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Optimal Sampling and the Right-Hand-Side of A Linear Program: Sensitivity Analysis Revisited

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  • Andrew F. Daughety

Abstract

This paper examines right‐hand side sensitivity analysis in linear programming as a problem in optimal sampling. Specifically, the insensitivity point of a solution is defined as the point at which the expected gain from increased accuracy in the prediction of a resource level is equal to the expected cost of procuring the information. The problem is structured using the rudiments of optimal statistical decision theory.
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  • Andrew F. Daughety, 1976. "Optimal Sampling and the Right-Hand-Side of A Linear Program: Sensitivity Analysis Revisited," Discussion Papers 218, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    • Handle: RePEc:nwu:cmsems:218
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