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Formulating a linear mathematical model

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Please explain all reasoning and show all steps to help me better my own understanding of this material. Thanks! See the attachment.

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Anwesha Ghosh, MSc
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  • MSc, Osmania University
  • MSc, Indian Institute of Technology - Roorkee (I.I.T.-ROORKEE)
  • BSc, Banaras Hindu University
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