Exam 1
What is the goal in optimization?
Find the decision variable values that result in the best objective function and satisfy all constraints.
Chapter 1 discussed all of the following except
How to implement a problem formulation as a spreadsheet model
What does constraint cells show?
Left hand side formula constraints of models
A factor that plays a role in determining whether a good or bad outcome occurs is called
Luck
What does objective cells show
MAX/MIN
What does the Excel "=SUMPRODUCT(A1:A5,C6;C10)" function do?
Multiplies each pair of cells in two arrays matched by position and sums the products.
Which type of spreadsheet cell represents the objective function in an LP model?
Objective Cell
Which of the following categories of modeling techniques includes optimization techniques
Prescriptive models
Using Data Envelopment Analysis (DEA) for an inefficient unit, a more efficient composite unit can be found by
Solving its DEA problem and using the resulting shadow prices as compostie wieghts
What is the significance of an absolute cell reference in Excel?
The cell reference will not change if the formula containing the reference is copied to another location
What does variable cells show
Upper/lower bounds
In which step of the problem-solving process is the main focus to generate and evaluate alternatives?
Use model to analyze problem
22. The specification or description of the relationship between the dependent and independent variables is generallycalled
a function
In a decision making problem, anchoring effects occur when
a seemingly trivial factor serves as a staring point for estimations
The best models
accurately reflect relevant characteristics of the real-world object or decision.
An LP problem with a feasible region will have
an optimal solution at some extreme point.
A production optimization problem has 4 decision variables and a requirement that at least b1 units of material 1 are consumed. Which of the following constraints reflects this fact?
b. f(X1, X2, X3, X4) ≥ b
A purely rational decision maker should
consistently select the same alternative regardless of how the problm is framed
Suppose that the left side of the constraint cannot take a specific value, b. This can be expressed mathematically as
d. f(X1, X2, ..., Xn) ≠ b.
. A situation when decision quality is bad and the resulting outcome quality is good is referred to as
dumb luck
The goal of modeling approach to problem solving is to
help individuals make good decisions
Business analytics focuses on
identifying and leveraging business opportunities
The constraints X1≥ 0 and X2≥ 0 are referred to as
nonnegativity conditions
A facility produces 2 products and wants to maximize profit. The objective function maximized is z=350x1+300x2 the number 350 means
one unit of product 1 contributes $350 to the objective function
which of the following categories of modeling techniques includes discriminant anaylsis
predictive models
In the Analytic Solver Platform dialog box simple upper and lower bounds for decision variables are specified by
referring directly to the decision variable cells in the Constraints-Bound area.
most individuals manage their individual retirement accounts IRAs
so they minimize the amount of taxes they must pay
The third step in formulating a LP problem is
state the objective as a linear combo of the decision variable
The "Objective Sense" option in the Analytic Solver Platform task pane may be used to
tell the Solver what value it should seek for your optimization objective.
Better decision making due to using a modeling process is achieved due to
the insight gained through the process.
REtail compaines try to find
the least costly methof of transferring goods from warehouses to stores
A linear formulation means that
the objective function and all constraints must be linear
If results testing produces unsatisfactory results
the problem-solving process requires new formulation and implementation
When the objective function can increase without ever contacting a constraint LP model is said to be
unbounded
To be effective, a modeler must
understand how modeling fits into the problem-solving process
The textbook figure of a problem solving process is an example of
visual model
When do alternate optimal solutions occur in LP models
when a binding constraint is parallel to a level curve
The objective function for a LP model is 3 X1 + 2 X2. If X1 = 20 and X2 = 30, what is the value of the objective function?
120
Which function is equivalent to =SUMPRODUCT(A1:A3,B1:B3)?
=A1*B1+A2*B2+A3*B3
Which type of spreadsheet cell represents the LHS in an LP model
Constraint Cell
What describes Data Envelopment Analysis (DEA)
DEA determines how effective a company converts inputs to outputs compared to other companies.
Which of the following describes Data Envelopment Analysis (DEA)
DEA determines how effective a company converts inputs to outputs compared to other companies.
The built-in Solver in Excel is found under which tab on the ribbon?
Data
