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MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)
8th Edition
ISBN: 9781337274876
Author: Cliff Ragsdale
Publisher: Cengage Learning US
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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.
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Long-Life Insurance has developed a linear model that it uses to determine the amount of term life Insurance a family of four should
have, based on the current age of the head of the household. The equation is:
y=150 -0.10x
where
y= Insurance needed ($000)
x = Current age of head of household
b. Use the equation to determine the amount of term life Insurance to recommend for a family of four of the head of the household is
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Amount of term life insurance
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Use the following data to answer all of the remaining questions. Consider a commodity market where the products provided by all sellers are identical.
A group of 12 potential buyers in this market have willingness to pay (WTP) as follows (in random order): $65, $60, $55, $80, $70, $30, $20, $55, $10, $45, $40, and $15.
A group of potential suppliers serving this market have wiliness to accept (WTA) as follows (also in random order): $20, $25, $30, $10, $45, $50, $55, $15, $20, $30, $40, and $60.
What is the value captured by all sellers?
Buyers
2. What is the value captured in this market by an individual buyer with WTP = $80?
3. What is the total consumers surplus (i.e., all buyers) in this market?
Value added
4. What is the value added for the supplier with a WTA (willingness to accept) of $15?
Chapter 4 Solutions
MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)
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