Exhibit 7.2
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B. Investment A requires a $10,000 minimum investment, pays a return of 12% and has a risk factor of .50. Investment B requires a $15,000 minimum investment, pays a return of 10% and has a risk factor of .20. The investor wants to maximize the return while minimizing the risk of the portfolio. The following multi-objective linear programming (MOLP) has been solved in Excel.
-Refer to Exhibit 7.2. Which cells are the changing cells in this model?
A) $B$6:$C$6, $B$10:$B$11
B) $B$6:$C$6
C) $B$6:$D$6
D) $B$10:$B$11

Question

Exhibit 7.2
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B. Investment A requires a $10,000 minimum investment, pays a return of 12% and has a risk factor of .50. Investment B requires a $15,000 minimum investment, pays a return of 10% and has a risk factor of .20. The investor wants to maximize the return while minimizing the risk of the portfolio. The following multi-objective linear programming (MOLP) has been solved in Excel. 
-Refer to Exhibit 7.2. Which cells are the changing cells in this model?
A) $B$6:$C$6, $B$10:$B$11 
B) $B$6:$C$6 
C) $B$6:$D$6 
D) $B$10:$B$11

Quizplus · Accepted Answer

The changing cells in a model are typically the cells that are adjusted to achieve a desired outcome. In this context, $B$6:$C$6 are likely the cells being manipulated to affect the results of the model.

Exhibit 7.2 The Following Questions Are Based on the Problem Below