assignment 1

# assignment 1 - MS&E 211 Linear and Nonlinear Optimization...

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Fall 2007 Linear and Nonlinear Optimization Sep 27, 2007 Prof. Yinyu Ye Homework Assignment 1: Due 3:15pm Tuesday, Oct 9 There is a homework collecting box outside of professor Ye’s oﬃce (Terman 316) for you to submit your homework. No late homework accepted! Problem 1 1 The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected proﬁt is \$5 per unit on special risk insurance and \$2 per unit on mortgages. Management wishes to establish sales quotas for the product lines to maximize total expected proﬁt. The work requirements are as follows: work hours per unit Department special risk mortgage work hours available underwriting 3 2 2400 administration 0 1 800 claims 2 0 1200 a) Formulate a linear programming model for the problem. b) Use the graphical method to solve the model. c) Solve the linear program by Excel (or any Software) to verify your answer by the graphical method. Problem 2 (School Selection)

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## This note was uploaded on 06/16/2010 for the course MS&E 211 taught by Professor Yinyuye during the Fall '07 term at Stanford.

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assignment 1 - MS&E 211 Linear and Nonlinear Optimization...

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