Solved

Use the Table Below to Answer the Following Question(s) -According to the Model, What Is the Distance Between Shirley's

question 47

Multiple Choice

Use the table below to answer the following question(s) .
Shirley Templeton is a real estate agent for Paralol Realty.Shirley is given the responsibility to manage potential customers for 5 of the Realty's bungalows.These 5 bungalows are situated in close proximity.In order to make traveling easire, Shirley decides to move to a location closer to the 5 bungalows.The table below gives the location (X and Y coordinates) of the 5 bungalows along with the number of trips she would have to make to each bungalow.Create a nonlinear model based on the data given in the table below noting that the objective is to reduce the weighted distance between Shirley's accommodation and the 5 bungalows.
$\begin{array}{l}\text { Bungalow Location }\\\begin{array}{|l|l|l|l}\hline & & & \\\hline \text { Data } & \text { X-coordinate } & Y \text {-coordinate } & \text { Trips/Month } \\\hline \text { Location } & 0 & 0 & 6 \\\hline \text { Bungalow 1 } & 25 & 100 & 30 \\\hline \text { Bungalow 2 } & 20 & 75 & 15 \\\hline \text { Bungalow 3 } & 90 & 80 & 28 \\\hline \text { Bungalow 4 } & 60 & 100 & 10\end{array}\end{array}$

-According to the model, what is the distance between Shirley's new accommodation and Bungalow 3?

Definitions:

Portfolio Effect

The impact of diversifying investments across different assets, which can reduce risk without proportionately lowering expected returns.

Investment Decisions

Choices made by individuals or firms regarding the allocation of resources to different assets or projects with the expectation of earning a return.

Correlation

A numerical indicator that captures how much two variables move in tandem, showing both how strong their linkage is and in what direction it lies.

Risk-adjusted Discount Rates

Discount rates that are adjusted to reflect the risk of an investment, used in calculating the present value of expected future cash flows.