Question 1

A nonlinear function with at least one term raised to the power of two is known as a

Accepted Answer

A)  hyperbolic function.
B)  quadratic function.
C)  logarithmic function.
D)  cubic function.

Question 2

In reviewing the image below, what is the minimum value for this function?

Accepted Answer

A)  -8
B)  0
C)  -1
D)  1

Question 3

If a minimization problem has a single global optimum, will it have a local minimum? If yes, can it have more than one local minimum? Explain.

Accepted Answer

If a minimization problem has a single g...

Question 4

A feasible solution is __________ if there are no other feasible points with a smaller objective function value in the entire feasible region.

Accepted Answer

A)  a global minimum
B)  not a local maximum
C)  not a local minimum
D)  bowl-shaped

Question 5

A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as

Accepted Answer

A)  a capital budgeting pricing model.
B)  a market share optimization model.
C)  the Hauck maximum variance portfolio model.
D)  the Markowitz mean-variance portfolio model.

Question 6

A(n)  __________ is a set of points defining the minimum possible risk for a set of return values.

Accepted Answer

A)  contour
B)  efficient frontier
C)  unity constraint
D)  reduced gradient

Question 7

The reduced gradient is analogous to the __________ for linear models.

Accepted Answer

A)  binary variable
B)  binding constraint
C)  reduced cost
D)  objective coefficient

Question 8

A feasible solution is a(n)  __________ if there are no other feasible solutions with a better objective function value in the immediate neighborhood.

Accepted Answer

A)  efficient frontier
B)  local optimum
C)  global maximum
D)  diverging function

Question 9

Which of the following functions yields the shape shown below? ​ 2 + Y2 B) f(X, Y)  = Xsin(2πY)  + Ysin(2πX)  C) f(X, Y)  = -X2 - Y2 D) f(X, Y)  = Xsin(5πX)  + Ysin(5πY) " class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)  f(X, Y)  = X2 + Y2
B)  f(X, Y)  = Xsin(2πY)  + Ysin(2πX) 
C)  f(X, Y)  = -X2 - Y2
D)  f(X, Y)  = Xsin(5πX)  + Ysin(5πY)

Question 10

In the Bass forecasting model, the ___________ measures the likelihood of adoption, assuming no influence from someone who has already purchased (adopted)  the product.

Accepted Answer

A)  coefficient of correlation
B)  coefficient of imitation
C)  coefficient of independence

Question 11

If an optimization objective function produces a graph that is concave, will the global optimum be a maximum or minimum value? Explain.

Accepted Answer

If an optimization objective function pr...

Question 12

One of the ways to use the Bass forecasting model is to wait until several periods of data for the problem under consideration are available. This is known as the ___________ approach.

Accepted Answer

A)  branch-and-bound
B)  cutting plane
C)  rolling-horizon
D)  sensible-period

Question 13

One of the ways to formulate the Markowitz model is to

Accepted Answer

A)  maximize the variance of the portfolio subject to a constraint on the expected return of the portfolio.
B)  minimize the expected return of the portfolio subject to a constraint on variance.
C)  minimize the variance of the portfolio subject to a constraint on the expected return of the portfolio.
D)  minimize the expected return of the portfolio with no constraint on variance.

Question 14

A global minimum

Accepted Answer

A)  is also a local maximum.
B)  need not be a local maximum, but vice versa is true.
C)  is also a local minimum.
D)  need not be local minimum, but vice versa is true.

Question 15

If all the squared terms in a quadratic function have a negative coefficient and there are no cross-product terms, then the function is a __________ function.

Accepted Answer

A)  convex quadratic
B)  nonlinear objective
C)  concave quadratic
D)  negative elliptical

Question 16

Using the graph below, the feasible region for the function represented in the graph is

Accepted Answer

A)  -1 £ X £ 1, -1 £ Y £ 1.
B)  -1.5 £ X £ 1, 0 £ Y £ 8.
C)  -1.5 £ X £ 2.0, -1.5 £ Y £ 2.0.
D)  0 £ X £ 1, 0 £ Y £ 1.

Question 17

A function that is bowl-shaped down is called a __________ function.

Accepted Answer

A)  concave
B)  convex
C)  conic
D)  linear

Question 18

Which of the following conclusions can be drawn from the below figure using the Bass forecasting model? (Note: Bass forecasting model is given by: Ft = (p + q[Ct - 1 /m])  (m - Ct - 1) 
Where m = the number of people estimated to eventually adopt the new product,
Ct - 1 = the number of people who have adopted the product through time t - 1,
Q = the coefficient of imitation, and
P = the coefficient of innovation. t = (p + q[Ct - 1 /m])  (m - Ct - 1)  Where m = the number of people estimated to eventually adopt the new product, Ct - 1 = the number of people who have adopted the product through time t - 1, Q = the coefficient of imitation, and P = the coefficient of innovation.   A) q  p C) m  m" class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)  q 
B)  q > p
C)  m 
D)  p > m

Question 19

The measure of risk most often associated with the Markowitz portfolio model is the

Accepted Answer

A)  expected return of the portfolio.
B)  annual interest on the portfolio.
C)  variance of the portfolio's return.
D)  number of investments listed in the portfolio.

