Question 1

When the cost of a resource is sunk,then the dual price can be interpreted as the

Accepted Answer

A) minimum amount the firm should be willing to pay for one additional unit of the resource. 
B) maximum amount the firm should be willing to pay for one additional unit of the resource. 
C) minimum amount the firm should be willing to pay for multiple additional units of the resource. 
D) maximum amount the firm should be willing to pay for multiple additional units of the resource. 
A) minimum amount the firm should be willing to pay for one additional unit of the resource. 
B) maximum amount the firm should be willing to pay for one additional unit of the resource. 
C) minimum amount the firm should be willing to pay for multiple additional units of the resource. 
D) maximum amount the firm should be willing to pay for multiple additional units of the resource.

Question 2

A cost that is incurred no matter what values the decision variables assume is

Accepted Answer

A) a reduced cost. 
B) an optimal cost. 
C) a sunk cost. 
D) a dual cost. 
A) a reduced cost. 
B) an optimal cost. 
C) a sunk cost. 
D) a dual cost.

Question 3

The optimal solution of the linear programming problem is at the intersection of constraints 1 and 2.
 $$\begin{array} { l l } 
\operatorname { Max } & 2 x _ { 1 } + x _ { 2 } \
\text { s.t. } & 4 x _ { 1 } + 1 x _ { 2 } \leq 400 \
& 4 x _ { 1 } + 3 x _ { 2 } \leq 600 \
& 1 x _ { 1 } + 2 x _ { 2 } \leq 300 \
& x _ { 1 } , x _ { 2 } \geq 0
\end{array}$$ 
a.Over what range can the coefficient of x1 vary before the current solution is no longer optimal?
b.Over what range can the coefficient of x2 vary before the current solution is no longer optimal?
c.Compute the dual prices for the three constraints.

Accepted Answer

a.1.33 F1F1F1S1F1F1F10 c₁ F1F1

Question 4

A section of output from The Management Scientist is shown here. $$\begin{array} { c c c c } 
\text { Variable } & \text { Lower Limit } & \text { Current Value } & \text { Upper Limit } \
\hline 1 & 60 & 100 & 120
\end{array}$$ What will happen to the solution if the objective function coefficient for variable 1 decreases by 20?

Accepted Answer

A) Nothing. The values of the decision variables, the dual prices, and the objective function will all remain the same. 
B) The value of the objective function will change, but the values of the decision variables and the dual prices will remain the same. 
C) The same decision variables will be positive, but their values, the objective function value, and the dual prices will change. 
D) The problem will need to be resolved to find the new optimal solution and dual price. 
A) Nothing. The values of the decision variables, the dual prices, and the objective function will all remain the same. 
B) The value of the objective function will change, but the values of the decision variables and the dual prices will remain the same. 
C) The same decision variables will be positive, but their values, the objective function value, and the dual prices will change. 
D) The problem will need to be resolved to find the new optimal solution and dual price.

When the cost of a resource is sunk,then the dual price can be interpreted as the

A cost that is incurred no matter what values the decision variables assume is

A section of output from The Management Scientist is shown here. Variable Lower Limit Current Value Upper Limit 1 60 100 120 What will happen to the solution if the objective function coefficient for variable 1 decreases by 20?

Introduction

Introduction to Probability

Probability Distributions

Decision Analysis

Utility and Game Theory

Times Series Analysis and Forecasting

Introduction to Linear Programming

Linear Programming Applications in Marketing, Finance, and Operations Management

Distribution and Network Models

Integer Linear Programming

Advanced Optimization Applications

Project Scheduling: Pertcpm

Inventory Models

Waiting Line Models

Simulation

Markov Processes

Filters

Exam 8: Linear Programming: Sensitivity Analysis and Interpretation of Solution

When the cost of a resource is sunk,then the dual price can be interpreted as the

A cost that is incurred no matter what values the decision variables assume is

A section of output from The Management Scientist is shown here. Variable Lower Limit Current Value Upper Limit 1 60 100 120 What will happen to the solution if the objective function coefficient for variable 1 decreases by 20?

Introduction

Introduction to Probability

Probability Distributions

Decision Analysis

Utility and Game Theory

Times Series Analysis and Forecasting

Introduction to Linear Programming

Linear Programming Applications in Marketing, Finance, and Operations Management

Distribution and Network Models

Integer Linear Programming

Advanced Optimization Applications

Project Scheduling: Pertcpm

Inventory Models

Waiting Line Models

Simulation

Markov Processes

Filters