Test 3

A widely used mathematical programming technique designed to help managers and decision making relative to resource allocation is called A) linear programming. B) computer programming. C) constraint programming. D) goal programming. E) None of the above

A) linear programming

Linear programming is usually used by managers involved in portfolio selection to A) maximize return on investment. B) maximize investment limitations. C) maximize risk. D) minimize risk. E) minimize expected return on investment.

A) maximize return on investment

Using linear programming to maximize audience exposure in an advertising campaign is an example of the type of linear programming application known as A) media selection. B) marketing research. C) portfolio assessment. D) media budgeting. E) All of the above

A) media selection

Which of the following is not an assumption of LP? A) simultaneity B) certainty C) proportionality D) divisibility E) additivity

A) simultaneity

The difference between the left-hand side and right-hand side of a less-than-or-equal-to constraint is referred to as A) surplus. B) constraint. C) slack. D) shadow price. E) None of the above

C) slack

Which of the following is not a property of linear programs? A) one objective function B) at least two separate feasible regions C) alternative courses of action D) one or more constraints E) objective function and constraints are linear

B) at least two separate feasible regions

What is another name for blending problems? A) diet problems B) ingredient problems C) feed mix problems D) production mix problems E) media selection problems

B) ingredient problems

A feasible solution to a linear programming problem A) must be a corner point of the feasible region. B) must satisfy all of the problem's constraints simultaneously. C) need not satisfy all of the constraints, only the non-negativity constraints. D) must give the maximum possible profit. E) must give the minimum possible cost.

B) must satisfy all of the problem's constraints simultaneously

If one changes the contribution rates in the objective function of an LP, A) the feasible region will change. B) the slope of the isoprofit or isocost line will change. C) the optimal solution to the LP is sure to no longer be optimal. D) All of the above E) None of the above

B) the slope of the isoprofit or isocost line will change

Which of the following statements is true regarding the labor planning problem? A) It is typically a maximization problem. B) Required labor hours translate into less-than-or-equal-to constraints. C) The decision variables can include how many full- and part-time workers to use. D) The problem is only unique to banks. E) None of the above

C) The decision variables can include how many full- and part-time workers to use

A constraint with zero slack or surplus is called a A) nonbinding constraint. B) resource constraint. C) binding constraint. D) nonlinear constraint. E) linear constraint.

C) binding constraint

Which of the following is not a part of every linear programming problem formulation? A) an objective function B) a set of constraints C) non-negativity constraints D) a redundant constraint E) maximization or minimization of a linear function

D) a redundant constraint

Which of the following does not represent a factor a manager might typically consider when employing linear programming for a production scheduling? A) labor capacity B) space limitations C) product demand D) risk assessment E) inventory costs

D) risk assessment

Which of the following is considered a decision variable in the production mix problem of maximizing profit? A) the amount of raw material to purchase for production B) the number of product types to offer C) the selling price of each product D) the amount of each product to produce E) None of the above

D) the amount of each product to produce

When formulating transportation LP problems, constraints usually deal with the A) number of items to be transported. B) shipping cost associated with transporting goods. C) distance goods are to be transported. D) number of origins and destinations. E) capacities of origins and requirements of destinations

E) capacities of origins and requirements of destinations

Infeasibility in a linear programming problem occurs when A) there is an infinite solution. B) a constraint is redundant. C) more than one solution is optimal. D) the feasible region is unbounded. E) there is no solution that satisfies all the constraints given

E) there is no solution that satisfies all the constraints given

If a linear program is unbounded, the problem probably has not been formulated correctly. Which of the following would most likely cause this? a. A constraint was inadvertently omitted b. An unnecessary constraint was added to the problem c. The objective function coefficients are too large d. The objective functions coefficients are too small

a. A constraint was inadvertently omitted

In LP, variables do not have to be integer valued and may take on any fractional value. This assumption is called a. Proportionality b. Divisibility c. Additivity d. Certainty

b. Divisibility

Using LP to maximize audience exposure in an advertising campaign is an example of the type of LP application known as a. Marketing research b. Media selection c. Portfolio assessment d. Media budgeting e. All of the above

b. Media selection

In the optimal solution to a linear program, there are 20 units of slack for a constraint. From this we know that a. The dual price for this constraint is 20 b. The dual price for this constraint is 0 c. This constraint must be redundant d. The problem must be a maximization problem

