Question 1

Which of the following is not one of the useful options within Solver's Multistart box

Accepted Answer

A)  Population size 
B)  Error distribution 
C)  Random seed 
D)  Upper or lower bound constraints on all changing cells 
A)  Population size 
B)  Error distribution 
C)  Random seed 
D)  Upper or lower bound constraints on all changing cells B

Question 2

Solver is guaranteed to solve certain types of nonlinear programming models.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is not one of the common types of nonlinear models

Accepted Answer

A)  Pricing models. 
B)  Advertising and response selection models. 
C)  Network flow models. 
D)  Portfolio optimization models. 
A)  Pricing models. 
B)  Advertising and response selection models. 
C)  Network flow models. 
D)  Portfolio optimization models. C

Question 4

If a convex function is multiplied by a negative constant,the result:

Accepted Answer

A)  is convex 
B)  is concave 
C)  could be either convex or concave, depending on the value of the constant 
D)  is linear 
A)  is convex 
B)  is concave 
C)  could be either convex or concave, depending on the value of the constant 
D)  is linear

Question 5

As an objective,minimizing the sum of squared errors is equivalent to minimizing the

Accepted Answer

A)  root mean square error 
B)  weighted sum of squared errors 
C)  sum of absolute errors 
D)  maximum absolute error 
A)  root mean square error 
B)  weighted sum of squared errors 
C)  sum of absolute errors 
D)  maximum absolute error

Question 6

Exhibit 7-2
A soda producer makes and sells two products, Classic Cola and Diet Cola. During the planning period, if the producer spends x1 dollars on promotion of Classic Cola, it can sell 100x10.5 cases of Classic Cola, and if it spends x2 dollars on promotion of Diet Cola, it can sell 10x20.75 cases of Diet Cola. Each case of Classic Cola sells for $12.00 and costs $0.95 to produce and ship to customers, while each case of Diet Cola sells for $12.50 and costs $1.00 to produce and ship to customers. A total of $7,500 is available for promotion during the planning period.
-Refer to Exhibit 7-2.Suppose the producer can double the promotional budget.Formulate and solve a nonlinear optimization model to help this soda producer identify the best promotional strategies for its two products in that case.Does the change in profit justify the budget increase
 Does the proportional amount spent promoting the two products remain the same

Accepted Answer

The optimized model below shows that the

Question 7

Exhibit 7-1
A company manufactures two products. If it charges price p1 for product 1 and price p2 for product 2, it can sell quantities q1 = 55 − 3p1 + 2p2 and q2 = 75 + 2p1 − 2p2 for products 1 and 2, respectively. It costs the company $20 to produce a unit of product 1 and $65 to produce a unit of product 2.
-Refer to Exhibit 7-1.Suppose the company must produce a minimum of 20 units of each product.How many units of each product should the company produce in that case
 What prices should it charge,to maximize profit

Accepted Answer

The optimized model with an added produc

Question 8

In pricing models,two products are substitutes for each other if a larger price for one product tends to induce customers to demand less of the other.

Accepted Answer

A) True 
 B)False

Question 9

In advertising response models,a typical source of nonlinearity is a decreasing marginal effect,where each extra ad gains fewer exposures than the previous ad.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following types of fit should be selected in Excel's Trendline function if a constant elasticity curve is to be used to model demand

Accepted Answer

A)  Exponential 
B)  Logarithmic 
C)  Polynomial 
D)  Power 
A)  Exponential 
B)  Logarithmic 
C)  Polynomial 
D)  Power

Question 11

A function is convex if a line drawn connecting two points on the curve never lies below the curve.

Accepted Answer

A) True 
 B)False

Question 12

In some nonlinear models,Solver will find the optimal solution only if the starting solution is reasonably close to the optimal solution.

Accepted Answer

A) True 
 B)False

Question 13

The amount invested is one of the required inputs in a portfolio optimization model.

Accepted Answer

A) True 
 B)False

Question 14

Relative to linear optimization models,nonlinear optimization models are typically more difficult to solve.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not one of the reasons an optimization model can become nonlinear

Accepted Answer

A)  Nonconstant returns to scale. 
B)  The model objective is to minimize the sum of squared differences. 
C)  The model objective is a function of a variable times multiplied by a function of that same variable 
D)  The model objective is to minimize the sum of absolute errors. 
A)  Nonconstant returns to scale. 
B)  The model objective is to minimize the sum of squared differences. 
C)  The model objective is a function of a variable times multiplied by a function of that same variable 
D)  The model objective is to minimize the sum of absolute errors.

Question 16

Solver can get stuck at a global optimum and never find the local optimum.

