Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. Suppose that you are interested in choosing a set of investments {1, . . . , 7}. Assume that the investments have cost of

image text in transcribed
. Suppose that you are interested in choosing a set of investments {1, . . . , 7}. Assume that the investments have cost of $5, $7, $6, $3, $9, $12, $5. Assume there is a budget of $30. Also assume that the eventual expected prot out of each investment is $1, $3, $2, $4, $1, $5, $4. Write an optimization model to maximize prot with the following constraints. The objective function and all the constraints should be linear and there may be integer variables. Dene all variables you need and explain the constraints that you write down. (a) You must choose at least one of the investments. (b) Investment 1 cannot be chosen if investment 3 is chosen. (c) Investment 4 can be chosen only if investment 2 is also chosen. (d) You must choose either both investments 1 and 5 or neither. (e) You must choose either at least one of the investments 1, 2, 3 or at least two investment from 2, 4, 5, 6

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

Step: 3

blur-text-image

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

International Economic Relations Since 1945

Authors: Catherine R Schenk

2nd Edition

1351183567, 9781351183567

More Books

Students also viewed these Economics questions

Question

Armed conflicts.

Answered: 1 week ago

Question

Pollution

Answered: 1 week ago