Question
A brokerage firm has been tasked with investing exactly $300,000 for a new client. The client has asked that the broker select promising stocks and
A brokerage firm has been tasked with investing exactly $300,000 for a new client. The client has asked that the broker select promising stocks and bonds for investing subject to the following guidelines:
1) At least 25% of the total investment should be in municipal bonds
2) No more than 20% of the total investment should be in real estate stock
3) At least 10% of the total investment should be in domestic automobile stock
4) No more than 40% of the total investment should be in combination of the amount invested in energy and pharmaceutical stocks.
5) The amount invested in a combination of real estate and pharmaceutical stock should be no more than 70% of the total amount that is invested in a combination of energy and automobile stocks.
Subject to these constraints, the clients goal is to maximize the projected return on investment. A list of potential investments are in the table below:
Formulate this as an LP problem and solve in Excel.
a) What is the total return for your investment strategy?
b) How much should be invested ($) in each investment?
c) Be sure to paste your Excel solution into this answer box for full/partial credit.
In order to predict the emission output of a vehicle, several factors are being investigated. These factors include the engine size (liters), number of passengers the vehicle can hold, and the number of cylinders in the engine. The data is provided below. The column for the vehicle is just a label and is not part of the analysis. You should be able to copy and paste this into an Excel file.
Dependent Variable:
- Emissions.
Independent Variables:
- Engine Size (liters)
- Passengers
- Cylinders
Vehicle | Emissions | Engine Size (liters) | Passengers | Cylinders |
A | 7.4 | 2.5 | 5 | 4 |
B | 6.6 | 2.4 | 5 | 4 |
C | 7.9 | 3.2 | 5 | 6 |
D | 11.1 | 3.5 | 5 | 6 |
E | 8.5 | 3.3 | 8 | 6 |
F | 10.6 | 3.5 | 5 | 5 |
G | 11.4 | 5.7 | 7 | 8 |
H | 7.7 | 3 | 5 | 6 |
I | 9.1 | 2.4 | 5 | 4 |
J | 11.8 | 6 | 5 | 8 |
K | 6.4 | 3.5 | 4 | 6 |
L | 6.6 | 2.4 | 5 | 4 |
M | 6.7 | 2 | 5 | 4 |
N | 10.6 | 4.7 | 7 | 8 |
O | 11.4 | 4 | 6 | 6 |
P | 6.3 | 1.6 | 4 | 4 |
Q | 5.2 | 1.8 | 5 | 4 |
R | 12.5 | 4.7 | 8 | 8 |
S | 6.6 | 2.4 | 5 | 4 |
T | 9.3 | 4.6 | 6 | 8 |
U | 11.9 | 4.2 | 5 | 8 |
V | 9.7 | 3.5 | 7 | 6 |
W | 5.9 | 1.5 | 5 | 4 |
X | 8.7 | 4.3 | 5 | 8 |
Y | 11.5 | 4.7 | 8 | 8 |
Use this data to answer the questions on Regression Analysis. Type either PC or Mac in the space alloted for an answer to this question so that I know what type of system you are using.
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