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Question;8.;Refer to;Figure 3.14, which shows the computer solution of Problem 7.;a. How much would the return for U.S. Oil have to;increase before it would be beneficial to increase the investment in this;stock?;b.;How much;would the return for Huber steel have to decrease before it would be beneficial;to reduce the investment in this tock?;c.;How much;would the total annual return be reduced if the U.S. Oil maximum were reduced;to 900 shares?;Quantitative;Analysis BA 452 Homework 3 Questions;9.;Recall the;Tom?s, Inc., problem (Chapter 2, Problem 28). Letting;W=jars of western Foods Salsa;M=jars of Mexico City Salsa;Leads to the formulation:.. 1 +;1.25 5 + 7? 4480?;3 + 1? 2080 2 + 2? 1600,? 0;The computer solution is shown in Figure 3.15.;a. What is the optimal solution, and what are the;optimal production quantities?;b. Specify the objective function ranges.;c. What are the dual values for each constraint?;Interpret each.;d. Identify each of the right-hand-side ranges.;Quantitative;Analysis BA 452 Homework 3 Questions;10.;Recall the;Innis Investments problem (Chapter 2, Problem 39). Letting;S=units purchased in the stock fund;M=units purchased in the;money market fund;leads to the;following formulation;8;+ 3..;50;+ 100? 1,200,000;5;+ 4? 60,000;? 3,000;? 0;The computer solution is shown in Figure 3.16.;a. What is the optimal solution, and what is the;minimum total risk?;b. Specify the objective coefficient ranges.;c. How much annual income will be earned by the;portfolio?;d. What is the rate of return for the portfolio?;e. What is the dual value for the funds available;constraint?;Quantitative;Analysis BA 452 Homework 3 Questions;f.;What is the;marginal rate of return on extra funds added to the portfolio?;11.;Refer to;Problem 10 and the computer solution shown in Figure 3.16.;a.;Suppose the;risk index for the stock fund (the value of Cs) increases from its current;value of 8 to 12. How does the optimal solution change, if at all?;b.;Suppose the;risk index for the money market fund (the value of Cm) increases from its;current value of 3 to 3.5. how does the optimal solution change, if at all?;c.;Suppose Cs;increases to 12 and Cm increases to 3.5. How does the optimal solution change;if at all?;12.;Quality Air;conditioning manufactures three hoe air conditioners: an economy model, a;standard model, and a deluxe model. The profits per unit are \$63, \$95, and;\$135, respectively. The production requirements per unit are as follows;Number of;Number of;Manufacturing;Fans;Cooling Coils;Time(hours);Economy;1;1;8;Standard;1;2;12;Deluxe;1;4;14;For the coming production period, the company has;200 fan motors, 320 cooling coils, and 2400 hours of manufacturing time;available. How many economy models (E), standard models (S), and deluxe models;(D) should the company produce in order to maximize profit? The linear;programming model for the problem is as follows;63 + 95;+ 135..;1;+ 1 + 1? 200;Fan motors;Cooling coils;1 + 2 +;4? 320;Manufacturing time;8;+ 12 + 14? 2400,,? 0;The computer solution is shown in Figure 3.17.;a. What is the optimal solution, and what is the;value of the objective function;b. Which constraints are binding?;c. Which constraint shows extra capacity? How much?;d.;If the;profit for the deluxe model were increased to \$150 per unit, would the optimal;solution change? Use the information in Figure 3.17 to answer this question.;Quantitative;Analysis BA 452 Homework 3 Questions;13.;Refer to;the computer solution of Problem 12 in Figure 3.17;a. Identify the range of optimality for each;objective function coefficient.;b.;Suppose the;profit for the economy model is increased by \$6 per unit, the profit for the;standard model is decreased by 42 per unit, and the profit for the deluxe model;is increased by \$4 per unit. What will the new optimal solution be?;c. Identify the range of feasibility for the;right-hand-side values.;d. If the number of fan motor available for;production is increased by 100, will the dual value for that constraint change?;Explain.

Paper#61165 | Written in 18-Jul-2015

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