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
