## Overview of Week 10

• #### Vocabulary List:

• Section 6: Sensitivity Analysis
• What is the fundamental block matrix product that shows how every simplex tableau can be obtained by multiplying the initial tableau on the left by a nonsingular matrix?
• tableau approach to sensitivity analysis (block matrix structure)
• break-even price
• reduced cost
• marginal values
• objective coefficient range
• right hand side (or resource) range
• pricing out
• the fundamental theorem on sensitivity analysis
• #### Key Concepts:

• Section 6:
• What is the fundamental block matrix product that shows how every simplex tableau can be obtained by multiplying the initial tableau on the left by a nonsingular matrix?
• tableau approach to sensitivity analysis (block matrix structure)
• break-even price
• reduced cost
• marginal values
• objective coefficient range
• right hand side (or resource) range
• pricing out
• the fundamental theorem on sensitivity analysis
• #### Skills to Master:

• Apply the dual simplex algorithm
• computing break-even prices
• computing ranges (cost coefficients and right-hand sides)
• pricing out a new activity
• solving sensitivity analysis word problems
• #### Quiz:

Friday, December 4.
• On this quiz the first question will concern the theory and vocabulary words from Section 6. The second question will ask you to do one or more of the following 3 things: (1) compute the sensitivity ranges for either an objective coefficient or a right-hand side, (2) price-out a new activity, and/or (3) answer a sensitivity analysis question using the tools we have developed in class for this purpose.