A section of the Excel output is shown below:FinalReducedObjective Allowable AllowableNameValueCostCoefficientincreaseDecreaseProduct A15001002040Product B100020012060What will happen if the objective coefficient for Product B increases to 300?O The objective function value will increase by $100,000 and the optimal solution will also change.O The problem must be recalculated because the increase caused the range of feasibility to be exceeded.The objective function value will increase by $100, but the optimal solution will remain the same.O The objective function value will increase by $100,000, but the optimal solution will remain the same.O The problem must be recalculated because the increase caused the range of optimality to be exceeded.

Sensitivity analysis report gives an idea on how much various parameters in the question i.e.…

Answered: A section of the Excel output is shown…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The table shows the hypothetical trade-off between different combinations of Stealth Bombers and B-1 Bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus. Production Possibilities for Bombers Combination Number of B-1 Opportunity Cost (Foregone Stealth) S T 0 NA Number of Stealth 10 Opportunity Cost (Foregone B-1) 1 9 U V 2 3 In the production range of 7 to 9 Stealth bombers, the opportunity cost of producing 1 more Stealth Bomber in terms of B-1 Bombers is 7 4 NA Multiple Choice 0. 3. 0.5. 2.
An oil company must decide whether or not to drill an oil well in a particular area that they already own. The decision maker (DM) believes that the area could be dry, reasonably good or a bonanza. See data in the table which shows the gross revenues for the oil well that is found. Decision Drill $0 Abandon $0 Probability 0.3 Dry (D) Seismic Results No structure(N) Open(0) Closed (C) Drilling costs 40M. The company can take a series of seismic soundings (at a cost of 12M) to determine the underlying geological structure. The results will be either "no structure", "open structure or "closed structure". The reliability of the testing company is as follows that is, this reflects their historical performance. Reasonably good(G) $85 $0 0.3 Note that if the test result is "no structure" the company can sell the land to a developer for 50 m. otherwise (for the other results) it can abandon the drilling idea at no benefit to itself. Dry(d) 0.7 0.2 Bonanza(B) 0.1 $200 m SO 0.4 Conditional…
Daniel Grady is the financial advisor for a number of professional athletes. An analysis of the long-term goals for many of these athletes has resulted in a recommendation to purchase stocks with some of their income that is set aside for investments. Five stocks have been identified as having very favorable expectations for future performance. Although the expected return is important in these investments, the risk, as measured by the beta of the stock, is also important. (A high value of beta indicates that the stock has a relatively high risk.) The expected return and the betas for five stocks are as follows: Stock 1 2 3 4 5 Expected Return (%) 11.0 9.0 6.5 15.0 13.0 Beta 1.20 0.85 0.55 1.40 1.25 Daniel would like to minimize the beta of the stock portfolio (calculated using a weighted average of the amounts put into the different stocks) while maintaining an expected return of at least 11%. Since future conditions may change, Daniel…
Question 2 An oil company must decide whether or not to drill an oil well in a particular area that they already own. The decision maker (DM) believes that the area could be dry, reasonably good or a bonanza. See data in the table which shows the gross revenues for the oil well that is found. Decision Drill $0 Abandon $0 Probability 0.3 Dry (D) Seismic Results No structure(N) Open(0) Closed (C) Reasonably good(G) $85 $0 0.3 Drilling costs 40M. The company can take a series of seismic soundings at a cost of 12M) to determine the underlying geological structure. The results will be either "no structure", "open structure or "closed structure". The reliability of the testing company is as follows that is, this reflects their historical performance. Bonanza(B) Note that if the test result is "no structure" the company can sell the land to a developer for 50 m. otherwise (for the other results) it can abandon the drilling idea at no benefit to itself. $200 m $0 0.4 Dry(d) 0.7 0.2 0.1…
Comprehensive model formulation exercise Q1: New product development Problem A Leisure Food Company plans to develop some new products. The following table shows relevant data for six potential foods which are under considera tion. The company wants to know which projects should be selected so asto maximize total pr ofits. There are some constrains for project selection. First, the available capital is at most 170 thousand dollars, and the available researchers are no more than 35 people. Second, project 3 and project 4 are closely related, meaning that these two projects must be select ed simultaneously. Third, project 5 must be selected if project 2 or project 3 is selected. Fo urth, considering the potential risks, at most two projects could be selected among project 1, 4, and 6. Fifth, considering the future development, at least one project should be select ed among project 3, 4, and 5. Please help this company to determine the optimal combinations of new products. Table 1 Data…
The operations manager for a water taxi company wants to decide whether to purchase a small, medium, or large new boat for the company. The manager estimates that the annual profits (in thousands of dollars) will vary depending upon whether passenger demand is low, moderate, or high, as shown in the following table. Demand Boat Low Medium High Small 50 57 70 Medium 37 79 89 Large 17 51 119 Probability 0.3 0.3 0.4 If the company uses the expected value approach, which size boat will it decide to purchase? O small 000 medium large O none
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