A Large Transportation Problem Has 220 Origins and 1360 Destinations

question 98

Multiple Choice

A large transportation problem has 220 origins and 1360 destinations. The optimal solution of this problem will fill no more than about ________ of cells with quantities to be shipped.

• A) 0.5%
• B) 5%
• C) 10%
• D) 25%
• E) All cells will be occupied.

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Definitions:

Zero-coupon Bond

A type of bond that does not pay interest during its life but is sold at a discount and matures at its face value.

Maturity

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Arbitrage

The practice of buying and selling equivalent assets in different markets to take advantage of a price difference.

Law of One Price

An economic theory that states that in efficient markets, identical goods must have only one price when prices are expressed in a common currency, absent any transaction costs and tariffs.