Module 3

1. Which of the following is subject to a number of linear constraints?

A. Structural Constraint
B. Explicit Constraint
C. Implicit Constraint
D. Objective function
2. Portfolio selection problems should acknowledge both risk and return
A. True
B. False
3. If a problem has only less-than-or-equal-to constraints with positive coefficients for the
variables, rounding down will always provide a feasible integer solution.
A. True
B. False
4. Slack and surplus variables are not useful in integer linear programs.
A. True
B. False
5. Non-negativity constraint is the constraint that restricts all the variables to __.
A. Negative and positive solution
B. Zero and positive solution
C. Zero and negative solution
D. Zero, negative solution and positive solution
6. If the optimal solution to the LP relaxation problem is integer, it is the optimal solution to the
integer linear program.
A. True
B. False
7. The set of combustions of values for the decision variables that satisfy the non-negativity
conditions and all the constraints simultaneously that is the allowable decision is called the __.\
A. Optimal value
B. Objective function
C. Feasible region
D. Non-negativity constraints
8. There is no optimal solution if the feasible region is __.
A. Bounded
B. Non-existing
C. Constrained
D. Unbounded
9. What is not true about linear programming
I. It was developed by George Dantzig in the 1940s as a result of airforce research project
II. It is a method of dealing with decision problems that can be expressed as constrained
linear models
III. It is referred as “programming in a linear structure” for finding the best use of an
organization’s resources.
A. I and II
B. None of the above
 C. I, II and III
D. II and III
10. An objective function is an expression which shows the relationship between ___.
A. Company’s goal and number of linear constraints
B. Company’s goal and variables in the problem
C. Company’s goal, number od constraints, and variables in the problem
D. Number of linear constraints and variables in the problem
11. Linear programming graphical method can be used in three variables that correspond to planes
in a coordinate space and can be graphical. What can you say about this?
A. Difficult and impossible
B. Easy and possible
C. Difficult and possible
D. Easy but impossible
12. The constraint x1 – x2 = 0 implies that if project 1 is selected, project 2 cannot be.
A. True
B. False
13. Revenue management methodology was originally developed for the banking industry.
A. True
B. False
14. Where is the location of the minimum points of the feasible region?
A. Extreme
B. Above
C. Below
D. Corner
15. Which of the following statements is INCORRECT?
I. The highest or lowest value of the objective function is called the optimal value
II. There may be multiple combinations of decision variables that yield the same best value
of the objective function
III. Extreme point is the location of the maximum and minimum points of the feasible
region
A. II and III
B. None of the above
C. All of the above
D. I and III
16. If a linear programming problem has optimal solution, there is always ___ extreme pount
solution of the feasible region
A. At most one
B. At least one
C. Many
D. Two
17. The location of the minimum points of the feasible region is called the ___.
A. Central point
B. Non-negativity point
C. Bounded point
 D. Extreme point
18. If Pij= the product I in the period of j, then to indicate that the limit of the company’s three
products in period 2 is 400
A. P23 <= 400
B. P32 <= 400
C. P12 + P22 + P32 <= 400
D. P21 + P22 + P23 <= 400
19. Linear programming is a method of dealing with decision problems that can be expressed as ___
linear models.
A. Developed
B. Primary
C. Standard
D. Constrained
20. If an LP problem is not correctly formulated, the computer software will indicate it is infeasible
when trying to solve it.
A. True
B. False
21. A linear programming graphical method is limited to how many dimensional set of axes.
A. 3
B. 2
C. 6
D. 10
22. The product design and market share optimization problem in the textbook is formulated as a 0-
1 integer linear programming model
A. True
B. False
23. A solution in a linear Programming exists if the feasible region contains the following properties
EXCEPT
A. No dips
B. Convex
C. No holes
D. Concave
24. the objective of the product esign and market share optimization problem presented in the
textbook is to choose the levels of each product attributes that will maximize the number of
sampled customers preferring the brand in question
A. True
B. False