Michelle is a business student who plans to attend medical school. The average state university medical school education expense can cost around $35,000 per year and is escalating rapidly. Michelle created a spreadsheet model to calculate the total expenses for each year of medical school, including both education and living expenses. Her estimates are Year 1: $57,067, Year 2: $56,572, Year 3: $67,846, and Year 4: $55,662. She is considering three loan options: the Stafford loan, a 6.8% loan with a cap of $47,167 that does not accrue interest during medical school; the Graduate Plus loan, a 7.9% loan with no cap that does accrue interest during medical school; and a private bank loan, a 5.9% loan with a cap of $30,000, also with accruing interest during medical school. Assume that each loan will be paid over 25 years after graduation. Michelle currently has $39,500 saved from investments, family gifts, and work, and will receive an additional $4,500 in gifts from her grandparents in years 2 through 4. Develop and solve an optimization model to determine how much money to fund from each type of loan to minimize the amount of interest that will have to be paid on the loans. (Use the Excel function CUMIPMT to find the total interest that will be paid over the life of a loan. For example, if a 30-year loan for $100,000 has an interest rate of 9%, then the formula = - CUMIPMT(9%, 30, 100,000, 1, 30, 0) will yield $192,009 cumulative interest paid between years 1 and 30. (Note that this function yields a negative value so include the minus sign.)
> Data obtained from a county auditor in the Excel file Home Market Value provides information about the age, square footage, and current market value of houses along one street in a particular subdivision.a. Considering these data as a sample of homeowner
> The Excel file Atlanta Airline Data provides arrival and taxi-in time statistics for one day at Atlanta Hartsfield International airport. Find the average and standard deviation of the difference between the scheduled and actual arrival times and the tax
> For the Excel file Tablet Computer Sales, find the average number, standard deviation, and inter-quartile range of units sold per week. Show that Chebyshev’s theorem holds for the data and determine how accurate the empirical rules are
> A brand manager for ColPal Products must determine how much time to allocate between radio and television advertising during the next month. Market research has provided estimates of the audience exposure for each minute of advertising in each medium, wh
> Valencia Products makes automobile radar detectors and assembles two models: LaserStop and SpeedBuster. The firm can sell all it produces. Both models use the same electronic components. Two of these can be obtained only from a single supplier. For the n
> Gales Products manufactures ribbon for thermal transfer printing, which transfers ink from a ribbon onto paper through a combination of heat and pressure. Different types of printers use different sizes of ribbons. The company has forecasted demands for
> Joe is an active 26-year-old male who lifts weights 6 days a week. His rigorous training program requires a diet that will help his body recover efficiently. He is also a graduate student who is looking to minimize the cost of consuming his favorite food
> Van Nostrand Hospital must schedule nurses so that the hospital’s patients are provided with adequate care. At the same time, in the face of tighter competition in the health-care industry, careful attention must be paid to keeping cost
> The Gardner 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
> Determine if there is evidence to conclude that the mean number of vacations taken by married individuals is less than the number taken by single/divorced individuals using the data in the Excel file Vacation Survey. Use a level of significance of 0.05.
