User Account

All Pages

Shares of a pharmaceutical stock

Assignment Help Basic Statistics
Reference no: EM131180769

Consider an investment problem where X is the number of shares of a pharmaceutical stock that are purchased and Y is the number of shares of a bank stock that are purchased. The LP has several constraints, but one is a budget constraint that is of the form: 25X + 50Y = 10,000.  Thus, a share of X costs $25 and a share of Y costs $50 and a sum of $10,000 is available for investment.  Consider the following information from the LP solution:

Optimal value of Objective Function:   $12,500
Optimal value of Decision Variables:   X = 128.5; Y= 135.75
Allowed increase in the RHS of Budget Constraint =   $1 E + 30
Allowed decrease in the RHS of Budget Constraint =   $2,750
Shadow Price of Budget Constraint=   $2.50

Answer the following questions considering the information above:

  1. If you discover that you have an additional $2000 to add to the budget constraint, what will be the new value of the Objective Function? ($5,000, $7500, $10000, $12500, $15000, or $17500)
  2. If you decrease the RHS of the budget constraint to $9000, what will be the new value of the Objective Function? ($5,000, $7500, $10000, $12500, $15000, or $17500)
  3. If the RHS of the Budget Constraint is changed to $7000, the Shadow Price will change to some value other than $2.50. (True or False?)

Reference no: EM131180769

Questions Cloud

Determine the horizontal displacement of the end c : The L-shaped frame is made from two segments, each of length L and flexural stiffness EI. If it is subjected to the uniform distributed load, determine the horizontal displacement of the end C
Differentiate between ethics and ethical behavior : Differentiate between ethics and ethical behavior. Why are ethical practices and corporate social responsibility critical issues for contemporary managers
Two blue balls are returned to the box : A box contains six balls, of which three are red and three are green. Two balls are selected at random from the box. If one is red and the other is green, then the selected balls are discarded and two blue balls are returned to the box. Otherwise,..
Analysis each transaction advising on tipsy ltds : Tipsy Ltd is an importer and distributor of French wines- Analysis each transaction, advising on Tipsy Ltd's contractual obligations, if any.
Shares of a pharmaceutical stock : Consider an investment problem where X is the number of shares of a pharmaceutical stock that are purchased and Y is the number of shares of a bank stock that are purchased. The LP has several constraints, but one is a budget constraint that is of..
Briefly explain what each stock item consists of : In a manufacturing business you will find different stocks.- Briefly explain what each stock item consists of : raw(direc) materials.
Define the overall strategy for testing the virtual gallery : The Test Plan section should define the overall strategy for testing the virtual gallery. To complete this section of the test plan and procedures document, do the following: Enter your name after Written By. Enter the current date after Date
Determine the vertical displacement of point b : The L-shaped frame is made from two segments, each of length L and flexural stiffness EI. If it is subjected to the uniform distributed load, determine the vertical displacement of point B.
Find height at which top end of ladder touches the wall : Find the height at which the top end of the ladder touches the wall, given that it is more than the distance of the foot of the ladder from the wall?

Reviews

Write a Review

Basic Statistics Questions & Answers

  Process control data on the hardness of tablets

Tablet hardness. Exercise 27.11 concerns process control data on the hardness of tablets (measured in kilograms) for a pharmaceutical product. Table 27.4 gives data for 20 new samples of size 4, with the  and s for each sample. The process has bee..

  Depends on the satellite informationwhat is the expected no

Depends on the satellite information illustrate what is the expected number µ of real forest fires on the Seward Peninsula.

  Determine best country to construct new facility

the probability that it will improve is .10. Determine the best country to construct the new facility in and the expected value of perfect information.

  Find the probability that a resident plays poker

The residents play both shuffleboard and poker, find the probability that a resident plays poker, given that they garden (that is, find P(poker | garden).

  The editor of a textbook company is trying to decide

the editor of a textbook company is trying to decide whether to publish a proposed business statistics textbook.

  Ferrari a leading manufacturer of formula one race cars

ferrari a leading manufacturer of formula one race cars claims that the average acceleration time to go from zero to

  Determine solving equations from word problems

If it takes 4 hours to cover x miles and 5 hours to cover y miles, what is the average speed?

  Hypothesis test for population mean-z test

A leasing firm claims that the mean number of miles driven annually,u , in its leased cars is less than 13500 miles. A random sample of 70 cars leased from this firm had a mean of 13207 annual miles driven.

  Advantage in stating the hypothesis

There is an advantage in stating the hypothesis both in the null and in the alternative; it adds clarity to our thinking of what we are testing. Explain.

  What is the value of the probability density function at x1

suppose that the moment generating function of a randon variable x is given bymxt22-t3what is the value of the

  An experiment to determine how the weight of bat

A baseball player would like to conduct an experiment to determine how the weight of his bat, the speed of a pitch and the type of pitch affect the distance he can hit the ball in the air. The player will examine two different bat weights (32..

  Stages of the information processing model

You are trying to concentrate during an examination but you get distracted by the sound of another student tapping her pencil on her desk. Which of the following stages of the information processing model are you in?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd