Solved

Formulate and Solve Optimization Models with Binary Variables and Logical

question 40

Multiple Choice

Formulate and solve optimization models with binary variables and logical constraints.
Use the table below to answer the following question(s) by invoking the binary constraints on the variables using the standard Solver.
Below is the spreadsheet for a project selection model: $\begin{array}{|l|l|l|l|l|l|l|l|}\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } & \text { G } \\\hline & \text { Project Selection } & & & & & & \\1 & \text { Model } & & & & & & \\\hline 2 & & & & & & & \\\hline 3 & \text { Data } & & & & & & \\\hline 4 & & & & & & & \text { Available } \\ & & \text { Project 1 } & \text { Project 2 } & \text { Project 3 } & \text { Project 4 } & \text { Project 5 } & \text { Resources } \\\hline 5 & \begin{array}{l}\text { Expected Return } \\(\mathrm{NPV}) \end{array} & \$ 160,000 & \$ 200,000 & \$ 125,000 & \$ 150,000 & \$ 225,000 \\\hline 6 & \begin{array}{l}\text { Cash } \\\text { requirements }\end{array} & \$ 45,000 & \$ 70,000 & \$ 28,000 & \$ 52,000 & \$ 65,000 &\$175,000\\\hline 7 & \begin{array}{l}\text { Personnel } \\\text { requirements }\end{array} & 7 & 4 & 2 & 6 & 4 & 10 \\\hline 8 & & & & & & & \\\hline 9 & \text { Model } \\\hline 10 & \\\hline 11 & \begin{array}{l}\text { Project selection } \\\text { decisions }\end{array} \\\hline 12 & \text { Cash Used } \\\hline 13 & \text { Personnel Used } \\\hline 14 & \text { Return } \\\hline\end{array}$
-What is the return obtained from Project 3?

Definitions:

Increase

A rise in magnitude, quantity, or degree; an upward trend in a numerical value or variable.

RSquare Value

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable(s) in a regression model.

Regression Equation

A mathematical formula used to predict a variable based on its relationship with one or more other variables.

Variation

Differences or changes in the condition, amount, or level of something, typically within a set or series of items.