OPRE 6301 TEST BANK 1 to 200
QUESTIONS COMPLETE EXAM PACK
WITH ANSWERS AND DETAILED
RATIONALES BUSINESS ANALYTICS AND
OPERATIONS RESEARCH
OPRE 6301 – Test 2 (Multiple Choice Exam)
1.
A company is evaluating two decision alternatives under uncertainty
using expected value. The payoff matrix is known and probabilities are
assigned. Which method best incorporates risk neutrality in decision-
making?
A. Maximin criterion
B. Maximax criterion
C. Expected Monetary Value (EMV)
D. Minimax regret
EMV assumes the decision-maker is risk-neutral and uses probabilities
to compute weighted averages of outcomes.
2.
In a linear programming model, the feasible region is defined as:
A. All possible values of decision variables
B. Only integer solutions
C. The set of all points satisfying constraints
D. The optimal solution set
The feasible region includes all solutions that satisfy every constraint in
the model.
3.
A constraint is considered binding when:
,A. It has no slack
B. It is redundant
C. It does not affect the solution
D. The solution lies exactly on the constraint boundary
Binding constraints are tight and directly influence the optimal
solution.
4.
Sensitivity analysis in linear programming primarily examines:
A. Model formulation
B. Integer feasibility
C. Impact of parameter changes on optimal solution
D. Graphical representation
Sensitivity analysis studies how changes in coefficients affect
optimality.
5.
Which of the following best describes shadow price?
A. Cost of slack variables
B. Change in decision variables
C. Marginal value of a resource
D. Total profit contribution
Shadow price indicates how much the objective function improves with
one additional unit of a resource.
6.
A decision tree is most useful for:
A. Deterministic optimization
B. Regression modeling
C. Sequential decision problems under uncertainty
D. Clustering data
Decision trees visualize sequential decisions and probabilistic outcomes.
,7.
In simulation modeling, randomness is introduced through:
A. Objective functions
B. Constraints
C. Random number generation
D. Deterministic variables
Simulation relies on random number generators to mimic uncertainty.
8.
The simplex method is used to:
A. Solve nonlinear problems
B. Simulate systems
C. Solve linear programming problems
D. Analyze regression
The simplex algorithm iteratively finds optimal LP solutions.
9.
Which condition must hold for a linear programming model?
A. Nonlinear relationships allowed
B. Proportionality assumption holds
C. Integer solutions required
D. Probabilities must be known
LP requires linearity and proportionality between variables.
10.
Slack variables are added to:
A. Minimize objective function
B. Convert maximization to minimization
C. Convert inequalities to equalities
D. Eliminate constraints
, Slack variables transform ≤ constraints into equalities.
11.
In integer programming:
A. All variables are continuous
B. Some or all variables must be integers
C. Only objective is integer
D. No constraints allowed
Integer programming restricts variable values to integers.
12.
A model is infeasible when:
A. Objective is unbounded
B. Multiple solutions exist
C. No solution satisfies all constraints
D. Variables are negative
Infeasibility means no valid solution exists.
13.
Degeneracy in LP occurs when:
A. Multiple optimal solutions exist
B. A basic variable equals zero
C. Objective is infinite
D. Constraints are nonlinear
Degeneracy can cause cycling in simplex.
14.
The minimax regret criterion focuses on:
A. Maximum profit
B. Minimum cost
QUESTIONS COMPLETE EXAM PACK
WITH ANSWERS AND DETAILED
RATIONALES BUSINESS ANALYTICS AND
OPERATIONS RESEARCH
OPRE 6301 – Test 2 (Multiple Choice Exam)
1.
A company is evaluating two decision alternatives under uncertainty
using expected value. The payoff matrix is known and probabilities are
assigned. Which method best incorporates risk neutrality in decision-
making?
A. Maximin criterion
B. Maximax criterion
C. Expected Monetary Value (EMV)
D. Minimax regret
EMV assumes the decision-maker is risk-neutral and uses probabilities
to compute weighted averages of outcomes.
2.
In a linear programming model, the feasible region is defined as:
A. All possible values of decision variables
B. Only integer solutions
C. The set of all points satisfying constraints
D. The optimal solution set
The feasible region includes all solutions that satisfy every constraint in
the model.
3.
A constraint is considered binding when:
,A. It has no slack
B. It is redundant
C. It does not affect the solution
D. The solution lies exactly on the constraint boundary
Binding constraints are tight and directly influence the optimal
solution.
4.
Sensitivity analysis in linear programming primarily examines:
A. Model formulation
B. Integer feasibility
C. Impact of parameter changes on optimal solution
D. Graphical representation
Sensitivity analysis studies how changes in coefficients affect
optimality.
5.
Which of the following best describes shadow price?
A. Cost of slack variables
B. Change in decision variables
C. Marginal value of a resource
D. Total profit contribution
Shadow price indicates how much the objective function improves with
one additional unit of a resource.
6.
A decision tree is most useful for:
A. Deterministic optimization
B. Regression modeling
C. Sequential decision problems under uncertainty
D. Clustering data
Decision trees visualize sequential decisions and probabilistic outcomes.
,7.
In simulation modeling, randomness is introduced through:
A. Objective functions
B. Constraints
C. Random number generation
D. Deterministic variables
Simulation relies on random number generators to mimic uncertainty.
8.
The simplex method is used to:
A. Solve nonlinear problems
B. Simulate systems
C. Solve linear programming problems
D. Analyze regression
The simplex algorithm iteratively finds optimal LP solutions.
9.
Which condition must hold for a linear programming model?
A. Nonlinear relationships allowed
B. Proportionality assumption holds
C. Integer solutions required
D. Probabilities must be known
LP requires linearity and proportionality between variables.
10.
Slack variables are added to:
A. Minimize objective function
B. Convert maximization to minimization
C. Convert inequalities to equalities
D. Eliminate constraints
, Slack variables transform ≤ constraints into equalities.
11.
In integer programming:
A. All variables are continuous
B. Some or all variables must be integers
C. Only objective is integer
D. No constraints allowed
Integer programming restricts variable values to integers.
12.
A model is infeasible when:
A. Objective is unbounded
B. Multiple solutions exist
C. No solution satisfies all constraints
D. Variables are negative
Infeasibility means no valid solution exists.
13.
Degeneracy in LP occurs when:
A. Multiple optimal solutions exist
B. A basic variable equals zero
C. Objective is infinite
D. Constraints are nonlinear
Degeneracy can cause cycling in simplex.
14.
The minimax regret criterion focuses on:
A. Maximum profit
B. Minimum cost
