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MAT540 Quantitative Analysis Quiz 3

TRUE/FALSE – clearly indicate your response.
1. Sensitivity analysis is the analysis of the effect of parameter changes on the optimal solution. T .

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

3. The sensitivity range for a right-hand-side value in a constraint is the range of values over which the quantity values can change without changing the solution variable mix, including slack variables. T .

4. The terms reduced cost, shadow price, and dual price all mean the same thing. F .

5. Sensitivity analysis can be used to determine the effect on the solution for changing several parameters at once. F .

6. A negative shadow price indicates that the objective function decreases when the right hand side of a constraint increases. T .

7. For a profit maximization problem, if the allowable increase for a coefficient in the objective function is infinite, then profits are unbounded. T .

MULTIPLE CHOICE – clearly indicate your response.
1. For a linear programming problem, assume that a given resource has not been fully used. In other words, the slack value associated with that resource constraint is positive. We can conclude that the shadow price associated with that constraint:
A. will have a positive value.
B. will have a negative value.
C. will have a value of zero.
D. could have positive, negative, or zero value. D .

Use the following information for problems 2 – 5:
Aunt Anastasia operates a small business; she produces seasonal ceramic objects to sell to tourists. For...

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