1. A word file with the mathematical formulations of the problems,

2. An excel file with solutions to each problem.

You are expected to type the mathematical formulations of questions 2, 3, and 4 using the Equation editor (under the Insert Menu). Also, solve each question in a separate spreadsheet in the excel file. Name the spreadsheets as Question 1, Question 2, Question 3, and Question 4.

2. The Simpsons & Sons Financial Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on mortgages.

Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows:

Work-Hours per Unit
Department	Special Risk	Mortgage	Work-Hours Available
Underwriting	3	2	2400
Administration	0	1	800
Claims	2	0	1200

a. Formulate a linear programming model for this problem (You need to clearly define decision variables, generate the objective function and constraints).

b. Solve the problem using excel solver. Report the decision variable and objective values.

c. Check the sensitivity analysis report. Analyze the shadow prices.