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:

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; calculated by dividing sales revenue by total assets.

Equity Multiplier

The equity multiplier is a financial ratio that measures a company's leverage by dividing its total assets by its total shareholders' equity, indicating how much of the assets are financed by equity.

Market-To-Book Ratio

A financial valuation metric comparing a company's stock market value to its book value.