Question 13
“Fake Money (FM)” is an investment consulting firm.
Dr. Milo has approached FM with Rs. 1,00,000 for guidance on investment opportunities. Dr. Milo wants to invest the entire Rs. 1,00,000. FM’s top financial analyst recommends that all new investments be made in oil industry, steel industry or government bonds. Specifically, the analyst identified five investment opportunities and projected their annual rates of returns (which are specified in Table-1). Dr. Milo, is a guy who likes to distribute his investments. Hence, he has specified the following requirements to the analyst
1. Neither industry (oil or steel) should receive more than Rs. 50,000
2. Government bonds should be at least 25% of the steel industry investments
3. The investments in Bongu Oil, the high-return but high-risk investment, cannot be more than 60% of total oil industry investment
Given this information, answer the subquestions
How many decision variable(s) is/are present in the standard form of the primal?