PMBA 6312: Problem Set 4 Solutions - Linear Programming and Analysis

This document presents solutions to Problem Set 4 of PMBA 6312, focusing on linear programming and optimization techniques. The solutions cover graphical representations of constraint lines and feasible regions, as well as the application of the Excel Solver tool. The assignment includes problems involving resource allocation, such as manufacturing constraints for motorcycle production, and investment portfolio optimization. Detailed calculations of objective functions for different corner points are provided, along with sensitivity analyses to determine binding constraints and shadow prices. The solutions also examine the impact of changes in coefficients on the optimal solutions. The document references relevant academic papers and provides a comprehensive analysis of the linear programming problems.