cross-product terms, then the function is a __________ function.

In the Bass forecasting model, the ___________ measures the likelihood of adoption, assuming no influence from someone who has already purchased (adopted) the product.

A global minimum

If a minimization problem has a single global optimum, will it have a local minimum? If yes, can it have more than one local minimum? Explain.

A feasible solution is a(n) __________ if there are no other feasible solutions with a better objective function value in the immediate neighborhood.

One of the ways to use the Bass forecasting model is to wait until several periods of data for the problem under consideration are available. This is known as the ___________ approach.

If an optimization objective function produces a graph that is concave, will the global optimum be a maximum or minimum value? Explain.

In reviewing the image below, the point (0, 0, 0) is a(n) __________ for the given concave function. ​

A feasible solution is __________ if there are no other feasible points with a smaller objective function value in the entire feasible region.

A nonlinear function with at least one term raised to the power of two is known as a

Introduction

Descriptive Statistics

Data Visualization

Descriptive Data Mining

Probability: an Introduction to Modeling Uncertainty

Statistical Inference

Linear Regression

Time Series Analysis and Forecasting

Predictive Data Mining

Spreadsheet Models

Monte Carlo Simulation

Linear Optimization Models

Integer Linear Optimization Models

Decision Analysis

Filters

Which of the following functions yields the shape shown below?

In reviewing the image below, the point (0, 0, 0) is a(n) __________ for the given concave function.