> For the Brewer Services scenario described in this chapter, suppose that 11 permanent employees are hired. Find an optimal solution to minimize the number of part-time employees he needs to hire
> Use the Histogram tool to develop a frequency distribution and histogram with six bins for the age of individuals in the Excel file Credit Risk Data. Compute the relative and cumulative relative frequencies and use a line chart to construct an ogive
> Solve the media selection model in Problem 21 of Chapter 14 with the restriction that the number of ads placed must be integer. Compare your solution with the linear optimization solution.In Problem 21 of Chapter 14Reddy & Rao (R&R) is a small co
> Solve the Rosenberg Land Development model in Problem 2 of Chapter 14 with the restriction that the number of units built must be integer. Compare your solution with the linear optimization solution.In Problem 2 of Chapter 14Rosenberg Land Development (R
> Tindall Bookstores is a major national retail chain with stores located principally in shopping malls. For many years, the company has published a Christmas catalog that was sent to current customers on file. This strategy generated additional mail-order
> Tunningley Services is establishing a new business to serve customers in the Ohio, Kentucky, and Indiana region around the Cincinnati Ohio area. The company has identified 15 key market areas and wants to establish regional offices to meet the goal of be
> The Spurling Group is considering using magazine outlets to advertise their online Web site. The company has identified seven publishers. Each publisher breaks down its subscriber base into a number of groups based on demographics and location. These dat
> Chris Corry has a company-sponsored retirement plan at a major brokerage firm. He has the following funds available:His financial advisor has suggested that at most 40% of the portfolio should be composed of high-risk funds. At least 25% should be invest
> Premier Paints supplies to major contractors. One of their contracts for a specialty paint requires them to supply 750, 500, 400, and 950 gallons over the next 4 months. To produce this paint requires a shutdown and cleaning of one of their manufacturing
> For the Shafer Office Supplies problem (Problem 15 in Chapter 14), suppose that the company wants to enforce a single sourcing constraint that each retail store be served only from one distribution center. Set up and solve a model to find the minimum cos
> Using the Excel file Facebook Survey, determine if the mean number of hours spent online per week is the same for males as it is for females
> For the General Appliance Corporation transportation model discussed in Chapter 14, suppose that the company wants to enforce a single sourcing constraint that each distribution center be served from only one plant. Assume that the capacity at the Mariet
> Solve the J&M Manufacturing model in Chapter 14 to ensure that the number of units produced is integer valued. How much difference is there between the optimal integer solution and the linear optimization solution?
> Construct frequency distributions and histograms for the numerical data in the Excel file Cell Phone Survey. Also, compute the relative frequencies and cumulative relative frequencies
> Cady Industries produces custom induction motors for specific customer applications. Each motor can be configured from different options for horsepower, the driveshaft forming process, spider bar component material, rotor plate process, type of bearings,
> Soapbox is a local band that plays classic and contemporary rock. The band members charge $600 for a 3-hour gig. They would like to play at least 30 gigs per year but need to determine the best way to promote themselves. The most they are willing to spen
> Josh Steele manages a professional choir in a major city. His marketing plan is focused on generating additional local demand for concerts and increasing ticket revenue and also gaining attention at the national level to build awareness of the ensemble a
> Anya is a part-time business student who works full time and is constantly on the run. She recognized the challenge of eating a balanced diet and wants to minimize cost while meeting some basic nutritional requirements. Based on some research, she found
> Dannenfelser Design works with clients in three major project categories: architecture, interior design, and combined. Each type of project requires an estimated number of hours for different categories of employees, as shown in the following table.In th
> The Kelmer Performing Arts Center offers a series of four programs that includes jazz, bluegrass, folk, classical, and comedy. The Program Coordinator needs to determine which acts to choose for next year’s series. She assigned an &acir
> A software-support division of Blain Information Services has eight projects that can be performed. Each project requires different amounts of development time and testing time. In the coming planning period, 1,150 hours of development time and 900 hours
> Convert the Store and Regional Sales database to an Excel table. Use the techniques described in Example 3.11 to find:a. THE total number of units soldb. The total number of units sold in the South regionc. The total number of units sold in December
> Riesemberg Medical Devices is allocating next year’s budget among its divisions. As a result, the R&D Division needs to determine which R&D projects to fund. Each project requires various software and hardware and consulting exp
> Fuller Legal Services wants to determine how much time to allocate to four different services: business consulting, criminal work, nonprofit consulting, and wills/trusts. Mr. Fuller has determined the average hourly fees and the minimum and maximum hours
