Question
The American Safety Council has allocated Gh220,000 to efforts to prevent automobile accidents. An assumed measure of the effectiveness of such efforts is the reduction
The American Safety Council has allocated Gh220,000 to efforts to prevent automobile accidents. An assumed measure of the effectiveness of such efforts is the reduction in fatalities and property damage. The projects that have been suggested for funding and some relevant values are presented in Table I. It is readily admitted that saving lives is the more important objective, but yet the decision makers are not willing to ignore the objective of averting property damage. Realizing secured (signature) loam Furniture and expansion loans cannot he more than half of all secured loans- Signature and expansion loans may not exceed the market securities investment. The investments have the following yields:
Investment Yield %
Securities 10
Signature loans 13
Secured loans:
Automobile 9
Furniture 11
Expansion 12
The credit union wants to determine the proportion of its funds to allocate to each category in order to maximize interest earned. Formulate and solve the problem as a linear program.
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