Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
7th Edition
ISBN: 9781285418681
Author: Cliff Ragsdale
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 9QP
Summary Introduction
To determine: The sensitivity report using solver.
a)
Summary Introduction
To determine: The price drop of watermelons for the given condition.
b)
Summary Introduction
To determine: The price increase of cantaloupes for the given condition.
c)
Summary Introduction
To determine: Whether the solution is optimal for the given condition.
d)
Summary Introduction
To determine: The acres that the farmer should lease and the maximum amount to be paid.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Pls help ASAP for both
You are the manager of GearNet and must decide how many Internet hubs to produce to maximize your firm’s profit. GearNet and its only rival (NetWorks) sell dual-speed Internet hubs that are identical from consumers’ perspectives. The market price for hubs depends on the total quantity produced by the two firms. A survey reveals that the market price of the hubs depends on total market output as follows:
Combined Hub Production of GearNet and NetWorks
Market Price of Hubs (per unit)
500 units
$120
750 units
$100
1,000 units
$90
GearNet and NetWorks each use labor, materials, and machines to produce output. GearNet purchases labor and materials on an as-needed basis; its machines were purchased three years ago and are being depreciated according to the straight-line method. GearNet’s accounting department has provided the following data about its unit production costs:
Item
GearNet’s Unit Cost for an Output of:
250 units…
JayZee Electronics wanted to expand its operations by considering of putting up another warehouse to
store their electronic supplies from different suppliers. The table below shows the payoff for all
alternatives available for JayZee Electronics in all 3 states of nature. The probabilities for every state of
nature is also provided.
Size of the Warehouse
Good Market ($)
Fair Market ($)
Poor Market ($)
Small
40,000
-10,000
-20,000
18,000
Medium
80,000
90,000
Large
Very Large
-40,000
-160,000
100,000
175,000
350,000
25,000
Probabilities
0.35
0.45
0.20
Using Decision Making under Uncertainty (Use Sheet 1 and rename it to Lastname_Uncertainty)
(a) Develop a decision table for this decision.
(b) What is the maximax decision?
(c) What is the maximin decision?
(d) What is the equally likely decision?
(e) What is the criterion of realism decision? Use an a value of 0.8.
(f) Develop an opportunity loss table.
(g) What is the minimax regret decision?
Using Decision Making under Risk (Use Sheet 1…
Chapter 4 Solutions
Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- You are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community where producers are able to switch back and forth between cowpea and groundnut depending on market conditions. Consequently, you were tasked by the management of Zuku and you estimated the demand function for cowpea as follows: where is the quantity of cowpea demanded in bags per month, is the average price of cowpea in Ghana Cedis, is the average price of groundnut in Ghana Cedis, and Y is the income of consumers. Assuming is initially GH¢31.00 per bag, Y is GH¢1001.50 Required: Find the resulting demand function for cowpea and determine the number of bags Zuku can sell at GH¢ 45.00 per bag. Management is considering increasing price of cowpea by GH¢10.00 per bag. Advise management on this price change using the concept of price elasticity of demand. Explain why management should be worried about a reduction in the price of groundnutarrow_forwardGiven the decision tree below, determine which alternative should be purchase given the probability of poor and good economic conditions. Explain your answer.arrow_forwardthe first picture is the problem and the second picture is the questionarrow_forward
- Please solve The figure below illustrates the demand for money for transaction (L1) and speculative motives (L2) in South Africa: A recession similar to the one experienced between 2009 and 2011 in the global economy will a.Shift curve L1 to the left. b.Shift curve L1 to the left and curve L2 to the right. c.Shift curve L2 to the left and have no impact on curve L1. d.Shift both curves L1 and L2 to the leftarrow_forwardA young computer engineer has $12,000 to invest and three different investment options (funds) to choose from. Type 1 guaranteed investment funds offer an expected rate of return of 7%, Type 2 mixed funds (part is guaranteed capital) have an expected rate of return of 8%, while an investment on the Stock Exchange involves an expected rate of return of 12%, but without guaranteed investment capital. Computer engineer has decided not to invest more than $2,000 on the Stock Exchange in order to minimize the risk. Moreover for tax reasons, she needs to invest at least three times more in guaranteed investment funds than in mixed funds. Assume that at the end of the year the returns are those expected; she is trying to determine the optimum investment amounts. (a) Express this problem as a linear programming model with two decision variables.(b) Solve the problem with the graphical solution procedure and define the optimum solution.arrow_forwardA manager uses this equation to predict demand for landscaping services: Ft = 14 + 4t. Over the past eight periods, demand has been as follows: Period, t: 1 2 3 4 5 6 7 8 Demand: 20 25 25 35 35 40 45 50 Compute the tracking signals for Periods 1-8. (Negative values should be indicated by a minus sign. Round your intermediate calculations and final answers to 3 decimal places.) Period t Tracking Signal 1 2 3 4 5 6 7 8arrow_forward
- Use the following decision criteria to choose how much the firm should supply: Maximax rule Maximin rule Minimax regret criterion (Construct a regret table for this) Equal probability criterionarrow_forwardWhat is e augmented form of the problem? Why is it called so?arrow_forward1i- Please solve this question. Thanksarrow_forward
- Your answer is partially correct. An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $5,200 and it will cost $1,300 per year to operate at the end of year that follows. She will keep the vehicle for 5 years; at the end of this period, the upgraded vehicle will have a salvage value of $3,800. Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade-in value of $9,800 and that there will be $4,100 due at lease signing. She further estimates that it will cost $2,900 per year to lease and operate the vehicle. The independent contractor's MARR is 11%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator. 1943.56 EUAC(keep): $…arrow_forwardConsider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. **THE TABLE IS ATTACHED** Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by_____%. Between 2018 and 2019, the CSPI increased by______%. Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. A. Energy drinks became increasingly popular on college campuses between…arrow_forwardWhat is the best decision alternative under Maximax criterion? (Provide complete decision table solution) DIHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small- time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue -450,000 -250,000 250,000 500,000 Construct a facility in Talisay -800,000 -400,000 300,000 700,000 Subcontracting Ohlala Move -100,000 -10,000 150,000 300,000 Hire Additional Drivers in Mandaue Construct a Facility in Talisay O Subcontracting Ohlala Move Both…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,