Question: 1. Formulettes with binary variables This problem uses the same binary decision variables as the Capital Budgeting model discussed during lecture. Recall that our decision
1. Formulettes with binary variables This problem uses the same binary decision variables as the Capital Budgeting model discussed during lecture. Recall that our decision variables in this formulation were xi,i=1,,7, where xi=1 if investment i is selected, and xi=0 if investment i is not selected. Write constraints that would enforce the following modifications to the Capital Budgeting model. Consider each modification independently of the others. a) If investment 1 is selected, investment 3 must also be selected. b) At least one of investments 6 and 7 must be selected. c) Investment 2 can only be selected if both investments 1 and 3 are selected. d) Let investments 1, 2,3, and 4 represent stocks, and investments 5, 6, and 7 represent bonds. At least twice as many stocks must be selected than bonds
Step by Step Solution
There are 3 Steps involved in it
To address the given problem well create constraints for each modification using binary variables x ... View full answer
Get step-by-step solutions from verified subject matter experts
