Mr. Smith is a rentier, he lives on renting apartments. However, these days he has to sell one of his apartments to get a big money. He hesitates which of three apartments of his to sell. Help Mr. Smith to make the right decision if you know the following: The present prices per m2 in the three locations equal: A) 4000, B) 5000, C) 6000 goldies, respectively. However, the long-run prices of those real estates are: A) 5000, B) 6000, and C) 7000 goldies, whereas the respective standard deviations are A) 400, B) 500, and C) 250 goldies.

Mr. Smith is a rentier, he lives on renting apartments. However, these days he has to sell one of his apartments to get a big money. He hesitates which of three apartments of his to sell. Help Mr. Smith to make the right decision if you know the following: The present prices per m2 in the three locations equal: A) 4000, B) 5000, C) 6000 goldies, respectively. However, the long-run prices of those real estates are: A) 5000, B) 6000, and C) 7000 goldies, whereas the respective standard deviations are A) 400, B) 500, and C) 250 goldies.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section6.5: Set-covering And Location-assignment Models

Problem 34P

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