True/False and MCQs on LPP and sensitivity analysis

1If the optimal solution will remain the same over only a small range of values for a particular coefficient in the objective function, then management will want to take special care to narrow this estimate down.

A) True.

B) False.

2A shadow price indicates how much the optimal value of the objective function will decrease per unit decrease in the right-hand side of a constraint.

A) True.

B) False.

3According to the 100% rule for simultaneous changes in objective function coefficients, if the sum of the percentage changes exceeds 100%, the optimal solution may or may not change.

A) True.
B) False.

4Whenever proportional changes are made to all the unit profits in a problem, the optimal solution will also change proportionally.

A) True.

B) False.

5The allowable range for the right-hand-side is the range of values of the decision variables for which the shadow price remains valid.

A) True.

B) False.

6Solver Table can be used to systematically determine the impact of changing one data cell over a range of different values.

A) True.

B)False.

7The shadow price indicates how much a changing cell will increase per unit increase in the right-hand-side.

A) True.

B) False.

8What-if analysis:

A) may be done graphically for problems with two decision variables.

B) may involve changes in the right-hand side values.

C) may increase a manager's confidence in the model that has been formulated.

D) a. and b. only.

E) All of the above.

9Which of the following is not a benefit of what-if analysis?

A) It pinpoints the sensitive parameters of the model.

B) It gives the new optimal solution if conditions change after a study has been completed.

C) It tells management what policy decisions to make.

D) b. and c. only.

E) All of the above.

10If the right-hand side value of a constraint in a two variable linear programming problems is changed, then:

A) the optimal measure of performance may change.

B) a parallel shift must be made in the graph of that constraint.

C) the optimal values for one or more of the decision variables may change.

D) All of the above.

E) None of the above.

11Solver Table can be used to consider changes in how many data cells simultaneously?

A) 1

B) 2

C) 3

D) 4

E) 5

12A coefficient in the objective function is said to be sensitive if:

A) even a small change in its value can change the optimal solution.

B) a large change in its value is needed to change the optimal solution.

C) its shadow price is small.

D) b. and c. only.

E) None of the above.

13In a problem with 2 decision variables, the 100% rule indicates that each coefficient can be safely increase by what amount without invalidating the current optimal solution?

A) 50%.

B) 50% of the allowable increase of that coefficient.

C) 100%.

D) 50% of the range of optimality.

E)It cannot be determined from the information given.