Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
8th Edition
ISBN: 9781337274852
Author: Ragsdale, Cliff
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 1QP
Summary Introduction
To explain: If an LP model can have exactly two optimal solutions.
Expert Solution & Answer
Explanation of Solution
It is not possible for an LP model to have exactly two optimal solutions. A normal LP model can have either a single optimal solution or more than 1 optimal solution. But it is not possible to have exactly two solutions.
LP model will have 1 optimal solution when the final level curve intersecting the region at a single point in the feasible region. But, when the final level curve intersects with edges of a feasible region, there will be more than 1 point in the feasible region. Therefore, it will have more than 1 optimal solution.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Define n/n problem with a suitable practical example. Multiple solution in case of certain n/2 problem? Explain.
I need 3 answers
A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model:Max 20x1 + 65x2 – 100y1 – 200y2s.t. 5x1 + 10x2 ≤ 100 {Constraint 1}20x1 + 50x2 ≤ 250 {Constraint 2}1x1 + 1.5x2 ≤ 10 {Constraint 3}My1 ≥ x1 {Constraint 4}My2 ≥ x2 {Constraint 5}yi={1, if product j is produced0, otherwiseyi=1, if product j is produced0, otherwiseWhich of the constraints limit the amount of raw materials that can be consumed?
A. Constraint 1
B. Constraint 4
C. Constraint 5
D. Constraint 1 and 4
E. Constraint 1, 2 and 3
Chapter 2 Solutions
Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
Ch. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QPCh. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QP
Ch. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 14QPCh. 2 - Prob. 15QPCh. 2 - Prob. 16QPCh. 2 - Prob. 17QPCh. 2 - Prob. 18QPCh. 2 - American Auto is evaluating their marketing plan...Ch. 2 - Prob. 20QPCh. 2 - Prob. 21QPCh. 2 - Prob. 22QPCh. 2 - Prob. 23QPCh. 2 - Prob. 24QPCh. 2 - Prob. 25QPCh. 2 - Prob. 26QPCh. 2 - Prob. 1.1CCh. 2 - Prob. 1.2CCh. 2 - Prob. 1.3CCh. 2 - Prob. 1.4CCh. 2 - Prob. 1.5CCh. 2 - Prob. 1.6CCh. 2 - Prob. 1.7CCh. 2 - Prob. 1.8CCh. 2 - Prob. 1.9CCh. 2 - Prob. 1.10C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- For the remaining questions, consider the following problem description: An oil company is considering exploring new well sites S₁, S2, ..., S10 with respective costs C1, C2, C10. And in particular they want to find the least-cost selection of 5 out of the 10 possible sites. The binary decision variables x₁,x2,..., X10 denote the decision to explore the corresponding site.arrow_forwardWhich of the following is true? a)The maximin criterion is an approach in Optimization under uncertainty which finds a solution that has the best possible payoff. b)The maximin criterion is an approach in Optimization under uncertainty which finds a solution with the best worst possible payoff. c)A risk profile represents the probability distribution of uncertain inputs. d)Decision tree is a method to solve any optimization problem when the outcomes are subject to uncertainty.arrow_forwardApply Linear Programming to the Folling Question: Dan Reid, chief engineer at New Hampshire Chemical, Inc., has to decide whether to build a new state-of-art processing facility. If the new facility works, the company could realize a profit of $200,000. If it fails, New Hampshire Chemical could lose $150,000. At this time, Reid estimates a 60% chance that the new process will fail. The other option is to build a pilot plant and then decide whether to build a complete facility. The pilot plant would cost $10,000 to build. Reid estimates a fifty-fifty chance that the pilot plant will work. If the pilot plant works, there is a 90% probability that the complete plant, if it is built, will also work. If the pilot plant does not work, there is only a 20% chance that the complete project (if it is constructed) will work. Reid faces a dilemma. Should he build the plant? Should he build the pilot project and then make a decision? Help Reid by analyzing this problemarrow_forward
