Practical Management Science
5th Edition
ISBN: 9781305250901
Author: Wayne L. Winston, S. Christian Albright
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7.6, Problem 28P
Summary Introduction
To rank: The teams from the best to worst.
Non-linear programming (NLP):
Non-linear programming (NLP) is used in complex optimization problems where the objectives or constraints or sometimes both are non-linear functions of the decision variables. A model can be termed as non-linear for more than one reason.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
39-40 .The following table contains the parameter estimates of the linear probability regression model and the logistic regression
model. When considering a binary response variable y and two predictor variables, x1 and x2, What is the estimated linear
probability implied by the logistic probability regression model for x1 = 3 with x2 = 9?
Variable
Intercept
X₁
x2
O 0.35
O 1.87
-0.35
-0.87
Linear
Probability
-0.76
0.43
-0.02
Logistic
-1.12
0.85
-0.18
Linear Regression
The file Housedata.xlsx (pasted below) gives the square footage and sales prices for several houses in
Bellevue, Washington. Use this file to answer the following questions (13-15):
Value
Square Footage
2000
2200
2400
3000
3200
3600
2900
238139.4
259712
300953.7
369965.7
340091.3
405425
345131
13. You plan to build a 500-square-foot addition to your house. How much do you think your home
value will increase as a result?
14. What percentage of the variation in home value is explained by the variation in the house size?
15. A 3,000-square-foot house is listed for $500,000. Is this price out of line with typical real estate
values in Bellevue? What might cause this discrepancy?
The manager wants to forecast the month 6's sales using the following historical data:
Months
Month 1
Month 2
Month 3
Month 4
Month 5
Sales
20
25
32
35
38
Please use the weight 0.45 for Month 5, weight 0.25 for Month 4, weight 0.2 for Month 3, and
weight 0.1 for Month 2 to use the weighted moving average to forecast the demand of Month 6.
Month 5 = 0.1*(25) +0.2*(32) + .25* (35) divided by 0.1 +0.2 +1.25 -17.65/0.55 = 32.09
Month 6= 0.1* (25) +0.2* (32) +0.25 (35) +0.45* (38) divided by 0.1 +0.2+0.45 = 34.75
Chapter 7 Solutions
Practical Management Science
Ch. 7.3 - Prob. 1PCh. 7.3 - Prob. 2PCh. 7.3 - Pricing Decisions at Madison The Madison Company...Ch. 7.3 - Prob. 4PCh. 7.3 - Prob. 5PCh. 7.3 - Prob. 6PCh. 7.3 - Prob. 7PCh. 7.3 - Prob. 8PCh. 7.3 - Prob. 9PCh. 7.3 - Prob. 10P
Ch. 7.3 - Prob. 11PCh. 7.3 - Prob. 12PCh. 7.3 - Prob. 13PCh. 7.3 - PRICING SUITS AT SULLIVANS Sullivans is a retailer...Ch. 7.3 - Prob. 15PCh. 7.4 - Prob. 16PCh. 7.4 - Prob. 17PCh. 7.4 - Prob. 18PCh. 7.4 - Prob. 19PCh. 7.4 - Prob. 20PCh. 7.4 - Prob. 21PCh. 7.4 - Prob. 22PCh. 7.4 - Prob. 23PCh. 7.5 - Prob. 24PCh. 7.5 - Prob. 25PCh. 7.5 - Prob. 26PCh. 7.5 - Prob. 27PCh. 7.6 - Prob. 28PCh. 7.6 - Prob. 29PCh. 7.6 - Prob. 30PCh. 7.6 - Prob. 31PCh. 7.6 - The method for rating teams in Example 7.8 is...Ch. 7.7 - Prob. 35PCh. 7.7 - Prob. 36PCh. 7.7 - Prob. 37PCh. 7.7 - The stocks in Example 7.9 are all positively...Ch. 7.7 - Prob. 39PCh. 7.7 - Prob. 40PCh. 7.7 - Prob. 41PCh. 7.7 - Prob. 42PCh. 7.8 - Given the data in the file Stock Beta.xlsx,...Ch. 7.8 - Prob. 44PCh. 7 - Prob. 45PCh. 7 - Prob. 46PCh. 7 - Another way to derive a demand function is to...Ch. 7 - Prob. 48PCh. 7 - If a monopolist produces q units, she can charge...Ch. 7 - Prob. 50PCh. 7 - Prob. 51PCh. 7 - Prob. 52PCh. 7 - Prob. 53PCh. 7 - Prob. 54PCh. 7 - Prob. 55PCh. 7 - Prob. 56PCh. 7 - A beer company has divided Bloomington into two...Ch. 7 - Prob. 58PCh. 7 - Prob. 59PCh. 7 - Prob. 60PCh. 7 - Prob. 61PCh. 7 - Prob. 62PCh. 7 - Prob. 63PCh. 7 - Prob. 64PCh. 7 - Prob. 65PCh. 7 - Prob. 66PCh. 7 - Prob. 67PCh. 7 - Prob. 68PCh. 7 - Prob. 69PCh. 7 - Prob. 70PCh. 7 - Based on Grossman and Hart (1983). A salesperson...Ch. 7 - Prob. 73PCh. 7 - Prob. 74PCh. 7 - Prob. 75PCh. 7 - Prob. 76PCh. 7 - Prob. 77PCh. 7 - Prob. 78PCh. 7 - Prob. 79PCh. 7 - Prob. 80PCh. 7 - Prob. 81PCh. 7 - Prob. 82PCh. 7 - Prob. 83PCh. 7 - Prob. 84PCh. 7 - Prob. 85PCh. 7 - Prob. 86PCh. 7 - Prob. 1.1CCh. 7 - Prob. 1.2CCh. 7 - Prob. 1.3CCh. 7 - Prob. 1.4C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- In a software project a task is scheduled to take 5 days to complete and each of the 5 days are equal. Each day of