CBAD 292 - Exam 4 questions with
complete solutions
A mutual fund manager must decide how much money to invest in Atlantic Oil (A) and how much to
invest in Pacific Oil (P). At least 60% of the money invested in the two oil companies must be in Pacific
Oil. A correct modeling of this constraint is - correct answer ✔✔-0.6A + 0.4P ≥ 0.
In a production scheduling LP, the demand requirement constraint for a time period takes the form -
correct answer ✔✔beginning inventory + production - ending inventory = demand.
Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit
and $3 to buy a unit and 4000 units are needed, the objective function is - correct answer ✔✔Min 2M +
3B
The production scheduling problem modeled in the textbook involves capacity constraints on all of the
following types of resources except - correct answer ✔✔material.
To study consumer characteristics, attitudes, and preferences, a company would engage in - correct
answer ✔✔marketing research.
A company makes two products, A and B. A sells for $100 and B sells for $90. The variable production
costs are $30 per unit for A and $25 for B. The company's objective could be written as: MAX 190x1 −
55x2. - correct answer ✔✔False
A company makes two products from steel; one requires 2 tons of steel and the other requires 3 tons.
There are 100 tons of steel available daily. A constraint on daily production could be written as: 2x1 + 3x2
≤ 100. - correct answer ✔✔True
A marketing research firm must determine how many daytime interviews (D) and evening interviews (E)
to conduct. At least 40% of the interviews must be in the evening. A correct modeling of this constraint
is: -0.4D + 0.6E ≥ 0. - correct answer ✔✔True
, Compared to the problems in the textbook, real-world problems generally require more variables and
constraints. - correct answer ✔✔True
Data collection for large-scale LP models can be more time-consuming than either the formulation of the
model or the development of the computer solution. - correct answer ✔✔True
Double-subscript notation for decision variables should be avoided unless the number of decision
variables exceeds nine. - correct answer ✔✔False
If an LP problem is not correctly formulated, the computer software will indicate it is infeasible when
trying to solve it. - correct answer ✔✔False
If a real-world problem is correctly formulated, it is not possible to have alternative optimal solutions. -
correct answer ✔✔False
It is improper to combine manufacturing costs and overtime costs in the same objective function. -
correct answer ✔✔False
Media selection problems can maximize exposure quality and use number of customers reached as a
constraint, or maximize the number of customers reached and use exposure quality as a constraint. -
correct answer ✔✔True
Portfolio selection problems should acknowledge both risk and return. - correct answer ✔✔True
Production constraints frequently take the form:
beginning inventory + sales − production = ending inventory - correct answer ✔✔False
Revenue management methodology was originally developed for the banking industry. - correct answer
✔✔False
complete solutions
A mutual fund manager must decide how much money to invest in Atlantic Oil (A) and how much to
invest in Pacific Oil (P). At least 60% of the money invested in the two oil companies must be in Pacific
Oil. A correct modeling of this constraint is - correct answer ✔✔-0.6A + 0.4P ≥ 0.
In a production scheduling LP, the demand requirement constraint for a time period takes the form -
correct answer ✔✔beginning inventory + production - ending inventory = demand.
Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit
and $3 to buy a unit and 4000 units are needed, the objective function is - correct answer ✔✔Min 2M +
3B
The production scheduling problem modeled in the textbook involves capacity constraints on all of the
following types of resources except - correct answer ✔✔material.
To study consumer characteristics, attitudes, and preferences, a company would engage in - correct
answer ✔✔marketing research.
A company makes two products, A and B. A sells for $100 and B sells for $90. The variable production
costs are $30 per unit for A and $25 for B. The company's objective could be written as: MAX 190x1 −
55x2. - correct answer ✔✔False
A company makes two products from steel; one requires 2 tons of steel and the other requires 3 tons.
There are 100 tons of steel available daily. A constraint on daily production could be written as: 2x1 + 3x2
≤ 100. - correct answer ✔✔True
A marketing research firm must determine how many daytime interviews (D) and evening interviews (E)
to conduct. At least 40% of the interviews must be in the evening. A correct modeling of this constraint
is: -0.4D + 0.6E ≥ 0. - correct answer ✔✔True
, Compared to the problems in the textbook, real-world problems generally require more variables and
constraints. - correct answer ✔✔True
Data collection for large-scale LP models can be more time-consuming than either the formulation of the
model or the development of the computer solution. - correct answer ✔✔True
Double-subscript notation for decision variables should be avoided unless the number of decision
variables exceeds nine. - correct answer ✔✔False
If an LP problem is not correctly formulated, the computer software will indicate it is infeasible when
trying to solve it. - correct answer ✔✔False
If a real-world problem is correctly formulated, it is not possible to have alternative optimal solutions. -
correct answer ✔✔False
It is improper to combine manufacturing costs and overtime costs in the same objective function. -
correct answer ✔✔False
Media selection problems can maximize exposure quality and use number of customers reached as a
constraint, or maximize the number of customers reached and use exposure quality as a constraint. -
correct answer ✔✔True
Portfolio selection problems should acknowledge both risk and return. - correct answer ✔✔True
Production constraints frequently take the form:
beginning inventory + sales − production = ending inventory - correct answer ✔✔False
Revenue management methodology was originally developed for the banking industry. - correct answer
✔✔False
