Which statements are true of optimization? Select one or more: a. It is a general mathematical tool and can be used not only in portfolio optimization but many business problems b. When applied in real world setting we often use computers to estimate the optimum numerically rather than doing calculus by hand c. One of the earliest applications of optimization to business problems is Augustin Cournot's 1838 duopoly pricing model d. Optimization can only ever be as effective as the description of the objective function e. The selection of the FOC at zero is an arbitrary choice but allows for the identification of inflection (turning points) in the objective function f. When optimizing by hand you differentiate the objective function with respect to the control variables of the economic entity at hand
4. Which statements are true of optimization?
Select one or more:
a.
It is a general mathematical tool and can be used not only in portfolio optimization but many business problems
b.
When applied in real world setting we often use computers to estimate the optimum numerically rather than doing calculus by hand
c.
One of the earliest applications of optimization to business problems is Augustin Cournot's 1838 duopoly pricing model
d.
Optimization can only ever be as effective as the description of the objective function
e.
The selection of the FOC at zero is an arbitrary choice but allows for the identification of inflection (turning points) in the objective function
f.
When optimizing by hand you differentiate the objective function with respect to the control variables of the economic entity at hand
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