Ayşegül Sayısalsever, the business analyst, can invest up to $15,000 in stocks and loans. Each dollar invested in stocks yields $0.10 profit, and each dollar invested in loan yields $0.15 profit. At least 30% of all money invested must be in stocks, and at least $6000 must be in loans. Determine how Ayşegül can maximize the profit earned on her investments.Build an appropriate LP model.Solve the model using the graphical solution method.Develop a spreadsheet model and use the Solver to find the optimum solution.Create an Answer and a Sensitivity report. Explain all findings in the reports.Change the conditions or values in the case or add new constraints, then show how the solution changes.

Linear programming is a mathematical technique that is also used in operations management…

Answered: Build an appropriate LP model. Solve…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Ayşegül Sayısalsever, the business analyst, can invest up to $15,000 in stocks and loans. Each dollar invested in stocks yields $0.10 profit, and each dollar invested in loan yields $0.15 profit. At least 30% of all money invested must be in stocks, and at least $6000 must be in loans. Determine how Ayşegül can maximize the profit earned on her investments.

Build an appropriate LP model.
Solve the model using the graphical solution method.
Develop a spreadsheet model and use the Solver to find the optimum solution.
Create an Answer and a Sensitivity report. Explain all findings in the reports.
Change the conditions or values in the case or add new constraints, then show how the solution changes.

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