The Sensitivity Range for a Constraint Value to the Right

question 10

Multiple Choice

The sensitivity range for a constraint value to the right of the inequality indicates the allowable increase and decrease

• A)for the constraint value before the solution becomes infeasible
• B)for the constraint value before the decision variables change
• C)for the constraint value before the marginal value of the constraint resource is no longer valid
• D)for the objective function value

---

Definitions:

Present Value

The present-day valuation of a future sum of money or cash flow series, assuming a particular rate of earnings.

Compound Interest

Interest that is computed on both the original principal amount and the interest that has been added to it from past periods, for either a loan or deposit.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth or return.

Present Value

Today's equivalent value of a forthcoming sum of money or stream of payments, according to a specified interest rate.