Lou and Toby Both Live in a Little Town and Are

question 63

Multiple Choice

Lou and Toby both live in a little town and are trying to sell their cars.Both of their cars have a blue book value of $10,000.Lou has an American car like most of the people in town.Toby owns a Bulgarian car,the only one in town.Who will get closest to the blue book value for her car?

• A)Lou will since American cars are better than foreign cars.
• B)Toby will since Bulgarian cars are more scarce than American cars.
• C)Lou will,since people have more information about Lou's car.
• D)Both should get the same price for their cars.

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Definitions:

Initial Solution

The first proposed resolution or approach to solving a problem, often used as a starting point for further refinement in optimization problems.

Northwest Corner Allocation

A method used in operations research to solve transportation problems, starting allocations from the northwest corner of a cost matrix and working through to optimize transportation costs.

Source 1-Destination 2

An indicator or label used in logistics and supply chain management to denote the transfer of materials or goods from one location (source) to another (destination).

Objective Function

A mathematical expression in linear programming that maximizes or minimizes some quantity (often profit or cost, but any goal may be used).