A Hunger-Relief Organization, Has Earmarked Between $2 and $2

Essay

A hunger-relief organization, has earmarked between $2 and $2.5 million, inclusive, for aid to two African countries, country A and country B. Country A is to receive between $1 and $1.5 million, inclusive, in aid, and country B is to receive at least $0.75 million in aid. It has been estimated that each dollar spent in country A will yield an effective return of $.60, whereas a dollar spent in country B will yield an effective return of $.50. How should the aid be allocated if the money is to be utilized most effectively according to these criteria? (Hint: If x and y denote the amount of money to be given to country A and country B, respectively, then the objective function to be maximized is P = 0.6x + 0.5y.)
$ __________ million to country A and $ __________ million to country B