
Bundle: Elementary Technical Mathematics, Loose-leaf Version, 12th + WebAssign Printed Access Card, Single-Term
12th Edition
ISBN: 9781337890199
Author: Dale Ewen
Publisher: Cengage Learning
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Chapter 4.5, Problem 48E
To determine
To calculate: The amount of fuel left in a plane after two successive drain
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Construct a know-show table for each statement below that appears to be true.
Problem 3. Pricing a multi-stock option the Margrabe formula
The purpose of this problem is to price a swap option in a 2-stock model, similarly as
what we did in the example in the lectures. We consider a two-dimensional Brownian
motion given by W₁ = (W(¹), W(2)) on a probability space (Q, F,P). Two stock prices
are modeled by the following equations:
dX
=
dY₁ =
X₁ (rdt+
rdt+0₁dW!)
(²)),
Y₁ (rdt+dW+0zdW!"),
with Xo
xo and Yo =yo. This corresponds to the multi-stock model studied in class,
but with notation (X+, Y₁) instead of (S(1), S(2)). Given the model above, the measure
P is already the risk-neutral measure (Both stocks have rate of return r). We write
σ = 0₁+0%. We consider a swap option, which gives you the right, at time T, to
exchange one share of X for one share of Y. That is, the option has payoff
F=(Yr-XT).
(a) We first assume that r = 0 (for questions (a)-(f)). Write an explicit expression for
the process Xt.
Reminder before proceeding to question (b): Girsanov's theorem…
Problem 1. Multi-stock model
We consider a 2-stock model similar to the one studied in class. Namely, we consider
=
S(1)
S(2)
=
S(¹) exp (σ1B(1) + (M1 - 0/1 )
S(²) exp (02B(2) + (H₂-
M2
where (B(¹) ) +20 and (B(2) ) +≥o are two Brownian motions, with
t≥0
Cov (B(¹), B(2)) = p min{t, s}.
"
The purpose of this problem is to prove that there indeed exists a 2-dimensional Brownian
motion (W+)+20 (W(1), W(2))+20 such that
=
S(1)
S(2)
=
=
S(¹) exp (011W(¹) + (μ₁ - 01/1) t)
롱)
S(²) exp (021W (1) + 022W(2) + (112 - 03/01/12) t).
where σ11, 21, 22 are constants to be determined (as functions of σ1, σ2, p).
Hint: The constants will follow the formulas developed in the lectures.
(a) To show existence of (Ŵ+), first write the expression for both W. (¹) and W (2)
functions of (B(1), B(²)).
as
(b) Using the formulas obtained in (a), show that the process (WA) is actually a 2-
dimensional standard Brownian motion (i.e. show that each component is normal,
with mean 0, variance t, and that their…
Chapter 4 Solutions
Bundle: Elementary Technical Mathematics, Loose-leaf Version, 12th + WebAssign Printed Access Card, Single-Term
Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...
Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Prob. 24ECh. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Prob. 26ECh. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Prob. 30ECh. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Determine the accuracy of each measurement; that...Ch. 4.1 - Prob. 36ECh. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.2 - Find a. the precision and b. the greatest possible...Ch. 4.3A - Read the measurement in millimeters shown on each...Ch. 4.3A - Read the measurement in millimeters shown on each...Ch. 4.3A - Read the measurement in millimeters shown on each...Ch. 4.3A - Read the measurement in millimeters shown on each...Ch. 4.3A - Read the measurement in millimeters shown on each...Ch. 4.3A - Read the measurement in millimeters shown on each...Ch. 4.3A - Read the measurement in millimeters shown on each...Ch. 4.3A - Read the measurement in millimeters shown on each...Ch. 4.3A - Read the measurement in millimeters shown on each...Ch. 4.3A - Prob. 10ECh. 4.3A - Prob. 11ECh. 4.3A - Prob. 12ECh. 4.3B - Read the measurement in inches shown on each...Ch. 4.3B - Read the measurement in inches shown on each...Ch. 4.3B - Read the measurement in inches shown on each...Ch. 4.3B - Prob. 4ECh. 4.3B - Prob. 5ECh. 4.3B - Read the measurement in inches shown on each...Ch. 4.3B - Prob. 7ECh. 4.3B - Prob. 8ECh. 4.3B - Prob. 9ECh. 4.3B - Read the measurement in inches shown on each...Ch. 4.3B - Prob. 11ECh. 4.3B - Read the measurement in inches shown on each...Ch. 4.4A - Read the measurement shown on each metric...Ch. 4.4A - Read the measurement shown on each metric...Ch. 4.4A - Read the measurement shown on each metric...Ch. 4.4A - Prob. 4ECh. 4.4A - Prob. 5ECh. 4.4A - Prob. 6ECh. 4.4A - Prob. 7ECh. 4.4A - Prob. 8ECh. 4.4A - Prob. 9ECh. 4.4A - Prob. 10ECh. 4.4A - Read the measurement shown on each metric...Ch. 4.4A - Prob. 12ECh. 4.4A - Read the measurement shown on each metric...Ch. 4.4A - Prob. 14ECh. 4.4A - Prob. 15ECh. 4.4A - Prob. 16ECh. 4.4A - Prob. 17ECh. 4.4A - Prob. 18ECh. 4.4A - Prob. 19ECh. 4.4A - Read the measurement shown on each metric...Ch. 4.4B - Read the measurement shown on each U.S....Ch. 4.4B - Prob. 2ECh. 4.4B - Prob. 3ECh. 4.4B - Prob. 4ECh. 4.4B - Prob. 5ECh. 4.4B - Prob. 6ECh. 4.4B - Read the measurement shown on each U.S....Ch. 4.4B - Read the measurement shown on each U.S....Ch. 4.4B - Prob. 9ECh. 4.4B - Prob. 10ECh. 4.4B - Prob. 11ECh. 4.4B - Prob. 12ECh. 4.4B - Prob. 13ECh. 4.4B - Prob. 14ECh. 4.4B - Prob. 15ECh. 4.4B - Prob. 16ECh. 4.4B - Prob. 17ECh. 4.4B - Prob. 18ECh. 4.4B - Prob. 19ECh. 4.4B - Prob. 20ECh. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - Prob. 6ECh. 4.5 - Prob. 7ECh. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - Prob. 10ECh. 4.5 - Prob. 11ECh. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - Prob. 15ECh. 4.5 - Prob. 16ECh. 4.5 - In each set of measurements, find the measurement...Ch. 4.5 - Prob. 18ECh. 4.5 - Prob. 19ECh. 4.5 - Prob. 20ECh. 4.5 - Use the rules for addition of measurements to find...Ch. 4.5 - Use the rules for addition of measurements to find...Ch. 4.5 - Use the rules for addition of measurements to find...Ch. 4.5 - Use the rules for addition of measurements to find...Ch. 4.5 - Use the rules for addition of measurements to