Figure 8.15 Sensitivity Report for the Investment Advisors Problem Variable Cells Model Variable Name Final Value Reduced Cost U U.S. Oil 800.000 0.000 H Huber 1200.000 0.000 Constraints Constraint Number Name Final Value Shadow Price 1 Funds available 80000.000 0.093 2 Risk maximum 700.000 1.333 4 U.S. Oil maximum 800.000 0.000 Refer to Figure 8.15, which shows the sensitivity report for Problem 7. How much would the return for U.S. Oil have to increase before it would be beneficial to increase the investment in this stock? How much would the return for Huber Steel have to decrease before it would be beneficial to reduce the investment in this stock? How much would the total annual return be reduced if the U.S. Oil maximum were reduced to 900 shares?

Principles of Information Systems (MindTap Course List)
12th Edition
ISBN:9781285867168
Author:Ralph Stair, George Reynolds
Publisher:Ralph Stair, George Reynolds
Chapter12: Systems Development: Investigation, Analysis, And Design
Section: Chapter Questions
Problem 12SAT: Data modeling is most often accomplished through the use of a(n) __________________. a....
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Figure 8.15 Sensitivity Report for the Investment Advisors Problem

Variable Cells

Model Variable

Name

 Final Value

Reduced Cost

U

U.S. Oil

800.000

0.000

H

Huber

1200.000

0.000

 

Constraints

Constraint Number

Name

Final Value

Shadow Price

1

Funds available 

80000.000

0.093

2

Risk maximum

700.000

1.333

4

U.S. Oil maximum

800.000

0.000

 

  1. Refer to Figure 8.15, which shows the sensitivity report for Problem 7.
  2. How much would the return for U.S. Oil have to increase before it would be beneficial to increase the investment in this stock?
  3. How much would the return for Huber Steel have to decrease before it would be beneficial to reduce the investment in this stock?
  4. How much would the total annual return be reduced if the U.S. Oil maximum were reduced to 900 shares?
  5.  
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