Which of the statements about this portion of the sensitivity report is best?
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$G$7 Cheese 400 0.25 400 16.66666667 233.3333333
$G$8 Meat 150 0.125 150 110 10
A) Cheese costs more than meat.
B) One additional pound of meat should be purchased if it can be acquired for $2 or less.
C) There is both cheese and meat left over if the optimal product mix is produced.
D) The shadow price of cheese can rise to 16.8167 before the right hand side changes.
Answer: B
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Which of the following is a characteristic of an amortized or level payment mortgage?
A. The early payment are mostly interest B. The early payments are mostly principal C. Each monthly payment increases and the balance decreases D. With each monthly payment, the interest increases and the balance decreases.
M represents ________ in the factor model, Xi = Ai1 F1 + Ai2 F2 + Ai3 F3 + ... + Aim Fm + ViUi,
A) the number of variables B) the number of common factors C) the mth standardized variable D) the common factors