The Linear Programming Problem Has an Unusual Characteristic

question 12

Multiple Choice

The linear programming problem has an unusual characteristic.Select a graph of the solution region for the problem and describe the unusual characteristic.Find the minimum value of the objective function (if possible) and where it occurs. ​
Objective function:
​
Z = -x + 2y
​
Constraints:
​
X ≥ 0
Y ≥ 0
X ≤ 10
X + y ≤ 8
​

• A)​ The constraint x ≤ 10 is extraneous.Minimum at (0,8): 16
• B) The constraint x ≤ 10 is extraneous.Minimum at (8,0): -8
• C) The constraint x ≤ 10 is extraneous.No minimum.
• D) The constraint x ≤ 10 is extraneous.Minimum at (8,8): 8
• E) The constraint x ≤ 10 is extraneous.Minimum at (0,0): 0

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Definitions:

Uncertainty

The degree of variability in investment returns, often associated with the lack of predictability in markets and future events.

Well-Diversified Portfolio

A portfolio that contains a mix of assets in such a way as to reduce the risk of investing by spreading investments across various sectors, industries, or asset classes.

Standard Deviation

Standard deviation is a statistic that measures the dispersion or variability of a dataset relative to its mean, often used to gauge volatility.

Factor Portfolio

Factor Portfolio refers to a collection of financial assets that is constructed to have specific common characteristics, often used in factor investing.