How can 16 shares be distributed among 4 people with specific constraints?

  • MHB
  • Thread starter Saitama
  • Start date
In summary, the problem involves forming a company with 4 people and 16 shares to split among them. The constraints state that each person must have a positive integer number of shares and no one person can have more shares than the other three combined. This can be simplified to no one person having more than 8 shares. Using this information, the problem can be approached by finding the number of ways to allocate 12 shares among 4 people and subtracting the disallowed allocations, such as one person having all 12 shares. Another approach is to use a generating function.
  • #1
Saitama
4,243
93
Problem:
Eli, Joy, Paul and Sam want to form a company; the company will have 16 shares to split among the 4 people. The following constraints are imposed:

  • Every person must get a positive integer number of shares, and all 16 shares must be given out.
  • No one person can have more shares than the other three combined.

Assuming that the shares are indistinguishable, but people are distinguishable, in how many ways can the shares be given out?

Attempt:
Let $x_1,x_2,x_3 $ and $x_4$ represent the four persons, then

$$x_1+x_2+x_3+x_4=16$$

From the first constraint, $x_1,x_2,x_3,x_4\geq 1$. Let $x_i-1=X_i$ for $i=1,2,3,4$. Then the above equation can be written as:
$$X_1+X_2+X_3+X_4=12 \,\,\,(*)$$

From the second constraint,

$$x_1 \leq x_2+x_3+x_4 \Rightarrow X_1 \leq X_2+X_3+X_4+2$$

Similarly,

$$X_2 \leq X_1+X_3+X_4+2$$
$$X_3 \leq X_2+X_1+X_4+2$$
$$X_4 \leq X_2+X_3+X_1+2$$

But I don't see how to find the solutions to (*) with the imposed restrictions.

Any help is appreciated. Thanks!
 
Physics news on Phys.org
  • #2
Pranav said:
Problem:
Eli, Joy, Paul and Sam want to form a company; the company will have 16 shares to split among the 4 people. The following constraints are imposed:

  • Every person must get a positive integer number of shares, and all 16 shares must be given out.
  • No one person can have more shares than the other three combined.

Assuming that the shares are indistinguishable, but people are distinguishable, in how many ways can the shares be given out?

Attempt:
Let $x_1,x_2,x_3 $ and $x_4$ represent the four persons,
More accurately, $x_1,x_2,x_3 $ and $x_4$ represent the number of shares allocated to the four persons.

Pranav said:
then

$$x_1+x_2+x_3+x_4=16$$

From the first constraint, $x_1,x_2,x_3,x_4\geq 1$. Let $x_i-1=X_i$ for $i=1,2,3,4$. Then the above equation can be written as:
$$X_1+X_2+X_3+X_4=12 \,\,\,(*)$$

From the second constraint,

$$x_1 \leq x_2+x_3+x_4 \Rightarrow X_1 \leq X_2+X_3+X_4+2$$

Similarly,

$$X_2 \leq X_1+X_3+X_4+2$$
$$X_3 \leq X_2+X_1+X_4+2$$
$$X_4 \leq X_2+X_3+X_1+2$$

But I don't see how to find the solutions to (*) with the imposed restrictions.

Any help is appreciated. Thanks!
The condition that no one person can have more shares than the other three combined is equivalent to the condition that no one person can have an absolute majority of the shares. Since there are 16 shares altogether, that is equivalent to the condition that no one person can have more than 8 shares. So you could simplify your conditions to $x_i \leqslant 8$, or $X_i \leqslant 7$, for $i=1,2,3,4.$

One way to approach the problem would be this. The total number of ways of allocating 12 shares among 4 persons is $15 \choose 3$. From that, you need to subtract all the disallowed allocations. For example, there are 4 ways to allocate all 12 shares to one person. Then you can find the number of ways to allocate 11 shares to one person and the remaining 1 share to someone else. Then do the same for one person getting 10, 9 or 8 shares. Subtract all those from $15 \choose 3$ and you have the answer.
 
  • #3
Opalg said:
More accurately, $x_1,x_2,x_3 $ and $x_4$ represent the number of shares allocated to the four persons.
Oh yes. :p

The condition that no one person can have more shares than the other three combined is equivalent to the condition that no one person can have an absolute majority of the shares. Since there are 16 shares altogether, that is equivalent to the condition that no one person can have more than 8 shares. So you could simplify your conditions to $x_i \leqslant 8$, or $X_i \leqslant 7$, for $i=1,2,3,4.$
Yes, agreed. I was finding it difficult to determine the upper bound for $x_i$ or $X_i$. Thanks Opalg! :)

One way to approach the problem would be this. The total number of ways of allocating 12 shares among 4 persons is $15 \choose 3$. From that, you need to subtract all the disallowed allocations. For example, there are 4 ways to allocate all 12 shares to one person. Then you can find the number of ways to allocate 11 shares to one person and the remaining 1 share to someone else. Then do the same for one person getting 10, 9 or 8 shares. Subtract all those from $15 \choose 3$ and you have the answer.
Or use a generating function. :rolleyes:
 

FAQ: How can 16 shares be distributed among 4 people with specific constraints?

What is the purpose of distributing shares?

The purpose of distributing shares is to allocate ownership and control of a company among its shareholders. Shares represent a portion of a company's ownership and entitle the shareholder to a proportionate share of the company's profits.

How are shares distributed?

Shares can be distributed through various methods, such as initial public offerings (IPOs), private placements, and employee stock ownership plans (ESOPs). The specific method of distribution depends on the company's goals, financial situation, and regulatory requirements.

Who can receive shares?

Shares can be distributed to a wide range of individuals and entities, including employees, investors, and company founders. Typically, individuals or entities must meet certain eligibility criteria, such as being an accredited investor, to receive shares in a company.

What are the benefits of distributing shares?

Distributing shares can provide numerous benefits for both the company and its shareholders. For the company, it can help raise capital, attract and retain talent, and provide liquidity for shareholders. For shareholders, it can offer potential financial gains and a sense of ownership and involvement in the company.

What are the potential risks of distributing shares?

While distributing shares can have many benefits, it also carries potential risks. For the company, it may dilute ownership and control among shareholders, and may also require complying with regulatory requirements. For shareholders, there is a risk of losing money if the company does not perform well or if the value of the shares decreases.

Similar threads

Replies
12
Views
3K
Replies
8
Views
2K
Replies
7
Views
2K
Replies
4
Views
2K
Replies
6
Views
2K
2
Replies
61
Views
11K
Replies
6
Views
1K
Replies
125
Views
18K
Back
Top