BUSI2013_Individual_Problem_5_Silva.xlsx - Individual...

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Individual Problem 5Darryl SilvaUSI 2013 Business Decision AnalysisAniket Mahant19-Aug-18
Chapter 8Problem 28Let g represent growth stock fundlet I represent income stock fundlet m represent money fundMax 0.2g+0.1i+0.06ms.tMaximum riskGrowth Fund Minimumg≥30000Income find minimumi≥30000Money market fundm≥60000Funds available g+i+m≤300000g,I,m≥0b)Therefore, optmal soluton is $120,000 in groth fund, $30,000 in income stock fund, and $150,000 into the monec)Growth yeild can increase to 60% and as low as 15%Income stock fund yeild can increase to 12.2% and can decrease infinitallyMoney market yeild can increase to 20% and can decrease to 2%0.1g+0.05i+0.01m≤15000
d)6% riskSince the 3,000 increase of the right side of the constraMax 0.2g+0.1i+0.06ms.tTherefore, optmal soluton would increase by 4,668.Maximum riskGrowth Fund Minimumg≥30000Income find minimumi≥30000Money market fundm≥60000Funds available g+i+m≤300000g,I,m≥0e)Growth yeild 10%Max 0.1g+0.1i+0.06ms.tMaximum riskGrowth Fund Minimumg≥30000Income find minimumi≥30000Money market fundm≥60000Funds available g+i+m≤300000g,I,m≥0Therefore, New optmal soluton:Invest 30,000 in growthInvest 210,000 in income stockinvest 60,000 in money market0.1g+0.05i+0.01m≤180000.1g+0.05i+0.01m≤15000
ey market fund
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Problem 2let x represent product 1let y represent product 2≤≥Max 30x+15ystDepartment A1x+0.35y≤100Department B0.30x+0.20y≤36Department C0.20x+0.50y≤50x,y≥0Therefore, optmal producton:Probust 177.89474Product 263.15789b)Department A and B have zero slack indicatng that all the resource is being utlized, therefore these are thc)Let A represent overtme in department ALet B represent overtme in department BLet B represent overtme in department BMax 30x+15y-18A-22.5B-12CstDepartment A1x+0.35y-A≤100Department B0.30x+0.20y-B≤36Department C0.20x+0.50y-C≤50x,y,A,B,C≥0B≤6C≤8Therefore, the new optmal soluton is Product 187.2092Product 265.11628Overtme A10Overtme B3.186047Overtme C0A≤10

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