Solution-Tutorial-6

# Solution-Tutorial-6 - AB103 Statistical and Quantitative...

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1 AB103 – Statistical and Quantitative Methods Solutions - Tutorial 6 Textbook Exercises : Chapter 3 (ASW) 3.13 (pages 132-134) a. U = 800 H = 1200 Estimated Annual Return = \$8400 b. Constraints 1 and 2. All funds available are being utilized and the maximum permissible risk is being incurred. c. d. No, the optimal solution does not call for investing the maximum amount in U.S. Oil. 3.14 (pages 132-134) a. By more than \$7.00 per share b. By more than \$3.50 per share c. None. This is only a reduction of 100 shares and there is slack for this constraint is 200. 3.18. a. E = 80, S = 120, D = 0 Profit = \$16,440 b. Fan motors and cooling coils c. Labor hours; 320 hours available.

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2 d. Objective function coefficient range of optimality No lower limit to 159. Since \$150 is in this range, the optimal solution would not change. 3. 19 a. Range of optimality E 47.5 to 75 S 87 to 126 D No lower limit to 159. b. Mode l Profit Change Allowable Increase/Decreas e % E \$63 Increase \$6 \$75 - \$63 = \$12 6/12 = 0.50 S \$95 Decrease \$2 \$95 - \$87 = \$8 2/8 = 0.25 D \$135 Increase \$4 \$159 - \$135 = \$24 4/24 = 0.17 0.92 Since changes are 92% of allowable changes, the optimal solution of E = 80, S = 120, D = 0 will not change. However, the change in total profit will be:
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## This note was uploaded on 03/21/2010 for the course BIZ ab103 taught by Professor Woo during the Spring '10 term at Nanzan.

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Solution-Tutorial-6 - AB103 Statistical and Quantitative...

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