3. (35 points) An investor invests wants to invest up to $6 million in tech company...
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3. (35 points) An investor invests wants to invest up to $6 million in tech company stocks. The table below describes his options. Expected Annual Corporation Type Return (in $1000's) Apple Bumble Cisco DTOL Esso Franlin Google X Y Y Z X Z Z 40 64 72 96 88 32 60 Additional requirements of the investor: (a) At least two type Z corporations should be included. (b) No more than one type Y corporation should be included. (c) Exactly one type X corporation should be included. (d) If Bumble is included then Apple must also be included. Cost of Block (in $1000's) 384 Hint: Use the following variables - XA = 1 if the investor invests in Apple, 0 otherwise. - XB = 1 if the investor invests in Bumble, 0 otherwise. - Xc = 1 if the investor invests in Cisco, 0 otherwise. - XD = 1 if the investor invests in DTOL, 0 otherwise. XE = 1 if the investor invests in Esso, 0 otherwise. XF = 1 if the investor invests in Franklin, 0 otherwise. XG = 1 if the investor invests in Google, 0 otherwise. 432 544 800 560 408 720 Subject to the above requirements, the investor would like to maximize expected annual returns. For- mulate the linear programming problem. Do not solve it. 3. (35 points) An investor invests wants to invest up to $6 million in tech company stocks. The table below describes his options. Expected Annual Corporation Type Return (in $1000's) Apple Bumble Cisco DTOL Esso Franlin Google X Y Y Z X Z Z 40 64 72 96 88 32 60 Additional requirements of the investor: (a) At least two type Z corporations should be included. (b) No more than one type Y corporation should be included. (c) Exactly one type X corporation should be included. (d) If Bumble is included then Apple must also be included. Cost of Block (in $1000's) 384 Hint: Use the following variables - XA = 1 if the investor invests in Apple, 0 otherwise. - XB = 1 if the investor invests in Bumble, 0 otherwise. - Xc = 1 if the investor invests in Cisco, 0 otherwise. - XD = 1 if the investor invests in DTOL, 0 otherwise. XE = 1 if the investor invests in Esso, 0 otherwise. XF = 1 if the investor invests in Franklin, 0 otherwise. XG = 1 if the investor invests in Google, 0 otherwise. 432 544 800 560 408 720 Subject to the above requirements, the investor would like to maximize expected annual returns. For- mulate the linear programming problem. Do not solve it.
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Statistics The Exploration & Analysis of Data
ISBN: 978-1133164135
7th edition
Authors: Roxy Peck, Jay L. Devore
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