Quantitative Methods in Economics and Management

Additional prep questions for test #2

(update: Dec. 18, 2013)

1. Define a feasible area for the following LP problem.

max f 25 x1 15 x 2
3 x1 2 x 2 240
2 x1 x 2 140
x1 20
x 2 80
x1 0; x 2 0

2. What is the optimal solution (in terms of the given function and the 2 variables)?

3. Standardize the model in Q1.

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4. General question. The optimal solution the LP problem is

(a) Found at an extreme point of the feasible area

(b) Any point of the feasible area
(c) Unique
(d) A discrete number
(e) None of the above

5. For the following LP problem,

f max 4 x1 3x2

1) 4 x1 3x 2 24

2) 2 x1 3x 2 18
3) x 1
1

x1 0; x2 0

its feasible area is

(a) ABCD
(b) BCE
(c) Empty set
(d) CFD
(e) None of the above

6. What is the optimal solution (in terms of the given function and the 2 variables)?

7. How do you decide whether there are multiple optimal solutions in a linear
programming problem that is solved by applying a graphing method? Are there
multiple optimal solutions in this particular problem (Q5)?

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8. If the supplementary primal variable x 5 equals 2, explain its meaning.

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9. If a set of constraints is as follows

1 2 x1 2 x 2 80
2 x1 10
3 x 2 50
x1 , x 2 0

Which of the above constraints is redundant?

(a) Constraint (1)

(b) Constraint (2)
(c) Constraint (3)
(d) None of the above. (They are all required.)

10. If fmax = 2x1 + 3x2, what is the optimal solution in terms of the given function and the 2
primal variables?

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11. General question. Which of the following will not impact a convex set of possible
solutions (feasible area)?

(a) If a constraint is added

(b) If a resource (input) is changed
(c) If a coefficient in an objective function is changed
(d) If a coefficient in a constraint is changed
(e) None of the above

12. If the supplementary primal variable x 4 equals 0, explain its meaning.

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13. A constraint is said to be redundant for the LP if its addition or removal does not alter
the set of feasible solutions.

For a given LP:

= 41 + 82
s.t.
21 8
1 + 2 6
42 8
1 0, 2 0

Identify which (if any) constraint is redundant. Explain.

14. Graphically represent the feasibility set of solutions for the above example.

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15. Solve the model from the above example graphically.

16. Write the dual model for the above example.

17. Determine the values of optimal dual variables using complementary slackness
theorem.

18. Interpret optimal value of dual variable 3 .

19. Can an artificial variable have a negative value in optimum and why?

20. Can an artificial variable have a positive value in optimum and when?

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21. Construct the initial simplex table for the model in Q1.

22. Construct the initial simplex table for the model in Q5.

23. Construct the initial simplex table for the model in Q13.