Solved

Write a Linear Programming Model, Including the Objective Function and the Set

question 19

Multiple Choice

Write a linear programming model, including the objective function and the set of constraints for the following problem. DO NOT SOLVE, but be sure to define all your variables.
Brown Bros., Inc., is an investment company doing an analysis of the pension fund for a certain company. The fund has a maximum of $10 million to invest in two places: no more than $8 million in stocks yielding 12%, and at least $2 million in long-term bonds yielding 9%. The stock-to-bond investment ratio cannot be more than 2 to 1. How should Brown Bros. advise its client so that the investments yield the maximum yearly return?

DENOTE:

X = amount invested in stock (in millions of dollars)
Y = amount invested in bonds (in millions of dollars)

Definitions:

Skills Requirements

The specific skills and abilities that an individual needs to possess in order to perform effectively in a particular job or task.

Multivariate Regression Analysis

A statistical technique used to model and analyze the relationships between multiple independent variables and a single dependent variable.

Dependent Variables

Outcomes or variables in research whose changes are influenced by independent variables.

Regression Analysis

A statistical method used to examine the relationship between a dependent variable and one or more independent variables.