> The personnel director of Hatch Financial. which recently absorbed another firm, is now downsizing and must relocate five information systems analysts from recently closed locations. Unfortunately, there are only three positions available for five people
> A community health-status survey obtained the following demographic information from the respondents:Age ___________Frequency18 to 29 ……………………………… 29730 to 45 …………………………….. 74346 to 64 ……………………………. 60265 + ………….………………………. 369Compute the relative frequenc
> Solve Problem 6 in Chapter 13 to ensure that the number of minutes of each type of ad are integer valued. How much difference is there between the optimal integer solution and the linear optimization solution? Would rounding the continuous solution have
> Jaycee’s department store chain is planning to open a new store. It needs to decide how to allocate the 100,000 square feet of available floor space among seven departments. Data on expected performance of each department per month, in
> The Children’s Theater Company is a nonprofit corporation managed by Shannon Board. The theater performs in two venues: Kristin Marie Hall and the Lauren Elizabeth Theater. For the upcoming season, seven shows have been chosen. The ques
> Holcomb Candles, Inc., manufactures decorative candles and has contracted with a national retailer to supply a set of special holiday candles to its 8,500 stores. These include large jars, small jars, large pillars, small pillars, and a package of four v
> Young Energy operates a power plant that includes a coal-fired boiler to produce steam to drive a generator. The company can purchase different types of coals and blend them to meet the requirements for burning in the boiler. The following table shows th
> The International Chef, Inc., markets three blends of oriental tea: premium, Duke Grey, and breakfast. The firm uses tea leaves from India, China, and new domestic California sources.Net profit per pound for each blend is $0.50 for premium, $0.30 for Duk
> Using the data in the Excel file Consumer Transportation Survey, test the following null hypotheses:a. Individuals spend at least 8 hours per week in their vehicles.b. Individuals drive an average of 600 miles per week.c. The average age of SUV drivers i
> The Martinez Model Car Company produces four different radio-controlled model cars based on exotic production models: Ferrari, BMW, Lotus, and Tesla. Each model requires production in five departments: molding, sanding, polishing, painting, and finishing
> Beverly Ann Cosmetics has created two new perfumes: Summer Passion and Ocean Breeze. It costs $5.25 to purchase the fragrance needed for each bottle of Summer Passion and $4.70 for each bottle of Ocean Breeze. The marketing department has stated that at
> Worley Fluid Supplies produces three types of fluid-handling equipment: control valves, metering pumps, and hydraulic cylinders. All three products require assembly and testing before they can be shipped to customers.A total of 3,150 minutes of assembly
> Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $20.50, $34.00, and $42.00, respectively. The projected monthly sales are as follows:The production process consists of three prim
> Use the Histogram tool to construct a frequency distribution of lunch sales amounts in the Restaurant Sales database
> Marketing managers have various media alternatives, such as radio, TV, magazines, and so on, in which to advertise and must determine which to use, the number of insertions in each, and the timing of insertions to maximize advertising effectiveness withi
> Pavlick Products supplies a key component for automobile interiors to U.S. assembly plants. The components can be manufactured in China or Mexico. Unit cost in China is $333, and the unit cost in Mexico is $350. However, shipping costs per 500 units are
> Jason Wright is a part-time business student who would like to optimize his financial decisions. Currently, he has $16,000 in his savings account. Based on an analysis of his take-home pay, expected bonuses, and anticipated tax refund, he has estimated h
> An international graduate student will receive a $28,000 foundation scholarship and reduced tuition. She must pay $1,500 in tuition for each of the autumn, winter, and spring quarters, and $500 in the summer. Payments are due on the first day of Septembe
> An employer is considering negotiating its pricing structure for health insurance with its provider if there is sufficient evidence that customers will be willing to pay a lower premium for a higher deductible. Specifically, they want at least 30% of the
> Reddy & Rao (R&R) is a small company in India that makes handmade artistic chairs for commercial businesses. The company makes four models. The time required to make each of the models and cost per chair is given below.R&R employs four people
> Raturi Chemicals Inc., produces four industrial chemicals with variable production costs of $9.00, $6.75, $5.25, and $7.50 per pound, respectively. Because of increasing supplier costs, the variable cost of each of the products will increase by 6% at the
> Mirza Manufacturing makes four electronic products, each of which comprises three main materials: magnet, wiring, and casing. The products are shipped to three distribution centers in North America, Europe, and Asia. Marketing has specified that no locat
> Roberto’s Honey Farm in Chile makes five types of honey: cream, filtered, pasteurized, mélange (a mixture of several types), and strained, which are sold in 1-kilogram or 0.5-kilogram glass containers, 1-kilogram and 0.75-k
