Question 1

In a fixed-cost model, each fixed cost is associated with a binary variable and a specification of the

Accepted Answer

A)  upper bound for the corresponding production variable.
B)  upper bound for each of the binary variable.
C)  integer constraints involving the corresponding production variables.
D)  objective function involving these binary variables only. A

Question 2

The __________ is the utility value that a consumer attaches to each level of each attribute in a conjoint analysis model.

Accepted Answer

A)  weightage
B)  share of choice
C)  part-worth
D)  share of market C

Question 3

An apparel designing company is planning to enter the women's trousers market. They are in the process of developing a product that will appeal most to customers. The part-worth for each of the attribute levels obtained from an initial customer survey and the subsequent regression analysis can be used to determine the

Accepted Answer

A)  customer utility value.
B)  optimal solution for the regression analysis.
C)  overall profit for the company.
D)  overall sales achieved by the company. A

Question 4

Which of the following is true of the relationship between the value of the optimal integer solution and the value of the optimal solution to the LP Relaxation?

Accepted Answer

A)  For integer linear programs involving minimization, the value of the optimal solution to the LP Relaxation provides an upper bound on the value of the optimal integer solution.
B)  For integer linear programs involving maximization, the value of the optimal solution to the LP Relaxation provides a lower bound on the value of the optimal integer solution.
C)  For integer linear programs involving minimization, the value of the optimal solution to the LP Relaxation provides a lower bound on the value of the optimal integer solution.
D)  For any linear program involving either minimization or maximization, the value of the optimal solution to the LP Relaxation provides an infeasible value for the optimal integer solution.

Question 5

A __________ problem is a binary integer programming problem that involves choosing which possible projects or activities provide the best investment return.

Accepted Answer

A)  capital budgeting
B)  fixed-cost
C)  market share optimization
D)  location

Question 6

The results of _____________ can be used in an integer programming model of a product design and market share optimization problem.

Accepted Answer

A)  conjoint analysis
B)  product design
C)  part-worth
D)  variations analysis

Question 7

For a location problem, if the variables are defined as xi = 1 if an outlet store is established in region i and 0 otherwise, the objective function is best defined by __________ for i = 1, 2, …, n number of outlet stores included in the problem.

Accepted Answer

A)  Min(Sxi) 
B)  Max(Sxi) 
C)  Min(pxi) 
D)  Max(pxi)

Question 8

A constraint involving binary variables that does not allow certain variables to equal one unless certain other variables are equal to one is known as a

Accepted Answer

A)  conditional constraint.
B)  corequisite constraint.
C)  k out of n alternatives constraint.
D)  mutually exclusive constraint.

Question 9

In cases where Excel Solver experiences excessive run times when solving integer linear problems, the Integer Optimality is set to

Accepted Answer

A)  5%.
B)  0%.
C)  infinity.
D)  a value equal to the number of integer constraints.

Question 10

Which of the following is true of rounding the optimized solution of a linear program to an integer?

Accepted Answer

A)  It always produces the most optimal integer solution.
B)  It always produces a feasible solution.
C)  It does not affect the value of the objective function.
D)  It may or may not be feasible.

Question 11

The importance of _________ for integer linear programming problems is often intensified by the fact that a small change in one of the coefficients in the constraints can cause a relatively large change in the value of the optimal solution.

Accepted Answer

A)  objective function
B)  decision variables
C)  sensitivity analysis
D)  optimization analysis

Question 12

Binary variables are identified with the __________ designation in the Solver Parameters dialog box.

Accepted Answer

A)  bin
B)  0 and 1
C)  int
D)  dif

Question 13

In a binary integer linear program, the integer variables take only the values

Accepted Answer

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

Question 14

The objective function for a linear optimization problem is: Max 3x + 2y, with one of the constraints being x and y both only take the values 0, 1. Also x and y are the only decision variables. This is an example of a

Accepted Answer

A)  nonlinear program.
B)  mixed-integer linear program.
C)  LP relaxation of the integer linear program.
D)  binary integer linear program.

Question 15

The worksheet formulation for integer linear programs and linear programming problems is exactly the same except that the __________ for integer linear programs.

Accepted Answer

A)  objective function using Set Objective in the Solver Parameters dialog box is set to Value Of option
B)  decision variables need not be added in By Changing Variable Cells in the Solver Parameters dialog box
C)  decision variables must be added in By Changing Variable Cells in the Solver Parameters dialog box along with selecting the Ignore Integer Constraints in the Integer Options dialog box
D)  constraints must be added in the Solver Parameters dialog box to identify the integer variables and the value for Tolerance in the Integer Options dialog box may need to be adjusted

Question 16

Which of the following is true about generating alternatives in binary optimization?

Accepted Answer

A)  If the second-best solution is very close to optimal, it is always preferred over the true optimal solution because of factors outside the model.
B)  If alternative solutions exist, it would not help management because some factors that make one alternative are not preferred over the factors that make another alternative.
C)  If the solution is a unique optimal solution, it would be good for management to know how much worse the second-best solution is than the unique optimal solution.
D)  If any alternative solution exists, it would only be a second-best next to the optimal solution because there is no third-best or an alternative second-best solution to any binary integer programming problem.

Question 17

An apparel designing company is planning to enter the women's trousers market. They are in the process of developing a product that will appeal most to customers. The levels - small, medium, and large of the size attribute are modeled using

Accepted Answer

A)  objective function coefficients.
B)  slack variables.
C)  binary variables.
D)  nonlinear coefficients.

Question 18

The objective function for a linear optimization problem is: Max 3x + 5y, with constraints x ≥ 0, y ≥ 0 and x and y are both integers and they are also the only decisions variables. This is an example of a(n)

Accepted Answer

A)  all-integer linear program.
B)  mixed-integer linear program.
C)  nonlinear program.
D)  binary integer linear program.

Question 19

The sum of two or more binary variables must be less than or equal to one in a __________ constraint.

Accepted Answer

A)  corequisite
B)  conditional
C)  multiple-choice
D)  mutually exclusive

Question 20

The imposition of an integer restriction is necessary for models where

Accepted Answer

A)  nonnegativity constraints are needed.
B)  variables can take negative values.
C)  the decision variables cannot take fractional values.
D)  possible values of variables are restricted to particular intervals.

Exam 13: Integer Linear Optimization Models