Other Statistics from Data Analysis

Question 2

given a particular probability of 𝑍 < 𝑧, what is the corresponding value 𝑧?

Answer 2

qnorm(value z, mean = …, sd = …)

Question 3

linear regression modell

Answer 3

lm(y ~ x, data = name)

Question 4

What shadow price will a non-binding constraint have?

Answer 4

A shadow price of 0 because there is already an excess of the resource

Question 5

An inequality constraint is binding if…

Answer 5

…the solution makes it an equality. Otherwise, it is nonbinding.

Question 6

Optimization model: The positive difference between the two sides of the constraint is called…

Answer 6

the slack

Question 7

Slack in an optimization model

Answer 7

Surplus amount of a limited resource. Constraints with zero slack are binding. These are the important constraints that influence the optimal solution

Question 8

Reduced Cost in an optimization model:

Answer 8

• The deterioration in the objective function if we force one unit of a sub-optimal activity (zero level) into the optimal solution. Alternatively, the amount by which we need to improve the contribution of sub-optimal activities before they could enter the optimal solution on their own merit.
• A reduced cost for a product not in the optimal mix indicates how much greater its margin would have to be before it would enter the optimal mix.

Question 9

Shadow (Dual) Price in an optimization model:

Answer 9

The amount by which the objective value will improve if we relax the constraint by one unit. It is the most we are willing to pay to obtain an additional unit of that resource.

Question 10

get probability of z-value - function

Answer 10

xpnorm(probability, mean =…, sd = …)