The GRG and Simplex Algorithms Are Similar in That

question 17

Multiple Choice

The GRG and Simplex algorithms are similar in that

• A) each algorithm process continues until there is no further improvement in the objective function.
• B) both algorithms take their starting solution from the spreadsheet.
• C) both return the globally optimal solution.
• D) both algorithms return a solution that satisfies at least one constraint at equality.

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Definitions:

Probable Loss

A potential financial loss that is likely to occur in the future, often reflected in financial statements as a provision.

Range

The difference between the highest and lowest values in a set.

Gain Contingency

A potential financial gain that may occur in the future, dependent on certain events or conditions being met.