**Week 3 Quiz**

1.

Question 1

Which of the following statements are true? (select all that apply)

1 point

**Optimization has been defined as the process of selecting the values of decision variables that minimize or maximize some quantity of interest.****Optimization started in the area of operations management but it is now used in all areas of business.****Optimization models are prescriptive because their outcome is a recommendation of what to do.**

2.

Question 2

In an optimization model, decision variables are:

1 point

- The unknowns for which the optimization process will find the best values.
- The functions to be maximized or minimized.
**The restrictions or limitations that are either related to technical and practical considerations or they are imposed by managerial policies.**- The parameter values provided by the analyst.

3.

Question 3

In a linear programming model both the objective function and the constraints are formulated as linear functions of the decision variables.

1 point

**True**- False

4.

Question 4

What is the goal in optimization of the transportation problem?

1 point

- Find the values of the decision variables that use all supplier capacities.
**Find the decision variable values (i.e., the shipment quantities) that result in the best objective function (i.e., lowest total cost) and satisfy all constraints.**- Find the values of the decision variables that satisfy all the demand constraints.None of these.

5.

Question 5

What does the Excel “=SUMPRODUCT(A1:A3,B1:B3)” function do?

1 point

- Sums each range and multiplies the sums. That is, (A1+A2+A3)*(B1+B2+B3).
- Sums each pair of cells and multiples each sum. That is, (A1+B1)*(A2+B2)*(A3+B3).
- Multiplies each range and sums the products. That is, (A1*A2*A3)+(B1*B2*B3)
**Multiplies each pair of cells and sums the products. That is, (A1*B1)+(A2*B2)+(A3*B3).**

6.

Question 6

What function is used to add the contents of cells A1, A2, and A3?

1 point

- =ADD(A1:A3).
- =TOTAL(A1:A3).
**=SUM(A1:A3).**- =PRODUCT(A1:A3).

7.

Question 7

Suppose that three decision variables are in cells A1, A2, and A3. To add nonnegativity constraints with the Analytic Solver Platform, you click on Constraints in the Optimization Model group, then choose Variable Type/Bound, click on “>=”, and fill out the dialogue as follows:

1 point

**True**- False

8.

Question 8

What is true about the ASP optimization model shown below? :

1 point

- The model has 6 decision variables, three in cells A1 to A3 and three in cells C4 to C6.
**The model enforces the following constraint: C4+C5+C6 <= D4+D5+D6.**- The model minimizes the value of C1 by changing the nonnegative values in cells A1 to A3.

9.

Question 9

Which of the following statements are true about a Sensitivity Report?

1 point

**It provides very useful information for pricing decisions, the value of resources, and the robustness of the optimal solution.****It’s not able to provide answers to what-if questions that involve multiple changes in the model, such as simultaneously changing the coefficient of a decision variable and a the right-hand-side of a constraint.****It provides information about decision variables (reduced costs) and constraints (shadow prices).**

10.

Question 10

If the shadow price for a resource constraint is 0, the allowable increase is 200 units, and 150 units of the resource are added, what happens to the objective function value?

1 point

- It increases by 150
- It increases by more than 0 but less than 150
**No change**- It increases but by an unknown amount

11.

Question 11

Which of the following approaches provided by the Analytic Solver Platform can automatically run multiple optimization while varying model parameters (e.g., the right hand side of a constraint) within a prespecified range?

1 point

- Breakdown analysis
**Parameter analysis**- Uncertainty analysis
- Sensitivity analysis

12.

Question 12

A bar chart is an effective way of visualizing the use of a resource in an optimal solution, where colors represent how the resource is used and the height represents how much of the resource is used.

1 point

**True**- False

**Week 3 Application Assignment – Linear Optimization**

1.

Question 1

A paper recycling company converts newspaper, mixed paper, white office paper, and cardboard into pulp for newsprint, packaging paper, and print stock quality paper. The following table summarizes the yield for each kind of pulp recovered from each ton of recycled material.

This table shows that, for instance, a ton of newspaper can produce either 0.85 tons of newsprint pulp or 0.80 tons of packaging pulp. The following table shows the processing costs per ton, the purchase cost, and the availability of the recycled material.

1 point

- Used tons (F23:F26)
**Processed tons (C23:E26)**- Pulp production(C27:E27)
- Purchase and production costs (C30:C31)

2.

Question 2

The constraints in the optimization model are:

1 point

**Pulp production >= Required pulp (C27:E27 >= C18:E18), Used tons <= Available tons (F23:F26 <= G14:G17), and Processed tons >= 0 (C23:E26 >= 0)**- Pulp production <= Required pulp (C27:E27 <= C18:E18), Used tons >= Available tons (F23:F26 >= G14:G17), and Processed tons >= 0 (C23:E26 >= 0)
- Production cost >= Purchase cost (C31 >= C30)
- There are no constraints in the problem.

3.

Question 3

The objective function in the optimization model is:

1 point

- Maximize total cost (Max C32)
- Minimize Production cost (Min C31)
**Minimize total cost (Min C32)**- Maximize pulp production (Max SUM(C27:E27))

4.

Question 4

Solve the optimization model that results from your answers to questions 13, 14, and 15. What is the total cost for the optimal solution?

1 point

- $41,841.91
**$44,067.74**- $35,692.86
- None of the above

5.

Question 5

Generate the Sensitivity Report for the optimal solution and use it to figure out how much should the the recycling company be willing to pay for an additional ton of recycled newspaper. (Hint: To generate the report, go to the Analysis group of the Analytic Solver Platform tab and click on Reports -> Optimization -> Sensitivity. If the report is not there, make sure that the Standard LP Engine was chosen to solve the model.)

1 point

**No more than $3.10**- No more than $4.20
- No more than $28.99
- $0.00

**Important Links:**

**Business Analytics for Decision Making Coursera Week 1 Quiz****Business Analytics for Decision Making Coursera Week 2 Quiz****Business Analytics for Decision Making Coursera Week 4 Quiz**