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

`(P)/(A+P)\geqslant 0.6`

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

`(P)/(A+P) * 100\geqslant 60`

`\Rightarrow (P)/(A+P) \geqslant (60)/(100)`

`\Rightarrow`
`(P)/(A+P)\geqslant 0.6`

Hence the required model is
`(P)/(A+P)\geqslant 0.6`