​How Is Sensitivity Analysis Used in Linear Programming? Given an Example

question 15

Essay

​How is sensitivity analysis used in linear programming? Given an example of what type of questions that can be
answered.

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Definitions:

Expected Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is expected to fall.

Absolute Purchasing Power Parity

A theory that suggests that the price of goods in different countries should be equal when measured in a common currency.

Exchange Rate

The price of one country's currency in terms of another currency or currencies.

Inflation

The pace at which prices for a wide range of goods and services elevate, depreciating the power to purchase.