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ch8
1. Linear programming assumes that the profit from each activity is proportional to the level of that
activity.
True False
2. If the slope of a graph never increases but sometimes decreases as the level of the activity increases, then
it is said to have decreasing marginal returns.
True False
3. In problems where the objective is to minimize the total cost of the activities, an activity is said to have
decreasing marginal returns if the slope of its cost graph never increases but sometimes decreases as the
level of the activity increases.
True False
4. If C1:C6 are all changing cells, then SUMPRODUCT(C1:C3, C4:C6) is a linear function.
True False
5. If C1 is a changing cell, then ROUND(C1) is a linear function.
True False
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6. If D1 is a data cell, and C1 and C2 are changing cells, then IF(D1 >= 2, C1, C2) is a linear function.
co
True False
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o.
7. Nonlinear programming problems with decreasing marginal returns are generally easier to solve then
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nonlinear programming problems with increasing marginal returns.
ou urc
True False
8. Sometimes the Solver can return different solutions when optimizing a nonlinear programming
problem.
o
True False
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9. Excel's curve fitting method is used to graph a nonlinear equation.

True False
10. Excel's curve fitting method is used to find the values of the parameters for an equation that best fit
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data.
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True False
11. A local maximum is always a global maximum in a nonlinear programming problem.
True False
is
12. A quadratic programming problem is a special type of linear programming problem.

Th
True False
13. Having activities with decreasing marginal returns is the only way that the proportionality assumption can
be violated.
sh
True False
14. Separable programming is applicable when there are increasing or decreasing marginal returns.
True False
15. In separable programming, each activity that violates the proportionality assumption is separated into
parts with a new variable for each part.
True False
16. In some cases of separable programming, the profit graphs will be curves rather than a series of line
segments.
True False
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17. When the marginal return from an activity decreases on a continuous basis, the profit graphs will consist
of a series of line segments.
True False
18. Applying separable programming requires having profit graphs that are smooth curves.
True False
19. A nonlinear function may contain a product of two variables.
True False
20. In separable programming, if an activity violates the proportionality assumption it must have increasing
marginal returns.
True False
21. Profit = 3x1 + 2x2 + 9x1x2 is an example of a nonlinear function.
True False
22. The additivity assumption of linear programming states that each term in the objective function is the sum
of two or more variables.
True False
23. The additivity assumption can be violated by nonlinear programming because of cross-product terms
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involving the product of two variables.
True False
co
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24. It now is common practice for professional managers of large stock portfolios to use computer models
o.
based partially on separable programming. rs e
True False
ou urc
25. When applying nonlinear programming to portfolio selection, a trade-off is being made between the
expected return and the risk associated with the investment.
True False
o
aC s
26. The risk for a portfolio is decreased when the particular stocks tend to move up and down together.
vi y re
True False
27. Solver Table can be used for nonlinear programming problems to systematically try a number of different
starting points.
ed d
True False
ar stu
28. Trying different starting points and picking the best solution will always yield the optimal solution to a
nonlinear programming problem.
True False
is
29. Evolutionary Solver uses an algorithm based on genetics, evolution, and survival of the fittest.
Th
True False
30. Mutation is the technique used to create the next generation of solutions in the Evolutionary Solver.
True False
sh
31. The standard Solver keeps track of a large set of candidate solutions, called the population.
True False
32. The members of the population used to create the next generation are picked randomly by the
Evolutionary Solver.
True False
33. Sometimes Evolutionary Solver will make a random change in a member of the population.
True False
34. Evolutionary Solver is often faster than the standard Solver at solving linear programming problems.
True False
35. Two runs of the Evolutionary Solver on the same problem will typically yield the same solution.
True False
36. If the data cells are in column D and the changing cells are in column C, which of the following are linear
formulas in a spreadsheet?
A. SUMPRODUCT(D1:D6, C1:C6)
B. SUMPRODUCT(C1:C3, C4:C6)
C. SUM(C1:C6)
D. All of these.
E. a and c
only.
37. If the data cells are in column D and the changing cells are in column C, which of the following are not
linear formulas in a spreadsheet?
A. IF(D1 >= 6, C1, C2)
B. ROUND(C3)
C. ABS(C3)
D. All of these.
m
E. b and c
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only.
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38. When there are decreasing marginal returns:
A. the slope of the graph never increases but sometimes decreases.
o.
rs e
B. the slope of the graph never decreases but sometimes increases.
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C. the graph always consists of a smooth curve.
D. the graph always consists of a series of line segments.
E. separable programming should not be used.
o
39. Decreasing marginal returns violates which assumption of linear programming?

aC s
A. The proportionality assumption.

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B. The divisibility assumption.

C. The additivity assumption.
D. All of these.
E. None of these.
ed d
ar stu
40. A linear function may contain which of the following?

