Which of the Following Is True About Generating Alternatives in Binary

question 16

Multiple Choice

Which of the following is true about generating alternatives in binary optimization?

• A)If the second-best solution is very close to optimal, it is always preferred over the true optimal solution because of factors outside the model.
• B)If alternative solutions exist, it would not help management because some factors that make one alternative are not preferred over the factors that make another alternative.
• C)If the solution is a unique optimal solution, it would be good for management to know how much worse the second-best solution is than the unique optimal solution.
• D)If any alternative solution exists, it would only be a second-best next to the optimal solution because there is no third-best or an alternative second-best solution to any binary integer programming problem.

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Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to continuing holding the position.

Secondary Markets

Markets where investors buy and sell securities or assets from other investors, rather than from issuing companies directly.

Original Issue

The first issuance of a security or financial instrument to the public or to investors.

Securities

Securities that signify holding an equity stake in a company listed on the stock market, a debt interest in a corporation or government entity through bonds, or entitlement to ownership through options.