# solution

You work at a carrier company and are trying to find the correct number of each vehicle to purchase to maximize profit based on the profitability of that vehicle in different environments. 3 parameters o Budget to spend on vehicles, different market conditions, ability to sell different variables, liability (each vehicle type can only lose 5% of the entire portfolio). The maximum amount of loss must be less than 20% of vehicle budget, each vehicle can lose 10x its initial spend, the vehicle can only gain up to 10x of what it costs. \$ 100,000,000 budget for vehicles 22 different market environments, each vehicle will have different profitability in different market environments 25 different vehicle types that can be bought or sold Each vehicle has different carrying capacity (at a different cost) You can’t spend more than your budget (budget includes cash you get from selling vehicles) You can sell and buy the same vehicle for the same amount After 1 year all vehicles are worth zero, whatever you make on operational profit has to exceed the cost of buying the vehicle. (parallel to option trading) Assume values for carrying cost of each vehicle and profitability of each of those vehicles in 22 different market scenarios. Assumption: the relationship btw vehicle payoffs during differing market environments is precalculated and displayed in the form of a covariance matrix. (don’t worry about this too much) 11 A B C D E F G H 1 J K L M N 0 P Q R S T U V w X Y Z 1 Payoffs in Different Environments 2 Range: 0-10 times initial spend on vehicle 3 Budget \$100,000,000 4 5 6 Data on Vehicles that have been bought 7 8 Vehicle A Vehicle B Vehicle C Vehicle D Vehicle E Vehicle F Vehicle G Vehicle H Vehicle Vehicle J Vehicle K Vehicle L Vehicle M Vehicle N Vehicle O Vehicle P Vehicle Q Vehicle R Vehicle S Vehicle T Vehicle U Vehicle V Vehicle W Vehicle X Vehicle Y 9 Environment 1 0 5 7 8 2 5 7 2 4 6 3 6 0 0 2 6 7 2 6 3 4 8 0 3 0 10 Environment 2 3 3 4 8 1 0 3 8 3 9 5 2 9 9 0 3 2 6 7 9 9 0 4 4 2 6 11 Environment 3 6 5 2 2 7 8 4 9 0 0 1 1 2 6 7 7 3 3 6 2 9 3 1 1 5 4 0 12 Environment 4 0 0 0 3 8 4 7 9 4 8 2 8 9 2 2 5 6 0 1 6 8 9 2 7 9 3 13 Environment 5 0 1 1 7 2 8 8 9 2 0 4 8 2 2 1 0 0 1 0 4 9 3 8 8 9 14 Environment 6 5 3 6 7 2 8 9 4 8 2 0 4 8 5 7 1 9 3 0 0 4 7 8 8 2 6 15 Environment 7 0 4 5 6 2 5 7 8 9 1 6 7 5 7 2 6 8 3 0 8 0 0 3 6 7 16 Environment 8 1 4 5 5 6 1 6 7 3 7 9 3 7 6 0 4 8 6 7 8 6 6 3 3 9 6 17 Environment 9 8 