A non-basic variable should be brought into the new solution mix provided its contribution rate (Cj) is
None of the above
While performing sensitivity analysis, the upper bound infinity on the value of the right hand side of a constraint means that
There is slack in the constraint
The constraint is redundant
The shadow price for that constraint is zero
None of the above
The entering variable in the sensitivity analysis of objective function coefficients is always a
Decision variable
Non-basic variable
Basic variable
Slack variable
In sensitivity analysis of the coefficient of the non-basic in cost minimization LP problem, the upper sensitivity limit is
Original value + Lowest positive value of improvement ratio
Original value – Lowest absolute value of improvement ratio
Positive infinity
Negative infinity
A type decision-making environment is
Certainty
Uncertainty
Risk
All of the above
Decision theory is concerned with
Methods of arriving at an optimal decision
Selection optimal decision in sequential manner
Analysis of information that is available
All of the above
Which of the following criteria is not used for decision-making under uncertainty?
Maximin
Maximax
Minimax
Minimize expected loss
Which of the following criteria is not applicable to decision-making under risk?
Maximize expected return
Maximize return
Minimize expect regret
Knowledge of likelihood occurrence of each state of nature
The minimum expected opportunity loss (EOL) is
Equal to EVPI
Minimum regret
Equal to EMV
Both 1 and 2
The expected value of perfect information (EVPI) is
Equal to expected regret of the optimal decision under risk
The utility of additional information
Maximum expected opportunity loss
None of the above
The decision-maker’s knowledge may influence the decision-making process when using the criterion of
Maximax
Minimax regret
Realism
maximin
The difference between the expected profit under conditions of risk and the expected profit with perfect information is called
Expected value of perfect information
Expected marginal loss
Expected opportunity loss
None of the above
The concept of utility is used to
Measure the utility of money
Take into account aversion of risk
Both 1 and 2
None of the above
Probabilities of occurrence of any state are
Collectively exhaustive
Mutually exclusive
Representing one of the finite numbers of states of nature in the system
All of the above
In a matrix of transition probability values should add up to one in each
Row
Column
Diagonal
All of the above
In a matrix of transition probability, the element aij where i = j is a
Gain
Loss
Retention
None of the above
In Markov analysis, state probabilities must
Sum to one
Be less than one
Be greater than one
None of the above
If a matrix of transition probability is of the order n * n, then the number of equilibrium equations would be
n
n – I
n + I
None of the above