find...Ch. 4.5 - Prob. 26ECh. 4.5 - Use the rules for addition of measurements to find...Ch. 4.5 - Use the rules for addition of measurements to find...Ch. 4.5 - Use the rules for addition of measurements to find...Ch. 4.5 - Prob. 30ECh. 4.5 - Prob. 31ECh. 4.5 - Use the rules for addition of measurements to find...Ch. 4.5 - Use the rules for subtraction of measurements to...Ch. 4.5 - Use the rules for subtraction of measurements to...Ch. 4.5 - Prob. 35ECh. 4.5 - Use the rules for subtraction of measurements to...Ch. 4.5 - Use the rules for subtraction of measurements to...Ch. 4.5 - Use the rules for subtraction of measurements to...Ch. 4.5 - Prob. 39ECh. 4.5 - Prob. 40ECh. 4.5 - Use the rules for subtraction of measurements to...Ch. 4.5 - If you bolt four pieces of metal with thicknesses...Ch. 4.5 - Prob. 43ECh. 4.5 - Prob. 44ECh. 4.5 - A welder cuts several pieces of steel angle of...Ch. 4.5 - Prob. 46ECh. 4.5 - Prob. 47ECh. 4.5 - Prob. 48ECh. 4.5 - An automobile cooling system is leaking. One day...Ch. 4.5 - Prob. 50ECh. 4.5 - Prob. 51ECh. 4.5 - A 6-room building has the following supply air...Ch. 4.5 - Prob. 53ECh. 4.5 - Prob. 54ECh. 4.5 - Prob. 55ECh. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Prob. 8ECh. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Prob. 12ECh. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Prob. 20ECh. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Use the rules for multiplication and/or division...Ch. 4.6 - Prob. 26ECh. 4.6 - V=lwh is the formula for the volume of a...Ch. 4.6 - Find the volume of a cube measuring 8.10 cm on...Ch. 4.6 - The formula s=4.90t2 gives the distances, s in...Ch. 4.6 - Given K.E.=12mv2,m=2.87106kg,andv=13.4m/s. Find...Ch. 4.6 - A formula for determining the theoretical...Ch. 4.6 - Six pieces of metal, each 2.48 mm in thickness,...Ch. 4.6 - Find the volume of a storage bin cylinder with...Ch. 4.6 - In 2010, the United States harvested 12.4 billion...Ch. 4.6 - Prob. 35ECh. 4.6 - Prob. 36ECh. 4.6 - Prob. 37ECh. 4.6 - Prob. 38ECh. 4.6 - Prob. 39ECh. 4.6 - Prob. 40ECh. 4.6 - Prob. 41ECh. 4.6 - Prob. 42ECh. 4.6 - Prob. 43ECh. 4.6 - Prob. 44ECh. 4.6 - Prob. 45ECh. 4.6 - The weather forecast for tonight calls for about 1...Ch. 4.6 - Prob. 47ECh. 4.6 - According to the Environmental Protection Agency,...Ch. 4.6 - There is so much water in the world that we...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - For each measurement, find the precision, the...Ch. 4.7 - Prob. 18ECh. 4.7 - Prob. 19ECh. 4.7 - Prob. 20ECh. 4.7 - Compare each set of measurements by indicating...Ch. 4.7 - Compare each set of measurements by indicating...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Prob. 34ECh. 4.7 - Prob. 35ECh. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Complete the table: Given measurement Tolerance...Ch. 4.7 - Prob. 38ECh. 4.7 - Complete the table: Architects estimate Maximum...Ch. 4.7 - Complete the table: Architects estimate Maximum...Ch. 4.7 - Complete the table: Architects estimate Maximum...Ch. 4.7 - Complete the table: Architects estimate Maximum...Ch. 4.8 - For each resistor shown, find the resistance and...Ch. 4.8 - For each resistor shown, find the resistance and...Ch. 4.8 - Prob. 3ECh. 4.8 - For each resistor shown, find the resistance and...Ch. 4.8 - Prob. 