The Reduced Gradient is similar to which of these terms from linear programming?
A) Shadow Price
B) Allowable Decrease
C) Allowable Increase
D) Reduced Cost

Question

Quizplus · Accepted Answer

The Reduced Gradient is another name for the Reduced Cost in linear programming, which represents the amount by which the objective function coefficient of a non-basic variable must improve (decrease) before it can enter the optimal solution. Therefore, the best choice is D, Reduced Cost. Shadow Price refers to the change in the objective function value resulting from a one-unit increase in the right-hand side of a constraint, while Allowable Increase and Allowable Decrease refer to the range in which a coefficient can change without affecting the optimal solution.

The Reduced Gradient Is Similar to Which of These Terms