Question: Jennifer Bellin has been put in charge

> Use the Newsvendor Model spreadsheet to set up and run a Monte Carlo simulation assuming that demand is triangular with minimum value = 40, maximum value = 50, and most likely value = 47. Find the distribution of profit for order quantities between 40 an

> For the profit model developed, suppose that the demand is uniform with a minimum of 35,000 and maximum of 60,000; fixed costs are normal with a mean of $400,000 and a standard deviation of $25,000; and unit costs are triangular with a minimum of $22.00,

> A regional tax preparation firm competes with such national chains as H&R Block. It is considering expanding and needs a financial model to analyze the decision to open a new store. Key factors affecting this decision include the demographics of the prop

> Malaysia’s state water tariffs are one of the cheapest in comparison to its neighbor countries. The cost of a meter installation is RM10 per household. The daily cost of supplying water is assumed to be normally distributed, with a mean of RM10/m3 and a

> The weekly demand of a slow-moving product has the following probability mass function: Use VLOOKUP to generate 25 random variates from this distribution.

> The board of directors of Bolt Electric Vehicles (BEV) is considering replacing its original model, the BEV-Neo, with a new model, the BEV-Alpha, which they feel will appeal to the younger demographic. The company will produce the approved model for the

> O’Brien Chemicals makes three types of products: industrial cleaning, chemical treatment, and some miscellaneous products. Each is sold in 55-gallon drums. The selling price and unit manufacturing cost are shown below: Fixed costs are a

> Sturgill Manufacturing Inc. needs to predict the numbers of machines and employees required to produce its planned production for the coming year. The plant runs three shifts continuously during the workweek, for a total of 120 hours of capacity per week

> UOB Bank receives a significant number of housing loan applications each month, with an average of 5,000 and a standard deviation of 463, normally distributed. The application approval rate varies between 40% and 55%. The average monthly interest rate on

> The Oxford Theater produces plays and musicals for a regional audience. For a typical performance, the theater sells at least 250 tickets and occasionally reaches its capacity of 600 seats. Most often, it sells about 450 tickets. The fixed cost for each

> A college graduate who is living in Edinburgh, the United Kingdom, expects to earn a monthly salary of £598. The Excel file UK Cost of Living shows the comparative salaries in other cities and the adjustments for living expenses. Develop an

> Cinéma Le Méliès is a small movie theatre in Grenoble, France. After the release of a typical, widely anticipated Marvel movie, such as the Avengers: Endgame, the number of adult and children’s tickets sold at the theatre has a normal distribution with a

> A manufacturing company is considering investing in a new machine that costs €38,000. Its use is expected to generate a cash flow of about €10,000 per year for each of the next five years. However, the cash flow is uncertain, and the manager estimates th

> The manager of the extended-stay hotel believes that the number of rooms rented during any given week has a triangular distribution with minimum 32, most likely 38, and maximum 50. The weekly price is $950, and weekly operating costs follow a normal dist

> A financial consultant has an average of seven customers he consults with each day; assume a Poisson distribution. The consultant’s overhead requires that he consult with at least five customers per day for his fees to cover his expenses. Use the Excel R

> The owner of Wild World Photography believes that the average number of safari trail bookings per year can be estimated by triangular distribution with a minimum of 10, a maximum of 22, and a most likely value of 15. One of the key variables in developin

> A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key informat

> For the Sunday bazaar model, suppose that the expected crowd is normally distributed with a mean of 4,000 and a standard deviation of 350, and the average expenditure has a triangular distribution with minimum = £20, maximum =£40, and most likely = £25.

> Suppose that the daily purchase of a stock any given day is normally distributed with a mean of 3% and a standard deviation of 0.5%. In predicting the long run market share, a research study shows an increment of 28% of buying the stock any given day and

> The Excel file Outsourcing Decision Model is a spreadsheet implementation of the model. The model calculates the total cost for manufacturing and outsourcing. The key outputs in the model are the difference in these costs and the decision that results in

> Use the profit model developed to implement a financial simulation model for a new product proposal and determine a distribution of profits using the discrete distributions below for the unit cost, demand, and fixed costs. Price is fixed at â‚

> Develop an Excel template for computing the IQ scores obtained by males and females based on the brain size (in count obtained from MRI scans, count/10,000), height (in inches) and weight (in pounds). Use the following formulas. For a male, the IQ score

> A research study on the duration of two-month-old babies’ smile was carried out. Analysts created the following distribution, which were assumed to be uniform over various intervals, each with a discrete probability (all in seconds). De

> In the Olympic bid proposal discussed, ticket sales revenue was estimated to be a triangular distribution with minimum= $560 million, maximum= $600 million, and most likely = $600 million. Generate a random variate from this distribution.

