**Optimization Problem 1**

Code in PSG Text format:

```
minimize
cvar2_err(0.75,matrix_s)
```
The keyword "minimize" indicates that the objective function is minimized. The objective function cvar2\_err(0.75,matrix\_s) calculates error Eα(*Z*(*<sup>C</sup>*0,*<sup>C</sup>*)) in CVaR quadrangle with confidence level α = 0.75. The matrix\_s contains scenarios of residual of the regression *<sup>Z</sup>*(*<sup>C</sup>*0,*<sup>C</sup>*) = *V* − *C*0 − *CTY*.
