Busn312 Hw3A

Homework 3A

Multiple Choice
Identify the choice that best completes the statement or answers the question.

__B__ 1. What are the three common elements of an optimization problem?
a.|objectives, resources, goals.|
b.|decisions, constraints, an objective.|
c.|decision variables, profit levels, costs.|
d.|decisions, resource requirements, a profit function.|

___A_ 2. What is the goal in optimization?
a.|Find the best decision variable values that satisfy all constraints.|
b.|Find the values of the decision variables that use all available resources.|
c.|Find the values of the decision variables that satisfy all constraints.|
d.|None of the above.|

____B 3. Limited resources are modeled in optimization problems as
a.|an objective function.|
b.|constraints.|
c.|decision variables.|
d.|alternatives.|

__A__ 4. Retail companies try to find
a.|the least costly method of transferring goods from warehouses to stores.|
b.|the most costly method of transferring goods from warehouses to stores.|
c.|the largest number of goods to transfer from warehouses to stores.|
d.|the least profitable method of transferring goods from warehouses to stores.|

_B___ 5. Most individuals manage their individual retirement accounts (IRAs) so they
a.|maximize the amount of money they withdraw.|
b.|minimize the amount of taxes they must pay.|
c.|retire with a minimum amount of money.|
d.|leave all their money to the government.|

_A___ 6. Linear programming problems have
a.|linear objective functions, non-linear constraints.|
b.|non-linear objective functions, non-linear constraints.|
c.|non-linear objective functions, linear constraints.|
d.|linear objective functions, linear constraints.|

____C 7. The first step in formulating a linear programming problem is
a.|Identify any upper or lower bounds on the decision variables.|
b.|State the constraints as linear combinations of the decision variables.|
c.|Understand the problem.|
d.|Identify the decision variables.|
e.|State the objective