> A metal pistons manufacturer conducts a marketing research and finds that for every 10 pistons made, an average of 12% of its pistons are rejected because they are not correctly sized. Generate 20 random variates for the number of pistons that would be r

> Use the RAND function to generate 100 exponential random variates with the mean 1.5, and create a frequency distribution and a histogram with bins of width 0.5. Apply the chi-square goodness of fit test to test the hypothesis that the data are exponentia

> Construct an influence diagram for the staffing model in Example 11.7. Data from Example 11.7: Suppose that the manager of a loan-processing department wants to know how many employees will be needed over the next several months to process a certain

> Construct an influence diagram for the net revenue in the overbooking decision model discussed in this chapter. Use Excel’s Formula Auditing capability to demonstrate the relationship between the spreadsheet model and the influence diagram.

> Construct an influence diagram for profit in the single-period purchase decision (Newsvendor Model) discussed in this chapter. Use Excel’s Formula Auditing capability to demonstrate the relationship between the spreadsheet model and the influence diagram

> A manufacturing company make their sales by visiting the customers personally to market their products. They want to determine the impact of these sales visits on the total profit earned by their sales persons. The cost for the company depends on the bas

> For the ballet company, use the Goal Seek tool to find the number of solicitations required to achieve $150,000 in total donations.

> For the stockbroker, use the Goal Seek tool to find the number of calls needed to achieve a broker commission of $5,000.

> Suppose that an electricity supplier in your country offers specific rates to domestic consumers. For the first 2,000 units of electricity consumed, it charges €0.14 per unit; and if more than 2,000 units are consumed, it charges €0.11 per unit consumed.

> For the gasoline usage, apply the Goal Seek tool to find the fuel economy needed to consume 20 gallons per month, with all other data being constant.

> Think of any retailer that operates many stores throughout the country, such as Old Navy, Hallmark Cards, or Vineyard Vines, to name just a few. The retailer is often seeking to open new stores and needs to evaluate the profitability of a proposed locati

> For the Sunday bazaar model that you developed, use the Scenario Manager to evaluate profitability for the following scenarios:

> A company is trying to predict the long-run market share of a new men’s deodorant.10 Based on initial marketing studies, they believe that 40% of new purchasers in this market will ultimately try this brand, and of these, about 65% will purchase it in th

> Vision Clinic in Brussels, Belgium, specializes in laser-assisted corrective eye surgery. Prospective patients make appointments for prescreening exams to determine their candidacy for the surgery. If they qualify, a €275 charge is applied as a deposit f

> For the engineering admissions, apply two-way data tables to analyze the impact on extra funds needed and the number of students who accept scholarships as the acceptance rate and number of offers vary.

> A local supermarket orders 27 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The supermarket purchases the magazines for $1.73 and sells them for $4.03. Any magazines left over at the end of the month are dona

> For the Schoch Museum, use data tables to investigate the impacts of the percentage assumptions used in the model on the cumulative funds raised by the fifth year.

> Implement the model you developed in Problem 1 on a spreadsheet and construct a one-way data table to estimate the price for which profit is maximized.

> An IT support group at Thomson State College has seven projects to complete. The time and project deadlines (both in days) are shown next. a. Develop a spreadsheet model for this situation. b. Use a spreadsheet model to try to find a sequence that minimi

> Use the CHOOSE function to develop a database query for the Time Spent data that will complete the following table for any individual specified in the top left corner: Each empty cell should contain only one CHOOSE function. Hint: Use other appropriate f

> The demand for organic chicken meat is quite sensitive to price. Typically, there is an inverse relationship between its demand and price—when price decreases, demand increases and vice versa. The price of 1 pound of organic chicken selling at a major U.

> ElectroMart wants to identify a location for a warehouse that will ship to five retail stores. The coordinates and annual number of truckloads are given here. Develop a model to find the best location, assuming that straight-line distances can be used be

> A franchise of a chain of Mexican restaurants wants to determine the best location to attract customers from three suburban neighborhoods. The coordinates of the three suburban neighborhoods are as follows: The population of Adams is four times as large

> The Bose Theater, a community playhouse, needs to determine the lowest-cost production budget for an upcoming show. Specifically, they have to determine which set pieces to construct and which, if any, set pieces to rent from another local theater at a p

> Experiment with the portfolio allocation model to attempt to find the best solution that maximizes the expected annual return and meets the total weighted risk constraint.

