Question: 2 Question (2 Points) A Bank is in the process of devising a loan policy. The following table provides the pertinent data about available types

2 Question (2 Points) A Bank is in the process of devising a loan policy. The following table provides the pertinent data about available types of loans Type of loan In Badoo 140 X2 Chi 130 120 123 15 Commercial le 2 Home 95888 300 The objective of the Bank is to maximize its net return, the difference between interest revenue and lost bad debts. The interest revenue is accrued only on loans in good standing, then: 0.1X1 + .07X2 + .03x3 + .05X4 + 0.02x5 - (.14(x1) +.13(x2) + .12(x3) + .125(x4) + .1(x5)) 0.14(x1)+.13(x2)+.12(x3) + .125(x4) +.1(x5)-(.1X1 + .07X2 + .03x3 + .05X4 + .02x5) 0.14(x1) +.13(x2)+.12(x3) + 125(x4) + .1(x5) 0.026 x1 + 0.0509 x2 + 0.0864 x3 + 0.06875 x4 + 0.078 x5

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