Below is a scenario that you will discuss with your group members and submit a report answering all three questions. You can use your group's general discussion board to communicate with your group members. I will monitor your group conversation on the group discussion board if there is an issue with group participation. Keep in mind that at the end of semester everyone will have a chance to submit a peer evaluation of group effort which is when you are going to assess yourself and your group member performances. Therefore, as stated in the course syllabus, your overall group discussion question grade could be 90, but your total individual discussion question grade could be a mere 60 because of the peer evaluations of your individual contribution.

Your group responses for questions #1 and #3 are to be 2-4 pages long, type-written, 12 points font, double spaced, one-inch margins using citing of any outside references (if needed). For question #2, your group is required to submit the Microsoft Excel file containing the solved problem. Only one group member needs to submit your group report. Responses will be graded based on effort, completeness as well as correctness.

The scenario to be discussed:

Energy Management Corporation (EMC) must decide its level of capital investment in the six energy ventures described below. EMC wishes to maximize its total expected return on a maximum total investment of $10,000,000. At least half of this must be in the United States, including Alaska. No more than 20% can be in sour crude and coal investments. In addition, allocations must at least meet the minimums specified in column three below. For example, investment in Wyoming Coal must be at least $1,000,000.

Venture (Location)	Expected Return	Minimum Investment	Primary Product
Wyoming Coal	75%	$1,000,000	Coal
Colorado Shale	62%	$400,000	Sour crude
Prudhoe Bay Alaska	125%	$1,000,000	Sweet crude
Mexico	135%	None	Sweet crude
Alberta Tar Sands	80%	None	Sour crude
Virginia Coal	85%	$300,000	Coal

1. (40 points) Formulate the linear programming model. Clearly state your decision variables, objective function and all constraints. Use fractions rather than percentages in your formulation of the objective function.