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UGBA 104 - EXAM 1 QUESTIONS
AND ANSWERS WITH COMPLETE
SOLUTIONS
Question : Optimization
CORRECT ANSWER: : maximizing or minimizing an objective function involving at least one variable
Question : Linear programming
CORRECT ANSWER: : maximizing or minimizing an objective when the objective function AND all constraints involve linear functions of the variables
Question : 5 Steps in Formulating a Linear Program
CORRECT ANSWER: : (1) understand decision problem(2) define decision variables(3) express objective as a linear function of decision variables(4) express constraints as a linear inequality(5) identify upper or lower bounds of decision variables
Question : Decision Variables
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CORRECT ANSWER: : variables that the decision maker can control to achieve their objective
Question : Objective
CORRECT ANSWER: : the goal of the decision maker
Question : Constraints
CORRECT ANSWER: : variables that restrict the decision maker's decision
Question : Slack
CORRECT ANSWER: : the amount the left-hand side is lower than the right-hand side
Question : Binding Constraint
CORRECT ANSWER: : constraint's slack = 0 (LHS = RHS)
Question : Non-Binding Constraint
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CORRECT ANSWER: : constraint's slack > 0 (LHS < RHS)
Question : Feasible Solutions
CORRECT ANSWER: : solutions that satisfy all problem constraints
Question : Infeasible Solutions
CORRECT ANSWER: : solutions that violate at least one problem constraint
Question : Optimal Solution
CORRECT ANSWER: : feasible solution that meets the objective function (maximum or minimum value reached)
Question : Finding LP Optimal Solutions via Graphing
CORRECT ANSWER: : (1) graph all constraints to determine the feasible plane(2) graph isoquant lines (objective function) until you reach the point of tangency
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with the feasible region(2.5) system of equations where two constraint functions intersect
Question : Redundant Constraint
CORRECT ANSWER: : removal of a constraint does not affect the feasible region
Question : Infeasible Linear Program
CORRECT ANSWER: : no feasible solution (no solution that meets all constraints)
Question : Unbounded Linear Program
CORRECT ANSWER:: indefinite shifting of the isoquant line without reaching a point of tangency (e.g.constraint is just a vertical line);no optimal solution
Question : Multiple Optimality Linear Program
CORRECT ANSWER: : infinite number of optimal solutions;slope of objective function = slope of constraint at boundary of feasible region