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Goal 1: Obtain an annual return of at least 9%. Priority Level 2 Goal Goal 2: Limit the investment in Key Oil, the riskier
Goal 1: Obtain an annual return of at least 9%. Priority Level 2 Goal Goal 2: Limit the investment in Key Oil, the riskier investment, to no more than 60% of the total investment. (a) Formulate a goal programming model for the Varma Investment problem. (Let x; be the number of shares of stock i purchased, dpi be the deviation variable which is less than the value of goal i, for i = 1, 2.) d n1 Min P( o/ml) + P(dp2 s.t. Funds Available 50x1 + 100x22 46000 P. 1 P Goal 3x1 + 10x2-dpl +d = = 4140 n1 P2 Goal X2 d + d p2 = 276 n2 Xi dni dpi 0 for i = 1, 2 (b) Use the graphical goal programming procedure to obtain a solution. (x1, x2)= =([ be the
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