 Solution

ID: past-exam-of-the-probability-statistics-and-options-i-course-of-the-university-of-oxford/2009/t/1/b/ii/solution

The unchanged reduced costs remain optimal for a maximization problem. The new basic solution is feasible exactly when

2 - α \geq 0

and

14 + 2 α \geq 0

. Therefore

- 7 \leq α \leq 2.

The endpoints are included: one basic variable then vanishes, but feasibility and the reduced-cost certificate remain valid.

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