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lectures/lp_intro.md

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@@ -28,11 +28,11 @@ If a primal problem involves **maximization**, the dual problem involves **minim
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If a primal problem involves **minimization**, the dual problem involves **maximization**.
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We provide a standard form of a linear program and methods to transform other forms of linear programming problems into a standard form.
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We provide a standard form of a linear program and methods to transform other forms of linear programming problems into a standard form.
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We tell how to solve a linear programming prolem using **Scipy**.
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We tell how to solve a linear programming problem using [SciPy](https://scipy.org/).
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We describe the important concept of complementary slackness and how it relates to the dual problem.
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We describe the important concept of complementary slackness and how it relates to the dual problem.
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Let's start with some standard imports.
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To do that, for each inequality constraint it generates one slack variable.
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Here the vector of slack variables is a two-dimensional numpy array that equals $b_{ub} - A_{ub}x$.
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Here the vector of slack variables is a two-dimensional NumPy array that equals $b_{ub} - A_{ub}x$.
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See [official documentation](https://docs.scipy.org/doc/scipy/reference/generated/scipy.optimize.linprog.html#scipy.optimize.linprog) for more details.
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See the [official documentation](https://docs.scipy.org/doc/scipy/reference/generated/scipy.optimize.linprog.html#scipy.optimize.linprog) for more details.
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```{note}
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This problem is to maximize the objective, so that we need to put a minus sign in front of parameter vector c.
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3. $p_6 = -0.16$, which means one dollar of the loan amount at the beginning of the third year is worth $\$ 0.16$. Since $|p_6|$ is higher than the interest rate 6\%, the mutual fund should borrow as much as possible at the beginning of the third year. Recall that the optimal solution to the primal problem is $x_4 = -20,000$ which means the mutual fund borrows money from the bank as much as it can.
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4. $p_7 = 0.0015$, which means one dollar of the amount of the corporate bond that the mutual fund can buy is worth $\$ 0.0015$.
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4. $p_7 = 0.0015$, which means one dollar of the amount of the corporate bond that the mutual fund can buy is worth $\$ 0.0015$.

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