5ECh. 4.8 - For each resistor shown, find the resistance and...Ch. 4.8 - For each resistor shown, find the resistance and...Ch. 4.8 - For each resistor shown, find the resistance and...Ch. 4.8 - Prob. 9ECh. 4.8 - For each resistor shown, find the resistance and...Ch. 4.8 - For each resistor shown, find the resistance and...Ch. 4.8 - For each resistor shown, find the resistance and...Ch. 4.8 - Prob. 13ECh. 4.8 - Prob. 14ECh. 4.8 - Prob. 15ECh. 4.8 - What color code on the first three bands is needed...Ch. 4.8 - What color code on the first three bands is needed...Ch. 4.8 - Prob. 18ECh. 4.8 - Prob. 19ECh. 4.8 - Prob. 20ECh. 4.8 - Prob. 21ECh. 4.8 - Prob. 22ECh. 4.8 - Prob. 23ECh. 4.8 - What color code on the first three bands is needed...Ch. 4.8 - Prob. 25ECh. 4.8 - Find a. the tolerance in ohms, b. the upper...Ch. 4.8 - Prob. 27ECh. 4.8 - Prob. 28ECh. 4.8 - Prob. 29ECh. 4.8 - Find a. the tolerance in ohms, b. the upper...Ch. 4.9 - Read each scale:Ch. 4.9 - Prob. 2ECh. 4.9 - Prob. 3ECh. 4.9 - Prob. 4ECh. 4.9 - Prob. 5ECh. 4.9 - Prob. 6ECh. 4.9 - Prob. 7ECh. 4.9 - Prob. 8ECh. 4.9 - Prob. 9ECh. 4.9 - Prob. 10ECh. 4.9 - Prob. 11ECh. 4.9 - Prob. 12ECh. 4.9 - Read each scale:Ch. 4.9 - Prob. 14ECh. 4.9 - Read each scale:Ch. 4.9 - Prob. 16ECh. 4.9 - Prob. 17ECh. 4.9 - Prob. 18ECh. 4.9 - Read each scale:Ch. 4.9 - Prob. 20ECh. 4.9 - Prob. 21ECh. 4.9 - Prob. 22ECh. 4 - Give the number of significant digits (the...Ch. 4 - Give the number of significant digits (the...Ch. 4 - Prob. 3RCh. 4 - Prob. 4RCh. 4 - Prob. 5RCh. 4 - Prob. 6RCh. 4 - Prob. 7RCh. 4 - Prob. 8RCh. 4 - Find a. the precision and b. and greatest possible...Ch. 4 - Prob. 10RCh. 4 - Prob. 11RCh. 4 - Prob. 12RCh. 4 - Prob. 13RCh. 4 - Prob. 14RCh. 4 - Prob. 15RCh. 4 - Prob. 16RCh. 4 - Read the measurement shown on the vernier caliper...Ch. 4 - Prob. 18RCh. 4 - Prob. 19RCh. 4 - Read the measurement shown on the U.S. micrometer...Ch. 4 - Find the measurement that is a. the most accurate...Ch. 4 - Prob. 22RCh. 4 - Prob. 23RCh. 4 - Prob. 24RCh. 4 - Prob. 25RCh. 4 - Prob. 26RCh. 4 - Prob. 27RCh. 4 - Prob. 28RCh. 4 - Prob. 29RCh. 4 - Prob. 30RCh. 4 - Prob. 31RCh. 4 - Prob. 32RCh. 4 - Prob. 33RCh. 4 - For each resistor find its resistance and its...Ch. 4 - Prob. 35RCh. 4 - Prob. 36RCh. 4 - Give the number of significant digits in each...Ch. 4 - Give the number of significant digits in each...Ch. 4 - Prob. 3TCh. 4 - Find a. the precision and b. the greatest possible...Ch. 4 - Prob. 5TCh. 4 - Find a. the precision and b. the greatest possible...Ch. 4 - Prob. 7TCh. 4 - Read the measurement shown on the vernier caliper...Ch. 4 - Prob. 9TCh. 4 - Read the measurement shown on the U.S. micrometer...Ch. 4 - Prob. 11TCh. 4 - Find the measurement that is a. the most accurate,...Ch. 4 - Use the rules of measurement to multiply:...Ch. 4 - Use the rules of rules of measurement to add:...Ch. 4 - Prob. 15TCh. 4 - Use the rules of measurement to divide: 6.28m225mCh. 4 - Prob. 17TCh. 4 - Find a. the relative error and b. the percent of...Ch. 4 - Prob. 19TCh. 4 - Read each scale:Ch. 4 - Prob. 1CRCh. 4 - Round 32,518.612 to nearest a. ten b. hundredth.Ch. 4 - Prob. 3CRCh. 4 - Prob. 4CRCh. 4 - Prob. 5CRCh. 4 - Prob. 6CRCh. 4 - Prob. 7CRCh. 4 - Prob. 8CRCh. 4 - Prob. 9CRCh. 4 - Prob. 10CRCh. 4 - Prob. 11CRCh. 4 - Prob. 12CRCh. 