Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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To study consumer characteristics, attitudes, and preferences, a company would
engage in
a. | client satisfaction processing. | b. | marketing research. | c. | capital
budgeting. | d. | production planning. |
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2.
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A marketing research application uses the variable HD to represent the number of
homeowners interviewed during the day. The objective function minimizes the cost of interviewing this
and other categories and there is a constraint that HD ³ 100. The
solution indicates that interviewing another homeowner during the day will increase costs by 10.00.
What do you know?
a. | the objective function coefficient of HD is 10. | b. | the dual price for
the HD constraint is 10. | c. | the objective function coefficient of HD is
-10. | d. | the dual price for the HD constraint is -10. |
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3.
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The dual price for a constraint that compares funds used with funds available is
.058. This means that
a. | the cost of additional funds is 5.8%. | b. | if more funds can be obtained at a rate of
5.5%, some should be. | c. | no more funds are needed. | d. | the objective was to
minimize. |
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4.
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Let M be the number of units to make and B be the number of units to buy. If it
costs €2 to make a unit and €3 to buy a unit and 4000 units are needed, the objective
function is
a. | Max 2M + 3B | b. | Min 4000 (M + B) | c. | Max 8000M +
12000B | d. | Min 2M + 3B |
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5.
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If Pij = the production of product i in period j, then to indicate
that the limit on production of the company's three products in period 2 is 400,
a. | P21 + P22 + P23 £
400 | b. | P12 + P22 + P32 £
400 | c. | P32 £ 400 | d. | P23 £ 400 |
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6.
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Let Pij = the production of product i in period j. To specify that
production of product 1 in period 3 and in period 4 differs by no more than 100 units,
a. | P13 - P14 £ 100; P14 -
P13 £ 100 | b. | P13 -
P14 £ 100; P13 - P14 ³ 100 | c. | P13 - P14 £ 100;
P14 - P13 ³
100 | d. | P13 - P14 ³ 100; P14 -
P13 ³ 100 |
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7.
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Let A, B, and C be the amounts invested in companies A, B, and C. If no more
than 50% of the total investment can be in company B, then
a. | B £ 5 | b. | A - .5B + C £ 0 | c. | .5A - B - .5C £ 0 | d. | -.5A + .5B - .5C £
0 |
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8.
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Department 3 has 2500 hours. Transfers are allowed to departments 2 and 4, and
from departments 1 and 2. If Ai measures the labor hours allocated to department i and
Tij the hours transferred from department i to department j, then
a. | T13 + T23 - T32 - T34 - A3 =
2500 | b. | T31 + T32 - T23 - T43 + A3 = 2500 | c. | A3 +
T13 + T23 - T32 - T34 = 2500 | d. | A3 -
T13 - T23 + T32 + T34 =
2500 |
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9.
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The objective function for portfolio selection problems usually is maximization
of expected return or
a. | maximization of investment types | b. | minimization of cost | c. | minimization of
risk | d. | maximization of number of shares |
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10.
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For a portfolio selection problem with the objective of maximizing expected
return, the dual price for the available funds constraint provides information about the
a. | proportion of the portfolio that is invested in a particular investment
type | b. | return from additional investment funds | c. | degree of portfolio
diversification that is optimal | d. | cost of an additional unit of a particular
investment type |
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