> Adam is 24 years old and has a 401(k) plan through his employer, a large financial institution. His company matches 50% of his contributions up to 6% of his salary. He currently contributes the maximum amount he can. In his 401(k), he has three funds. In

> Few companies take the time to estimate the value of a good customer (and often spend little effort to keep one). Suppose that a customer at a restaurant spends, on average, R per visit and comes F times each year (for example, if a customer purchases on

> The board of directors of Bolt Electric Vehicles (BEV) is considering replacing its original model, the BEV Neo, with a new model, the BEV-Alpha, which they feel will appeal to the younger demographic. The company will produce the approved model for the

> The wedding banquet prices at a famous hotel in Singapore continue to increase on a yearly basis. The booking volume this year is estimated to be at 3,000 tables (for 10 persons per table) and is projected to grow at a rate of 2.50% per year. The booki

> An auditor found an expense receipt for $179.24 without a name. Write a left table lookup function that would identify the sales rep in the Travel Expenses database.

> With the growth of digital photography, a young entrepreneur is considering establishing a new business, Wild World Photography. She estimates that the average number of safari trail bookings per year is 19. One of the key variables in developing her

> J&G Bank receives an average of 30,000 credit card applications each month. Approximately 60% of them are approved. Each customer charges an average of $2,000 to his or her credit card each month. Approximately 85% pay off their balances in full, and the

> Cinéma Le Méliès is a small movie theatre in Grenoble, France. After the release of a widely anticipated Marvel movie, like the Avengers: Endgame, the number of adult and children’s tickets sold at the theatre is 55,000 and 20,000, respectively. Adult ti

> A stockbroker calls on potential clients from referrals. For each call, there is a 20% chance that the client will decide to invest with the stockbroker’s firm. Forty percent of those interested are found not to be qualified, based on t

> A bi-monthly Sunday bazaar is held at a local maretplace in London, England. The expected crowd is 4,500. The average expenditure estimate is £25 per person. Entry coupons sell for £10 each, and the bazaar’s profit is 90% of the gate and concession sales

> Intel, the largest semiconductor manufacturing company in the world, sells two major types of computer chips, type A and type B. The sales of these two chips are dependent of each other (in economics, we call these substitutable products because if the p

> Develop a spreadsheet model to determine how much a person or a couple can afford to spend on a house.11 Lender guidelines suggest that the allowable monthly housing expenditure should be no more than 28% of monthly gross income. From this, you must subt

> A famous fashion boutique in Shanghai, China, is planning its pricing for a dress that can be worn on Christmas day as well as the Chinese New Year. The product will be sold for ¥100 in the boutique at the beginning of December and will sell through Chri

> Develop a spreadsheet for calculating the total revenue for the Intel scenario. Design it such that the price-demand function parameters are easy to change.

> The monthly demand for a digital camera is sensitive to price: Find the most appropriate trendline to explain the relationship between demand and price, and develop a model for the monthly revenue.

> In the Factvalue database, you need to find the country with a birth rate of 29.43 and identify the country’s death rate. Write functions for a left table lookup to answer these queries.

> The People’s Choice Bank is a small community bank that has three local branches, in Blue Ash, Delhi, and Anderson Hills. The Excel file People’s Choice Bank is a database of major account transactions for the month of August. 1. Note that it is difficul

> Economists believe that housing starts depend on interest rates and demographic factors such as population size, family income, and the age of the home buying population. In addition, interest rates depend on inflation, Federal Reserve policies, and gove

> Construct an influence diagram for the portfolio allocation model in Example 11.15. Data from Example 11.15:

> A manufacturer of kitchen appliances is preparing to set the price on a new blender. Demand is thought to depend on the price and is represented by the model D = 2,900 - 2P The accounting department estimates that the total cost can be represented by C =

> Use discriminant analysis to classify the new records in the Excel file Train Journey Decisions using only hourly passenger and adult rate as input variables.

> Using the approach described, classify first record in the worksheet Records to Classify in the Excel file Train Journey Decisions by using the k-NN algorithm for k = 1 to 5.

> Apply single linkage cluster analysis to the first five records in the Excel file Sales Data, using the variables Percent Gross Profit, Industry Code, and Competitive Rating, and draw a dendogram illustrating the clustering process.

> Using only Credit Score, Years of Credit History, Revolving Balance, and Revolving Utilization, apply single linkage cluster analysis to the first six records in the Excel file Credit Approval Decisions and draw a dendogram illustrating the clustering pr

> For the Excel file Total Population, find a normalized distance matrix between Arkansas, Delaware, South Carolina, and South Dakota states. Apply single linkage clustering to these states and draw a dendogram illustrating the clustering process.

