Copy of Problem Set 7 (solutions).xlsx

Copy of Problem Set 7 (solutions).xlsx - Econ 2500 Problem...

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Econ 2500, Problem Set 6 Investment Return Amnt Invested Personal Loans < Bonds Bonds 10.0% 340,000 255,000 < 340,000 Mortgages 8.5% 255,000 Car Loans 9.5% 0 Personal Loans < Mortgages Personal Loans 12.5% 255,000 255,000 < 255,000 Total 10.30 850,000 850,000 Personal Loans < 25% of Total 255,000 < 255,000 Let X1 = Amount invested in Bonds X2 = Amount invested in Mortgages X3 = Amount invested in Car loans X4 = Amount invested in Personal Loans MAX 10 X1 + 8.5 X2 + 9.5 X3 + 12.5 X4 ST X1 + X2 + X3 + X4 = 850,000 X4 <= .30*(850000) X4 <= X2 X4 <= X1 X1, X2, X3 , X4 >= 0 Note: It's okay to have a maximum return of 10% with all of the money in Bonds. The answer shown here is the optimal solution but Solver may go to a sub-optimal solution because of scaling problems; i.e., the value of the objective function is a relatively small number, when not expressed as a percentage, and Solver doesn't always work right with small numbers.
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(a) Electric Gas Number to Make 30,000 10,000 Number to Buy 0 5,000 Cost to Make $55 $85 Cost to Buy $67 $95 Total Cost $2,975,000 Total Available 30,000 15,000 Total Needed 30,000 15,000 Resources Req'd Used Available Production 0.20 0.40 10,000 10,000 Assembly 0.30 0.50 14,000 15,000 Packaging 0.10 0.10 4,000 5,000 (b) Microsoft Excel 11.0 Sensitivity Report
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  • Spring '14
  • DavidTufte
  • Economics, Optimization, Unsecured loan, Total Available Electric, Personal Loans, Problem Set 7 Solutions

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