4 - Prob. 13CRCh. 4 - Prob. 14CRCh. 4 - Prob. 15CRCh. 4 - Prob. 16CRCh. 4 - Prob. 17CRCh. 4 - Prob. 18CRCh. 4 - Prob. 19CRCh. 4 - Prob. 20CRCh. 4 - Given the number of significant digits in each...Ch. 4 - Find a. the precision and b. the greatest possible...Ch. 4 - Find a. the precision and b. the greatest possible...Ch. 4 - Prob. 24CRCh. 4 - Prob. 25CRCh. 4 - Prob. 26CRCh. 4 - Prob. 27CRCh. 4 - Prob. 28CRCh. 4 - Prob. 29CRCh. 4 - Prob. 30CRCh. 4 - Prob. 31CRCh. 4 - Prob. 32CRCh. 4 - Prob. 33CRCh. 4 - Read each scale:
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- (a) Develop a model that minimizes semivariance for the Hauck Financial data given in the file HauckData with a required return of 10%. Assume that the five planning scenarios in the Hauck Financial rvices model are equally likely to occur. Hint: Modify model (8.10)-(8.19). Define a variable d, for each scenario and let d₂ > R - R¸ with d ≥ 0. Then make the objective function: Min Let FS = proportion of portfolio invested in the foreign stock mutual fund IB = proportion of portfolio invested in the intermediate-term bond fund LG = proportion of portfolio invested in the large-cap growth fund LV = proportion of portfolio invested in the large-cap value fund SG = proportion of portfolio invested in the small-cap growth fund SV = proportion of portfolio invested in the small-cap value fund R = the expected return of the portfolio R = the return of the portfolio in years. Min s.t. R₁ R₂ = R₁ R R5 = FS + IB + LG + LV + SG + SV = R₂ R d₁ =R- d₂z R- d₂ ZR- d₁R- d≥R- R = FS, IB, LG, LV, SG, SV…arrow_forwardThe Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas. The following is a linear program used to determine which cities Martin-Beck should construct a plant in. Let y₁ = 1 if a plant is constructed in Detroit; 0 if not y₂ = 1 if a plant is constructed in Toledo; 0 if not y₂ = 1 if a plant is constructed in Denver; 0 if not y = 1 if a plant is constructed in Kansas City; 0 if not. The variables representing the amount shipped from each plant site to each distribution center are defined just as for a transportation problem. *,, = the units shipped in thousands from plant i to distribution center j i = 1 (Detroit), 2 (Toledo), 3 (Denver), 4 (Kansas City), 5 (St.Louis) and…arrow_forwardConsider the following mixed-integer linear program. Max 3x1 + 4x2 s.t. 4x1 + 7x2 ≤ 28 8x1 + 5x2 ≤ 40 x1, x2 ≥ and x1 integer (a) Graph the constraints for this problem. Indicate on your graph all feasible mixed-integer solutions. On the coordinate plane the horizontal axis is labeled x1 and the vertical axis is labeled x2. A region bounded by a series of connected line segments, and several horizontal lines are on the graph. The series of line segments connect the approximate points (0, 4), (3.889, 1.778), and (5, 0). The region is above the horizontal axis, to the right of the vertical axis, and below the line segments. At each integer value between 0 and 4 on the vertical axis, a horizontal line extends out from the vertical axis to the series of connect line segments. On the coordinate plane the horizontal axis is labeled x1 and the vertical axis is labeled x2. A region bounded by a series of connected line segments, and several…arrow_forward
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