4 6 3 6 4 4 4 7 8 2 1 9 9 0 0 4 7 2 2 6 3 7 8 9 9 0 1 5 6 18 Environment 10 7 4 5 1 3 6 7 8 3 6 7 9 3 6 9 4 2 2 6 9 4 6 9 6 5 8 19 Environment 11 4 2 6 4 8 5 7 2 9 0 5 8 3 8 9 4 7 9 0 4 2 6 6 6 9 20 Environment 12 6 2 5 6 1 7 8 9 4 5 2 0 1 6 7 8 9 0 4 6 8 3 6 7 5 21 Environment 13 1 1 6 0 4 8 2 7 3 0 6 4 5 8 9 0 2 1 6 3 7 8 9 4 5 22 Environment 14 0 3 3 6 7 8 2 6 7 3 5 7 1 8 9 3 7 2 6 1 8 9 0 5 6 23 Environment 15 0 1 6 2 8 0 5 2 7 8 9 1 6 2 7 1 8 0 0 4 8 2 7 9 0 8 24 Environment 16 3 1 7 2 0 5 0 8 8 9 0 4 8 9 1 2 6 8 9 0 3 6 7 7 8 0 25 Environment 17 1 0 4 2 6 0 9 1 6 9 2 6 9 9 0 3 8 5 9 1 0 0 2 8 1 8 5 26 Environment 18 5 3 7 1 8 0 0 5 5 2 8 9 1 8 0 4 7 9 9 2 2 5 8 4 8 2 27 Environment 19 6 2 0 0 4 7 8 9 4 2 0 0 1 7 4 8 9 4 7 8 9 2 7 9 4 28 Environment 20 7 3 6 2 8 0 0 9 1 9 8 5 7 8 3 6 7 8 9 6 7 8 2 6 8 29 Environment 21 2 1 5 2 7 8 9 3 4 6 9 6 2 2 7 9 0 1 7 8 2 7 8 8 4 9 0 30 Environment 22 6 2 4 8 1 0 5 8 2 7 9 1 7 2 8 9 0 3 8 4 7 8 8 1 1 31 32 sum of profitbali 71 54 103 91 92 105 120 131 113 88 105 118 93 98 117 95 117 100 109 110 123 120 108 124 104 33 34 2 Data on Vehicles that have been sold Vehicle A Vehicle B 0 0 -1 -5 -1 -2 -5 -5 -3 Environment 1 Environment 2 Environment 3 Environment 4 Environment 5 Environment 6 Environment 7 Environment 8 Environment 9 Environment 10 Environment 11 Environment 12 Environment 13 Environment 14 Environment 15 Environment 16 Environment 17 Environment 18 Environment 19 Environment 20 Environment 21 Environment 22 -9 0 0 -6 Vehicle C Vehicle D Vehicle E Vehicle F Vehicle G Vehicle H Vehicle Vehicle J Vehicle K Vehicle L Vehicle M Vehicle N Vehicle O Vehicle P Vehicle Q Vehicle R Vehicle S Vehicle T Vehicle U Vehicle V Vehicle w Vehicle X Vehicle Y -7 -5 -5 -3 -2 0 -1 -2 0 -4 -6 -2 -1 -8 -3 -7 -3 -2 -1 -1 0 -4 0 -5 -2 -3 -1 -5 -4 -7 0 0 -1 -1 0 -2 0 -1 -4 0 -3 -2 0 -8 -1 -7 0 -1 -9 0 -2 -5 -6 -7 -1 -9 0 0 -1 0 -4 -2 -3 -1 0 -4 -9 -2 -7 0 -1 0 0 -2 0 3 -5 -6 -1 0 -2 -5 -2 -6 -7 -1 -2 -5 -5 -3 0 -6 0 0 -2 -1 0 0 0 -1 -4 -7 0 0 -2 -5 -6 -1 0 -2 -5 -1 -7 -3 0 -6 0 -1 0 -4 -2 -9 -1 0 -5 -1 -6 -3 -8 -4 -7 -1 0 -3 -6 -1 -7 -2 -5 -1 -7 -2 -5 -1 0 -6 -5 -9 0 0 -1 -5 -2 -8 -5 -9 0 0 -1 -5 -4 -2 0 0 -1 -9 0 -4 -2 -1 0 0 0 -2 -6 -6 -2 -1 -5 -2 -7 -2 0 -1 0 0 -1 -5 0 -6 -1 -2 -1 -8 -2 0 -6 -2 -6 -7 -8 -2 -4 0 -7 -8 0 -3 0 -7 -9 -1 -4 -2 -6 -4 0 -7 0 -5 -6 -1 -5 0 -3 -8 -7 0 -5 -3 -6 -1 -9 0 -3 -6 -7 -2 -9 -9 -4 -9 -4 -1 -6 -2 -9 -4 0 0 -5 -3 -6 -7 -2 -1 -5 0 0 -6 -8 -2 -5 -4 -1 -4 -6 -6 -8 -2 -1 -1 -4 -5 -6 -1 -7 -2 -6 -3 -6 -1 -9 -8 0 -5 0 -4 -9 -2 -6 -7 -8 -1 -3 -2 -5 -6 -2 -4 -3 0 -9 0 -2 -1 0 -8 -6 -4 -2 0 -5 -1 -6 -2 -8 -2 -2 0 -1 -5 -6 -3 -5 -3 -3 0 -9 -2 0 -5 -1 -1 0 -3 -6 -8 -2 -1 -4 -1 0 -6 0 -3 -3 -7 -2 -6 -3 -9 -8 -1 -4 -2 0 -4 -6 -1 -5 -1 -6 -1 -9 -5 -6 -2 -7 -9 0 -4 -6 0 -2 0 -6 -9 -1 -2 -5 -3 -1 -9 0 -4 -6 -4 -5 -6 0 -1 -6 -8 -9 0 -1 -4 -2 -7 -8 -3 -1 -2 -6 -7 0 -6 -7 -8 0 0 0 0 -4 -6 -7 -2 -2 -6 -6 -5 -1 -7 -2 -7 -9 -9 -1 -4 -5 -6 -7 -9 0 -1 0 -4 -6 -1 -7 -9 -2 -5 -6 -5 -6 -7 -1 -1 -5 -1 -5 -1 -2 -9 -7 -9 0 -1 0 -5 -7 -8 -1 -7 -7 0 -1 0 -7 -7 -2 -5 -3 -9 0 -1 0 0 -4 -6 -7 -2 -6 -3 -6 -8 -2 -1 -9 0 -5 -2 -6 0 -8 -1 -1 -4 -7 -7 -3 -6 -4 0 -7 -2 -6 -3 -8 -9 -1 -1 -2 0 0 -4 -5 -6 -2 -6 -5 -2 -2 0 0 -5 -3 -3 -5 -8 0 -3 -4 -8 -5 -8 -7 -7 -5 ? D E F G H 1 Carrying Capacity (lbs) 0.01 0.5 1 3 5 10 15 18 20 22 25 A B 67 68 Vehicle Type Carrying Capacity cost (\$) 69 Vehicle A 70 Vehicle B 71 Vehicle C 72 Vehicle D 73 Vehicle E 74 Vehicle F 75 Vehicle G 76 Vehicle 77 Vehicle 78 Vehicle 79 Vehicle K 80 Vehicle L 81 Vehicle M 82 Vehicle N 83 Vehicle o 84 Vehicle P 85 Vehicle Q 86 Vehicle R 87 Vehicles 88 Vehicle T 89 Vehicle U 90 Vehicle V 91 Vehicle W 92 Vehicle X 93 Vehicle Y 94 95 % of Carrying Cost/vehicle of total budget Total profitability/vehicle across environements Total Possible Profitability Profitabilility/total possible profitibality 4 0.00000004 71 220 0.322727273 10 0.0000001 54 220 0.245454545 15 0 103 220 0.468181818 22 0.00000022 91 220 0.413636364 30 0 92 220 0.418181818 45 0 105 220 0.477272727 56 0.00000056 120 220 0.545454545 60 0 131 220 0.595454545 65 0.00000065 113 220 0.513636364 75 0.00000075 88 220 0.4 90 0.0000009 105 220 0.477272727 100 0.000001 118 220 0.536363636 120 0 93 220 0.422727273 150 0 98 220 0.445454545 190 0 117 220 0.531818182 200 0.000002 95 220 0.431818182 220 0.0000022 117 220 0.531818182 250 0.0000025 100 220 0.454545455 260 0.0000026 109 220 0.495454545 290 0.0000029 110 220 0.5 300 0 123 220 0.559090909 310 0 120 220 0.545454545 320 0 108 220 0.490909091 350 0.0000035 124 220 0.563636364 370 0.0000037 104 220 0.472727273 27 30 32 35 39 42 44 45 48 50 60 75 85 100

## Why US?

##### 100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

##### Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

##### Original Writing

We complete all papers from scratch. You can get a plagiarism report.

##### Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.