MGMT 501 Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
If a decision variable is not positive in the optimal solution, its reduced cost is
A. What its objective function value would need to be before it could become positive
B. The amount its objective function value would need to improve before it could become positive
C. Zero
D. Its dual price - CORRECT ANSWER b
The amount by which an objective function coefficient would have to improve before it would be
possible for the corresponding variable to assume a positive value in the optimal solution is called the
A. Reduced cost.
B. Relevant cost.
C. Sunk cost.
D. Dual price. - CORRECT ANSWER a
The range of feasibility measures
A. The right-hand side values for which the objective function value will not change.
B. The right-hand side values for which the values of the decision variables will not change.
C. The right-hand side values for which the dual prices will not change.
D. Each of the above is true. - CORRECT ANSWER c
Sensitivity analysis information in computer output is based on the assumption of
A. No coefficient change.
B. One coefficient change.
C. Two coefficient change.
D. All coefficients change. - CORRECT ANSWER b
A constraint with a positive slack value
A. Will have a positive dual price.
B. Will have a negative dual price.
, C. Will have a dual price of zero.
D. Has no restrictions for its dual price. - CORRECT ANSWER c
The dual price measures, per unit increase in the right hand side,
A. The increase in the value of the optimal solution.
B. The decrease in the value of the optimal solution.
C. The improvement in the value of the optimal solution.
D. The change in the value of the optimal solution. - CORRECT ANSWER c
When the cost of a resource is sunk, then the dual price can be interpreted as the
A. Minimum amount the firm should be willing to pay for one additional unit of the resource.
B. Maximum amount the firm should be willing to pay for one additional unit of the resource.
C. Minimum amount the firm should be willing to pay for multiple additional units of the resource.
D. Maximum amount the firm should be willing to pay for multiple additional units of the resource. -
CORRECT ANSWER b
As long as the slope of the objective function stays between the slopes of the binding constraints
A. The value of the objective function won't change.
B. There will be alternative optimal solution.
C. The values of the decision variables won't change
D. There will be no slack in the solution. - CORRECT ANSWER c
Side note: Optimal corner point won't change either
The amount by which an objective function coefficient can change before a different set of values for
the decision variables becomes optimal is the
A. Optimal solution.
B. Dual solution.
C. Range of optimality.
D. Range of feasibility. - CORRECT ANSWER c
QUESTIONS AND CORRECT ANSWERS
If a decision variable is not positive in the optimal solution, its reduced cost is
A. What its objective function value would need to be before it could become positive
B. The amount its objective function value would need to improve before it could become positive
C. Zero
D. Its dual price - CORRECT ANSWER b
The amount by which an objective function coefficient would have to improve before it would be
possible for the corresponding variable to assume a positive value in the optimal solution is called the
A. Reduced cost.
B. Relevant cost.
C. Sunk cost.
D. Dual price. - CORRECT ANSWER a
The range of feasibility measures
A. The right-hand side values for which the objective function value will not change.
B. The right-hand side values for which the values of the decision variables will not change.
C. The right-hand side values for which the dual prices will not change.
D. Each of the above is true. - CORRECT ANSWER c
Sensitivity analysis information in computer output is based on the assumption of
A. No coefficient change.
B. One coefficient change.
C. Two coefficient change.
D. All coefficients change. - CORRECT ANSWER b
A constraint with a positive slack value
A. Will have a positive dual price.
B. Will have a negative dual price.
, C. Will have a dual price of zero.
D. Has no restrictions for its dual price. - CORRECT ANSWER c
The dual price measures, per unit increase in the right hand side,
A. The increase in the value of the optimal solution.
B. The decrease in the value of the optimal solution.
C. The improvement in the value of the optimal solution.
D. The change in the value of the optimal solution. - CORRECT ANSWER c
When the cost of a resource is sunk, then the dual price can be interpreted as the
A. Minimum amount the firm should be willing to pay for one additional unit of the resource.
B. Maximum amount the firm should be willing to pay for one additional unit of the resource.
C. Minimum amount the firm should be willing to pay for multiple additional units of the resource.
D. Maximum amount the firm should be willing to pay for multiple additional units of the resource. -
CORRECT ANSWER b
As long as the slope of the objective function stays between the slopes of the binding constraints
A. The value of the objective function won't change.
B. There will be alternative optimal solution.
C. The values of the decision variables won't change
D. There will be no slack in the solution. - CORRECT ANSWER c
Side note: Optimal corner point won't change either
The amount by which an objective function coefficient can change before a different set of values for
the decision variables becomes optimal is the
A. Optimal solution.
B. Dual solution.
C. Range of optimality.
D. Range of feasibility. - CORRECT ANSWER c
