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AntiFam, a hunger-relief organization, has earmarked between $$\$ 2$$ and $$\$ 2.5$$ million (inclusive) for aid to two African countries, country \(\mathrm{A}\) and country B. Country \(\mathrm{A}\) is to receive between $$\$ 1$$ million and $$\$ 1.5$$ million (inclusive), and country B is to receive at least $$\$ 0.75$$ million. It has been estimated that each dollar spent in country A will yield an effective retum of $$\$ .60$$, whereas a dollar spent in country B will yield an effective return of $$\$ .80 .$$ How should the aid be allocated if the money is to be utilized most effectively according to these criteria? Hint: If \(x\) and \(y\) denote the amount of money to be given to country A and country B, respectively, then the objective function to be maximized is \(P=0.6 x+0.8 y\).

Short Answer

Expert verified
To allocate the aid most effectively, AntiFam should give: - \(1.5\) million to country A - \(1\) million to country B This allocation results in a total effective return of \(P=1.7\) million.

Step by step solution

01

Write down the constraints for the problem

First, let's write down the given constraints for the problem in terms of \(x\) and \(y\). The constraints for the total aid allocated, country A's aid, and country B's aid are given as follows: 1. Total aid allocated: \(2 \le x+y \le 2.5\) (in millions) 2. Aid to country A: \(1 \le x \le 1.5\) (in millions) 3. Aid to country B: \(y \ge 0.75\) (in millions) But we also have one more constraint which is the non-negativity constraint, as the amount of aid cannot be negative: 4. Non-negativity: \(x \ge 0,\ y \ge 0\)
02

Graph the constraint inequalities

To find the solution, we need to graph the constraint inequalities on the \(x-y\) plane and find the feasible region, which represents the possible combinations of aid allocations that will meet all the constraints. 1. Plot the constraint \(x+y = 2\) and \(x+y = 2.5\). The feasible region will be between these two parallel lines. 2. Plot the constraint \(x=1\) and \(x=1.5\). The feasible region will be between these two vertical lines. 3. Plot the constraint \(y=0.75\). The feasible region will be above this horizontal line. 4. Plot the constraint \(x=0\) and \(y=0\). The feasible region will be in the first quadrant. You will find that the feasible region is bounded by the lines \(x=1\), \(x=1.5\), \(y=0.75\), and \(x+y=2.5\).
03

Calculate the vertices of the feasible region

To find the allocation that maximizes the objective function P, we will evaluate the objective function's value at the vertices of the feasible region. The four vertices of the feasible region are: 1. Intersection of \(x=1\) and \(x+y = 2\): \((1,1)\) 2. Intersection of \(x=1\) and \(y = 0.75\): \((1,0.75)\) 3. Intersection of \(x=1.5\) and \(y = 0.75\): \((1.5,0.75)\) 4. Intersection of \(x=1.5\) and \(x+y = 2.5\): \((1.5,1)\)
04

Determine the maximum value of the objective function

Calculate the objective function, \(P=0.6x+0.8y\), at each vertex and find the maximum value. Here are the values of \(P\) at each vertex: 1. At \((1,1)\): \(P = 0.6(1) + 0.8(1) = 1.4\) 2. At \((1,0.75)\): \(P = 0.6(1) + 0.8(0.75) = 1.2\) 3. At \((1.5,0.75)\): \(P = 0.6(1.5) + 0.8(0.75) = 1.65\) 4. At \((1.5,1)\): \(P = 0.6(1.5) + 0.8(1) = 1.7\) The maximum value of \(P\) occurs at the vertex \((1.5,1)\), with a value of \(1.7\).
05

Conclusion

The aid should be allocated as follows to be utilized most effectively according to the estimated effective returns: - Country A: \(x = 1.5\) million - Country B: \(y = 1\) million With this allocation, the total effective return is \(P=1.7\) million.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Linear Programming
Linear programming is a mathematical approach used for finding the best possible outcome in a given mathematical model whose requirements are represented by linear relationships. It is extensively used in business, economics, engineering, and military applications, among other fields. At the heart of this technique lies the objective to maximize or minimize a linear objective function, which represents some quantity we wish to optimize, such as profit, cost, or efficiency.

For example, in the exercise provided, AntiFam wants to maximize the return on their investment in two countries while adhering to certain financial constraints. By placing the aid amounts as variables and their respective returns as the coefficients in the objective function, linear programming can be used to determine the optimal allocation of funds to achieve the highest effectiveness.
Feasible Region
The feasible region in linear programming is the set of all possible points that satisfy the problem's constraints, including inequality constraints and non-negativity restrictions. It represents all the potential solutions before we apply the optimization criteria.

In the exercise, the feasible region is visually represented by a polygon on the Cartesian plane, bounded by the lines given by the inequality constraints of the aid to be given to country A and country B, and the total aid to be allocated. It is crucial to identify this region correctly since the optimum solution to the linear programming problem will always lie at one of the vertices of the feasible region, according to the fundamental theorem of linear programming.
Objective Function
The objective function in linear programming is a mathematical expression that defines what needs to be maximized or minimized in the problem. It is a linear equation formed by the decision variables and their respective coefficients that measure the performance of a solution.

In the case of AntiFam’s dilemma, the objective function is denoted as \(P=0.6x+0.8y\), where \(x\) and \(y\) are the amounts allocated to countries A and B, respectively. The coefficients 0.6 and 0.8 represent the estimated return per dollar for each country. To resolve the problem, AntiFam seeks to maximize \(P\), finding the values of \(x\) and \(y\) that yield the highest return under the given constraints.

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