BANA 2 Final Exam UPDATED Study
Guide ACTUAL QUESTIONS AND
CORRECT ANSWERS
In a nonlinear optimization problem - CORRECT ANSWER at least one term in the
objective function or a constraint is nonlinear
The reduced gradient is analogous to the ___________ for linear models - CORRECT
ANSWER reduced cost
The Lagrangian multiplier is the __________ for a constraint in a nonlinear problem -
CORRECT ANSWER shadow price
A feasible solution is a(n) ___________ if there are no other feasible solutions with a better
objective function value in the immediate neighborhood - CORRECT ANSWER local
optimum
A feasible solution is __________ if there are no other feasible points with a better objective
function value in the entire feasible region - CORRECT ANSWER a global optimum
Solving nonlinear problems with local optimal solutions is performed using _____________,
in Excel Solver, which is based on more classical optimization techniques - CORRECT
ANSWER GRG Nonlinear
The __________ option in Excel Solver is helpful when the solution to a problem appears to
depend on the starting values for the decision variables - CORRECT
ANSWER Multistart
An uncertain future event affecting the consequence associated with a decision is known as a
- CORRECT ANSWER chance event
, A(n) _________ refers to the result obtained when a decision alternative is chosen and a
chance event occurs - CORRECT ANSWER outcome
_____________ are possible outcomes for chance events that affect the consequences
associated with a decision alternative - CORRECT ANSWER States of nature
No more than one state of nature can occur at a given time for a chance event. This indicates
that the states of nature are defined such that they are - CORRECT ANSWER mutually
exclusive
The states of nature are defined so that they are ___________. This means that at least one
state of nature must occur at a given time for a chance event - CORRECT
ANSWER collectively exhaustive
An intersection or junction point of a decision tree is called a(n) - CORRECT
ANSWER node
Lines showing the alternatives from decision nodes and the outcomes from chance nodes are
called - CORRECT ANSWER branches
The ___________ approach evaluates each decision alternative in terms of the best payoff
that can occur - CORRECT ANSWER optimistic
Choosing a decision alternative that maximizes the minimum profit is a feature of the
__________ approach - CORRECT ANSWER conservative
The amount of loss (lower profit or higher cost) from not making the best decision for each
state of nature is known as - CORRECT ANSWER opportunity loss
The minimax regret approach is - CORRECT ANSWER neither purely optimistic nor
purely conservative
Guide ACTUAL QUESTIONS AND
CORRECT ANSWERS
In a nonlinear optimization problem - CORRECT ANSWER at least one term in the
objective function or a constraint is nonlinear
The reduced gradient is analogous to the ___________ for linear models - CORRECT
ANSWER reduced cost
The Lagrangian multiplier is the __________ for a constraint in a nonlinear problem -
CORRECT ANSWER shadow price
A feasible solution is a(n) ___________ if there are no other feasible solutions with a better
objective function value in the immediate neighborhood - CORRECT ANSWER local
optimum
A feasible solution is __________ if there are no other feasible points with a better objective
function value in the entire feasible region - CORRECT ANSWER a global optimum
Solving nonlinear problems with local optimal solutions is performed using _____________,
in Excel Solver, which is based on more classical optimization techniques - CORRECT
ANSWER GRG Nonlinear
The __________ option in Excel Solver is helpful when the solution to a problem appears to
depend on the starting values for the decision variables - CORRECT
ANSWER Multistart
An uncertain future event affecting the consequence associated with a decision is known as a
- CORRECT ANSWER chance event
, A(n) _________ refers to the result obtained when a decision alternative is chosen and a
chance event occurs - CORRECT ANSWER outcome
_____________ are possible outcomes for chance events that affect the consequences
associated with a decision alternative - CORRECT ANSWER States of nature
No more than one state of nature can occur at a given time for a chance event. This indicates
that the states of nature are defined such that they are - CORRECT ANSWER mutually
exclusive
The states of nature are defined so that they are ___________. This means that at least one
state of nature must occur at a given time for a chance event - CORRECT
ANSWER collectively exhaustive
An intersection or junction point of a decision tree is called a(n) - CORRECT
ANSWER node
Lines showing the alternatives from decision nodes and the outcomes from chance nodes are
called - CORRECT ANSWER branches
The ___________ approach evaluates each decision alternative in terms of the best payoff
that can occur - CORRECT ANSWER optimistic
Choosing a decision alternative that maximizes the minimum profit is a feature of the
__________ approach - CORRECT ANSWER conservative
The amount of loss (lower profit or higher cost) from not making the best decision for each
state of nature is known as - CORRECT ANSWER opportunity loss
The minimax regret approach is - CORRECT ANSWER neither purely optimistic nor
purely conservative
