CH 04 - Linear Programming Applications in Marketing, Finance, and OM

CH 04 - Linear Programming Applications in Marketing, Finance, and OM © Cengage. Testing Powered by Cognero. Page 1 True / False 1. 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. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.04.01 - 4.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 4.1 Marketing Applications KEYWORDS: Bloom's: Remember 2. Linear programming is appropriate for financial problem situations involving capital budgeting, asset allocation, financial planning, and portfolio selection. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.04.02 - 4.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 4.2 Financial Applications KEYWORDS: Bloom's: Remember 3. Portfolio selection problems should acknowledge both risk and return. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.04.02 - 4.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 4.2 Financial Applications KEYWORDS: Bloom's: Remember 4. It is improper to combine manufacturing costs and overtime costs in the same objective function. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.04.03 - 4.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking CH 04 - Linear Programming Applications in Marketing, Finance, and OM © Cengage. Testing Powered by Cognero. Page 2 TOPICS: 4.3 Operations Management Applications KEYWORDS: Bloom's: Understand 5. Production constraints frequently take the form: Beginning inventory + Sales − Production = Ending inventory a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.04.03 - 4.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 4.3 Operations Management Applications KEYWORDS: Bloom's: Understand 6. If a real-world problem is correctly formulated, it is NOT possible to have alternative optimal solutions. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.04.02 - 4.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 4.2 Financial Applications KEYWORDS: Bloom's: Understand 7. To properly interpret dual prices, one must know how costs were allocated in the objective function. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.04.03 - 4.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 4.3 Operations Management Applications KEYWORDS: Bloom's: Understand 8. A company produces two different products from steel. One requires 3 tons of steel and the other requires 5 tons. There are 100 tons of steel available daily. A constraint on daily production could be written as: 3x1 + 5x2 ≥ 100. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Eas