MGOC10H3 Quiz: assignment 2 solution
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Mgoc10 analysis for decision making l01/l02 - assignment #2 solution. B = thousands of $ invest in bond fund, s = thousands of $ invest in stock fund. S + b 720 (0, 720) (720, 0) S 0. 65(s + b) 0. 35s 0. 65b (0,0) (325, 175) Z1 = 0. 18s + 0. 06b = 18 (0, 300) (100, 0) Z2 = 0. 18s + 0. 06b = 36 (0, 600) (200, 0) To obtain optimal solution solve: 0. 22s + 0. 05b = 100 and s + b = 720 get. S = 376. 47058 or ,470. 58 , b = 343. 52941 or 343,529. 41, z = 88. 37647 or ,376. 47. Max amount can lose is 0. 22s + 0. 05b = 0. 22(376. 47058) + 0. 05(34352941) = 100 or ,000. (c) Z = cs s + . 06b get b = z/. 06 cs/. 06 s, slope = cs/. 06. From graph, current solution is optimal if slope obj steeper than con1 and flatter than con3.
