Subject: business decision analysis

please answer all

3. (35 points) An investor invests wants to invest up to $6 million in tech company stocks. The table below describes his options. Expected Annual Corporation Type Return (in $1000's) Cost of Block (in $1000's) Apple X 40 384 Bumble Y 64 432 Cisco Y 72 544 DTOL Z 96 800 Esso X 88 560 Franlin Z 32 408 Google Z 60 720 Additional requirements of the investor: (a) At least two type Z corporations should be included. (b) No more than one type Y corporation should be included. (c) Exactly one type X corporation should be included. (d) If Bumble is included then Apple must also be included. Subject to the above requirements, the investor would like to maximize expected annual returns. For- mulate the linear programming problem. Do not solve it. Hint: Use the following variables - XA = 1 if the investor invests in Apple, 0 otherwise. - XB = 1 if the investor invests in Bumble, 0 otherwise. - Xc = 1 if the investor invests in Cisco, 0 otherwise. - XD = 1 if the investor invests in DTOL, 0 otherwise. XE = 1 if the investor invests in Esso, 0 otherwise. XF = 1 if the investor invests in Franklin, 0 otherwise. XG = 1 if the investor invests in Google, 0 otherwise. 3. (35 points) An investor invests wants to invest up to $6 million in tech company stocks. The table below describes his options. Expected Annual Corporation Type Return (in $1000's) Cost of Block (in $1000's) Apple X 40 384 Bumble Y 64 432 Cisco Y 72 544 DTOL Z 96 800 Esso X 88 560 Franlin Z 32 408 Google Z 60 720 Additional requirements of the investor: (a) At least two type Z corporations should be included. (b) No more than one type Y corporation should be included. (c) Exactly one type X corporation should be included. (d) If Bumble is included then Apple must also be included. Subject to the above requirements, the investor would like to maximize expected annual returns. For- mulate the linear programming problem. Do not solve it. Hint: Use the following variables - XA = 1 if the investor invests in Apple, 0 otherwise. - XB = 1 if the investor invests in Bumble, 0 otherwise. - Xc = 1 if the investor invests in Cisco, 0 otherwise. - XD = 1 if the investor invests in DTOL, 0 otherwise. XE = 1 if the investor invests in Esso, 0 otherwise. XF = 1 if the investor invests in Franklin, 0 otherwise. XG = 1 if the investor invests in Google, 0 otherwise