The Amount by Which an Objective Function Coefficient Can Change

question 32

Multiple Choice

The amount by which an objective function coefficient can change before a different set of values for the decision variables becomes optimal is the

• A)optimal solution.
• B)dual solution.
• C)range of optimality.
• D)range of feasibility.

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Definitions:

Moral Hazard

A situation where the behavior of an individual or entity changes to take on more risk because they do not bear the full consequences of that risk.

Flood Control System

An infrastructure or set of measures designed to manage the water level in a given area to prevent flooding.

Premium

The amount paid for an insurance policy or the extra cost for a higher quality or feature-enhanced product or service.

Moral Hazard

The situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will bear the consequences.