Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Business Analytics, Loose-leaf Version
8th Edition
ISBN: 9781337274852
Author: Ragsdale, Cliff
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
Develop a spreadsheet for the question.
The vice president of finance has looked at your ooriginal scoring model and feels that tax considerations should be included in teh model with a weight of 15. In addition, the VP has scored the methods on tax considerations as follows: method A recieved a score of 3, method B recieved a score of 2, and Method C recieved a score of 1. How would this additional information affect your recommendation?
Pls help ASAP for both
Formulate decision variable, objective function, and constraints only.
Eastborne Realty has $2 million available for the purchase of new rental property. After an initial screening, Eastborne reduced the investment alternatives to townhouses and apartment buildings. Each townhouse can be purchased for $282,000, and five are available. Each apartment building can be purchased for $400,000, and the developer will construct as many buildings as Eastborne wants to purchase.
Eastborne’s property manager can devote up to 140 hours per month to these new properties; each townhouse is expected to require 4 hours per month, and each apartment building is expected to require 40 hours per month. The annual cash flow, after deducting mortgage payments and operating expenses, is estimated to be $10,000 per townhouse and $15,000 per apartment building. Eastborne’s owner would like to determine the number of townhouses and the number of apartment buildings to purchase to maximize annual cash flow.
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
- Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?arrow_forwardThe Reeves twins are in the yard maintenance business. They want to start doing snow removal during the winter season because they practically don't have any yards to maintain. The twins are trying to determine how much equipment they need to purchase. The twins plan to do most of the work themselves and then hire some part-time workers on an individual job basis to help out. The twins gathered some data on past weather. Based on the information, they predict that there will be six big snowstorms in the coming winter. Most of their clients want the snow removed no more than two days after the snow stops falling. If the twins work for 10 hours a day, they can remove the snow from the driveway of a home in about 1 hour. However, for commercial parking lots and public sidewalks, it will take 4 hours. The variable cost per job is $12 for home driveways and $47 for commercial parking lots. The twins estimated that they will have no more than 40 homeowners and 25 businesses who would like…arrow_forwardTrain an ID3 decision tree for a dataset shown in the following table. The table contains 2 categorical attributes (refund and marital status) and 1 continuous attribute (taxable income). Once you got the model then use it to classify the input X1 (No, Single, 95K) and X2 (Yes, Divorced, 120K) ID Marital Refund Тахable Cheat Status Income 1 Single Yes 125K No 2 Married No 100K No 3 Single No 70K No 4 Married Yes 120K No Divorced No 95K Yes Married No 60K No 7 Divorced Yes 220K No 8 Single No 85K Yes Married No 75K No 10 Single No 90K Yes 00arrow_forward
- Formulate a BIP model for this problem. The Research and Development Division of the Progres- sive Company has been developing four possible new product lines. Management must now make a decision as to which of these four products actually will be produced and at what levels. Therefore, an operations research study has been requested to find the most profitable product mix. A substantial cost is associated with beginning the production of any product, as given in the first row of the following table. Management's objective is to find the product mix that maximizes the total profit (total net revenue minus start-up costs). Product 1 2 3 4 $50,000 $ $40,000 $70,000 $ $60,000 Start-up cost Marginal revenue 70 60 90 $ 80arrow_forwardFor a Government-Linked Company (GLC) who has excessive government intervention, the intervention have reduced the decision making process and cause the dependence on the government resources and financial of the company. So, what is the solution can carried out to solve the problem? *No chatgptarrow_forwardLab 3 AP Austin Peay State University CLARKSVILLE TENNESSEE College of Business Decision Trees MGT 5055 Decision trees provide a graphical representation of decision alternatives, uncertain events, and their respective outcomes. They can be particularly useful for sequential decision problems. Learning material: Please watch this video Scenario: A farmer is deciding whether to plant Corn or Wheat in his field for the upcoming season. The yield and hence revenue from each crop will depend on the weather, which can either be Sunny or Rainy. Data: Revenues in USD (based on weather conditions): Crop Corn Wheat Weather Probabilities: • Sunny: 0.6 • Rainy: 0.4 Assignment Steps: 1. Draw the Decision Tree: Sunny Rainy 8,000 4,000 6,000 5,000 • Start with a decision node for the crop choice. • Branch out to the two potential weather outcomes for each crop choice. 2. Calculate Expected Monetary Values (EMVs): For each crop, use the provided probabilities and revenues to calculate the EMV. EMV =…arrow_forward
- A car company is planning the introduction of a new electric car. There are two options for production. One is to produce the electric car at the company’s existing plant in Illinois, sharing production with its other products that are currently being produced there. If the sales of the electric car are moderate, this will work out well as there is significant capacity to produce all of the products there. However, if sales of the electric car are strong, this option would necessitate Adding a 3rd shift, which would lead to significantly higher costs. Another option is to build a new plant in Ohio. The new plant would have sufficient capacity to meet whatever level of demand for the new car. However, if sales of the new car not strong, the plant would be underutilized and less efficient. Since this is a new product, sales are hard to predict. The forecast indicates there is a 60% chance of strong sales (annual sales of 100,000), and 40% chance of moderate sales (annual sales of…arrow_forwardWhat combination of x and y will yield the optimum for this problem? Maximize Z = $3x + $15y Subject to: Multiple Choice x= 0, y=4 x= 0, y=3 x= 0, y=0 x= 2y=0 O x=1,y=25 2x + 4y ≤ 12 5x + 2y ≤ 10arrow_forwardDescribe binary integer programming (BIP) problems?arrow_forward
- The Wisteria University athletic department is considering a campaign next year to raise funds for a new athletic field. To a large extent, the response to the campaign depends on how successful the soccer team is in the fall. In the past they have had winning seasons 60% of the time. If they have a winning season (G), many alumni will contribute and the campaign will raise $3 million. If they have a losing season (P), very few will contribute and they will lose $2 million. If the campaign does not take place, no cost is incurred. On September 1, prior to the start of the season, the athletics department must decide whether to conduct the campaign next year. d) A famous soccer guru, William Walsh, has offered to evaluate whether the team will have a winning season. For $100,000 he will evaluate the team's spring and preseason practices. William will give his prediction on September 1 as to what type of season, G or P, the team will have. In similar situations in the past, when…arrow_forwardThe Wisteria University athletic department is considering a campaign next year to raise funds for a new athletic field. To a large extent, the response to the campaign depends on how successful the soccer team is in the fall. In the past they have had winning seasons 60% of the time. If they have a winning season (G), many alumni will contribute and the campaign will raise $3 million. If they have a losing season (P), very few will contribute and they will lose $2 million. If the campaign does not take place, no cost is incurred. On September 1, prior to the start of the season, the athletics department must decide whether to conduct the campaign next year. a) Develop a decision tree formulation for this problem by identifying the alternative options, the states of nature, and the payoff matrix. b) According to the maximum expected value rule, should the campaign be conducted? c) What is the VEIP? d) A famous soccer guru, William Walsh, has offered to evaluate whether the team…arrow_forwardFormulate an LP for this minimization problemarrow_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,