1. if the value of some parameters of a model are uncertain, then the model is c

Question

1. if the value of some parameters of a model are uncertain, then the model is considered to be: a)random b)probabilistic c)deterministic d)schematic e)mathematical

2.The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $8,000. Each unit produced can be sold for $12.00. ABC incurs a variable cost of $10.00 per unit. How many units ABC should sell to break even? a)100,000 b)10,000 c)5,000 d)4,000 e)16,000

3.Determining how much the solution will change if there are changes in the input data of the model is referred to as _____? a)pricing out a new variable b)sensitivity analysis c)reduced cost d)shadow price e)allowable range

Explanation / Answer

Ans:

1)Option b is correct(probabilistic)

2)profit per unit=12-10=2

so,ABC should sell units=8000/2=4000

3)Option b is correct(sensitivity analysis)

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