Generalized Reduced Gradient $($GRG$)$ algorithm Solver uses the Generalized

Reduced Gradient algorithm to find the solution to non$-$linear programs.

Global optimal solution The global optimal solution is the best solution to an

optimization model. The global optimal solution is also a local optimal solution.

Local optimal solution A local optimal solution is a solution to an optimization

model that is better than a nearby solution.

Non$-$linear program $($NLP$)$ An optimization model which contains one or more

equations that are not in a linear format.

EXERCISES

Terri's Town Pump Restaurant would like to run a Tuesday night steak special.

Terri has been able to work out a deal with his suppliers so he can serve a New

York strip steak, potato, salad, and dessert for a total cost of $$3\mathrm{.}65.$ In a recent

restaurant journal she read that the demand for restaurant meals is elastic and can

be defined by the equation: $Q=23,652P^{-2\mathrm{.}5}.$ Surveying her kitchen capacity, she

estimates that they can prepare a maximum of $100$ steak meals on a Tuesday

night. What price should Terri charge for a New York strip steak dinner in order

to maximize her profit?

a$.$ Formulate an NLP to determine the optimal price for a steak dinner.

b$.$ Create a spreadsheet model to find the optimal price. Turn in your spreadsheet

model with your homework.

Optimal Price:

Optimal Profit: