Stats Questions: Four Parts = 12 Questions

PART 1

In a portfolio selection problem let X1 , X2 , and X3 represent the number of shares purchased for stocks 1 , 2 , and 3 , which have selling prices of 15 45 , and 100 respectively . The investor has up to 50 ,000 to invest and stipulates that

The number of shares of stock 1 must be at most 35 of the of shares purchased

At least 10 ,000 must be invested in stock 2

The The expected returns on investment for the three stocks are 10 , 8 and 13 of the amount of

money invested respectively

Answer the following three questions

1 ) An appropriate constraint would be

a .65X1- .35X2- .35X3 .35

b .65X1- .35X2- .33X3 .35

c .65X1- .35X2- .35X3 ? 0

d ) X1 .35 (X1 X2

2 ) Two appropriate constraints would be

a ) 45X2 ? 10 ,000 and X2 X3 ? 350

b ) X2 ? 10 ,000 and .10 )X2 .13 )X3 ? 350

c ) 45X2 ? 10 ,000 and X2 X3 ? 350

d ) 45X2 ? 10 ,000 and 45X2 100X3 ? 350

3 ) An appropriate objective function is

a ) Max .10X1 .08X2 .13X3

b ) Max .08 (15 )X1 .10 (45 )X2 .13 (100 )X3

c ) Max 15X1 45X2 100X3

d ) Max .10 (15 )X1 .08 (45 )X2 .13 (100 )X3

PART 2

Jungle Figns , Inc produces two models of its stuffed giraffes , large and small it can 't make more than 500 of each model each week . The large giraffe...