Solution

ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2007/t/2/b/ii/solution

The last objective row is . Every feasible solution has nonnegative , so . The displayed basic feasible solution has all three zero and attains 51, proving optimality. Equivalently, the resource dual prices give the same upper bound and satisfy complementary slackness.

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