When There Is a Tie Between Two or More Variables

question 15

Multiple Choice

When there is a tie between two or more variables for removal from the simplex tableau,

• A) post-optimality analysis is required.
• B) their dual prices will be equal.
• C) converting the pivot element will break the tie.
• D) a condition of degeneracy is present.

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Definitions:

Uneven Cash Flows

Refers to cash inflows or outflows that vary in amount over different periods, not following a uniform pattern.

Nominal Rate

The stated interest rate of a bond or loan, which does not account for inflation or compounding effects.

Fifth Payment

Typically refers to the fifth installment of a scheduled series of payments.

Bank Loan

A sum of money lent by a bank to a borrower at a specified interest rate for a fixed term or on an on-demand basis.