Question 15 If sensitivity analysis shows an allowable increase of infinity for
ID: 431699 • Letter: Q
Question
Question 15
If sensitivity analysis shows an allowable increase of infinity for the objective coefficient range for variable x1, it means
1.
The problem is unbound
2.
The value of x1 can increase without limit
3.
The objective function coefficient for x1 can increase without limit and variables will all have the same optimal values
4.
The objective function coefficient for x1 can increase without limit and all the variables except x1 will change their optimal value
Question 16
The objective function Max 14x1 + 19x2 reflects the relevant cost of labor hours used in production. The correct interpretation of shadow price associated with the labor hours constraint is
1.
The maximum premium over the normal price (say for overtime) the company would be willing to pay.
2.
The upper limit on the total hourly wage the company would be willing to pay
3.
The reduction in hours that could be sustained before the solution would change
4.
All of the above
5.
None of the above
Question 17
Suppose the shadow price for resource 1 in an LP problem is 22. Also, consider that the constraint that establishes the resource requirement is a "less than or equal to" type constraint. As such, there is no slack ( or "zero" value for slack) associated with the constraint of resource 1.
1.
true
2.
false
1.
The problem is unbound
2.
The value of x1 can increase without limit
3.
The objective function coefficient for x1 can increase without limit and variables will all have the same optimal values
4.
The objective function coefficient for x1 can increase without limit and all the variables except x1 will change their optimal value
Explanation / Answer
Answer 15. c- The variables will have same optimal values.
Answer 16. a- Additional price a company is willing to pay.
Answer 17. b- False, there may be a slack available and can be verified by reducing the constraint value.