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Bafpres Chapter 9
Bafpres Chapter 9
2. The objective function for a linear optimization problem is: Max 3x + 5y, with one of the
constraints being x, y ≥ 0 and integer. x and y are the only decisions variables. This is an
example of a(n) _____.*
3. The linear program that results from dropping the integer requirements for the variables in an
integer linear program is known as _____.*
a) convex hull
b) a mixed-integer linear program
c) LP relaxation
d) a binary integer linear program
4. The objective function for an optimization problem is: Min 3x – 2y, with one of the constraints
being x, y ≥ 0 and integer. If the integer restriction on the variables is removed, this would be a
familiar two-variable linear program; however, it would be an example of _____.*
5. The objective function for an optimization problem is: Max 5x – 3y, with one of the constraints
being x, y ≥ 0 and y integer. x and y are the only decisions variables. This is an example of a(n)
_____.**
6. In binary integer linear program, the integer variables take only the values:*
a) 0 or 1.
b) 0 or ∞.
c) 1 or ∞.
d) 1 or –1.
8. The _____ of a set of points is the smallest intersection of linear inequalities that contain the set
of points.*
a) concave hull
b) slope
c) convex hull
d) geometry
9. The optimal solution to the integer program will be an extreme point of the _____.*
a) convex hull
b) objective contour
c) cutting plane
d) slope
10. Which of the following is true of the relationship between the value of the optimal integer
solution and the value of the optimal solution to the LP Relaxation?*
a) For integer linear programs involving minimization, the value of the optimal solution to the LP
Relaxation provides an upper bound on the value of the optimal integer solution.
b) For integer linear programs involving maximization, the value of the optimal solution to the LP
Relaxation provides a lower bound on the value of the optimal integer solution.
c) For integer linear programs involving minimization, the value of the optimal solution to the LP
Relaxation provides a lower bound on the value of the optimal integer solution.
d) For any linear program involving either minimization or maximization, the value of the optimal
solution to the LP Relaxation provides an infeasible value for the optimal integer solution.
11. The _____ approach to solving integer linear optimization problems breaks the feasible region
of the LP Relaxation into subregions until the subregions have integer solutions or it is
determined that the solution cannot be in the subregion.*
a) cutting plane
b) trial-and-error
c) breaking region
d) branch-and-bound
12. Which of the following approaches to solving integer linear optimization problems tries to
identify the convex hull by adding a series of new constraints that do not exclude any feasible
integer points?*
13. The worksheet formulation for integer linear programs and linear programming problems is
exactly the same except that the _____ for integer linear programs.*
a) objective function using Set Objective in the Solver Parameters dialog box is set to Value Of option
b) decision variables need not be added in By Changing Variable Cells in the Solver Parameters dialog
box
c) decision variables must be added in By Changing Variable Cells in the Solver Parameters dialog box
along with selecting the Ignore Integer Constraints in the Integer Options dialog box
d) constraints must be added in the Solver Parameters dialog box to identify the integer variables and
the value for Tolerance in the Integer Options dialog box may need to be adjusted
14. Binary variables are identified with the _____designation in the Solver Parameters dialog
box.*
a) bin
b) 0 and 1
c) int
d) dif
15. The importance of _____ for integer linear programming problems is often intensified by the
fact that a small change in one of the coefficients in the constraints can cause a relatively large
change in the value of the optimal solution.*
a) objective function
b) decision variables
c) sensitivity analysis
d) optimization analysis
16. Which of the following is true about the sensitivity analysis for integer optimization problems?
*
a) Sensitivity reports are readily available for integer optimization problems similar to the linear
programming problems.
b) Because of the discrete nature of the integer optimization, Excel Solver takes much more time to
calculate objective function coefficient ranges, shadow prices, and right-hand-side ranges.
c) The sensitivity analysis is not important for integer problems.
d) To determine the sensitivity of the solution to changes in model inputs for integer optimization
problems, the data must be changed and the problem must be re-solved.
17. In order to choose the best solution for implementation, practitioners usually recommend re-
solving the integer linear program several times with variations in the_____.*
a) objective function
b) decision variables
c) constraint coefficients
d) integer constraints
18. In cases where Excel Solver experiences excessive run times when solving integer linear
problems, the Integer Optimality is set to _____.*
a) 5%
b) 0%
c) infinity
d) a value equal to the number of integer constraints
19. The objective function for a linear optimization problem is: Max 3x + 2y, with one of the
constraints being x, y = 0, 1. x and y are the only decision variables. This is an example of a
_____.*
a) nonlinear program
b) mixed-integer linear program
c) LP relaxation of the integer linear program
d) binary integer linear program
20. _____ is a binary integer programming problem that involves choosing which possible projects
or activities provide the best investment return.*
21. In a production application involving a fixed cost and a variable cost, the use of _____ makes
including the fixed cost possible in a production model.*
a) location variables
b) noninteger constraints
c) objective function coefficients
d) binary variables
22. A binary mixed-integer programming problem in which the binary variables represent
whether an activity, such as a production run, is undertaken or not is known as the _____.*
23. In a fixed-cost model, each fixed cost is associated with a binary variable and a specification of
the:*
24. Which of the following is a likely constraint on the production quantity x associated with a
maximum value and a setup variable y in a fixed-cost problem?*
a) x ≥ My
b) x ≤ My
c) Mx ≤ y
d) xy ≥ M
25. In a fixed-cost problem, choosing excessively large values for the maximum production
quantity will result in:*
26. For a location problem, if the variables are defined as xi = 1 if an outlet store is established in
region i and 0 otherwise, the objective function is best defined by _____ for i = 1, 2, …, n
number of outlet stores included in the problem.*
a) Min(∑xi)
b) Max(∑xi)
c) Min(πxi)
d) Max(πxi)
27. _____ is a market research technique that can be used to learn how prospective buyers of a
product value the product’s attributes.*
a) Part-worth analysis
b) Conjoint analysis
c) Regression analysis
d) Sensitivity analysis
28. The _____ is the utility value that a consumer attaches to each level of each attribute in a
conjoint analysis model.*
a) weightage
b) share of choice
c) part-worth
d) share of market
29. The part-worth for each of the attribute levels in a conjoint analysis is determined by _____.*
a) regression analysis
b) sensitivity analysis
c) online surveys
d) word-of-mouth
30. Coming up with a product design that will have the highest utility for a sufficient number of
people to ensure sufficient sales to justify making the product is known as the _____ in
marketing literature.*
Reference - 9.1: Use the information given below to answer questions 31-35.
31. An apparel designing company is planning to enter the women’s trousers market. They are in
the process of developing a product that will appeal most to customers. What category does the
above objective fall under?*
32. Reference - 9.1. The available size of the trousers will be a(n) _____ in an integer programming
model for this problem.*
a) binary variable
b) constraint
c) attribute
d) regression constant
33. Reference - 9.1. Pink, green, and black will be _____ of the color attribute.*
a) levels
b) constraints
c) regression constants
d) utility values
34. Reference - 9.1. The levels – small, medium, and large of the size attribute are modeled using:*
35. Reference - 9.1. The part-worths for each of the attribute levels obtained from an initial
customer survey and the subsequent regression analysis can be used to determine the:*