Question: Problem 3. (Using Excel) The American Safety Council must allocate its national budget for the next fiscal year. Irrevocable decisions have already been made about

Problem 3. (Using Excel) The American Safety

Problem 3. (Using Excel) The American Safety Council must allocate its national budget for the next fiscal year. Irrevocable decisions have already been made about total funding, including an allocation of $110,000 for the prevention of automobile fatalities and the reduction of property damage. Detailed allocation decisions must still be made about the specific projects to fund to achieve program missions. Council analysts have recommended the following projects and have estimated their expected impact on the 2 missions as follows: Project Maximum Project Expenditure (in $) Expected Fatalities Prevent per $1000 Expended 33 Expected Reduction in Property Damage per $1000 Expended $ 0 Seat Belt Advertising $80,000 20,000 .25 20,000 75,000 .15 30,000 Research on improved highway design Research on imported automobile design Lobbying for tougher "drunk driving" penalties 100,000 27 10,000 You have been asked to help the council decision makers make their budget allocation (i.e., how to allocate the $110K among the recommended projects). But, you are uncertain how to handle the 2 missions. Are the decision makers more concerned with preventing fatalities or with reducing property damage? When probed the decision makers profess to value both equally. a. You decide to formulate two LP models - one designed to maximize prevented fatalities and one designed to maximize reduced property damage

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