The shadow price measures, per unit increase in the right hand side of the constraint,

Question $1$ options:

a$)$ the change 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 increase in the value of the optimal solution.

Question $2(2\mathrm{.}5$ points$)$

Listen

What are the three elements of an optimization problem?

Question $2$ options:

a$)$ objectives, resources, goals.

b$)$ decisions, resource requirements, a profit function.

c$)$ decisions, constraints, an objective.

d$)$ decision variables, profit levels, costs.

Question $3(2\mathrm{.}5$ points$)$

Listen

Colors and shading should be avoided on a spreadsheet because it distracts from the model.

Question $3$ options:

a$)$ True

b$)$ False

Question $4(2\mathrm{.}5$ points$)$

Listen

In the following expression, which is $($are$)$ the dependent variable$($s$)?$

PROFIT $=$ REVENUE $$ EXPENSES

Question $4$ options:

a$)$

Revenue and Expenses

b$)$

Expenses

c$)$

Profit

d$)$

Revenue

Question $5(2\mathrm{.}5$ points$)$

Listen

Sensitivity analysis information in computer output is based on the assumption of

Question $5$ options:

a$)$ all coefficients change.

b$)$ one coefficient changes.

c$)$ two coefficients change.

d$)$ no coefficient changes.

Question $6(2\mathrm{.}5$ points$)$

Listen

When the cost of a resource is sunk, then the shadow price can be interpreted as the

Question $6$ options:

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.

Question $7(2\mathrm{.}5$ points$)$

Listen

Every change in the value of an objective function coefficient will lead to a changed optimal solution.

Question $7$ options:

a$)$ True

b$)$ False

Question $8(2\mathrm{.}5$ points$)$

Listen

The term "allowable range for an objective function coefficient" refers to a constraint's right$-$hand side quantity.

Question $8$ options:

a$)$ True

b$)$ False

Question $9(2\mathrm{.}5$ points$)$

Listen

Numbers should be included directly in formulas rather than entered separately in data cells in order to keep the spreadsheet model concise.

Question $9$ options:

a$)$ True

b$)$ False

Question $10(2\mathrm{.}5$ points$)$

Listen

When a change in the value of an objective function coefficient remains within the allowable range, the optimal solution will also remain the same.

Question $10$ options:

a$)$ True

b$)$ False

Question $11(2\mathrm{.}5$ points$)$

Listen

A shadow price tells how much a decision variable can be increased or decreased without changing the value of the solution.

Question $11$ options:

a$)$ True

b$)$ False

Question $12(2\mathrm{.}5$ points$)$

Listen

The improvement in the value of the objective function per unit increase in a right$-$hand side is the

Question $12$ options:

a$)$

shadow price.

b$)$

sensitivity value.

c$)$

constraint coefficient.

d$)$

constraint surplus value.

Question $13(2\mathrm{.}5$ points$)$

Listen

The amount by which an objective function coefficient can change before a different set of values for the decision variables becomes optimal is the

Question $13$ options:

a$)$

shadow price.

b$)$

allowable range for the right$-$hand side.

c$)$

optimal solution.

d$)$

allowable range for an objective function coefficient.

Question $14(2\mathrm{.}5$ points$)$

Listen

For any constraint, either there is no slack$/$surplus of the constraint or its shadow price must be zero.

Question $14$ options:

a$)$ True

b$)$ False

Question $15(2\mathrm{.}5$ points$)$

Listen

Which element of the spreadsheet model should be entered first?

Question $15$ options:

a$)$ The data.

b$)$ The output cells.

c$)$ The target cell.

d$)$ The changing cells.

Question $16(2\mathrm{.}5$ points$)$

Listen

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

Question $16$ options:

a$)$ True

b$)$ False

Question $17(2\mathrm{.}5$ points$)$

Listen

Whenever possible, the entire model should be displayed on the spreadsheet.

Question $17$ options:

a$)$ True

b$)$ False

Question $18(2\mathrm{.}5$ points$)$

Listen

When sketching out a spreadsheet, it is important to have determined the formulas for all of the output cells.

Question $18$ options:

a$)$ True

b$)$ False

Question $19(2\mathrm{.}5$ points$)$

Listen

Which of the following is not a useful step in the model planning stage?

Question $19$ options:

a$)$ Visualize where you want to finish

b$)$ Sketch out a spreadsheet

c$)$ Do some calculations by hand

d$)$ Sensitivity analysis

Question $20(2\mathrm{.}5$ points$)$

Listen

A constraint that has a surplus in the optimal solution

Question $20$ options:

a$)$

will have a negative shadow price.

b$)$