1. At the beginning of a month, a lady has Rs. 30,000 available in cash.

She expects to receive certain revenues at the beginning of the months 1, 2, 3 and 4 and pay the bills after that, as detailed here: Month Revenue Bills

1 Rs. 28,000 Rs. 36,000 2 Rs. 52,000 Rs. 31,000 3 Rs. 24,000 Rs. 40,000 4 Rs. 22,000 Rs. 20,000 It is given that any money left over may be invested for one month at the interest rate of 0.5%; for two months at 1.0% per month; for three months at 1.5% per month and for four months at 1.8% per month. Formulate her problem as linear programming problem to determine an investment strategy that maximizes cash in hand at the beginning of month 5.

2. A salesman makes all sales in three cities X, Y and Z only. It is known that he visits each city on a weekly basis and never visits the same city in successive weeks. If he visits city X in a given week, then he visits city Z in next week. However, if he visits city Y or Z, he is twice as likely to visit city X than the other city. Obtain the transition probability matrix. Also determine the proportionate visits by him to each of the cities in the long run.