- Do the following problems using either TreePlan A student is deciding which scholarships (out of two) to accept. The first scholarship is worth $10,000 but carries the condition that recipients cannot accept another other forms of income (such as other scholarships). The second scholarship is awarded in a competition, where this student has a 50% chance of earning $7,000, a 40% chance of earning $10,000, and a 10% chance of earning $15,000. The student must inform the administrator of the first scholarship whether she will be accepting their offer today. A. Develop a decision tree to determine which scholarship this student should accept (using our normal decision criteria). B. Under what circumstance might the student accept the other scholarship?arrow_forwardMULTIPLE CHOICE QUESTIONS An ecommerce company decides to send a gift voucher worth $1000 to a set of customers they believe would make a purchase of at least $5000. They develop a model to identify potential customers who can make a purchase of $5000 if we send the $1000 voucher. Which of the following is more critical about the model? O False negative is worse than False positive if voucher amount crosses $5000 O Both False positive and negative are acceptable O False positive is worse than a False negative O False negative is worse than a False positive Which of the following statements is TRUE? O Tree based models are normally not affected by outliers O Presence of outliers in the data has no effect on Regression models O Standard scaler performs well on features that have outliers O Tree-based models do not rely on dividing the feature space into sub-sectionsarrow_forwardWhat combination of x and y will yield the optimum for this problem? Maximize Z = $3x + $15y Subject to: Multiple Choice x= 0, y=4 x= 0, y=3 x= 0, y=0 x= 2y=0 O x=1,y=25 2x + 4y ≤ 12 5x + 2y ≤ 10arrow_forward
- A company manufactures two products. If it charges price pi for product i, it can sell qi units of product i,where q1 = 60−3p1 +p2 and q2 = 80−2p2 +p1. It costs $5 to produce a unit of product 1 and $12 to produce a unit of product 2. How many units of each product should the company produce, and what prices should it charge, to maximize its profit?arrow_forwardIn a nonlinear programming model, for any set of values of the decision variables, whether or not the constraints are satisfied is known with certainty. Is this true or false?arrow_forwardA young computer engineer has $12,000 to invest and three different investment options (funds) to choose from. Type 1 guaranteed investment funds offer an expected rate of return of 7%, Type 2 mixed funds (part is guaranteed capital) have an expected rate of return of 8%, while an investment on the Stock Exchange involves an expected rate of return of 12%, but without guaranteed investment capital. Computer engineer has decided not to invest more than $2,000 on the Stock Exchange in order to minimize the risk. Moreover for tax reasons, she needs to invest at least three times more in guaranteed investment funds than in mixed funds. Assume that at the end of the year the returns are those expected; she is trying to determine the optimum investment amounts. (a) Express this problem as a linear programming model with two decision variables.(b) Solve the problem with the graphical solution procedure and define the optimum solution.arrow_forward
- Suppose Box I contains five red balls and two white ones while Box II contains one red and four white ones. A box is chosen at random by selecting a random number from 0 through 9. If a 1 or 2 is selected, Box I is chosen; otherwise Box II is chosen. If I took Box 1 and chose 2 balls without replacement, what is the proabability that exactly one would be red?arrow_forwardLong-Life Insurance has developed a linear model that it uses to determine the amount of term life Insurance a family of four should have, based on the current age of the head of the household. The equation is: y=150 -0.10x where y= Insurance needed ($000) x = Current age of head of household b. Use the equation to determine the amount of term life Insurance to recommend for a family of four of the head of the household is 40 years old. (Round your answer to 2 decimal places.) Amount of term life insurance thousandsarrow_forwardWhich of the following statements is NOT true? Your answer: O Primal Simplex Algorithm starts feasible but nonoptimal O Dual Simplex Algorithm starts optimal but infeasible Generalized Simplex Algorithm starts optimal and infeasiblearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,