What happens if we wish to increase a constraint RHS value beyond the allowable increase/decrease shown in your sensitivity analysis? a.no effect on the optimal solution b.the problem should be solved again to find the new optimal solution c.there will no longer be a feasible solution for the problem. d.we can still use the dual price of the original problem to get the new optimal objective function value.

What happens if we wish to increase a constraint RHS value beyond the allowable increase/decrease shown in your sensitivity analysis? a.no effect on the optimal solution b.the problem should be solved again to find the new optimal solution c.there will no longer be a feasible solution for the problem. d.we can still use the dual price of the original problem to get the new optimal objective function value.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

In engineering economics, if PW < 0 this means to reject the project, because it is not economically justified. In other words, it produces a return that is less than MARR. Select one: True O False
Pick ONE of the two options... Option 1: Diminishing marginal utility holds that the additional utility decreases with each unit added. It is another example of the more general Law of Diminishing Returns that we've seen in the Choice in a World of Scarcity section. Pick a good or service and explain how or why one would experience diminishing marginal utility for this good or service. It may also help to explain over what time horizon you would experience this diminishing marginal utility. OR
The net present value is incorrect. Can you try the problem again?
Will the payback period, NPV, and IRR always lead to the same decision? Why or why not? If not, which one should be used?
e. IMPORTANT Note that from this example that a higher IRR for a nindividual alternative does not gurantee that the alternatvie is more economical than the one with a lower IRR. It is the incremental IRR value relative to the MARR that determines which alternative is more economical. The result of the incremental analysis are always the same as those of the PW,AW, or FW anaylsis
How do you use the CAPM model to find the rate of return if you are not given a Beta coefficient? Is it even possible to do so?
Derive the Karush-Kuhn-Tucker conditions for this Bid-price policy program (also shown in the image for clarity),min J˜µT(x)s.t. µ ≥ 0with variable µ ∈ ℝ^m. In particular, show that an optimal solution µ* to this program must satisfy the constraints in the image below:
What is the role that the required rate of return plays in the NPV model? In the IRR model?
The following profit payoff table was presented in Problem 1: The probabilities for the states of nature are P(s1) = 0.65, P(s2) = 0.15, and P(s3) = 0.20. What is the optimal decision strategy if perfect information were available? What is the expected value for the decision strategy developed in part (a)? Using the expected value approach, what is the recommended decision without perfect information? What is its expected value? What is the expected value of perfect information?
Many decision problems have the following simple structure. A decision maker has two possible deci-sions, 1 and 2. If decision 1 is made, a sure cost of c is incurred. If decision 2 is made, there are two possibleoutcomes, with costs c1 and c2 and probabilities p and1 2 p. We assume that c1 , c , c2. The idea is thatdecision 1, the riskless decision, has a moderate cost,whereas decision 2, the risky decision, has a low costc1 or a high cost c2.a. Calculate the expected cost from the riskydecision.b. List as many scenarios as you can think of thathave this structure. (Here’s an example to get youstarted. Think of insurance, where you pay a surepremium to avoid a large possible loss.) For eachof these scenarios, indicate whether you wouldbase your decision on EMV or on expected utility.
With the availability of a riskfree rate, the efficient frontier becomes O línear O curved O shaped like a letter S O less attractive by moving down and to the right O None of above
The internal rate of return (IRR), despite its shortcomings, can be a useful analysis tool for decision makers. How is this so?