> Liquid Gold, Inc., transports radioactive waste from nuclear power plants to disposal sites around the country. Each plant has an amount of material that must be moved each period. Each site has a limited capacity per period. The cost of transporting bet
> Use the COUNTIF function to construct a frequency distribution of the types of loans in the Excel file Credit Risk Data and develop a column chart to express the results visually
> Kelly Foods has two plants and ships canned vegetables to customers in four cities. The cost of shipping one case from a plant to a customer is given in the following table.The plant in Akron has a capacity of 2,800 cases per week, and the Evansville pla
> Janette Douglas is coordinating a bake sale for a nonprofit organization. The organization has acquired $2,200 in donations to hold the sale. The following table shows the amounts and costs of ingredients used per batch of each baked good.One batch of ea
> Classify the following descriptions of constraints as bounds, limitations, requirements, proportional relationships, or balance constraints:a. Each serving of chili should contain a quarter pound of beef.b. Customer demand for a cereal is not expected to
> For the Valencia Products model in Problem 1, graph the constraints and identify the feasible region. Then identify each of the corner points and show how increasing the objective function value identifies the optimal solution.In Problem 1Valencia Produc
> The Excel file Room Inspection provides data for 100 room inspections at each of 25 hotels in a major chain. Management would like the proportion of nonconforming rooms to be less than 2%. Test an appropriate hypothesis to determine if management can mak
> Implement the linear optimization model that you developed for the investment scenario in Problem 4 in Excel and use Solver to find an optimal solution. Save the Answer and Sensitivity reports in your Excel workbook. Interpret the Solver Answer report an
> Implement the linear optimization model that you developed for Burger Office Equipment in Problem 3 in Excel and use Solver to find an optimal solution. Interpret the Solver Answer report and identify the binding constraints and verify the values of the
> Implement the linear optimization model that you developed for ColPal Products in Problem 2 in Excel and use Solver to find an optimal solution. Interpret the Solver Answer report and identify the binding constraints and verify the values of the slack va
> Implement the linear optimization model that you developed for Valencia Products in Problem 1 in Excel and use Solver to find an optimal solution. Interpret the Solver Answer report and identify the binding constraints and verify the values of the slack
> Malloy Milling grinds calcined alumina to a standard granular size. The mill produces two different size products from the same raw material. Regular Grind can be produced at a rate of 10,000 pounds per hour and has a demand of 400 tons per week with a p
> The Morton Supply Company produces clothing, footwear, and accessories for dancing and gymnastics. They produce three models of pointe shoes used by ballerinas to balance on the tips of their toes. The shoes are produced from four materials: cardstock, s
> The Excel file Credit Risk Data provides information about bank customers who had applied for loans. The data include the purpose of the loan, checking and savings account balances, number of months as a customer of the bank, months employed, gender, mar
> Bangs Leisure Chairs produces three types of handcrafted outdoor chairs that are popular for beach, pool, and patios: sling chairs, Adirondack chairs, and hammocks. The unit profit for these products is $35, $75, and $100, respectively. Each type of chai
> Figure 13.35 shows the Solver sensitivity report for the investment scenario in Problem 4. Using only the information in the sensitivity report, answer the following questions.Figure 13.35Sensitivity Report for Investment Problema. How much would the ret
> Figure 13.34 shows the Solver sensitivity report for the Burger Office Equipment scenario in Problem 3. Using only the information in the sensitivity report, answer the following questions.Figure 13.34Sensitivity Report for Burger Office Equipmenta. Expl
> The Excel file Sales Data provides data on a sample of customers. An industry trade publication stated that the average profit per customer for this industry was at least $4,500. Using a test of hypothesis, do the data support this claim or not?
> Develop a procedure to sample from the probability distribution of two-card hands in Problem 2. Implement your procedure on a spreadsheet and use the VLOOKUP function to sample 20 outcomes from the distribution.In Problem 2Consider the experiment of draw
> Develop a procedure to sample from the probability distribution of two-card hands in Problem 2. Implement your procedure on a spreadsheet and use the VLOOKUP function to sample 20 outcomes from the distribution.In Problem 2Consider the experiment of draw
> Develop a procedure to sample from the probability distribution of soft-drink choices in Problem 1. Implement your procedure on a spreadsheet and use the VLOOKUP function to sample 10 outcomes from the distribution.In Problem 1Lauren drinks a variety of
> A supplier contract calls for a key dimension of a part to be between 1.96 and 2.04 centimeters. The supplier has determined that the standard deviation of its process, which is normally distributed, is 0.04 centimeter.a. If the actual mean of the proces
> The distribution of the SAT scores in math for an incoming class of business students has a mean of 590 and standard deviation of 22. Assume that the scores are normally distributed.a. Find the probability that an individual’s SAT score is less than 550.
