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linear programming statistics question A trust officer for the Humber City Bank wants to invest in the following bonds: She is going to use linear
linear programming statistics question
A trust officer for the Humber City Bank wants to invest in the following bonds: She is going to use linear programming to find the dollar investment in each bond that will maximize total interest income. The following investment guidelines are stipulated: Exactly $150, 000 will be invested altogether. At most 30 % of the investment should be placed in short maturity bonds. No more than 40 % of the investment should be placed in highrisk issues. At least $20, 000 must be placed in tax-free issues. Total funds invested in low-risk bonds must be less than or equal to 50 % of the total funds placed in long-maturity issues. 1 The interest income derived from taxfree bonds must be at least I of the total income. (a) The objective function for this problem is: minimize Z = 0.07.7:1 l 0.11:1:2 l 0.10m3 l 0.12114 l 0.06m5 minimize Z = 7:31 -l- 11:32 -l- 10:33 -l- 12:34 l 621:5 maximize Z = 0.07:1:1 l 0.11222 l 0.10.173 l 0.12234 l 0.06m5 maximize Z = 0.07:1:1 l 0.11222 l 0.10:1:3 + 0.12234 l 0.60.295 None of the above. (b) Please choose the correct constraint: ox1 + 2 + 23+ 4+ 25 = 150, 000 ox1 + 2 + 23 + 24 + 25 - 150, 000 ox1 + x2 +23 + 24+ 25 + 150, 000 ox1 +2 + 23 + 4+ 25 2 150, 000 None of the above. (c) Please choose the correct constraint: ox2 + 24 + 25 60, 000 ox1 + x3 + 5 = 60, 000 None of the above.(9) Please choose the correct constraint: 334 | 335 2 20, 000 331 -| 335 2 20, 000 333 + 335 2 20, 000 332 | 335 2 20, 000 None of the above. (f) Please choose the correct constraint in the standard form: 331+2332+333+2334 20 331+2332+333+2334 $0 31 2332+333 2334 20 31 2332+333 23':4 S0 None of the above. (9) Please choose the correct constraint in the standard form: 0.21331 0.11332 0.10333 0.12334 + 0.18335 2 0 0.21331 + 0.11332 0.10333 0.12334 0.18335 2 0 0.21331 0.11332 0.10333 0.12334 + 0.18335 2 0 0.21331 0.11332 0.10333 0.12334 -l 0.18335 3 0 None of the above. (h) Non-negativity for this LP problem means that: all xi 2 0, i = 1, 2, 3, 4, 5 oX1 X X2 X X3 X X4 X 25 2 0 at least one xi 2 0 ox1 + x2 + 3 + 4 + 5 20 None of the aboveStep by Step Solution
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