Which of the Following Statements Concerning Sensitivity Analysis Is Incorrect

question 2

Multiple Choice

Which of the following statements concerning sensitivity analysis is incorrect?

• A) It tracks changes in the objective function with respect to per unit change in one or more coefficients.
• B) It tracks changes in the constraint function when the amount of a resource is altered.
• C) It's used to calculate the shadow prices of resources.
• D) It's used to derive the new optimal point of operation, when the objective function, or the constraint functions, or both change.
• E) It's used to solve the appropriate set of simultaneous equations.

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Definitions:

Pleasure

A sense of joy, pleasure, or fulfillment that comes from participating in or experiencing an activity.

Satisfaction

The feeling of pleasure or contentment when needs, expectations, or desires are fulfilled.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Choices

The act of selecting among alternatives or the options available in a decision-making process.