Matt and Kristin are newly married and living in their first house. The yearly premium on their homeowner’s insurance policy is $600 for the coverage they need. Their insurance company offers a 5 percent discount if they install dead-bolt locks on all exterior doors. The couple can also receive a 3 percent discount if they install smoke detectors on each floor. They have contacted a locksmith, who will provide and install dead-bolt locks on the two exterior doors for $50 each. At the local hardware store, smoke detectors cost $4 each, and the new house has two floors. Kristin and Matt can install them themselves. What discount will Matt and Kristin receive if they install the dead-bolt locks? If they install smoke detectors?
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Matt and Kristin are newly married and living in their first house. The yearly premium on their homeowner’s insurance policy is $600 for the coverage they need. Their insurance company offers a 5 percent discount if they install dead-bolt locks on all exterior doors. The couple can also receive a 3 percent discount if they install smoke detectors on each floor. They have contacted a locksmith, who will provide and install dead-bolt locks on the two exterior doors for $50 each. At the local hardware store, smoke detectors cost $4 each, and the new house has two floors. Kristin and Matt can install them themselves.
What discount will Matt and Kristin receive if they install the dead-bolt locks? If they install smoke detectors?
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- Lauren Moore has sold her business for $500,000 and wants to invest in condominium units (which she intends to rent) and land (which she will lease to a farmer). She estimates that she will receive an annual return of $8,000 for each condominium and $6,000 for each acre of land. A condominium unit costs $70,000, and land costs $30,000 per acre. A condominium will cost her $1,000 per unit, an acre of land will cost $2,000 for maintenance and upkeep, and $14,000 has been budgeted for these annual expenses. Lauren wants to know how much to invest in condominiums and land to maximize her annual return. Requirements:a) Define decision variables and tabulated datab) Formulate the Integer Linear Programming Model.Lauren Moore has sold her business for $500,000 and wants to invest in condominium units (which she intends to rent) and land (which she will lease to a farmer). She estimates that she will receive an annual return of $8,000 for each condominium and $6,000 for each acre of land. A condominium unit costs $70,000, and land costs $30,000 per acre. A condominium will cost her $1,000 per unit, an acre of land will cost $2,000 for maintenance and upkeep, and $14,000 has been budgeted for these annual expenses. Lauren wants to know how much to invest in condominiums and land to maximize her annual return. a. Formulate a mixed integer programming model for this problem. b. Solve this model by using the computer.The government is auctioning off oil leases at twosites. At each site, 100,000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes, and Alexis Pickensare bidding for the oil. Government rules state that nobidder can receive more than 40% of the land beingauctioned. Cliff has bid $1000 per acre for site 1 landand $2000 per acre for site 2 land. Blake has bid $900per acre for site 1 land and $2200 per acre for site2 land. Alexis has bid $1100 per acre for site 1 landand $1900 per acre for site 2 land.a. Determine how to maximize the government’srevenue with a transportation model.b. Use SolverTable to see how changes in thegovernment’s rule on 40% of all land beingauctioned affect the optimal revenue. Why canthe optimal revenue not decrease if this percentage required increases? Why can the optimalrevenue not increase if this percentage requireddecreases?