b. The dual price for this constraint is 0

An LP problem has bounded feasible region. If this problem has an equality (=) constraint, then: a. this must be a minimization problem. b. the feasible region must consist of a line segment c. he problem must be degenerate d. the problem must have more than one optimal solution

b. the feasible region must consist of a line segment

In solving a linear program, no feasible solution exists. To resolve this problem we might: a. Add another variable b. Add another constraint c. Remove or relax a constraint d. Try a different computer program

c. Remove or relax a constraint

The selection of specific investments from among a wide variety of alternatives is the type of LP problem known as a. The product mix problem b. The investment banker problem c. The portfolio selection problem d. The wall street problem e. None of the above

c. The portfolio selection problem

A linear program has been solved and sensitivity analysis has been performed. The ranges for the objective function coefficients have been found. For the profit on X1, the upper bound is 80, the lower bound is 60, and the current value is 75. Which of the following must be true if the profit on this variable is lowered to 70 and the optimal solution is found? a. A new corner point will become optimal b. The maximum possible total profit may increase c. The values for all the decision variables will remain the same d. All of the above are possible

c. The values for all the decision variables will remain the same

A graphical method should only be used to solve an LP problem when a. There are only two constraints b. There are more than two constraints c. There are only two variables d. There are more than two variables

c. There are only two variables

Which of the following would cause a change in the feasible region? a. Increasing an objection function coefficient in a maximization problem b. Adding a redundant constraint c. Changing the right-hand side of a nonredundant constraint d. Increasing an objective function coefficient in a minimization problem

c. changing the right-hand side of the nonredundant constraint

The diet problem is a. Also called the feed mix problem in agriculture b. A special case of the ingredient mix problem c. A special case of the blending problem d. All of the above

d. All of the above

Which of the following does not represent a factor manager might consider when employing LP for production scheduling: a. Labor capacity b. Space limitations c. Product demand d. Risk assessment e. Inventory costs

d. Risk assessment

When applying LP to diet problems, the objective function is usually designed to a. Maximize profits from blends of nutrients b. Maximize ingredient blends c. Minimize production losses d. Maximize the number of products to be produced e. Minimize the costs of nutrient blends

e. Minimize the costs of nutrient blends

The mathematical theory behind linear programming states that an optimal solution to any problem will lie at a(n) ________ of the feasible region. A) interior point or center B) maximum point or minimum point C) corner point or extreme point D) interior point or extreme point E) None of the above

C) corner point or extreme point

What is the objective in the truck loading problem? A) minimize trucking distance B) minimize the weight of the load shipped C) maximize the value of the load shipped D) minimize the cost of the load shipped E) None of the above

C) maximize the value of the load shipped

When formulating transportation LP problems, the objective function usually deals with the A) number of items to be transported. B) choice of transportation mode (e.g., truck, airplane, railroad, etc.). C) shipping cost or distances associated with transporting goods. D) number of origins and destinations. E) capacities of origins and requirements of destinations.

C) shipping cost or distances associated with transporting goods

If the feasible region gets larger due to a change in one of the constraints, the optimal value of the objection function a. Must increase or remain the same for a maximization problem b. Must decrease or remain the same for a maximization problem c. Must increase or remain the same for a minimization problem d. Cannot change

a. Must increase or remain the same for a maximization problem

A feasible solution to an LP problem a. Must satisfy all of the problems constraints simultaneously b. Need not satisfy all of the constraints, only some of them c. Must be a corner point of the feasible region d. Must give the maximum possible profit

a. Must satisfy all of the problems constraints simultaneously

If a nonredundant constraint is removed from an LP problem, then: a. The feasible region will get larger b. The feasible region will get smaller c. The problem would become nonlinear d. The problem would become infeasible

a. The feasible region will get larger

When alternate optimal solutions exist in an LP problem, then a. The objection function will be parallel to one of the constraints b. One of the constraints will be redundant c. Two constraints will be parallel d. The problem will also be unbounded

a. The objection function will be parallel to one of the constraints

In an LP problem, at least one corner point must be an optimal solution if an optimal solution exists. a. True b. False

a. True

Linear programming can be used to select effective media mixes, allocate fixed or limited budgets across media, and maximize audience exposure a. True b. False

a. True

When using a graphical solution procedure, the region bounded by the set of constraints is called the: a. solution b. feasible region c. infeasible region d. maximum profit region e. none of the above

b. feasible region