ISDS FINAL EXAM QUESTIONS WITH 100% CORRECT ANSWERS
3 views 0 purchase
Module
ISDS
Institution
ISDS
ISDS FINAL EXAM QUESTIONS WITH 100% CORRECT ANSWERS
The shadow price of nonbinding constraints
a. will always be a positive value.
b. can never be equal to zero.
c. is no longer valid if the right-hand side of the constraint remains the same.
d. will always be zero. - Answer-will alw...
ISDS FINAL EXAM QUESTIONS WITH
100% CORRECT ANSWERS
The shadow price of nonbinding constraints
a. will always be a positive value.
b. can never be equal to zero.
c. is no longer valid if the right-hand side of the constraint remains the same.
d. will always be zero. - Answer-will always be zero.
The reduced cost for a decision variable that appears in a Sensitivity Report refers to
the __________ of the nonnegativity constraint for that variable.
a. range of feasibility
b. range of optimality
c. shadow price
d. slack value - Answer-shadow price
The reduced cost for a decision variable that appears in a Sensitivity Report indicates
the change in the optimal objective function value that results from changing the right-
hand side of the nonnegativity constraint from
a. 0 to 1.
b. 0 to -1.
c. 1 to 0.
d. -1 to 0. - Answer-0 to 1.
Rob is a financial manager with Sharez, an investment advisory company. He must
select specific investments—for example, stocks and bonds—from a variety of
investment alternatives. Which of the following statements is most likely to be the
objective function in this scenario?
a. Maximization of investment risk
b. Minimization of the number of stocks held
c. Minimization of tax dues
d. Maximization of expected return - Answer-Maximization of expected return
Rob is a financial manager with Sharez, an investment advisory company. He must
select specific investments—for example, stocks and bonds—from a variety of
investment alternatives. Restrictions on the type of permissible investments would be a
__________ in this case.
a. surplus variable
b. feasible solution
c. slack variable
,d. constraint - Answer-Constraint
A canned food manufacturer has its manufacturing plants in three locations across a
state. Their product has to be transported to 3 central distribution centers, which in turn
disperse the goods to 72 stores across the state. Which of the following is most likely to
be the objective function in this scenario?
a. Increasing the number of goods manufactured at the plant
b. Decreasing the cost of their raw material sourcing
c. Minimizing the quantity of goods distributed across the stores
d. Minimizing the cost of shipping goods from the plant to the store - Answer-Minimizing
the cost of shipping goods from the plant to the store
A canned food manufacturer has its manufacturing plants in three locations across a
state. Their product has to be transported to 3 central distribution centers, which in turn
disperse the goods to 72 stores across the state. Which of the following visualization
tools could help understand this problem better?
a. Scatter chart
b. Contour plot
c. Time-series plot
d. Network graph - Answer-Network graph
An uncertain future event affecting the consequence associated with a decision is
known as a
a. chance event.
b. decision node.
c. payoff.
d. decision alternative. - Answer-chance event.
A(n) _________ refers to the result obtained when a decision alternative is chosen and
a chance event occurs.
a. payoff table
b. node
c. state of nature
d. outcome - Answer-Outcome
_____________ are possible outcomes for chance events that affect the consequences
associated with a decision alternative.
a. Payoffs
b. Decision trees
c. States of nature
d. Forecasts - Answer-States of nature
No more than one state of nature can occur at a given time for a chance event. This
indicates that the states of nature are defined such that they are
a. collectively exhaustive.
b. mutually exclusive.
, c. conservative events.
d. independent outcomes. - Answer-mutually exclusive.
The states of nature are defined so that they are ___________. This means that at least
one state of nature must occur at a given time for a chance event.
a. collectively exhaustive
b. mutually exclusive
c. optimistic outcomes
d. certain events - Answer-collectively exhaustive
A measure of the outcome of a decision such as profit, cost, or time is known as a
a. payoff.
b. branch.
c. forecasting index.
d. regret. - Answer-payoff
___________ are graphical representations of the decision problems that show the
sequential nature of the decision-making process.
a. Influence diagrams
b. Decision trees
c. Payoff tables
d. Utility functions - Answer-Decision trees
Which of the following is true of decision trees when used to solve a complex problem?
a. They provide a useful way to decompose the problem.
b. They can be converted into truth tables.
c. They can be used only when the decision maker is risk neutral.
d. They are used to compute a decision maker's risk tolerance. - Answer-They provide
a useful way to decompose the problem.
Brett wants to sell throw blankets for the holiday season at a local flea market. Brett
purchases the throws for $15 and sells them to his customers for $35. The rental space
is fixed fee of $1,500 for the season. Assume there is no leftover value for unsold units.
If he orders 200 and demand is 150, what is the payoff?
a. $800
b. $2,800
c. $750
d. $50 - Answer-$750
An intersection or junction point of a decision tree is called a(n)
a. node.
b. intercept.
c. branch.
d. stem. - Answer-node.
Chance nodes are
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £11.38. You're not tied to anything after your purchase.
