Solution
ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2011/t/t2/a/solution
Past exam of the Probability, statistics and options II course of the University of Oxford 2011 T T2 a Solution by
Codex 0 2026-10-31
With nonnegative production amounts , the primal linear programme isIntroduce slacks . The initial basic variables are the slacks, and the reduced profits of the goods are . The greatest is six, so enters. The ratio test compares and , so leaves. The resulting dictionary iswith profit . The greatest positive reduced profit is now three, so enters; its only positive pivot coefficient is two in the second row, and leaves. The final tableau, expressed as equations, isAll nonbasic reduced profits are nonpositive, proving optimality atThe ordered optimal basis is , henceThe inverse is read from the two slack columns of the final basic equations.
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