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

Answer 1

Answer:

$\frac{P}{A+P}\geqslant 0.6$

Step-by-step explanation:

Amount of money to invest in Atlantic Oil= A

Amount of money to invest in Pacific Oil = P

Total money invested in the two oil companies = A+P

Since at least 60% of the money invested in the two oil companies must be in Pacific Oil

$\frac{P}{A+P} \times 100\geqslant 60$

$\Rightarrow \frac{P}{A+P} \geqslant \frac{60}{100}$

$\Rightarrow$ $\frac{P}{A+P}\geqslant 0.6$

Hence the required model is $\frac{P}{A+P}\geqslant 0.6$