Create a simple 0, 1 integer model for a situation or problem you face in your life. Is there an optimal solution for your problem? What type of model would you use to create an optimal solution? Explain.
Think about your own retirement investment portfolio or find an example of one online. Discuss how you might use a model to create the optimum portfolio allocation for your risk level.
Re: Topic 6 DQ 1
A real-life issue that can easily be modeled through the use of an integer modeling is the knapsack problem. This in context is the issue that relates to the combinational optimization. To demystify more on this, provide a set of items, each of the items having a given weight and value, it will be necessary to determine every item that will have to be included in the collection so as the total weight will be less than or equal to a particular limit and total value is as big as possible. It acquires its name from the issue that is encountered by an individual who is limited with a fixed size of knapsack and ought to fill it using the most valuable items (Feng et al. 2017). The popular knapsack issue is the binary (0-1) in which the person who is making the decision is required to either select (1) o not to select (0) of the item. That is to mean that such a particular item cannot be divided.
The solution to this given problem is that all the subsets of the items will have to be considered and then the total weight calculated and the values of all the different subsets. It is vital to consider the only subsets where their total weight is below that of W (Feng et al. 2017). The next step is that from the subsets, it is advisable that a person should pick the maximum value subset.
The greedy method model can be used to create an optimal solution to the knapsack problem. This method works through the creation of option A that is constructed through the selection of each element Ai of A until the end. For every Ai, there will need to select Ai optimally.
Feng, Y., Wang, G. G., Deb, S., Lu, M., & Zhao, X. J. (2017). Solving 0â€“1 knapsack problem by a novel binary monarch butterfly optimization. Neural computing and applications, 28(7), 1619-1634.