With linear programming, you have to graph each of the equations.
x<=y also is needed along with your other equations.
Shade in the correct area for the inequalities and look at your intersection points.
The Fiedler family has up to $130,000 to invest. They decide that they want to have at least $40,000 invested in stable bonds yielding 5.5% and that no more than $60,000 should be invested in more volatile bonds yielding 11%. How much should they invest in each type of bond to maximize income if the amount in the stable bond should not exceed the amount in the more volatile bond? What is the maximum income?
P= 0.055x + 0.11y
x+y <= 130,000
x>= 40,000
y <= 60,000
Stable bond: 130.00 - 60,000 = 70,000
How do I solve this problem using linear programming?
3 answers
linear programming graphically?
x axis is amount in stable bonds
y axis is amount in volitile bonds
ok, then mark two points on x axis, 40k,and 130k
then points on y axis 60k and 0k
So the chosen decision points on max and min are (draw horizontal lines lightly)
x=40, y=60, y=0 (min), x=130k max
now draw a line connecting (60,70) to (130,0)
cross hatch the area enclosed by (40,0)(40,60)(70,60)(130,0) That enclosed area is the area of possible investments of up to 130K dollars.
Now, there is a nice theorem that tells us the max and min profit is on those end points that enclose the area. Figure the profit at each corner, and you will have the max profit point for x,y
x axis is amount in stable bonds
y axis is amount in volitile bonds
ok, then mark two points on x axis, 40k,and 130k
then points on y axis 60k and 0k
So the chosen decision points on max and min are (draw horizontal lines lightly)
x=40, y=60, y=0 (min), x=130k max
now draw a line connecting (60,70) to (130,0)
cross hatch the area enclosed by (40,0)(40,60)(70,60)(130,0) That enclosed area is the area of possible investments of up to 130K dollars.
Now, there is a nice theorem that tells us the max and min profit is on those end points that enclose the area. Figure the profit at each corner, and you will have the max profit point for x,y
you did not follow one of the restraints.
your answer is wrong.
re-read the restraints.
your answer is wrong.
re-read the restraints.