BUSOBA 2320 Exam 1 Questions and Correct Answers.

BUSOBA 2320 Exam 1 Questions and
Correct Answers
Question 1
True or False:
A good decision can only result in a good outcome.
Correct Answer
false



Question 2
When we write constraints must first __(1)__ and then __(2)__.
Correct Answer
(1) write them by hand
(2) convert to a linear equation



Question 3
What are the 4 types of solutions that can be found in linear programming?

Correct Answer
unique optimal solution
2. multiple optimal solution
3. infeasible solutions
4. unbounded solutions



Question 4
Which pure strategy criteria does the following statements describe:
"I make a decision and the worst outcome always occurs."
"I make a decision and nature is out to get me."
"Poor me."
Correct Answer
maximin




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,Question 5
When we evaluate the EVwPI...
1. add a row to the _____ table and label it _____.
2. Pick the _____ value from each state of nature.
3. Calculate the _____.
Correct Answer
payoff; maximum
2. maximum
3. EMV



Question 6
This solution method for excel is an algorithm used to solve problems with a non-
linear objective function or at least one non-linear constraint
Correct Answer
non-linear



Question 7
_____ cells are the cells that you want Solver to change to optimize the objective
function value.
Correct Answer
solution (changing)



Question 8
What theorem states that the optimal solution of a linear program problem occurs at
one of the corner points of the feasible region?
Correct Answer
corner point theorem



Question 9
(fixed costs + variable costs) * quantity
Correct Answer
costs




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,Question 10
If only X1 is in the constraint, the line will be _____.
Correct Answer
vertical



Question 11
What is the slope of the following equation:
pi = (P - VC) x Q - FC
Correct Answer
(P - VC)



Question 12
If there is an equal chance for each state of nature, then p(i) = _____.
Correct Answer
1/n



Question 13
revenue - cost = ?
Correct Answer
profit



Question 14
Is a bad decision based on logic?
Correct Answer
no




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, Question 15
The _____ hand side of the constraint contains constants but no decision variables and
their coefficients.
Correct Answer
right



Question 16
What does IP mean?
Correct Answer
integer programming



Question 17
How do we sole for quantity?
Correct Answer
(pi + FC) / (P - VC)



Question 18
All values in the regret table will be _____.
Correct Answer
positive



Question 19
What does LP mean?
Correct Answer
linear programming




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