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In: Economics

Consider a capital budgeting formulation where the binary variables x1, x2, and x3 are used to...

Consider a capital budgeting formulation where the binary variables x1, x2, and x3 are used to represent the acceptance (xi = 1) or rejection (xi = 0) of each alternative. The requirements that at least one, but not more than two, out of the three alternatives can be accepted can be represented by which of the following constraints?

a. x1 + x2 ≤ 1 and x1 + x3 ≤ 1

b. x1 + x2 + x3 ≥ 2 and x1 + x2 + x3 ≥ 1

c. x1 + x2 ≥ 1 and x1 + x3 ≥ 1

d. x1 + x2 + x3 ≥ 1 and x1 + x2 + x3 ≤ 2

Solutions

Expert Solution

Option d is correct.

(D shows that sum of the 3 should be either 1 or 2 which means that either one or two alternatives will be accepted.)

Rahul Sunny answered 2 years ago
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