Accepted Answer

A) True 
 B)False

Question 17

If you try different starting values for the changing cells and obtain different solutions:

Accepted Answer

A)  you can be confident there is no solution 
B)  there must be a mistake in your objective function 
C)  there must be a mistake in one of your constraints 
D)  you can keep the best solution you have found and hope that it is indeed optimal 
A)  you can be confident there is no solution 
B)  there must be a mistake in your objective function 
C)  there must be a mistake in one of your constraints 
D)  you can keep the best solution you have found and hope that it is indeed optimal

Question 18

Solver is guaranteed to find the global minimum (if it exists)if the objective function is concave and the constraints are linear.

Accepted Answer

A) True 
 B)False

Question 19

The sum of two concave functions is concave.

Accepted Answer

A) True 
 B)False

Question 20

A function is concave if:

Accepted Answer

A)  its slope is always nondecreasing 
B)  a line drawn connecting two points on the curve never lies below the curve 
C)  its slope is always nonincreasing 
D)  it is always positive 
A)  its slope is always nondecreasing 
B)  a line drawn connecting two points on the curve never lies below the curve 
C)  its slope is always nonincreasing 
D)  it is always positive

Which of the following is not one of the useful options within Solver's Multistart box

Solver is guaranteed to solve certain types of nonlinear programming models.

Which of the following is not one of the common types of nonlinear models

If a convex function is multiplied by a negative constant,the result:

As an objective,minimizing the sum of squared errors is equivalent to minimizing the

In pricing models,two products are substitutes for each other if a larger price for one product tends to induce customers to demand less of the other.

In advertising response models,a typical source of nonlinearity is a decreasing marginal effect,where each extra ad gains fewer exposures than the previous ad.

Which of the following types of fit should be selected in Excel's Trendline function if a constant elasticity curve is to be used to model demand

A function is convex if a line drawn connecting two points on the curve never lies below the curve.

In some nonlinear models,Solver will find the optimal solution only if the starting solution is reasonably close to the optimal solution.

The amount invested is one of the required inputs in a portfolio optimization model.

Relative to linear optimization models,nonlinear optimization models are typically more difficult to solve.

Which of the following is not one of the reasons an optimization model can become nonlinear

Solver can get stuck at a global optimum and never find the local optimum.

If you try different starting values for the changing cells and obtain different solutions:

Solver is guaranteed to find the global minimum (if it exists)if the objective function is concave and the constraints are linear.

The sum of two concave functions is concave.

A function is concave if:

Introduction to Modeling

Introduction to Spreadsheet Modeling

Introduction to Optimization Modeling

Linear Programming Models

Network Models

Optimization Models With Integer Variables

Evolutionary Solver: An Alternative Optimization Procedure

Decision Making Under Uncertainty

Introduction to Simulation Modeling

Simulation Models

Queueing Models

Regression and Forecasting Models

Data Mining

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Exam 7: Nonlinear Optimization Models

Which of the following is not one of the useful options within Solver's Multistart box

Solver is guaranteed to solve certain types of nonlinear programming models.

Which of the following is not one of the common types of nonlinear models

If a convex function is multiplied by a negative constant,the result:

As an objective,minimizing the sum of squared errors is equivalent to minimizing the

In pricing models,two products are substitutes for each other if a larger price for one product tends to induce customers to demand less of the other.

In advertising response models,a typical source of nonlinearity is a decreasing marginal effect,where each extra ad gains fewer exposures than the previous ad.

Which of the following types of fit should be selected in Excel's Trendline function if a constant elasticity curve is to be used to model demand

A function is convex if a line drawn connecting two points on the curve never lies below the curve.

In some nonlinear models,Solver will find the optimal solution only if the starting solution is reasonably close to the optimal solution.

The amount invested is one of the required inputs in a portfolio optimization model.

Relative to linear optimization models,nonlinear optimization models are typically more difficult to solve.

Which of the following is not one of the reasons an optimization model can become nonlinear

Solver can get stuck at a global optimum and never find the local optimum.

If you try different starting values for the changing cells and obtain different solutions:

Solver is guaranteed to find the global minimum (if it exists)if the objective function is concave and the constraints are linear.

The sum of two concave functions is concave.

A function is concave if:

Introduction to Modeling

Introduction to Spreadsheet Modeling

Introduction to Optimization Modeling

Linear Programming Models

Network Models

Optimization Models With Integer Variables

Evolutionary Solver: An Alternative Optimization Procedure

Decision Making Under Uncertainty

Introduction to Simulation Modeling

Simulation Models

Queueing Models

Regression and Forecasting Models

Data Mining

Filters