the 5-day task is scheduled to cost $100. At the end of the 5 days, you determine that only 3 days of the task are complete. A report tells you that he actual cost for the 5 days of effort but only 3 completed days of work was $400. Calculate the values in the following table using the given data of the project : The cost performance index The scheduled variance The schedule performance index At the current rate of progress, the task will complete at about (ETC) The estimated cost at completion (EAC)arrow_forwardTime series decomposition seeks to separate the time series (Y) into 4 components: trend (T), cycle (C), seasonal (S), and irregular (I). What is the difference between these components? The model can be additive or multiplicative. When we do use an additive model? When do we use a multiplicative model? We have different ways of showing and projecting trends in a time series. the three most common are moving averages, exponential smoothing and our new friend regression analysis. How might any of these be used? Have you seen any in use?arrow_forwardThe following data is given x 0.2 0.5 1 2 3 y 3 2 1.4 1 0.6 Using the transformed linear regression, which are m and b in the function 1/(mx+b) ? Group of answer choices m=0.5842, b=0.4 m=0.4488, b=0.2415 m=1.5, b=2.5 m=1, b=2.4 m=0.8173, b=0.4450arrow_forward
- In the original OJ Simpson trial, it was accepted that OJ had battered his wife. OJ’s lawyer tried to negate the impact of this information by stating that in a one-year period, only 1 out of 2500 battered women are murdered, so the fact that OJ battered his wife does not give much evidence that he was the murderer. The prosecution (foolishly!) let this go unchallenged. Here are the relevant statistics: In a typical year 6.25 million women are battered, 2500 are battered and murdered, and 2250 of the women who were battered and murdered were killed by the batterer. How should the prosecution have refuted the defense’s argument?arrow_forwardA textbook publisher for books used in business schools believes that the number of books sold is related to the number of campus visits to decision makers made by their sales force. A sampling of the number of sales calls made and the number of books sold is shown in the following table. NUMBER OF SALES CALLS MADE 25 15 25 45 35 25 25 35 25 15 NUMBER OF BOOKS SOLD 375 250 525 825 550 575 550 575 400 400 a. Plot the data in excel and generate the linear regression model. b. What percent in the variation of the variable Books Sold is explained by the value of the variable Sales Calls Made? c. For every sale call made, the number of books sold increases by how much? d. In order to realize the sale of 700 books, how many sales calls will the sales representative have to make?arrow_forwardAn important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. - Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume.- What is the variable cost per unit produced?- Compute the coefficient of determination. What percentage of the variation in total cost can be explained by production volume?- The company’s production schedule shows 500 units must be produced next month. Predict the total cost for this operation.arrow_forward
- Company XYZ is specialized in producing and selling smart watches. The company currently has two products and is planning to improve it profits in the coming years. The company is thinking of introducing a sales commission to encourage its sales people to make more sales and improve company's profitability. When designing the sales commission the company should base the sales commission on: O a. None of the given answers O b. The selling price O c. The color of the product d. The contribution margin O e. The number of employees 14:02 W A a d0) ENG 15-04-2021 re to search hp prt sc end pg up delete home 40 96 & num 2$ backspace lock 3 6. 