Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A trust ofcer for the Humber City Bank wants to invest in the following bonds: She is going to use linear programming to nd the

image text in transcribedimage text in transcribedimage text in transcribed
A trust ofcer for the Humber City Bank wants to invest in the following bonds: She is going to use linear programming to nd the dollar investment in each bond that will maximize total interest income. The following investment guidelines are stipulated: - Exactly $300, 000 will be invested altogether. . At most 20 97: of the investment should be placed in short maturity bonds. 0 No more than 20% of the investment should be placed in highrisk issues. a At least $80, 000 must be placed in tax-free issues. a Total funds invested in lowrisk bonds must be less than or equal to 50 976 of the total funds placed in longmaturity issues. _ _ _ 1 o The Interest Income derived from taxfree bonds must be at least I of the total income. (a) The objective function for this problem is: O minimize Z = 1121 + 422 + 633 + 1024 + 1225 O minimize Z = 0.1121 + 0.0422 + 0.0623 + 0.1034 + 0.1235 0 maximize Z = 0.1131 + 0.0432 + {1.0623 + 0.1024 0.1235 O maximize Z = 0.11:1 + 0.04:; + {1.0623 + 0.1024 1.2025 0 None of the above. (b) Please choose the correct constraint: 03:1 +2+z3 +34 +35 :_> 300,000 on +zz+33 +34 +35 3 300,000 021 +32+33 +34 +35 2 300,000 03:1 +2+33 +34 +35 7E 300,000 0 None of the above. (c) Please choose the correct constraint: 032+4+$5 g 80,000 03:1 +33 +35 g 50,000 ozz+z4+35 at 50,000 032+34+35 E 50,000 0 None of the above. ([1) Please choose the correct constraint: on +33 +35 2 50,000 03:1 +33 +35 5E 50,000 03:1 +33 +35 g 50,000 031 +33 +35 2 50,000 0 None of the above. {e} Please choose the correct constraint: 0 $1 + :55 2 30, 000 0 $2 + :55 2 30, 000 0 $3 + $5 :_> 80, 000 0 $4 + :55 2 30, 000 0 None of the above. (f) Please choose the correct constraint in the standard form: OrI - 212 + 13 - 2:4 0 0 0.33r1 - 0.04x2 - 0.06:3 - 0.10:4 + 0.36:5 0, i = 1, 2, 3, 4, 5 OmI X 12 X X3 X 14 X 25 2 0 O None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Classical Mechanics

Authors: R Douglas Gregory

1st Edition

0511159242, 9780511159244

More Books

Students also viewed these Mathematics questions