I.
Metropolitan Police Patrol
A police department is an organization of police in a city, region, or state. They are the
one who’s assign in making sure that the city or state is in at peace. However, the
Metropolitan Police Department was recently criticized in the local media for not
responding to police calls in the downtown area rapidly enough. That being the case,
Sergeant Joe Davis was assigned by the chief as head of a task force to find a way to
determine the optimal patrol area for their cars that would minimize the average time it
took to respond to a call in the downtown area. Together with the help from Angela Maris,
an analyst in the operations area for the police department, they work through the problem.
Sergeant Joe Davis explained to Angela Maris the normal routine of the patrol and some
other needed information about the problem.
After all the discussions, Angela indicated that she had almost enough information to
develop a model. A linear programming model will be developed for this problem in order
for the patrol to have improvements in responding to police calls in the downtown
II. Annabelle invests in the market
Treasury bonds are government debt securities issued by the U.S. Federal government
that have maturities greater than 20 years while life Insurance is a contract between an
insurance policy holder and an insurance company, where the insurer promises to pay a
sum of money in exchange for a premium, upon the death of an insured person or after a
set period. In connection with this, Annabelle Sizemore has cashed in some treasury bonds
and a life insurance policy that her parents had accumulated over the years for her. She has
also saved some money in certificates of deposit and savings bonds during the 10 years
since she graduated from college. Given the recent rise in the stock market, she feels that
she should invest all of this amount there. She has researched the market and has decided
that she wants to invest in an index fund tied to S&P stocks and in an Internet stock fund.
However, she is very concerned about the volatility of Internet stocks. Therefore, she wants
to balance her risk to some degree. She split her money and invest it into some index fund.
However, she wants to make sure that all of her money is in good hands and that it will rise
a bit that’s why she wants to develop an investment strategy that will maximize her return
for the coming year and reevaluate her investment strategy at the end of the year.
A linear programming model will be formulated in order to help Anabelle stipulate how
much money she should invest in each fund. An interpretation about Anabelle’s return on
her investment strategy will be given as well after all the successive changes happened.