> For the three clusters identified in Table 10.3, find the average and standard deviations of each numerical variable for the schools in each cluster and compare them with the average and standard deviation for the entire data set. Does the clustering sho

> For the Excel file Pharmaceuticals, normalize each column of the numerical data (i.e., compute a Z-score for each of the values) and then compute the Euclidean distances between the following pharmaceutical companies: ABT, CHTT and MRX.

> Use INDEX and MATCH functions to fill in a table that extracts the amounts shipped between each pair of cities in the Excel file General Appliance Corporation, which shows the solution to an optimization model that finds the minimum cost and amounts ship

> Identify the leading and lagging measures for the variables provided in the Excel file Eraser. Find the correlation matrix and propose a cause-and-effect model using the strongest correlations.

> The Excel file Automobile Options 2 provides data on options ordered together for a particular model of automobile. Consider the following rules: Rule 1: If Fastest Engine, then Traction Control. Rule 2: If Faster Engine and 16-inch Wheels, then 3 Year W

> The Excel file Auto Options provides data on options ordered together for a particular automobile model. By examining the correlation matrix, suggest some Associations.

> Extract the records and code the non-numerical data Company in the Excel file Train Journey Decisions. Apply the discriminant analysis to classify the occupied seats for the train passengers in the Records to Classify worksheet.

> Compute the Euclidean distance between the following set of points: a. (1.06, 9.2) and (0.89, 10.3) b. (1.6, 0.628, 9.077) and (2.2, 1.555, 5.088)

> The Excel file Stock Prices provides data for four stocks and the stock exchange average over a 12 day period. a. Use Excel’s Data Analysis Exponential Smoothing tool to forecast each of the stock prices using simple exponential smoothing with a smoothin

> The Excel file Closing Stock Prices provides data for four stocks and the Dow Jones Industrial Average over a one-month period. a. Develop a spreadsheet for forecasting each of the stock prices and the DJIA using a simple two period and three-period movi

> The Excel file New Registered Users provides data on new registrations to an App on a monthly basis for four years. Compare the 3- and 12-month moving average forecasts using the MAD criterion. Explain which model yields better results and why.

> For the data in the Excel file Airport Passengers, do the following: a. Develop a spreadsheet for forecasting the number of airport passengers using a simple three-period moving average. b. Compute MAD, MSE, and MAPE error measures.

> Use http://www.fao.org/faostat/en/#data to extract an annual dataset for any topic of your interest that would aid in constructing a statistical forecasting model analysis. Download the relevant dataset into an Excel workbook, develop a line chart for th

> For this exercise, use the Wikipedia database. Use MATCH and/or INDEX functions to find the following: a. The row numbers corresponding to the first and last instance of name Affaire_Réveillon in column B (be sure column B is sorted by order number). b.

> For each of the time series in the following Excel files, construct a line chart of the data and identify the characteristics of the time series (that is, random, stationary, trend, seasonal, or cyclical). a. Closing Stock Prices b. Unemployment Rates c.

> Using Excel’s Moving Average tool for the data in the Excel file Occupancy, identify the moving trend for each of the hotels, motels, backpacker hostels, and holiday parks.

> Using Table 9.1, determine the most appropriate forecasting technique for the data in the Excel file Treasury Yield Rates and implement the model. Data from Table 9.1:

> Using table 9.1, Determine the most appropriate forecasting technique for the data in the Excel file Prime Rate and implement the model. Data from Table 9.1:

> Using table 9.1, Determine the most appropriate forecasting technique for the data in the Excel file Mortgage Rates and implement the model. Data from Table 9.1:

> Using Table 9.1, Determine the most appropriate forecasting technique for the data in the Excel file DJIA December Close and implement the model. Data from Table 9.1:

> The Excel file CD Interest Rates provides annual average interest rates on six-month certificate of deposits. Compare the Holt-Winters additive and multiplicative models using  = 0.7,  = 0.3,  = 0.1, and a season of six years. Try to fine-tune the par

> Modify the Excel file Holt-Winters Additive Model for Seasonality and Trend for the New Car Sales data to implement the Holt-Winters multiplicative seasonality model with trend. Try to find the best combination of , , and  to minimize MSE.

> Experiment with the Holt-Winters Additive Model for Seasonality and Trend spread sheet model to find the best combination of , , and  to minimize MSE.

> Modify the Excel file Holt-Winters Additive Model for Seasonality to implement the Holt-Winters multiplicative seasonality model with no trend.

> Enhance the Yield Rates database file to perform a database query that finds the rate associated with any date and term. (This is a challenging question because you will not be able to use the term headers in a MATCH function. Hint: Add a row that assign

> Experiment with the Holt-Winters Additive Model for Seasonality spreadsheet to find the best combination of  and  to minimize MAD.