3413 Test One True

A constraint is a linear relationship representing a restriction on decision making.

True

A key component of business analytics is the recent availability of large amounts of data.

True

A key element of a decision support system (DSS) is the person using the system.

True

A linear programming problem requires a choice between alternative courses of action.

True

A management science solution can be either a recommended decision or information that helps a manager make a decision.

True

A management science technique usually applies to a specific model type.

True

A model is a mathematical representation of a problem situation including variables, parameters, and equations.

True

All linear programming models exhibit a set of constraints.

True

Business analytics brings together the disciplines of information systems, management science, statistics, and mathematical modeling.

True

Constraints usually appear as equations that are less than, equal to, or greater than a parameter.

True

Data are pieces of information from the problem environment.

True

Decision Support Systems (DSS) use computers to help decision makers address complex problems.

True

Fixed cost is the difference between total cost and total variable cost.

True

Graphical solutions to linear programming problems have an infinite number of possible objective function lines.

True

If we change the constraint quantity to a value outside the sensitivity range for that constraint quantity, the shadow price will change.

True

In the graphical approach, simultaneous equations may be used to solve for the optimal solution point.

True

Linear programming is a model consisting of linear relationships representing a firm's decisions given an objective and resource constraints.

True

Linear programming models exhibit linearity among all constraint relationships and the objective function.

True

Management science modeling techniques focus on model construction and problem solution

True

Managers utilize spreadsheets to conduct their own analyses in management science studies.

True

Parameters are known, constant values that are usually coefficients of variables in equations.

True

Sensitivity analysis allows the modeler to relax the certainty assumption.

True

Sensitivity analysis determines how a change in a parameter affects the optimal solution.

True

The break-even point is the volume that equates total revenue with total cost.

True

The feasible solution area contains infinite solutions to the linear program.

True

The marginal value of any scarce resource is the dollar amount one should be willing to pay for one additional unit of that scarce resource.

True

The objective function always consists of either maximizing or minimizing some value.

True

The objective function is a linear relationship reflecting the objective of an operation.

True

The sensitivity range for a constraint quantity value is the range over which the shadow price is valid.

True

The sensitivity range for an objective function coefficient is the range of values over which the current optimal solution point (product mix) will remain optimal.

True

The shadow price for a positive decision variable is 0

True

The term "sensitivity analysis" refers to testing how a problem solution reacts to changes in one or more of the model parameters.

True

The term continuous is synonymous with divisible in the context of linear programming.

True

The terms in the objective function or constraints are additive.

True

The terms shadow price and dual price mean the same thing.

True

Variable costs depend on the number of items produced.

True

When using the graphical method, only one of the four quadrants of an xy-axis needs to be drawn.

True