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ECON 5140 Fall 2017 Project Description This project requires a 1-page memorandum for each of 3 parts. It is perfectly acceptable (perhaps encouraged) to group those 3 memoranda into 1 file. Make certain that the file name has includes your name as part of it. If you need an example, the following link contains an example of a perfectly fine memorandum: https://en.wikipedia.org/wiki/Memorandum This project requires 3 analyses, one for each part. It is perfectly acceptable (perhaps encouraged) to group those 3 analyses into one file by using tabs. Please ensure that the file name includes your name. You will need to submit your work electronically, via Blackboard. Part I Solve the following problem: The table below shows the nutritional contents of five foods in grams per 100 g, the costs of the foods per 100 g, and the minimum weekly requirements for an adult (in grams). Find the least cost combination of foods that will meet the weekly adult minimum requirements. Food Protein Fat Carbohydrate Wholemeal Bread Margarine Cheese Breakfast Cereal Diet Snack Bar 8 0 25 10 10 1 84 35 2 - 56 0 0 77 49 Weekly Adult requirements (g) 500 600 2100 Cost, $ 0.08 0.16 0.38 0.24 0.40 Part II Your friend recently inherited $20,000 from a wealthy relative. His stockbroker has advised him to invest in three particular stocks. Because of the volatility of the market, your friend requires the stockbroker to provide him with historical yearly returns for these stocks over the past four years. This data is shown in the table below. Find the efficient frontier of this portfolio. Year 1 2 3 4 (continued) Stock A 0.202 0.024 0.159 0.049 Stock B 0.109 0.187 0.098 0.121 Stock C 0.153 0.068 0.185 0.057 Part III In an effort to fine-tune their marketing strategy, a computer contractor has collected cost and performance data on 8 installations, as shown in the table below. Use data envelopment analysis to determine which installations are efficient and which are not. Installation INPUTS OUTPUTS Labor Costs Operational Costs Processing Mistake Decrease (number of policies) Decrease in Turnaround Time (minutes per policy) 1 7260 4372 3.597 0.7143 2 7825 3494 3.571 0.7457 3 8900 3483 3.953 0.7278 4 7863 4000 3.571 0.7547 5 7555 4244 4.926 0.7496 6 3050 4746 3.731 0.7072 7 980 4421 3.534 0.7072 8 3600 4159 3.846 0.7262 Data Envelopment Analysis or DEA is described in the following link: https://en.wikipedia.org/wiki/Data_envelopment_analysis I recommend reading only the first two paragraphs lest madness ensue. The following formulation is the one that you will program in Excel: Minimize E s.t. Weighted outputs > Unit k's output (for each measured output) Weighted inputs 0 Where \"E\" is the efficiency of the installation in