Question

AntiFam, a hunger-relief organization, has earmarked between $2 million and $2.5 million (inclusive) for aid to two African countries, Country A and Country B. Country A is to receive between $1 million and $1.5 million (inclusive), and Country B is to receive at least $0.75 million. It has been estimated that each dollar spent in Country A will yield an effective return of $0.80, whereas a dollar spent in Country B will yield an effective return of $0.70. How should the aid be allocated if the money is to be utilized most effectively according to these criteria? Hint: If x and y denote the amount of money (in millions of dollars) to be given to Country A and Country B, respectively, then the objective function to be maximized is
P = 0.8x + 0.7y

(x,y)= ( )

What is the optimal return? $_________.

Answer 1

see the business math question two down from this one. Yours is even easier, since you are given p(x,y)