BUSOBA 2321 MIDTERM EXAM QUESTIONS WITH ACCURATE
SOLUTIONS
What are the assumptions of a linear model -- Answer ✔✔ 1) certainty
2) proportionality
3) additivity
4) divisibility
What are the properties of a linear model -- Answer ✔✔ 1) represents a business
problem
2) max/min some quantity
3) limitations - constraints
4) must be alternatives available
LHS has -- Answer ✔✔ decision variables
RHS has -- Answer ✔✔ constraints
Steps for linear programming -- Answer ✔✔ 1) define decision variables
2) make objective function (what are we max/min)
3) write out constraints
4) graph constraints (find x and y int)
5) find the optimal solution (plug in corner points to objective function)
linear programming: -- Answer ✔✔ continuous decision variables with the objective
function and all constraints linear
non linear programming -- Answer ✔✔ 1 constraint is non linear, decision variables are
continuous
, integer programming -- Answer ✔✔ at least one discrete decision variable with the
objective function and all constraints linear
non linear integer -- Answer ✔✔ at least one discrete decision variable, and or at least
one constraint non linear
Corner Point Theorem -- Answer ✔✔ optimal solution of a linear program problem
occurs at one of the linear corner points of the feasible region
corner points -- Answer ✔✔ where constraints used to generate feasible region
intersect
Types of solution of to linear programming -- Answer ✔✔ 1) unique optimal
2) multiple optimal
3) infeasible solution
4) unbounded
unique optimal solution -- Answer ✔✔ (one optimal solution) only 1 corner point will
yield the optimum objective function value
multiple optimal -- Answer ✔✔ (more that one optimal) 2 corner points yield the same
objective function value, all points on the line segment connecting the optimal corner
points will also be optimal
infeasible solution -- Answer ✔✔ (no solution) no point that satisfies all constraints, no
feasible region, no corner points
unbounded -- Answer ✔✔ one variable unconstrained and can go to infinity
shadow price -- Answer ✔✔ the change in the objective function value when the right
hand side of the constraint is increased by 1 unit
characteristics of a good decision -- Answer ✔✔ -based on logic
-considers all options and info available
-sometimes gives unfavorable results
SOLUTIONS
What are the assumptions of a linear model -- Answer ✔✔ 1) certainty
2) proportionality
3) additivity
4) divisibility
What are the properties of a linear model -- Answer ✔✔ 1) represents a business
problem
2) max/min some quantity
3) limitations - constraints
4) must be alternatives available
LHS has -- Answer ✔✔ decision variables
RHS has -- Answer ✔✔ constraints
Steps for linear programming -- Answer ✔✔ 1) define decision variables
2) make objective function (what are we max/min)
3) write out constraints
4) graph constraints (find x and y int)
5) find the optimal solution (plug in corner points to objective function)
linear programming: -- Answer ✔✔ continuous decision variables with the objective
function and all constraints linear
non linear programming -- Answer ✔✔ 1 constraint is non linear, decision variables are
continuous
, integer programming -- Answer ✔✔ at least one discrete decision variable with the
objective function and all constraints linear
non linear integer -- Answer ✔✔ at least one discrete decision variable, and or at least
one constraint non linear
Corner Point Theorem -- Answer ✔✔ optimal solution of a linear program problem
occurs at one of the linear corner points of the feasible region
corner points -- Answer ✔✔ where constraints used to generate feasible region
intersect
Types of solution of to linear programming -- Answer ✔✔ 1) unique optimal
2) multiple optimal
3) infeasible solution
4) unbounded
unique optimal solution -- Answer ✔✔ (one optimal solution) only 1 corner point will
yield the optimum objective function value
multiple optimal -- Answer ✔✔ (more that one optimal) 2 corner points yield the same
objective function value, all points on the line segment connecting the optimal corner
points will also be optimal
infeasible solution -- Answer ✔✔ (no solution) no point that satisfies all constraints, no
feasible region, no corner points
unbounded -- Answer ✔✔ one variable unconstrained and can go to infinity
shadow price -- Answer ✔✔ the change in the objective function value when the right
hand side of the constraint is increased by 1 unit
characteristics of a good decision -- Answer ✔✔ -based on logic
-considers all options and info available
-sometimes gives unfavorable results
