# Investment

Question 11
A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.
(chart would not copy/paste)
The conservative (maximin) strategy is:
Rent
Lease
Brisk.
Question 12
Steinmetz furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs \$100 and requires 100 cubic feet of storage space, and each medium shelf costs \$50 and requires 80 cubic feet of storage space. The company has \$25000 to invest in shelves this week, and the warehouse has 18000 cubic feet available for storage. Profit for each big shelf is \$85 and for each medium shelf is \$75. What is the constraint on money to invest?
Max Z = 85B + 75M
100B + 50M ≤ 25000
100B + 50M ≥ 25000
100B + 80M = 18000
Question 13
Steinmetz furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs \$100 and requires 100 cubic feet of storage space, and each medium shelf costs \$50 and requires 80 cubic feet of storage space. The company has \$25000 to invest in shelves this week, and the warehouse has 18000 cubic feet available for storage. Profit for each big shelf is \$85 and for each medium shelf is \$75. What is the storage space constraint?
Max Z = 75B + 85M
100B + 50M ≥ 25000
100B + 80M ≤ 18000
100B + 80M = 18000
Question 14
The production manager for Beer etc. produces 2 kinds of beer: light (L) and dark (D). Two resources used to produce beer are malt and wheat. He can obtain at most 4800 oz of malt per week and at most 3200 oz of wheat per week respectively. Each bottle of light beer requires 12 oz of malt and 4 oz of wheat, while a bottle of dark beer uses 8 oz of malt and 8 oz of wheat. Profits for light beer are \$2 per bottle, and profits for dark beer are \$1 per bottle. What is the optimal weekly profit?
\$1000
\$900
\$800
\$700

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