1. Lecture 14: Diet Problem/Intro to Final Project AGEC 352 Spring 2011 – March 21 R. Keeney

2. Final Project Tomorrow Start back in on transportation problems Lab with discussion questions etc. Today Discuss final projects for AGEC 352

3. Diet Problems Of longstanding interest: Impoverished nations and the poverty problem What does it cost to provide enough food? Food inflation and costs How has the minimum cost diet changed over time? Food costs, low income, and health Are problems like obesity more prevalent in low income households due to types of foods that are most affordable?

4. Linear Programming Most common tool used in analysis of diet costs Blending problem What combination of foods satisfies a set of daily requirements at lowest cost? (See fertilizer mix or cereal problems) Key issue: What values and nutritional factors to use in the constraints?

5. Subsistence Problem In the 1940s, Stigler was worried about world hunger and conducted a study of the cost of subsistence Subsistence = staying alive Collected information from health research and food products to estimate the cheapest way to eat enough to survive

6. Stigler You are required to read the paper Link provided on class website Read closely enough to answer the following questions: What does he state as his purpose for study? What are his primary findings? What comparisons does he make between foods and years on diet cost? What method did he use?

7. Final Project Assignment #1 Part of the project grade requires you to collect data and submit Details in Part I of the handout provided Submit a spreadsheet with information on cost and nutrition data for 15 different foods Each student required to submit data If you work together, find 30 foods and split them up. Do not submit the same lists. No beverages, no more than 5 restaurant foods

8. FP Assignment #1 Cost on a per serving basis E.g. Can of Pringles cost $1.50 Six servings -> $0.25 per serving Nutrition facts on the package should be reported per serving Report on 15 items and submit the spreadsheet to aremble@purdue.eduaremble@purdue.edu Deadline is Friday at noon

9. FP Assignment #1 Information required Specific format must be followed Price on a serving basis No formulas in the spreadsheet you submit Make sure you report the units and not the percentages for the first six items Both will be shown Report the percentage for the last four items as a whole number

10. Example Nutrition Facts Report as percentages: Use the whole number not the proportion or %. Report as the quantity/weight amount.

11. Spreadsheet format Use the example McDonalds spreadsheet as a template. Just delete the McD foods and type in your information Remember: no formulas Save the spreadsheet as fooddata_yourinitials.xlsx or.xls Email to aremble@purdue.eduaremble@purdue.edu Put Food Data 352 in the email subject line

12. Final Project Amber will compile the data submitted by students and post to the course website for everyones use Use this database to build an LP diet model for your final project Two Parts 1) Subsistence model: Lowest cost diet that meets minimum requirements 2) Your choice: propose a question and change the model to deal with that question

13. Part I: Subsistence Model Example RHS values for a subsistence model. Assumptions: 1)30 years old 2)Male 3)Mildly active See the DRI tables for other assumptions. Note the last 4 items are just scaled to the size of the diet. 125=(2500/2000)*100

14. Part II Requirements LP model used to address your question Simple questions Vegetarian vs. mixed food model Upper bounds as well as lower bounds on nutritional items e.g. 2500 < = Calories < = 2750 Other questions Cost of food pyramid guidelines (integer constraints) Cost of being diabetic or bulking up (constraint information)

15. Other requirements/information You must use at least 20 foods and no more than 40 foods The paper must not exceed 6 pages of text 10 point font min. 1 inch margin min. (all sides) No title page (just use the upper left corner) All tables at end of document (solution and sensitivity)

16. Other information Submit a hard copy to me Thursday of Dead week = Bonus (5%) Wednesday of Finals week Late penalty = -25% of project grade 20 percent of your final grade and replaces final exam

17. Grading criteria Part I Common question -> comparative grading Best answers will receive the highest scores. Effectiveness at interpreting results and sensitivity and communicating those in words will be the primary basis of the score. Part II Different questions -> grade based on execution How well does your approach match the question you pose and do you make the reasoning clear? Also the solution interpretation and communciation of findings (answer to your question).

18. Lab Tomorrow Continue working with the Eurotrans model If you havent completed the handout from last week, try and get caught up before lab starts tomorrow because we will continue from the last part of that assignment Answers to HW 5 questions are due on Wednesday. Quiz on Wednesday over the Transportation Model handout.