Top 150+ Solved Business Mathematics MCQ Questions Answer
Q. One disadvantage of using North-West Corner rule to find initial solution to thetransportation problem is that
a. it is complicated to use
b. it does not take into account cost of transportation
c. it leads to a degenerate initial solution
d. all of the above
Q. If an opportunity cost value is used for an unused cell to test optimality, it should be
a. equal to zero
b. most negative number
c. most positive number
d. any value
Q. The large negative opportunity cost value in an unused cell in a transportation table is chosento improve the current solution because
a. it represents per unit cost reduction
b. it represents per unit cost improvement
c. it ensure no rim requirement violation
d. none of the above
Q. The smallest quantity is chosen at the corners of the closed path with negative sign to beassigned at unused cell because
a. it improve the total cost
b. it does not disturb rim conditions
c. it ensure feasible solution
d. all of the above
Q. The quantitative approach to decision analysis is a
a. logical approach
b. rational approach
c. scientific approach
d. all of the above
Q. The qualitative approach to decision analysis relies on
a. experience
b. judgement
c. intuition
d. all of the above
Q. Mathematical model of Linear Programming is important because
a. It helps in converting the verbal description and numerical data into mathematical expression
b. decision makers prefer to work with formal models.
c. it captures the relevant relationship among decision factors.
d. it enables the use of algebraic techniques.
Q. In graphical method of linear programming problem if the iOS-cost line coincide with a side of region of basic feasible solutions we get
a. Unique optimum solution
b. unbounded optimum solution
c. no feasible solution
d. Infinite number of optimum solutions
Q. If the number of available constraints is 3 and the number of parameters to be optimized is 4, then
a. The objective function can be optimized
b. The constraints are short in number
c. The solution is problem oriented
d. None of these
Q. Non-negativity condition is an important component of LP model because
a. Variables value should remain under the control of the decision-maker
b. Value of variables make sense & correspond to real-world problems
c. Variables are interrelated in terms of limited resources
d. None of the above
Q. Maximization of objective function in an LP model means
a. Value occurs at allowable set of decisions
b. Highest value is chosen among allowable decisions
c. Neither of above
d. Both a & b
Q. Which of the following is not a characteristic of the LP model
a. Alternative courses of action
b. An objective function of maximization type
c. Limited amount of resources
d. Non-negativity condition on the value of decision variables.
Q. Which of the following statements is true with respect to the optimal solution of an LP problem
a. Every LP problem has an optimal solution
b. Optimal solution of an LP problem always occurs at an extreme point
c. At optimal solution all resources are completely used
d. If an optimal solution exists, there will always be at least one at a corner
Q. While plotting constraints on a graph paper, terminal points on both the axes are connected by a straight line because
a. The resources are limited in supply
b. The objective function as a linear function
c. The constraints are linear equations or inequalities
d. All of the above