Suppose an LP Problem Was Subject to Constraints of

question 50

Essay

Suppose an LP problem was subject to constraints of
2X+Y> 10
X+3Y> 20
Suppose that a new constraint is added, of the form 3X+A*Y> 90. What is the largest value that A can have so that this new constraint is redundant?

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Definitions:

Bank Investments

Financial assets purchased or held by banks, including bonds, stocks, real estate, and other securities, with the aim of generating income or capital appreciation.

Leverage Ratio

The ratio of assets to bank capital.

Reserves

Assets held by a bank or financial institution, often to meet regulatory requirements or as a safeguard against potential crises.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.