A. A term that contains a single variable with an exponent of 1.
B. A term that contains a single variable with an exponent of 2.
C. A term that is a constant times the product of two variables.
is
D. All of these.
E. b. and c. only.
Th
41. A nonlinear function may contain which of the following?

A. A term that contains a single variable with an exponent of 1.
sh
B. A term that contains a single variable with an exponent of 2.

C. A term that is a constant times the product of two variables.
D. All of these.
E. b. and c. only.
42. Which of the following can be part of a nonlinear profit graph?
A. Decreasing marginal returns.
B. Increasing marginal returns.
C. Discontinuities.
D. All of these.
E. a and b
only.
43. A nonlinear programming problem may have:
A. activities with increasing marginal returns.
B. activities with decreasing marginal returns.
C. nonlinear functional constraints.
D. All of these.
E. b. and c. only.
44. Which of the following is an example of a nonlinear function?
A. Profit = 5x + 7x – 2x 2.
1 2 2
B. Profit = 8x1x2 – x12 – 4x22.
C. Profit = x1 + 6x2 + 3x1x2.
D. None of these.
E. All of these.
45. The requirement that each term in the objective function only contains a single variable is in a linear
program is referred to as:
A. the proportionality assumption.
B. the divisibility assumption.
C. the additivity assumption.
D. a nonlinear function.
m
E. None of these.
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46. The measure of risk in a portfolio selection problem is called:
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A. the covariance of the return.
B. the variance of the return.
o.
C. the expected return. rs e
D. decreasing marginal return.
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E. None of these.
47. The measure of risk for pairs of stocks in a portfolio selection problem is called:
o
A. the covariance of the return.

B. the variance of the return.
aC s
vi y re
C. the expected return.

D. decreasing marginal return.
E. None of these.
48. Separable programming will always find the optimal solution when the following is true:
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A. The profit or cost graph is piecewise linear.

ar stu
B. There are decreasing marginal returns.

C. a and b must both be true.
D. Separable programming only finds an approximate solution.
is
E. None of these.
Th
49. Which of the following techniques is appropriate when a nonlinear programming problem has multiple
local optima?
A. Running Solver many times with different starting points.
B. Using Solver Table to try different starting points.
sh
C. Using Evolutionary Solver.

D. All of these.
E. b and c
only.
50. Evolutionary Solver is based on which of the following concepts?
A. Genetics.
B. Evolution.
C. Survival of the Fittest.
D. All of these.
E. b and c
only.
51. Evolutionary Solver is best suited to which kinds of problems?
A. Linear programs.
B. Nonlinear programs with difficult objective functions.
C. Nonlinear programs with decreasing marginal returns and no discontinuities.
D. Nonlinear programs with many constraints.
E. None of these.
52. Which of the following are advantages of the Evolutionary Solver?
A. The complexity of the objective function does not matter.
B. It will always find the optimal solution.
C. It is faster than the standard Solver.
D. It always finds the same solution.
E. None of these.
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53. Which of the following are disadvantages of the Evolutionary Solver?
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A. It does not deal well with complicated objective functions.
eH w
B. It does perform well on models with many constraints.
o.
C. It is easily trapped at local optima. rs e
D. a and b.
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E. None of these.
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Th
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ch8 Key
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. FALSE
6. TRUE
7. TRUE
8. TRUE
9. FALSE
10. TRUE
11. FALSE
m
12. FALSE
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13. FALSE
co
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14. FALSE
o.
15. TRUE rs e
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16. TRUE
17. FALSE
18. FALSE
o
aC s
19. TRUE
vi y re
20. FALSE
21. TRUE
22. FALSE
ed d
ar stu
23. TRUE
24. FALSE
25. TRUE
is
26. FALSE
Th
27. TRUE
28. FALSE
sh
29. TRUE
30. FALSE
31. FALSE
32. FALSE
33. TRUE
34. FALSE
35. FALSE
36. E
37. E
38. A
39. A
40. A
41. D
42. D
43. D
44. E
45. C
46. B
47. A
48. C
49. D
50. D
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51. B
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52. A
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53. B
o.
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o
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is
Th
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ch8 Summary
Category # of Questions
Hillier - Chapter 008 53
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ch8

9. Excel's curve fitting method is used to graph a nonlinear equation.

12. A quadratic programming problem is a special type of linear programming problem.

39. Decreasing marginal returns violates which assumption of linear programming?

A. The proportionality assumption.

B. The divisibility assumption.

40. A linear function may contain which of the following?

41. A nonlinear function may contain which of the following?

B. A term that contains a single variable with an exponent of 2.

A. the covariance of the return.

C. the expected return.

A. The profit or cost graph is piecewise linear.

B. There are decreasing marginal returns.

C. Using Evolutionary Solver.

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