# Macroeconomics

Linear opt

· Solve the model using either Excel Solver. If you choose to use Excel Solver, make sure to submit your Excel file.

· You will submit two files: o A Word file with the mathematical formulations and solutions of the problems. If the question asks you to provide insights about your result, clearly provide your insight on the word file.

o An Excel file for solving mathematical models.

· You are expected to type the mathematical formulations of each question using the Equation editor (under the Insert Menu). Also, solve each question in a separate spreadsheet in the Excel file. Name the spreadsheets as Part b, Part d, etc.

## ■ CASE ASSIGNING STUDENTS TO SCHOOLS

The Clifton school board has decided to shut down one of its middle schools that caters to students in sixth, seventh, and eighth grades, and relocate these students to the remaining three middle schools from the next academic year. The school district offers transportation facilities to all middle school students who need to travel more than a mile to reach their school. Therefore, the school board wants to create a plan for the reassignment of students that will minimize the overall transportation cost. The given table shows the annual cost per student of transportation from each of the six residential areas of the city to each of the schools. The table also includes other essential information for the next academic year. A cost of 0 indicates that transportation is not required, and a dash indicates an infeasible assignment.
(d) Adjust your recommendation as well as you can to enable each area to be assigned to just one school.

(Adding this restriction may force you to fudge on some

other constraints.) How much does this increase the total bussing cost?

The school board is considering eliminating some bussing to reduce costs. Option 1 is to eliminate bussing only for students traveling 1 to 1.5 miles, where the cost per stu- dent is given in the table as \$200. Option 2 is to also elim- inate bussing for students traveling 1.5 to 2 miles, where the estimated cost per student is \$300.

prohibit the splitting of residential areas among multiple schools. Thus, each of the six areas must be assigned to a single school.

i.1) Formulate a BIP model for this problem under the current policy of providing bussing for all middle school students who must travel more than approximately a

mile.

i.2) Solve the BIP model formulated in part i.1.

i.3) Referring to part (c), determine how much the total bussing cost increases because of the decision to prohibit the splitting of residential areas among multiple schools.

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