In the forecast chart for the cumulative profit in year 3, you ...

[nmorano1]

In the forecast chart for the cumulative profit in year 3, you enter the value 0 into the left range box and hit the enter button. The above set of actions determines the ________.
 
  A) percentage of risk that the NPV in the third year will not be positive
  B) percentage of risk that the NPV in the third year will be positive
  C) number of trials shown in the cumulative profit forecast chart for year 3
  D) probability that the product will show a cumulative net profit in the third year

Question 2

The shadow price ________.
 
  A) tells how much the value of the allowable decrease will change as the right-hand side of a constraint is reduced to 0
  B) tells how much the value of the allowable increase will change as the left-hand side of a constraint is reduced to 0
  C) tells how much the value of the objective function will change as the right-hand side of a constraint is increased by 1
  D) tells how much the objective coefficient needs to be reduced in order for a nonnegative variable that is zero in the optimal solution to become positive

[Kingjoffery]

Answer to Question 1

D

Answer to Question 2

C