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Central Tendency

EOQ/Moving Averages/Trend Projections

Please assist our study group by correctly answering the following study questions: 1. Sensitivity analysis of EOQ refers to: a. the attitude of top management toward the use of the EOQ model b. an assessment of the impact of obsolescence upon the EOQ c. analysis of how much the EOQ will change when other variable c


1. The annual demand for a product is 1,000 units. The company orders 200 units each time an order is placed. The lead-time is 6 days, and the company has determined that 20 unites should be held as a safety stock. There are 250 working days per year. What is the reorder point? a. 20 b. 24 c. 44 d. 120 2. Mark A

Case Problem: "Forecasting Food and Beverage Sales"

The Vintage Restaurant is on Captiva Island, a resort community near Fort Myers, FL. The restaurant, which is owned and operated by Karen Payne, has just completed its third year of operation. During that time, Karen has sought to establish a reputation for the restaurant as a high-quality dining establishment that specializes i

Expected value of perfect information

The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. low medium high # of workers compliance compliance compliance 1 50 50 50 2 100 60 20 3 150 70 -10 If he thinks the chances o

Comparing different forecasting methods and choosing the best

Emily Andrews has invested in a science and technology mutual fund. Now she is considering liquidating and investing i another fund. She would like to forecast the price of the science and technology fund for the next month before making a decision. She has collected the following data on the average price of the fund during th

Determine the idle time costs for each alternative, and make a recommendation

1. You are asked to evaluate a manufacturing queuing problem. The higher priced mechanics always seem to be waiting on the lower priced tool crib clerks for necessary parts. The mechanics, at $20.00 per hour wage, arrive randomly at the tool crib every 5 minutes. It takes the tool crib clerk, at $10.00 per hour wage, an average

Net present values, investment requirements, discount rates.

1. You just won the lottery and want to put some money away for your child's college education. College will cost $65,000 in 18 years. You can earn 8% compounded annually. How much do you need to invest? Answer 2. You just won the lottery. You and your heirs will receive $25,000 per year forever, beginning one year from now.

Expected spot rate

One year interest rates are currently 3.30% in the U.S and 2.60% in "Euroland. The current spot rate between the euro and dollar is 1.3225/. What is the expected spot rate in one year if the international Fisher effect holds?

Determination of expected value of a random variable

Harrington Health Food stocks 5 loaves of Neutro-Bread. The probability distribution for the sales of Neutro-Bread is listed in the following table. How many loaves will Harrington sell on average? Number of Loaves Sold Probability 0

Joint Density Function

See attached file for full problem description. No. 4 only If the joint density function of X and Y is given by f(x,y) = 2(x + 2y)/7, 0 <x < 1, 1 < y < 2 Find the expected value of g(X, Y) = x^2/Y^3 + XY^2

Exponential Smoothing and Moving average technique

1. Given the following data on hotel check-ins for a 6-month period: July: 45 rooms August: 36 rooms September: 52 rooms October: 48 rooms November: 56 rooms December: 60 rooms With alpha = 0.2 and beta = 0.1, what is the adjusted exponentially smoothed forecast for September? Put your answer in the form xx.xx with no

Trying to calculate expected revenue and variance of the revenue

Suppose that a company produces three different products. The sales for each product are independent of the sales for the others. Product Price Expected Unit sales Variance of Unit Sales A $3.50 2000 1000 B $2.00 10000 6400 C $1.87 8500 1150 1. What are the expected r

Calculating EVPI based on a decision tree

I'm absolutely lost on how to figure out EVPI using a decision tree. I've attached the decision trees for two items (labeled figure 12.11, 12.12) and I am trying to calculate expected value of perfect information for each tree. I don't know how to set this up manually and the PrecisionTool software for use with Excel that c

Queuing models :minimize expected total cost per hour

The Decision Sciences Department is trying to determine whether to rent a slow or fast copier. The department believes that an employee's time is worth $15 an hour. The slow copier rents for $4 per hour, and it takes an employee an average of 10 minutes to complete copying. The fast copier rents for $15 per hour, and it takes an

Mean and Mode Observations

(a) Determine the median and (b) the mode. 10 observations and no two values were the same? 6 observations and they were all the same? 6 observations and the values were 1, 2, 3, 3, 4, and 4? The following are the ages of the 10 people in the video arcade at the Southwyck Shopping Mall at 10 A.M. this morning.

Operations Research : Stochastic single period model to maximize expected profit.

The management of Alaska Airlines has decided to base its overbooking policy of a stochastic single period model to maximize expected profit. This policy now needs to be implemented on a new flight from Seattle to Atlanta. The aircraft has 125 seats available for a one-way fare of $250. However, since there are commonly a few no

Determining percentiles, quartiles and deciles

(See attached file for full problem description and data) Determine the median number of calls Determine the first and third quartiles Determine the first decile and the ninth decile Determine the 33rd percentile

Decision Analysis Questions

All questions have been answered. I just need someone to check the accuracy of my answers. Thank you. True/False Indicate whether the sentence or statement is true or false. T 1. A state of nature is an actual event that may occur in the future. F 2. The maximin criterion results in the maximum

Expected Frequency/independence of attributes

Problem 12.1 For this problem use the following contingency table: A B Total 1 20 30 50 2 30 45 75 Total 50 75 125 a. Find the expected frequency for each cell. ? ANSWER: b. Compare the observed and expected frequencies in each cell. ? ANSWER: c. Compare the X2 statistic. Is it significant at alpha (&#6

Moving averages

When using moving averages, what is the effect on your data set as you increase the number of periods being averaged?

Quantitative Methods (5 Stats Problem)

I need help with the included statistics problems. These are practice problems and I am unable to get a good grasp in this area. 11. Given the following data on the number of pints of ice cream sold at a local ice cream store for a 6-period time frame: Period Demand 1 200 2


Problem 1 Suppose the expected returns and standard deviations of stocks A and B are E(RA) = 0.17, E(RB) = 0.27, &#963;A = 0.12, and &#963;B = 0.21, respectively. a. Calculate the expected return and standard deviation of a portfolio that is composed of 35% A and 65% B when the correlation between the returns on A and B is 0.

Discussing the Distribution of a Data Population

There are several measures of central tendency. By far the most frequently utilized of these measures is the mean of a population. Remember that the source of the data that you want to analyze always comes from what is called a population. If you are interested in the average high temperature in your area for the month of July,