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Central Tendency

Comparing forecasting methods and choosing the best one

The Fastgro Fertilizer Company distributes fertilizer to various lawn and garden shops. The company must base its quarterly production schedule on a forecast of how many tons of fertilizer will be demanded from it. The company has gathered the following data for the past three years from its sales records. Year

Find the value of p based on expected returns

2. If p is the probability of Event 1 and (1-p) is the probability of Event 2, based on the expected returns, for what values of p would you choose A? B? C? Values in the table are payoffs. Choice/Event Event 1 Event 2 A 0 20 B 4 16 C 8 0 (Here are some hints for solving this question, since it's somewhat chall

Quantitative Methods

The Ramshead Pub sells a large quantity of beer every Saturday. From the past sales records the pub has determined the following probabilities for sales. Compute the expected number of barrels that will be sold on Saturday. Barrels Probability 6 .10 7

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.

Mean, Median for Owens Orchards apple data

Owens Orchards sells apples in a large bag by weight. A sample of seven bags contained the following numbers of apples: 23, 19, 26, 17, 21, 24, 22. 1. Compute the mean number and median number of apples in a bag. 2. Verify that S (X - X) = 0.

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

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

H0, H1, Decision Rule and Decision

The South Carolina Real Estate Association claims that the median rental for three-bedroom condominiums in a metropolitan area is more than $1,200 a month. To check this, a random sample of 149 units was selected. Of the 149, 5 rented for exactly $1,200 a month, and 75 rented for more than $1,200. At the .05 level can we conclud

Beta, Risk Free Rate and Expected Return

Holup, Inc., makes pneumatic equipment. The beta of Holup's stock is 1.2. The expected market risk premium is 8.5 percent, and the current risk-free rate is 6 percent. Assume the capital-asset-pricing model holds. What is the expected return on Holup's stock?

Decision making: Expected value

Suppose that a bakery specializes in chocolate cakes. Assume the cakes retail at $18 per cake, but it takes $8 to prepare each cake. Cakes cannot be sold after one week, and they have a negligible salvage value. It is estimated that the weekly demand for cakes is: 15 cakes in 15% of the weeks, 16 cakes in 25% of the weeks, 17 ca

Expected value of a random variable problem

3. Let X be a discrete random variable with Pr {X = i} = ci for positive, even integers i <= 12; otherwise, the probability is zero, (a) Compute the value of c. (b) What is the mean of X? (c) What is the second moment of X? (d) What is the variance of X? (e) Compute E[(X ? 5)+] where x+ is defined to be max(x,0).

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

What is the expected return?

The following payoff matrix is given in dollars: Event Probability Action A Action B 1 0.5 400 700 2 0.5 200 500 The coefficient of variation for Action A is A. 12.8% B. 33.3% C. 133.33% D. 333.33%

Exponentially weighted moving average for purpose of forecasting

When using the exponentially weighted moving average for purposes of forecasting rather than smoothing A. the previous smoothed value becomes the forecast B. the current smoothed value becomes the forecast C. the next smoothed value becomes the forecast D. None of the above

Four-quarter weighted moving average for the number of America

Calculate a four-quarter weighted moving average for the number of America Online (AOL) subscribers for the nine quarters of data. The data are reported in thousands. Apply wights of .1, .2, .3 and .4, respectively, for the quarters. In a few words, describe the trend in the number of subscribers.

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

Statistics: Central Tendency Problems

For each group of scores below, determine the following: (a) mean, (b) median, (c) variance, and (d) standard deviation. Set A: 32, 28, 24, 28, 28, 31, 35, 29, 26 Set B: 6, 1, 4, 2, 3, 4, 6, 6

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

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

Measure of Central Tendency: Mean, Median, Mode and Probability

1. Each of the three measures of central tendency?the mean, the median, and the mode?are more appropriate for certain populations than others. The textbook gives some examples on page 347. For each type of measure, give two additional examples of populations where it would be the most appropriate indication of central tendency.