Business Analytics
3rd Edition
ISBN: 9780135231715
Author: Evans
Publisher: PEARSON
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Chapter 1, Problem 11PE
In this chapter, we noted the importance of defining and analyzing a problem prior to attempting to find a solution. Consider this example: One of the earliest operations research groups during World War II was conducting a study on the optimum utilization of Spitfire and Hurricane aircraft during the Battle of Britain. Whenever one of these planes returned from battle, the locations of the bullet holes on it were carefully plotted. By repeatedly recording these data over time, and studying the clusters of data, the group was able to estimate the regions of the aircraft most likely to be hit by enemy gunfire, with the objective of reinforcing these regions with special armor. What difficulties do you see here?
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Students have asked these similar questions
The sales manager of a large automotive parts distributor wants to estimate the total annual sales for each of the company’s regions. Three factors appear to be related to regional sales: the number of retail outlets in the region, the total personal income of the region, and the number of cars registered in the region. The following table shows the data for 10 regions that were gathered for last year sales.
The excel data file for this problem is:final exam question 6B spring 2021.xlsx
Region
Annual sales ($ million)
Number of retail outlets
Number of automobiles registered (million)
Personal income ($ billion)
1
37.702
1,739
9.27
85.4
2
24.196
1,221
5.86
60.7
3
32.055
1,846
8.81
68.1
4
3.611
120
4.81
20.1
5
17.625
1,096
10.31
33.8
6
45.919
2,290
11.62
95.1
7
29.600
1,687
8.96
69.3
8
8.114
241
6.28
16.5
9
20.116
649
7.77
34.9
10
12.994
1,427
10.92…
Chapter 14
#1
Problem 11 [page 620]
To help consumers in purchasing a laptop computer,
Consumer Reports calculates an overall test score for each
computer tested based upon rating factors such as
ergonomics, portability, performance, display, and battery
life. Higher overall scores indicate better test results. The
following data show the average retail price and the overall
score for ten 13-inch models.
Brand & Model
Price ($)Overall Score
Samsung Ultrabook NP900X3C-A01US
Apple MacBook Air MC965LL/A
Apple MacBook Air MD231LL/A
HP ENVY 13-2050nr Spectre XT
Sony VAIO SVS13112FXB
Acer Aspire S5-391-9880 Ultrabook
Apple MacBook Pro MD101LL/A
Apple MacBook Pro MD313LL/A
1250
83
1300
83
1200
82
950
79
800
77
1200
74
1200
74
1000
73
Dell Inspiron I13Z-6591SLV
Samsung NP535U3C-A01US
700
67
600
63
Use the least squares method to develop the
estimated regression equation (by Hand
calculations).
a.
b. Another laptop that Consumer Reports tested is the
Acer Aspire S3-951-6646 Ultrabook; the price…
A manufacturing company is analyzing its accident record. The accidents fall into two categories: Minor—dealt with by first aider: Average cost k50 Major—hospital required. Average cost k1,000The company has 1,000 employees, of which 180 are office staff and the rest work in the factory.The analysis shows that 10% of employees have an accident each year and 20% of accidents are major. It is assumed that an employee has more than one accident in a year.(i) Determine the expected total cost of accidents in a year. On further analysis it is discovered that a member of office staff has half the probability of having an accident relative those in the factory. (ii)Show that the probability that a given a member of office staff has an accident in a year is 0.0549.(iii) Determine the probability that a randomly chosen employee who has had an accident is office staff.
Chapter 1 Solutions
Business Analytics
Ch. 1 - Discuss how you might use business analytics in...Ch. 1 - How might analytics be used in the following...Ch. 1 - A supermarket has been experiencing long lines...Ch. 1 - For each of the following scenarios, state whether...Ch. 1 - Suppose that a manufacturer can produce a part for...Ch. 1 - A bank developed a model for predicting the...Ch. 1 - Four key marketing decision options are price P,...Ch. 1 - Total marketing effort is a term used to describe...Ch. 1 - A manufacturer of headphones is preparing to set...Ch. 1 - In this chapter, we noted the importance of...
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- A manufacturing company is analyzing its accident record. The accidents fall into two categories: Minor—dealt with by first aider: Average cost k50 Major—hospital required. Average cost k1,000 The company has 1,000 employees, of which 180 are office staff and the rest work in the factory. The analysis shows that 10% of employees have an accident each year and 20% of accidents are major. It is assumed that an employee has more than one accident in a year. (i) Determine the expected total cost of accidents in a year. [] On further analysis it is discovered that a member of office staff has half the probability of having an accident relative those in the factory. (ii) Show that the probability that a given a member of office staff has an accident in a year is 0.0549. (iii) Determine the probability that a randomly chosen employee who has had an accident is office staff.arrow_forwardResearchers were interested in better understanding how autistic children see and understand the world. Participants included children diagnosed with autism and typically- developing children, who were all approximately the same age. All children were presented with several different stimuli on a large computer screen for up to one minute. The stimuli were both social (i.e., people’s faces) and nonsocial (inanimate objects). The percentage of time children spent looking at the two types of stimuli was recorded (ranging from 0 to 100). Consider the graphs shown for a study about blaming the victim. a. What is proper statistical the notation of the design? Use the “__ × __” format. b. Interpret the graphs for the blaming the victim study. For each graph, what are the significant main effects? Is there an interaction? Interpret the main effects and interactions that are present.arrow_forwardA quality control engineer studied the relationship between years of experience as a system control engineer and the capacity of the engineer to complete within a given time a complex control design including the debugging of all computer programs and control devices. A group of 25 engineers having widely differing amounts of experience (measured in months of experience) was given the same control design project. The results of the study are given in the following table with y = 1 if the project was successfully completed in the allocated time and y = 0 if the project was not successfully completed. a. Determine whether experience is associated with the probability of completingthe task. b. Compute the probability of successfully completing the task for an engineer having 24 months of experience. Place a 95% confidence interval on your estimate.arrow_forward
- Companies in the U.S. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual revenue. In 2011, Hertz had 320,000 cars in service and annual revenue of approximately $4.2 billion. Suppose the following data show the number of cars in service (1,000s) and the annual revenue ($ millions) for six smaller car rental companies. (a) Develop a scatter diagram with the number of cars in service as the independent variable. (b) What does the scatter diagram developed in part (a) indicate about the relationship between the two variables? (c) Use the least squares method to develop the estimated regression equation that can be used to predict annual revenue (in $ millions) given the number of cars in service (in 1,000s). (Round your numerical values to three decimal places.) (d) For every additional car placed in service, estimate how much annual revenue will change (in dollars). (Round your answer to the nearest integer.) Annual revenue…arrow_forwardA quality control engineer studied the relationship between years of experience as a system control engineer and the capacity of the engineer to complete within a given time a complex control design including the debugging of all computer programs and control devices. A group of 25 engineers having widely differing amounts of experience (measured in months of experience) was given the same control design project. The results of the study are given in the following table with y 5 1 if the project was successfully completed in the allocated time and y 5 0 if the project was not successfully completed. a. Determine whether experience is associated with the probability of completing the task. b. Compute the probability of successfully completing the task for an engineer havingarrow_forwardQuestion 2 Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars). Weekly Usage (hours) Annual Maintenance Expense 13 17.0 10 22.0 20 30.0 28 37.0 32 47.0 17 30.5 24 32.5 31 39.0 40 51.5 40.0 38 a. Develop the estimated regression equation that relates annual maintenance expense to weekly usage. b. Test the significance of the relationship in part (a) at .05 level of significance. C. What is your conclusion at the .05 level of significance?arrow_forward
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