If, in a Nonlinear Programming Model Classified as Convex, the

question 32

Essay

If, in a nonlinear programming model classified as convex, the
goal is to maximize a concave objective function, why is it referred to as a convex problem? What would happen if the objective function were convex?

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Definitions:

Human Development Index

An index measuring three basic dimensions of human development: life expectancy, education, and per capita income indicators, used to rank countries into tiers of human development.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, to assess the relative value of the currencies and the cost of living.

Consumer Price Index

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Reserve Requirement

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking authorities.