1. Chapter 4 Linear Programming Applications

2. 2 POP QUIZ #4 [5 points]

3. 3 POP QUIZ #4 1.In a typical Media Selection problem, the objective is: A.Maximize the total number of advertisements B.Maximize the total audience reached C.Minimize the total cost of advertisement D.Maximize the total money spent on advertisement

4. 4 POP QUIZ #4 2.In a typical Media Selection problem, constraints are related to: A.Availability of prime time ad spots B.Desired number of ads per day C.Ad campaign budget D.All of the above

5. 5 POP QUIZ #4 3.In Portfolio Selection, a typical objective function involves: A.Minimization of total interest B.Maximization of total interest C.Minimization of total cost D.Maximization of total cost E.Maximization of total funds available for investment

6. 6 POP QUIZ #4 4.In a Portfolio Selection problem, funds are invested over a 4-month period in Government Bonds (G i ), Construction loans (C i ) or are invested Locally (L i ). What does the expression.02G 1 +.02G 2 +.02G 3 +.02G 4 represent? A.Interest from Gov. Bonds in the first month B.Interest from Gov. Bonds in all 4 months C.Interest from all 3 investment options in the 1 st month D.Total amount invested in Gov. Bonds in all 4 months

7. 7 POP QUIZ #4 5.In a Portfolio Selection problem what is the meaning of the constraint G 2 + C 2 + L 2 = 1.0075L 1 ? A.Month 2’s total investment is limited to the interest earned from Month 1’s Local investment B.Month 1’s interest from Local investment is equal to Month 2’s total investment C.Month 2's total investment is limited to principal and interest from Month 1’s Local investment D.Month 1's Local investment is limited to Month 2’s total investment

8. 8 Answers! √

9. 9 POP QUIZ #4 1.In a typical Media Selection problem, the objective is: A.Maximize the total number of advertisements B.Maximize the total audience reached C.Minimize the total cost of advertisement D.Maximize the total money spent on advertisement √

10. 10 POP QUIZ #4 2.In a typical Media Selection problem, constraints are related to: A.Availability of prime time ad spots B.Desired number of ads per day C.Ad campaign budget D.All of the above √

11. 11 POP QUIZ #4 3.In Portfolio Selection, a typical objective function involves: A.Minimization of total interest B.Maximization of total interest C.Minimization of total cost D.Maximization of total cost E.Maximization of total funds available for investment √

12. 12 POP QUIZ #4 4.In a Portfolio Selection problem, funds are invested over a 4-month period in Government Bonds (G i ), Construction loans (C i ) or are invested Locally (L i ). What does the expression.02G 1 +.02G 2 +.02G 3 +.02G 4 represent? A.Interest from Gov. Bonds in the first month B.Interest from Gov. Bonds in all 4 months C.Interest from all 3 investment options in the 1 st month D.Total amount invested in Gov. Bonds in all 4 months √

13. 13 POP QUIZ #4 5.In a Portfolio Selection problem what is the meaning of the constraint G 2 + C 2 + L 2 = 1.0075L 1 ? A.Month 2’s total investment is limited to the interest earned from Month 1’s Local investment B.Month 1’s interest from Local investment is equal to Month 2’s total investment C.Month 2's total investment is limited to principal and interest from Month 1’s Local investment D.Month 1's Local investment is limited to Month 2’s total investment √