Question 20

In reviewing the image below, the point (0, 0, 0)  is a(n)  __________ for the given concave function. ​

Accepted Answer

A)  local maximum
B)  local minimum
C)  convergence point
D)  endpoint

Exam 14: Nonlinear Optimization Models

The measure of risk most often associated with the Markowitz portfolio model is the

Correct Answer
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A feasible solution is a(n) __________ if there are no other feasible solutions with a better objective function value in the immediate neighborhood.

Correct Answer
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A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as

Correct Answer
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A global minimum

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The reduced gradient is analogous to the __________ for linear models.

Correct Answer
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In reviewing the image below, what is the minimum value for this function?

Correct Answer
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If all the squared terms in a quadratic function have a negative coefficient and there are no cross-product terms, then the function is a __________ function.

Correct Answer
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A feasible solution is __________ if there are no other feasible points with a smaller objective function value in the entire feasible region.

Correct Answer
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In the Bass forecasting model, the ___________ measures the likelihood of adoption, assuming no influence from someone who has already purchased (adopted) the product.

Correct Answer
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If a minimization problem has a single global optimum, will it have a local minimum? If yes, can it have more than one local minimum? Explain.

Correct Answer
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If a minimization problem has a single g...
View Answer

A nonlinear function with at least one term raised to the power of two is known as a

Correct Answer
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Using the graph below, the feasible region for the function represented in the graph is

Correct Answer
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Which of the following functions yields the shape shown below?

Correct Answer
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If an optimization objective function produces a graph that is concave, will the global optimum be a maximum or minimum value? Explain.

Correct Answer
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If an optimization objective function pr...
View Answer

Correct Answer
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A(n) __________ is a set of points defining the minimum possible risk for a set of return values.

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One of the ways to use the Bass forecasting model is to wait until several periods of data for the problem under consideration are available. This is known as the ___________ approach.

Correct Answer
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One of the ways to formulate the Markowitz model is to

Correct Answer
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A function that is bowl-shaped down is called a __________ function.

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In reviewing the image below, the point (0, 0, 0) is a(n) __________ for the given concave function.

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Exam 14: Nonlinear Optimization Models

The measure of risk most often associated with the Markowitz portfolio model is the

Correct AnswerverifiedShow Answer

A feasible solution is a(n) __________ if there are no other feasible solutions with a better objective function value in the immediate neighborhood.

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A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as

Correct AnswerverifiedShow Answer

A global minimum

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The reduced gradient is analogous to the __________ for linear models.

Correct AnswerverifiedShow Answer

In reviewing the image below, what is the minimum value for this function?

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If all the squared terms in a quadratic function have a negative coefficient and there are no cross-product terms, then the function is a __________ function.

Correct AnswerverifiedShow Answer

A feasible solution is __________ if there are no other feasible points with a smaller objective function value in the entire feasible region.

Correct AnswerverifiedShow Answer

In the Bass forecasting model, the ___________ measures the likelihood of adoption, assuming no influence from someone who has already purchased (adopted) the product.

Correct AnswerverifiedShow Answer

If a minimization problem has a single global optimum, will it have a local minimum? If yes, can it have more than one local minimum? Explain.

Correct AnswerverifiedIf a minimization problem has a single g...View AnswerShow Answer

A nonlinear function with at least one term raised to the power of two is known as a

Correct AnswerverifiedShow Answer

Using the graph below, the feasible region for the function represented in the graph is

Correct AnswerverifiedShow Answer

Which of the following functions yields the shape shown below? ​

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If an optimization objective function produces a graph that is concave, will the global optimum be a maximum or minimum value? Explain.

Correct AnswerverifiedIf an optimization objective function pr...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A(n) __________ is a set of points defining the minimum possible risk for a set of return values.

Correct AnswerverifiedShow Answer

One of the ways to use the Bass forecasting model is to wait until several periods of data for the problem under consideration are available. This is known as the ___________ approach.

Correct AnswerverifiedShow Answer

One of the ways to formulate the Markowitz model is to

Correct AnswerverifiedShow Answer

A function that is bowl-shaped down is called a __________ function.

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In reviewing the image below, the point (0, 0, 0) is a(n) __________ for the given concave function. ​

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If a minimization problem has a single g...
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Which of the following functions yields the shape shown below?

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If an optimization objective function pr...
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In reviewing the image below, the point (0, 0, 0) is a(n) __________ for the given concave function.

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