a$.$ answer choices:

$1.$ negative, value

$2.$ Allowable increase, allowable decrease, reduced cost, objective coefficient

b$.$ answer choices: negative, value

$1.$ negative, value

$2.$ Allowable increase, allowable decrease, reduced cost, objective coefficient

c$.$ answer choices:

$1.$ increase, decrease

A business student has $$3500$ available from a summer job and has identified three potential stocks in which to invest. To find an optimal solution to maximize, the Excel add$-$in Solver was used. The

accompanying figure shows the Solver Sensitivity Report. Using only the information in the Sensitivity Report, complete parts a through c$.$

Click the icon to view the Solver Sensitivity Report.

a$.$ How much would the return on stock B have to increase in order for the optimal solution to invest full in that stock?

It would need to increase by at least $

per share, which is the

of the

$($Type an integer or a decimal. Do not round.$)$

b$.$ How much would the return on stock $C$ have to increase in order to fully invest in that stock?

It would need to increase by at least $ per share, which is the

of the

$($Type an integer or a decimal. Do not round.$)$

c$.$ Explain the value of the shadow price for the total investment constraint. If the student could borrow $$1,000$ at $6\%$ a year to increase her total investment, what would you recommend and why?

Since the shadow price is $$0\mathrm{.}56,$ every additional dollar invested will

profit by $

So$,$ an additional $$1,000$ would result in a gain of $

profit at a cost of $

in interest.

$($Type integers or decimals rounded to two decimal places as needed.$)$

Solver Sensitivity Report