Find a solution that maximizes the mean return

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Reference no: EM131939427

For the project selection example, suppose that the returns in the objective function are normally distributed with means as given by the expected returns and standard deviation equal to 10% of the mean. However, also assume that each project has a success rate modeled as a Bernoulli distribution. That is, the return will be realized only if the project is successful (use the "Yes- No" distribution in Crystal Ball). Success rates for the five projects are 0.80, 0.70, 0.90, 0.40, and 0.60, respectively. Modify the spreadsheet model, and use OptQuest to find a solution that maximizes the mean return.

Reference no: EM131939427

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