Answer the following questions:

1. Consider 3 possible objectives for a hospital: minimize costs, maximize profits, and maximize net worth. In general, these objectives do not lead to the same optimal solution. Give an example where minimizing cost does not maximize profit.

2. In the HU supply/truck example in the online lecture, instead of shipping medical supplies, imagine that we were shipping fruit (obviously, food is part of any healthcare system) and that the variables represented the number of tons of fruit needed to be shipped from the east coast to the west coast. Now imagine that at each transshipment depot, the fruit must be offloaded and reloaded, resulting in 5% of the fruit being ruined. How would you modify the linear program to account for this loss and still meet the fruit requirements on the west coast?

3. What are the main components of a linear program? (List them all)
Extra credit: Worth 2 points, but assignment point total will not go over 50. In healthcare informatics, can you think of any decision variable that could be (or go) negative? Why do you state this/explain?

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