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:

Excise Taxes

Taxes applied to the purchase of specific goods or activities, sometimes used to discourage consumption of certain items.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Deadweight Loss

The loss of economic efficiency when the equilibrium in a market is not achieved or is unachievable, leading to a potential loss of social welfare.