> In determining automobile-mileage ratings, it was found that the mpg (X) for a certain model is normally distributed, with a mean of 33 mpg and a standard deviation of 1.7 mpg. Find the following:a. P(X < 30)b. P(28 < X < 32)c. P(X > 35)d. P(X > 31)e. Th
> A contractor has estimated that the minimum number of days to remodel a bathroom for a client is 10 days. He also estimates that 80% of similar jobs are completed within 18 days. If the remodeling time is uniformly distributed, what should be the paramet
> The time required to play a game of Battleship™ is uniformly distributed between 15 and 60 minutes.a. Find the expected value and variance of the time to complete the game.b. What is the probability of finishing within 30 minutes?c. What is the probabili
> Verify that the function corresponding to the following figure is a valid probability density function. Then find the following probabilities:a. P(x b. P(x > 7)c. P(6 d. P(8 ,,,
> The number and frequency of Atlantic hurricanes annually from 1940 through 2012 is shown here.Number _________Frequency0 …………………………………………. 51 …………………………………………. 162 …………………………………………. 193 …………………………………………. 144 …………………………………………. 35 …………………………………………. 56 …………
> Suppose that a company offers quantity discounts. If up to 1000 units are purchased, the unit price is $10; if more than 1000 and up to 5000 units are purchased, the unit price is $9; and if more than 5000 units are purchased, the unit price is $7.50. De
> A financial consultant has an average of 7 customers he consults with each day, which are assumed to be Poisson distributed. The consultant’s overhead requires that he consult with at least 5 customers in order that fees cover expenses. Find the probabil
> A telephone call center where people place marketing calls to customers has a probability of success of 0.08. The manager is very harsh on those who do not get a sufficient number of successful calls. Find the number of calls needed to ensure that there
> A popular resort hotel has 300 rooms and is usually fully booked. About 6% of the time a reservation is canceled before the 6:00 p.m. deadline with no penalty. What is the probability that at least 280 rooms will be occupied? Use the binomial distributio
> During 1 year, a particular mutual fund has outperformed the S&P 500 index 33 out of 52 weeks. Find the probability that this performance or better would happen again
> If a cell phone company conducted a telemarketing campaign to generate new clients and the probability of successfully gaining a new customer was 0.07, what is the probability that contacting 50 potential customers would result in at least 5 new customer
> The Excel file Call Center Data shows that in a sample of 70 individuals, 27 had prior call center experience. If we assume that the probability that any potential hire will also have experience with a probability of 27/70, what is the probability that a
> An airline tracks data on its flight arrivals. Over the past 6 months, 50 flights on one route arrived early, 150 arrived on time, 25 were late, and 45 were canceled.a. What is the probability that a flight is early? On time? Late? Canceled?b. Are these
> Students in the new MBA class at a state university has the following specialization profile:Finance—67Marketing—45Operations and Supply Chain Management—51Information Systems—18Find the probability that a student is either a finance or marketing major.
> Roulette is played at a table similar to the one in Figure 5.36. A wheel with the numbers 1 through 36 (evenly distributed with the colors red and black) and two green numbers 0 and 00 rotates in a shallow bowl with a curved wall. A small ball is spun on
> Refer to the coin scenario described in Problem 3.a. Let A be the event “exactly 2 heads.” Find P(A).b. Let B be the event “at most 1 head.” Find P(B).c. Let C be the event “at least 2 heads.” Find P(C).d. Are the events A and B mutually exclusive? Find
> 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. Your table should display as follows, and the formula for the amount should reference the name
> The Excel file Science and Engineering Jobs shows the number of jobs in thousands in the year 2000 and projections for 2010 from a government study. Use the Excel file to compute the projected increase from the 2000 baseline and also the percentage incre
> On October 1, Year 1, Nicholes Corporation declared a $50,000 cash dividend to be paid on December 15 to shareholders of record on November 1. Required: a. Record the events occurring on October 1, November 1, and December 15 in a horizontal statements
> Rice Corporation issued 10,000 shares of no-par common stock for $25 per share. Rice also issued 3,000 shares of $40 par, 6 percent noncumulative preferred stock at $42 per share. Required: a. Record these events in a horizontal statements model like th
