A Humanitarian Agency Can Use Two Models of Vehicles for a Refugee

question 36

Multiple Choice

A humanitarian agency can use two models of vehicles for a refugee rescue mission.Each model A vehicle costs $1000 and each model B vehicle costs $1500.Mission strategies and objectives indicate the following constraints.A total of at least 20 vehicles must be used.A model A vehicle can hold 45 boxes of supplies.A model B vehicle can hold 24 boxes of supplies.The agency must deliver at least 690 boxes of supplies to the refugee camp.A model A vehicle can hold 17 refugees.A model B vehicle can hold 35 refugees.The agency must rescue at least 520 refugees.What is the optimal number of vehicles of each model that should be used? What is the optimal cost? ​

• A)30 model A vehicles 32 model B vehicles
• Optimal cost: $78,000
• B)20 model A vehicles 20 model B vehicles
• Optimal cost: $50,000
• C)10 model A vehicles 10 model B vehicles
• Optimal cost: $25,000
• D)45 model A vehicles 30 model B vehicles
• Optimal cost: $90,000
• E)20 model A vehicles 32 model B vehicles
• Optimal cost: $68,000

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Definitions:

Macaulay Duration

A measure of the weighted average time until a bond or fixed income portfolio's cash flows are received, used to gauge interest rate sensitivity.

Yield

The income returned on an investment, such as the interest or dividends received, typically expressed as a percentage of the investment’s cost or current market value.

Modified Duration

Modified Duration measures the sensitivity of the price of a bond or other debt instrument to a change in interest rates, indicating the percentage change in price for a parallel shift in rates.

Modified Duration

A measure of the sensitivity of a bond's or bond portfolio's price to changes in interest rates, adjusting for the changing yield to maturity.