Problema Solution
I need to get this into a Maximization form so I can solve it using the simplex method… Heres the problem:
Natsano has at most $50,000 to invest in the common stocks of two companies. He estimates that an investment in company A will yield a return of 10%, whereas an investment in company B, which he feels is a riskier investment, will yield a return of 20%. If he decides that, his investment in the stock of company A is to exceed his investment in the stock of company B by at least $20,000, determine how much he should invest in the stock of each company in order to maximize the return
Answer provided by our tutors
the investment in A is x
the investment in B is y
then
maximisation Z=0.10x+0.20y
such that the constraint are
x+y=50000
x-y>20000
where x,y>0