A mutual fund manager must decide how much money to invest in Atlantic Oil (A)and how much to invest in Pacific Oil (P).At least 60% of the money invested in the two oil companies must be in Pacific Oil.A correct modeling of this constraint is
A)0.4A + 0.6P 0.
B)-0.4A + 0.6P 0.
C)0.6A + 0.4P 0.
D)-0.6A + 0.4P 0.

Question

A mutual fund manager must decide how much money to invest in Atlantic Oil (A)and how much to invest in Pacific Oil (P).At least 60% of the money invested in the two oil companies must be in Pacific Oil.A correct modeling of this constraint is
A)0.4A + 0.6P > 0.
B)-0.4A + 0.6P > 0.
C)0.6A + 0.4P > 0.
D)-0.6A + 0.4P > 0.

Quizplus · Accepted Answer

The constraint states that the investment in Pacific Oil should be at least 60% of the total investment. This can be written as 0.6(A+P) <= P. Simplifying, we get 0.4A >= -0.4P, which can be rearranged as -0.6A + 0.4P > 0. Therefore, the correct modeling of the constraint is option D.

A Mutual Fund Manager Must Decide How Much Money to Invest