Please answer only Q2:

One of the many linear programming applications is in doing cost-to-benefit analysis. The objective is to select a combination of benefits so as to minimize the cost (premium) while satisfying all the benefits goals. The decision variables here are the levels of four activities (A1, A2, A3 and A4). The linear programming formulation looks like as below: Minimize Total Cost = 2A1 + A2 - A3 + 3A4 Subject to: Benefit 1: 3A1 + 2A2 - 2A3 +5A4 80 Benefit 2: A1 - A2 +A4 10 Benefit 3: A1 + A2 - A3 +2A4 30 A1, A2, A3, A4 are all greater than or equal to 0. a. Solve this problem using Solver, and save results and sensitivity analysis. Write down and interpret the solution. b. Which constraints are binding? If you relax the first constraint to 79, what will be the impact on the total cost? If you increase the second constraint to 11, what will be the impact on the total cost? (Note: Look at the sensitivity analysis to answer this question.) c. If the cost of A1 was decreased to 1, what will be the impact on the solution? (Note: Look at the sensitivity analysis to answer this question.)

Q2: When you examined the solution to Problem 1, it did not make sense. The decision variables must be integers. Solve the problem again using Solver to get an all-integer solution. Write down and interpret the solution. Why is the cost for this solution higher than the solution in Q1? What will be the impact if the right-hand side of first and second constraints are 81 and 11 respectively?