Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Based on the following sensitivity report, what would be the impact of changing the objective function coefficient for Product_1 to 11 and changing the objective function coefficient for Product_3 to 18?
Applying the 100% rule, ______________ because the total change in the objective function coefficients _________________ 100%.
first blank choices:
A. the optimal solution will not change
B. the optimal solution may change
second blank choices:
A. does exceed
B. does not exceed
Variable Cells
Cell | Name | Final Value | Reduced Cost | Objective Coefficient | Allowable Increase |
Allowable Decrease |
$B$2 | Product_1 | 0 | −2 | 10 | 6 | 1E+30 |
$B$3 | Product_2 | 175 | 0 | 13 | 1E+30 | 12 |
$B$4 | Product_3 | 0 | −1.5 | 13 | 7 | 1E+30 |
Constraints
Cell | Name | Final Value | Shadow Price | Constraint R.H.Side | Allowable Increase |
Allowable Decrease |
$H$9 | Resource_A | 0 | 0 | 100 | 1E+30 | 100 |
$H$10 | Resource_B | 525 | 0 | 800 | 1E+30 | 275 |
$H$11 | Resource_C | 700 | 1.75 | 700 | 366.6666667 | 700 |
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