The Study of How Changes in the Input Parameters of a Linear

question 3

Multiple Choice

The study of how changes in the input parameters of a linear programming problem affect the optimal solution is known as

• A)regression analysis.
• B)model analysis.
• C)optimality analysis.
• D)sensitivity analysis.

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Definitions:

Comparable Good Outcomes

Situations where two or more goods or scenarios produce similarly beneficial effects or results.

Present Value

The present value of a future amount of money or series of cash flows at a given rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Risk Averse

A descriptor for individuals or entities that prefer to minimize exposure to risk and avoid uncertain outcomes.