8. V. 8 A E R U home to 4 į 5 0 enter D G J K L. pause 1 shift 2 C end alt ctrl insarrow_forwardThe file P14_01.xlsx contains data on 100 consumers who drink beer. Some of them prefer light beer, and others prefer regular beer. A major beer producer believes that the following variables might be useful in discriminating between these two groups: gender, marital status, annual income level, and age. a. Use logistic regression to classify the consumers on the basis of these explanatory variables. How successful is it? Which variables appear to be most important in the classification? b. Consider a new customer: Male, Married, Income 42,000, Age 47. Use the logistic regression equation to estimate the probability that this customer prefers Regular. How would you classify this person?arrow_forwardThe management of a technology company is trying to determine the variable that best explains the variation of employee salaries using a sample of 52 full-time employees; see the file P13_08.xlsx. Estimate simple linear regression equations to identify which of the following has the strongest linear relationship with annual salary: the employees gender, age, number of years of relevant work experience prior to employment at the company, number of years of employment at the company, or number of years of post secondary education. Provide support for your conclusion.arrow_forward
- An automobile manufacturer is considering whether to introduce a new model called the Racer. The profitability of the Racer depends on the following factors: The fixed cost of developing the Racer is triangularly distributed with parameters 3, 4, and 5, all in billions. Year 1 sales are normally distributed with mean 200,000 and standard deviation 50,000. Year 2 sales are normally distributed with mean equal to actual year 1 sales and standard deviation 50,000. Year 3 sales are normally distributed with mean equal to actual year 2 sales and standard deviation 50,000. The selling price in year 1 is 25,000. The year 2 selling price will be 1.05[year 1 price + 50 (% diff1)] where % diff1 is the number of percentage points by which actual year 1 sales differ from expected year 1 sales. The 1.05 factor accounts for inflation. For example, if the year 1 sales figure is 180,000, which is 10 percentage points below the expected year 1 sales, then the year 2 price will be 1.05[25,000 + 50( 10)] = 25,725. Similarly, the year 3 price will be 1.05[year 2 price + 50(% diff2)] where % diff2 is the percentage by which actual year 2 sales differ from expected year 2 sales. The variable cost in year 1 is triangularly distributed with parameters 10,000, 12,000, and 15,000, and it is assumed to increase by 5% each year. Your goal is to estimate the NPV of the new car during its first three years. Assume that the company is able to produce exactly as many cars as it can sell. Also, assume that cash flows are discounted at 10%. Simulate 1000 trials to estimate the mean and standard deviation of the NPV for the first three years of sales. Also, determine an interval such that you are 95% certain that the NPV of the Racer during its first three years of operation will be within this interval.arrow_forwardSuppose that a regional express delivery service company wants to estimate the cost of shipping a package (Y) as a function of cargo type, where cargo type includes the following possibilities: fragile, semifragile, and durable. Costs for 15 randomly chosen packages of approximately the same weight and same distance shipped, but of different cargo types, are provided in the file P13_16.xlsx. a. Estimate a regression equation using the given sample data, and interpret the estimated regression coefficients. b. According to the estimated regression equation, which cargo type is the most costly to ship? Which cargo type is the least costly to ship? c. How well does the estimated equation fit the given sample data? How might the fit be improved? d. Given the estimated regression equation, predict the cost of shipping a package with semifragile cargo.arrow_forwardThe file P13_27.xlsx contains yearly data on the proportion of Americans under the age of 18 living below the poverty level. a. Create a time series chart of the data. Based on what you see, which of the exponential smoothing models do you think will provide the best forecasting model? Why? b. Use simple exponential smoothing to forecast these data, using a smoothing constant of 0.1. c. Repeat part b, but search for the smoothing constant that makes RMSE as small as possible. Create a chart of the series with the forecasts superimposed from this optimal smoothing constant. Does it make much of an improvement over the model in part b? d. Write a short report to summarize your results. Considering the chart in part c, would you say the forecasts are good?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,