BUSI 2013 – Business Decision Analysis
4
th Learning Activity – Fall 2021
Important Information:
1. Upload this learning activity in the learning activity folder that you will nd in Unit 4 as a single excel
le. All the solutions should be in order.
2. This assignment contains 2 pages and 2 questions. Total of points is 100.
3. Due date will be announced on moodle.
BUSI 2013 4
th Learning Activity Fall 2021
1. (40 points) Find the shadow price associated with the third constraint for the problem (1)
max X + Y
subject to 3X + 2Y ≤ 6
3X + Y ≤ 4
X ≥ 0
Y ≥ 0
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(1)
max X + Y
subject to 3X + 2Y ≤ 6
3X + Y ≤ 4
X ≥ 1
Y ≥ 0
(Draw the feasible region and corner points using desmos. Insert the images in the excel le. Follow the
instructions given in class.)
2. (60 points) What is the optimal solution to the following problem. If any of the variable takes value
zero in the optimal solution, then what is the reduced cost associated with that variable? What are the
binding constraints?
max 80X + 500Y
subject to X + 5Y ≤ 4000
X + Y ≤ 1200
2X + Y ≤ 2000
2X + 5Y ≤ 5000
X ≥ 0
Y ≥ 0
(Draw the feasible region and corner points using desmos. Insert the images in the excel le. Follow the
instructions given in class.)
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