Fundamentals of Optimization and Statistical Modeling
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Optimization Problem and LP Relaxation
The objective function for an optimization problem is: Min 3x – 2y, with constraints x ≥ 0, y ≥ 0. x and y must be integers. Suppose that the integer restriction on the variables is removed. If so, this would be a familiar two-variable linear program; however, it would also be an example of an LP relaxation of the integer linear program.
Integers in Linear Programs
Integers cannot be used in linear programs.
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Simple Linear Regression Model
In a simple linear regression model, y = b0 + b1x + eb1, b1 represents the intercept.
Time Series Recurring Pattern
A time series that shows a recurring pattern over one year or less is said to follow a cyclical pattern.
Binary Integer Program Variables
In binary integer... Continue reading "Fundamentals of Optimization and Statistical Modeling" »